The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-14

piled as promptly and eAedpiy they hare heretofore
been by ne Bank Of The United States II he seueraL
States StqH be induced gradually 10 reform their bank
ing systems and prohibit The issue Of NOTES
pe MqH in a fer years hare currency as sound and
as lite tqbk 10 Fluctuations as any otsr commercial
c0natryh
In his annual message Of December 1885, Gen.
Jackson said:
an is also asesrqiaed that iasead Of bling msccssa
rity 1ds 10 promote s cpiis of an uRchscked paper
system, Ms management Of The reueaHs be made
auritiury 10 s reofm ghieh The Legislatures Of SIRE
raj Of s Stats hare aire0dy commsacd in regard 10
10 he suppression Of small bills and iohich has only
10 be fosred By proper regulations The part of Con-
gresS 10 sscursa practical return 10 & eent required
for III security of hs currency 10 he constitutional
m:ditm S'Usred from hs Gorer,sa,sM as political
eagiass and not suscsptiJso Of dangerous esRsona and
continuation, III Stat Banks trH not b. tsmpt'd
cW sy hare he potcsr irhich haze ersrcissd
10 drsrt the puJtc funds from The legitimate purposes
eth: G10Tha'n. Tts COLLECTION and custody Of The
rcrsans bang, tis contrary, source Of credit 10
Hsm ,ciu tacteass the security irhica ts Stats pro-
ride FIR faithfut cr'cHoa Of ttsir trusts y multi
plying Na ScrutteS 10 chca Ltsr opsrattoaS and
counts lciH b. sn5lscted Thus disposed as rel from
Interest as e obligations Of heir charters, IL cannot
be dobed tint such conditions as Congress may see fl
10 0doPt respecting he PositeS IN these Institutions
arh gielc 10 the gr0daat disuss ftas small bills ciH
BE- chssrtuAy complied frith and that tr2 shall
gain, IL place Of The Bank 81 tts United States, a
practical reform IN he toA0s papar system Of The coun
Try, If 6v this poyicy zoe caa ultimately ir'tness the
Suppression Of ali baak bills beto,c hcsaty dollars, is
apparent hat gold and sioer wia tate placs and
become tte principal circulating medium III ne
mon business Of The farmers and mechanics Of The eoua
tru The ATTAINMENT Of such RESULT Will
an in the history of orr country which will be
dwell upon with DELIGHT BY EVERY true friend 81 It's
lib 'rtv and INDEPENDENCE, II VIII tighten me gre
tax which our paper system has so long collected
from The earnings of labor, ard do more 10 revive
and perpetuate those habits Of economy and Sirnpli-
CITY which are congenill to the charac er OF re-
publcans than all the legislation which has ye been
attempted.
This plln will so imperceptibly retrieve the paper
and in reduce The met llc circulation to produce.
no. he slightest shock emb rrassment in the COM
mercc and Business of the country, reduction in
the value OF properly. Property, the value OF which
has been regulated by the present currency, will re-
tain It's existing standard and the country gradually
recover from its depressed and runous condition.
Il may be argued thai the full excess OF paper cir
culaton win be kept up by the enlarged issues OF
notes of the larger ACKNOWLEDGEMENTS cannot be so.
The commerce and business OF the country can only
bear fixed amount Of circulation-all excesses must
and will BE- reduced fixed amount OF money can
only b. necessary to the commerce and business OF
the country Of that fixed amount, as specie is en-
largad 81 must paper BE- reduced, and as specie IS
reduced must paper b. enlarged as the plan which
propose requires mixed circulation OF metal and
paper propose TO reach such proportion OF the
metallic, will make certain the convertibillty OF
paper INFO specie which will always secure sound
currency. These are the objects which have in
view, and confidently believe the scheme which l
have offered, will effect il. .....
Mr.. Chairman, this bill firmly believe, with
the aid of some provisions which may be attached 10
it, adapted to the present emergency, is well calcu
lated speedily to remove the emblrraSsments OF the
country. Sir, as have argued confluence is all that
is necessary TO en- bic the blnks in short time, to
specie payments, this bill extends that conf
dence holds out 10 them strong inducement to re-
sumo and promises restoration OF their hscal
agency that resumption. This, sir, is better than
all your penalties and all your divorces
Nj Chiirmln / well know that to effect the objects
of reform which all desire, the aid of the State Go
vernments must BE- invoked. This aid do not doubt
will be afforded, not only from considerations of
patriotism, but OF Interests for every State IS deeply
and importantly interested in securing sound cur
renew both as relates to their own domestic concerns
and their commercial connection with the Other
States They cannot fourish-ihey cannot prosper
without it, and this Is guarantee that as the errors
in their systems develope themselves they will cor
rect them Sir do not doubt that they will perform
their duty to themselves and to the nation.
Mr.. Chairman, have heard much play and much
emphasis upon the term dir0rce Of Bank and State.
Ii is calculated call up those feelings of adherence
against the union OF Church and State, OUT of which
much mischief to the lives and liberties OF man
kind has grown, which the people OF the United
States so Justly entertain Sir, are not these insu-
tons the very creation of Government Did not
Government impar to them form, substance, and
action; and now We are to divorce the Government
from them! know, sir, that these institutions were
all their powers are buried in the powers Of this
Government; they were created by Governments
having the power to do So This political connec-
tion much desecrated and ;bhorred in these latter
days. is as dangerous to the State Governments as to
this yet the States do not find 1t necessary to destroy
their banking institutions and am sure, will defend
them against the reckless now waged against
them. Sir, this term dirorce will not take-you had
as we'll talk of divorce between man and wife,
while they are indisposed 10 it.
One word more in relation TO The suspension of
specie payments by the banks, 10 show the proprety
and wisdom of the measure When the suspension
took place, il supposed by many, perhaps by
most persons, that upon its being known in England,
there would be immediate prostraiion of the COM
mercial credit of the United States, and, as conse
quencc the destruction of the houses in England,
commonly known by the name Of the American
Houses. But no such thing happened Confidence
not diminished but improved. They saw the
thing at once in its true light-they saw it was
measure Of relief to the merchants of the United
States, which would give them time to gather in
their resources, and finally make good their pay
mens in England Whereas if the severe pressure
necessary to continue the payment OF specie by
the banks, had been kept on, they must have been
ruined and through them the people who were in
deb. This was a sound view ot the subject. In
addition to this the States continue to use them as
repositories and to receive their notes in payment OF
their taxes. Why, then, should there be so much
alarm here .M
Mr. Chairman | admit that there are serious evils
connected with our banking system admit that
there crying and grievous abuses, which require
to be corrected; and will go as far as any man in
applying the knife and cutting these abuses off Nor,
sir am disposed in the slightest degree, to counie-
nance the refusal of the banks to resume specie pay
ments in a reasonable length of time. While the Q
country may b, disposed to endure this state Of things
as long as Il is necessary and proper, il will not!
ought not to bear wanton and unnecessary delay
The foreign debt is rapidly exnguishng the elias,
tic energy of the country Is rapidly increasing, and
overcoming all endorsements: soon very soon al
will hn
sion and the banks will merit the stern ana wilmer
ng rebuke Of every patriot il they persist N thelr