The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-09

have served by this time to place those institutions
in a more eligible condition 10 resume specie pay
ments Where this reduction has been accompa-
MED by any considerable increase rather than dimi-
mutton Of specie, the ability 10 resume, and with
proper restrictions and hereafter to sustain,
specie payments must approach very near The point
requisite 10 insure public confidence. Because
the rate of foreign exchange has been so far re-
dnced as be near the real par in specie, and sell
dom TO permit the export of II TO advantage, and
the liabilities Of the banks TO the Government which
otherwise might press upon them in case OF re-
sumption, are in most cases either discharged,
or in train Of pos,ponement, or inconsiderable IN
amount
The imports and exports OF specie have an nm
portant bearing IN forming correct opinion on these
questions The imports appearing on the cus'om.
house hooks have during The year ending September o.
1897 been ascertanied by the weekly returns 70 DC
Sl0,954 1872 while the exports during the same period
have been only S67l4990 Other returns when oil
received, may slightly differ. Undoubtedly the whole
actual imports and exports whether on the books or nor
have exceeded these amounts and though The excess
has probably been greater the part OF the EXPORTS YET
these last cannot safely be computed 10 have gone be-
You'd the imports.
The invariabe laws that govern trade and the cur
rency have thus indicated healther condition oil our
system than would otherwise be inferred from the gene
raj and proracted suspension OF specie payments ny
most Of the banking institutions.
The addition Of about iorty-fve millions Of specie,
which, within four years past, has been made 10 me
quantity that was before in the United States may have
enabled persons bank capital and bank Issues
places where the the latter were loose
Bot that the natural tendency Of H. supposed by sone
has been derange the currency, as well as the com
merce, not only OF these States, but oil Europe, is an
opinion that cannot have much foundation IN any sale
principle Of political economy, when II is considered
that the currency OF Europe in specie alone Is compui-
ed to exceed eleven hundred millions OF dollars, and OF
the world to be nearly two thousand millions, and It's
gold and silver uses, equal from live to Sc
thousand millions II worthy OF notice, also, that
the addition of specie above mentioned, though large
compared with the amount previously possessed, has
hardly equaed the nett profits the single article q
cotton shipped from this country IN the years 1883 and
SO.
But whatever obstacles may still exist to general
resumption Of specie payments, few can doubt that as
carly one can be sustained is urgently demanded
by the strongest obligations OF morals aud law ny ns-
tce to the public creditors, consisting OF numerous con-
ircors mechanics ahorers and pensioners, well as
officers and by all the true interests Of the people,
whether il private affairs the concerns OF their
Government In both their interests in this respect
nseparab, Connected and in both do they severely sut
fer by deprecated papcras the tax thus imposed finally
reaches the community either case, and USUALLY in
ratio quite equal TO the OF discount the paper
below specie. The powers Of the General Government
10 hasten such resumption are circnmscrbed TO the
of some constitutional authority OF restrictive or
penal character, such taxation, or bankrupt law
when the suspension appears It's origin long con-
nuancc to be clearly unlustifabe when otherwise,
to the furnishing Of some incidental aid in the exercise
Of other rights. The latter course is the only one,
which, during the present suspension 1t has yet appear
ed proper to adopt In pursuance OF It, the mode OF
making most of The public payments since May last ;
the manner in which the July instament placed
with the States the delay granted for than year
paying the fourth one giving thereby temporary aid
substantial to several Of the banks to the Treasu
~, and the liberal indulgence offered to them, for the
balances still due to the United States, all
sures Of relief and have contributed TO strengthen then
immediate means for the resumption of specie payments
Beyond such incidental aid to of the banks, with
which have existed fiscal connections, not general
ly equaling one twentieth of the whole number it is
doubtful whether the General Government however
llcous to that object accomplished, would be able
constutionay to provide any special assistance in e
fecting IT, II must be manifest to all who examine the
subject dspassonatcy, that either the possession by
few banks Of the usual small amount Of public deposits
liable any time to be recalled the receipt Of their
bills for public dues when redeemed in specie de-
msnd, and frequently presented for that purpose, must
often be check rather than an ald--and prove of
doubtful advantage in promoting resumption among the
whole number. II must be equally manifest, that the
chief reliance Of banks perform their legal obligations
must like that of individuals, always be placed their
own resources.
The highest considerations require tia. these should
be regulated by all suitable legislative restraints, and
ploycd with foresight, moderation, and the strongest
sense OF justice to the public, to sustain on par with
specie the currency they ISSUE and which, except the
condition should be thus sustained, the public would
have confded TO them power almost sovereign
to create. .... ..-....... Ivy" w.. 4. .~-
II has been Of some Inconvenience, under
the existing laws, that Of the banks have resumed
specie payments since the late session, which
known to be willing and competent under all the provis
ions Of the deposte act be selected fiscal agents
Several which paying SPECIE have expressly decn
cd taking the public money, under those provisions The
mode Of keeping it is, therefore, imperfect without'
ther legislation Every exeron within the powers
existing has been made to increase the security Of il
and the department has for several months, been
hled by unremtted attention, to conduct successfully
the temporary arrangements which in force for that
purpose. But Till Congress shall sanction
system revive the whole Of the old in force be-
lore 1885, or TILL specie Payments resumed, ard the
deposite materially amended, these arrangements
must be greatly enlarged by doubtful constructions or
remain exposed to several OF the Inconvenience incident
to all these plans without some OF the remedial powers
and advantages Of either
On the practicabiy of keeping the public money under
new legislative provisions without using banks all s-
cal agents, the views of this department have been
recently explained, as to render repetition of them
necessary 1t the endeavor of the undersigned to
presen, with mpartiaty the advantages and dsadvan-
tages Of both systems to show the expedency if not
the necessity of the one the existing unfortunate
attitude Of most of the banks; and to leave the result
where it is left, to the superior wisdom Of Con-
gress '-..
similar course pursued in respect to the kind
Of money TO he received for public dues, which he
garded, and still considers, question entirely distinct
though often viewed by others inseparabe.
While offering reasons why bank paper
slonay convenient than coin a for the
large and distant purposes Of commerce. and why the
exclusive Of coin for all kinds Of payments could
present be introduced aud might be desirable
it insisted that so far as it should be employed in
public affairs. and with whatever limitations as to time
or amount care must be exercised to adhere to the
spirit Of the Constitution and the first principles Of po
itical economy, BY always requiring it, when and where
taken, TO be equivalent IN value to specie.
This opinion was not conceived i'm any hostility to