The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-17


arose from too hasy an effort 10 restore the coniu-
sion into which the finances had fallen under the
State banks; that OF ISIS was known'to have been
brought upon us by England and was short in dura-
lion and comparatively triling in consequence and
what was that Of 1882 that Is so much harped on Z
Why but for the diligence Of gentlemen in looking
up evidences Of these great rerhistons they would
not have been known or Tecollected ou oi the sea
ports and hardly there He recollecled some short
paragraphs in 1882, abiding rather mdly 10 the
rafting of specie in Wall street !" this continued
few days. about five millions were shipped the
Bank Of the United States drew bills 10 AN equal
amount the foreign creditor was satisfied, and the
panic ended We had then no Executive financier-
Ing, no specie circulars; trade Ten "a LRe Aands
Of s tactm guardians; Speete reat oB rhe" ne rae
Of erch0ags requirtd ~ and, ny ne prompt payment
Of FIRE millions The Bank Of he UHttcd Suites got TIE
aation credit fer the balance rhch cds paid By the
cr0paHd a diminished imB0n.
Yet such had been the nature of the warfare
against the bank, whilst in life and now against It's
shos', n his friend from Connecticut, in the next
breath after having praised the circular, made
furious attack upon the bank, fer interfering irth the
liars Of trpds ~ 1892, aud pTerc1iag Inc crp0f "
SPecte 10 As rho9s 0moHn Of tas foreign dst. How
this argument was 10 b. Teconciled with the specie
circular, and The whole policy and arguments By
which il has been auded and justified, Mr. X. would
leave 10 the Senator and the friends Of that measure
To settle among themselves. This charge against
the bank he thought carried the true doctrine To the
opposite extreme. A demand for cash balance al
ways admonishes the nation tha, IL has over-tradcd
and unless il has the whole amount 10 spare, il Is
frequently an advantage 10 pay part and have time
10 adlusi the bIlance He thought then the bank
had done well in 1882 To pay what required in
specie and gel the nation credit for the balance until
the crop Of exports could be sold Ii was frequently
OF an advantage To an individual, he said, when he
had become Unexpectedly indebted 10 pay what
ready money h had, and gel credit Tor the balance
until the sale of his crop; and one advantage OF
national institution was, that its credit always ena-
bed il in such circumstances 70 get Indulgence lor
the aatiOH friend was sometimes useful in getting
credit for an individual Sir said he, the tate oil
this institution most extraordinary Ii Mr..
Biddle expanded, he was brbing the country: if he
contracted, he was running the country il he import
ed specie he was specializing upon the country If he
exported specie, he conSpirng against the coun
try: if he stood up he was mpudent: if he sit down
he was suspicious If he lay down he was useless
and whenever he made move, whether he crossed
above or below the Executive, he equally muddied
the waters
He thought the Senator from Connecticut had
made another mistake in stating that the expansion
OF the bank occaSiened the speculative rise in prices,
and our importatons Of 1881. The over-importation
Prcceded the expansion and the expansion was avOw
edly intended 10 circulate the increase Of commodi-
ties occaSioned by the oyer-importation The spe-
culative rise, and oyer-importaon of 1881 were
owing to cause as natural as the ebb and flow Of
the tides, and almost as periodical They from
the preceding low prices, which had stimulated con
sumption, and exhausted the stocks in 1880 These
fluctuations are always going in every nation 10
some extent, and from the mpossbility of
keeping up, in the extended business Of a nation,
exact relation between supply and demand.
Mr.. Il. said the United States Bank, though no
longer in existence, had been the theme of every
gentleman who had addressed the Senate. He should
say no more of il than necessary 10 Justify and
defend himself and the numerous friends Of the
Administration who had believed in the utility of
that institution His defence fully justified for
0Hh0ngh thai institution r0s established III the demo-
rratic pary every friend of il is placed in sweeping
1TiSf crafts md
Spirators; ranked with the " BiddeS and the Bar
ings, and the banks" and set upon in full cry by
ounces and demagogueS anxious only,to turn aen-
ton from their own miSchieyous blunders and
errors.
When he came to maturity, he said he found the
Bank OF the United States in successful and happy
operation. He learned its history and found that
was established by the party TO which he had always
been attached, with the immortal Madison at their
head, who, after fatal experience, had changed his
opinion on the subject. This paternity recommended
It, but reflection aSwe as experience convinced him
OF It's great utility as financial agent to the Govern
ment, as an aid to Internal and external commerce,
and Z wholesome regulator OF an otherwise unrcgu-
lated paper system As an Originat gaeStOR, he was
and ever had been opposed to the whole paper SvS-
TEN, bat the system certainly had many advantages
in free country, and moreover was fixed upon us
and no one generation either could or would bear
the sacrifices it would cost 10 get rid Of it. And
(added he) the progress we should make in getting
rid of the system and It's abuses BY putting down the
Bank OF the United States, was predicted by. me in
the Senate in 1891 Sir the great Temperance
President, or temperance reiorncr, Mr. Deavan
who sends US so many temperance papers, might
just well have undertaken 10 encourage the cause
Of temperance in which he is engaged, By breaking
up one respectable grocery in Chestnut street that
he might raise up five hundred grog shops in the
Liberties the villages, and the Western Wilderness
RE though il tie part Of wisdom not to waste itself
impracticable extremes but to secure the blessings
OF the system, and avoid many Of lis evils as pos
hp urpS huStp Quad l,,,,
t0nal bank, with he aid of the Treasury The vast
extent OF our country gave full time to such inSt
tuition to lop of redundanceS and fill up Deficiencies
on notice of an rregularitv in the currency in any
particular sections before the effect became general
Il clearly the interest of such an institution 10
perform these dutie, faithfully. Is own successful
operation in a great measure depended on it which
wa the BIS guaranty TO the public that thev would
b. 50 performed. He also believed that the money
u the nation could b. entrusted tn no agency SO liltIc
dangerous 10 liberty or so unlikely to use il for poll
teal purposes. Experience proved the truth Of this
opinion. We had again the best Of all Sccuri,y-tha
is, the security 81 interest IN cng0e, in polyicy ar
UAic aSif wiM p0ticai J0rtg is d,aih 10 the inHi
tnlioa. What evidence had been shown or could
b, shown, that the bank ever hIncd interference
with politics until it supposed the Executive to make
an overture Tor thai purpose In S19 the Executive
commenced correspondence with the bunk to pro-
cure change in the President Of the New fIamp-
shire branch He did not say that any thing nnpro-
per was intended by the Executive, but it was the
HTS III klhu ana llit Dank supposed
it to be attempt enlist il in politics. and unite
the power OF the blnk with the power of the Govern
mcnt. II declined on the ground that the bank never
had and could not now thiu,l of interfering in the
politics Of the country, The rcs is known. The
Message followed with char4" of ha, mob DIV had
ever heard of before, and recommending a + rcaSurv
bank, uniting the power and patronage of a bank to
that of the Government From thai time forth the
Executive continued To struggle for The money power
until it took possession Of il in 1888, bv the removal
Of the dcpo,itcs only mention these facts sir 10
prove the great reluctance with which such an ins-
tuition will always engage in politics. Its interest
requires the custom and friendship Of both political
parties, and II cannot prosper against war by either
The money power OF the Treasury is great let it be
lodged where il will; but for he reasons stated |
believe it is less in a national b1nk conaccicd uiM