The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-19

diminishing their circulation. While bank paper forms
the great Of the currency Of the country il the
Government refuse TO receive il IN payment Of tho
public dues, and demand specie exclusively the
ssry consequence will be 10 enhance, 10 e greater or
less extent the value Of gold and silver in relation to
paper That being the case, gold and silver will no
longer circulate freely Those who have specie will be
unwilling TO part with II, except at premium and those
who have notes will be anxious 10 convert them into
specie. Hoarding Of the precious metals will then
commence, and but little Of them be seen in circulation
No one, presume, Mr. President, attaches much i'm
portance TO the collection Of the publc revenue in
specie, ultimate object. If II can be made equally
safe b, other means. II is only an instrument Of
purifying and correcting the currency that II deserves
the consideration Of practical statesman The great
object Is not to amass specie in the public treasury
the vaults OF banks, but to dluse heahfu cur
rency through the business OF society and 70 bring il
into active circulation among the people This can only
be effected by the previous suppression Of the small
notes and any attempt by the Government before thar
done, to collect Its in specie, instead Of pro-
noting and extending the circulation Of gold and silver.
tends directly and diminish their circulation"
The Hon. Nathaniel p. Tallunadge, in his
speech in the United States Senate, upon the
Deposite Act, which has been extensively
quoted and commended, expressed the follow
ing views. II is proper, also, to remark, that
these opinions have recently received the
" entire appreciation" Of about "seven hum
dred members Of the democratic republican
party, in the city Of New York." whose con-
nexion with the commercial interests, and
knowledge of commercial wants, should en-
title their views to great weight on subjects Of
this character. He says:
'What then, do they expect and desire' answer
no less than every real friend 10 his coun
try is willing to adopt, namely, preservation, and at
the same time, regulation OF the credit system. In
all such measures of reform will go far he who
goes farhest Preserve and regulate but not destroy,
is my motto Enlarge your specie basis introduce, as
far practicable gold currency, by the prohibition OF
small notes provide means for coming at the mint
take all proper TO prevent excessive issues OF
bank paper and the unnecessary increase Of bank incor
porations repeal your restraining laws TO permit
the free employment and investment of foreign capital
Whatever danger there may be. to be found in the
abuse Of the system, and its existence Guard
against these abuses and them when discovered
An entire abandonment OF the credit system, and
return to sole and exclusive metdiiio currency If it
practicable, would produce desoation and de
struciion from the Union TO the other.
Such notions ought not cannot must not prevail"
Hon Silas Wright Jr. in his speech in the
United States Senate, in January, 1884, re-
marked:
you will recharer the bank establish bank,
what will you do He (Mr. Wrght) would
individual expressing has o,rn sentiments that he
would support the Executive Department. Of the Go
venment, by all the lawful means in his power, in the
attempt now making to substitute The State Banks for
The United States He believed them perfectly and
completely competent 10 the object, and he wholly
unmored BY the alarms that had been sounded as to
their insecurity and the dangers that were to be appre
hended from the change, He held that the steps al
taka 10 off Tho oht
ranicd by The Constitution and la,cs q The land 1t was
his firm opinion that the steps which had been taken
would rebound the honor and best interest Of the
country, and ought to be sustained by the People and
| their Representatives
| In conclusion, Mr.. Wright observed:
"He would merely pronounce his opinion that the
country would sustain the Executive arm Of the Go
vemment in the Experiment making to Substitute
the StateoInsttutions for the Bank Of the United States
He had the most entire confidence IN the Jul and COM
| pieic success 81 The Experiment"
Mr.. Woodbury., in his Report to Congress,
in December, 1884, says:
at is the part Of sound philosophy and true political
wisdom improve to the utmost. consistently with
sfitutiona difficulties, present mixed currency
When it remembered that, after long experience,
almost every nation OF Europe, and especially the most
enlightened and commercial ones. have, though possess
ing full power to abolish wholly the paper system, deem
ed u good economy great convenience 10
to certain extent for the larger and more distant ope
raons inconmerce and finance; when it considered
that the paper system generally supposed to increase
the activity Of the surplus moneyed capital Of country,
by collecting it hanks, and distributing speedily
needed, and to make less quantity Of circulating
medium employed in this way, answer the same pur-
poses Of society with larger quantity otherwise
ployed and when II is computed by many, whether
Justly and wisely need not here be discussed, that,
through the issues OF paper over the amount OF specie
r. Io.,l, 81, -.
temporary Of so much more money, as if to that
extent, and for that purpose II were real addition to
the specie capital and at the time to alze
ing in the and loss Of the specie in the vaults
which it would otherwise sustain in actual the ones
ton becomes very doubtful whether in this commercial
and widely extended country, the anticipation be
justified that the STATES the people will soon, ever,
consent to the disuse Of banks Of paper issues But 1t
is probable, that the discussion and increased in
teest attending this subject will terminate here, IN
England, in abolishng all country or local banks
though Parliament, like the States possess undispued
power to do it but, for the present at least only
exercising greater in the regulation Of these banks
by the States and creating by both State and United
States legislation, broader basis Of specie IN crcula-
ton, for the increased security well Of the banks Of
the community, and for the great and desirable improve
nen Of the currency of the country"
Gov. Campbell, in his sound and sensible
Message, recently delivered to the Legisla-
ture of Virginia, furnishes us the following
excellent creed He says:
The time is unproptious if it were otherwise desra
bic, attempt any radical changes in the policy OF the
commonwealth. The system Of banking has been long
since introduced, and find it fixed upon The
commonwealth is largely interested in the stocks OF our
banking institutions through the fund for internal I'M
provelnent and the literary fund and the stock which
is thus held, is part Of the security which has been
pledged the holders Of the public debt Bank paper
has long performed all the purposes Of currency and by
the holders Of it, the poor and the rch counted as
money The merchants and traders Of our towns have
been accustomed look the banks for faciiFes aud
aid and through their instrumentali,y was Tidy haso