Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-09-21
VOLUME III.
From our evening edition ofyesterday.l

We annex letters from our whole corps OF cores
pondents today. The financial and political drama
deepens in interest. All the relief measures OF the ad-
minstration are rapidly passing the Senate. The only
difficulty will be in the House-yet we hardly appre-
bend great doubt of their ultimate success. The fol-
owing have passed the Senate
Repeal o. the October Insialment, Ss,5oo0co
is o. Tasty her extended e 70 men, 10000
s25,5oO,Coo
Thus making measure of relefequal to S25 000 000
All these nave already passed the Senate except the
last. which has only passed TO a third reading. viii
they pass the House? This is the next question.
WV do not believe there will be any separation of
bank from, state.
lFsom our Correspondent RothscAila, No. xxIv.l
WAsHlEaroN, Sept. Is 1887
SPEECH OF JoHN G. CALHOUN.
shall devote this letter to outline of John G.
Calhoun's Speech delivered this day the L. ) Sc
nate upon the question OF separating Bank and State
Mr. Calhoun began by adv;rtng to the great ques
tons Of policy upon which the country at present
was divided. He apprehcnded that the true relation
of the Banking system 10 the government was not
fully understood. For years past, he had gwen the
subject his undividedattsnuon and he was persuaded
that the interests of the banks and the government
demanded separation. He should give his views
openly and fearessly, he had done all occasions
candor to meet the sincerity that acuated him.
He was decidedly in favor of reunion of Bank
and State if the existing laws be lett IN force, by
which the government would be obliged to take in
payment of dues all specie paying bank notes. by
law they were still united. Whenever any one of
them shall resume il can claim the right OF Its notes
being received under the present laws. None of them
it is true under the present state of things can ever
be employed again as fiscal agents. If the bill for
employing the new depostares pass, their fate is
sealed in this particular. But should it be defeated,
any bank resuming claim the deposites. This
will be work OF time.
Should reunion of Bank and State be the future
policy Of the country, where are we 10 find the adj
vocates OF the measure! Not among the opposition,
not among the administration We have heard much
of unried eXpedlents. None would be so hazardous
as a reunion of Bank and State, old as the system
is unless we had Bank Of the United States. Sucl
bank would be Indispensable TO reunion.
will go farther, if under the constitution we have
right TO receive Bank notes cash, we have right
TO make them uniform throughout the Union, and for
this purpose we are bound National Bank.
Whatever the government shall declare TO be money
will be money. All taxes should be uniform by the
constitution and 10 effect this end all money must be
uniform. These are no new opinions Mr.. President.
L stated my sentiments on this floor In 1884. then
said you had not gone far enough. say so now.
told you then that you nIst separate Bank and State
create National Bank. told you too that de-
walton from either OF these policies will bring ruin
the country And has not my prediction proved
true In every point OF view
The only alternative that you have left now, IS eter
nal separation of Bank and State National Bank
No enc can controvert this fact. Experience has
proved that you have no other course to pursue, but
that TO rum.
But to a reconnection of Bank and State and
United States Bank, the public voice is opposed
That voice must be respected Should you recennect,
the only hope you have for is, TO amend the
constitution. The executive is pledged not to sign
bill chartering such an institution. How then, will
you ever get Bank of the United States If you
do amend the constitution, your only means IS by
a revolution in public sentiment. How long will II
take to effect this Four years at least What will
be the condition OF your Treasury in the mean time
If Bank of U. States, be now created, what are
we TO hope for? An exemption from our present
illsl By no means. He that knows the ruin caused
by the last Bank of the United States in compelling
specie payments, will look to still greater distress than
now prevails.
Should the State Banks resume and the connec-
ton of Bank and State be continued, will National
Bank he chartered He who wosld answer in the af-
firmatlye knows nothing. The interest OF 600 cor
poratons is too strong TO permit any Bank TO con-
troll them. We must run the circle. Nothing VIII
be left US but another catastrophe more overwhelm-
ing than the Just passed, and still passing In
the end, may then get a National Bank
The banks and the country have experienced two
shocks. A third will be fatal to the banking system,
ii not 10 the liberties Of the country.
In relation TO Uniied States Bank, | have nsupe-
rable objections. We are yet in the midst OF revo-
luton. In nay judgment, the pressure that has
borne upon us, will be nothing the that The
tablshment OF United States Bank will cause In
proportion TO the capital of the country, existing
its capital must be at least one hundred millions OF
dollars. II must have at least fifteen millions Of pre-
'cious metals for basis TO such a superstrucure.
Where Is this AMOUNT to come from7 From the State
Banks Not would be left to tel the tale. From
England A revusion world ensue an hundred times
more terrible than that Of May last
The catastrophe Of 1916 has been addpced in expla-
nation of the present crisis There no analogy be-
tween them. That Of 1916 was a small affair We
were then debtors the banks now we are creditors
The Banks, in 1914, issued paper money equal to the
stacks of the government When they came IN for
payment, banks pointed to their security. and sus-
pended. Stocks were up and notes were down.
Nothing would ever have made the banks Part with
the government stocks to obtan funds whercwith to
redeem but a United States Bank.
Personally, l am opposed 10 National Bank on
constitutional grounds l then so stated. ! advo-
Gated National Bank 10 compel the State Banks to
resume But look at the ruin Of 1919, in consequence
Of charering that institution The very trial involved
the country in overwhelming distress. | am un will
ling to try the experiment now. Ii would compel re
sumption Of specie payments, or sweep out OF exist
ence every opposing State Bank
belong. Mr.. President TO that small but Indomlia-
BILE State Rights party that have fought often and al
WAYS with success the battles of the Constitution,
the floors OF Congress. As member Of that party l
am against u $. Bank. II tends to consoldation-to
strengthen the Executive arm already strong enough
The oppons Of the leaders Of this brave little party in
1916. have been confirmed. The government had,
in that time united with the State Banks. Hence, a
United STATES Bank absolutely necessary. IL ~