The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-26
mi,ies Finance on ,hs pesi,on. relative to Bank

mi,ies on Fhsnee on the petition. relative to B,DL
OF the United States.
suB-rErAsuEY sysrEn.
The Senate psoeeeded 10 consider the bill imposing
additional duties, ss repositories Of public money on
Mr.. CLAY then addressed the Senate. He said tina,
sffer the most calm aud dspsssonaie reflection on the
condition OF the country, and the of relief
suggested, he had came TO the conclusion that the bill
under consideration would only be aggravation OF the
evil When distress was the result Of the measures Of
the government, II was douby imperative the govern
ment 10 find remedy The universally OF the feeling
Of suffering which prevailed throughout the Unon dis
ungnshed US from any former period in which distress
and difficulty had arisen among This universal suf
fering ought to lead to united counsels and common
measures He hoped all party dscords would be for
gotten, and that oil would FIX their eyes the condition
Of the country and unite in deysing the best Of
relief Hsiook view OF the state Of the currency be-
fore the roval Of the deposites which he considered
the great cause Of the present emergency He alluded
10 the predictions which had been made at the time of
the removal of the deposes and the fu6nent Of those
predictions he regarded evidence that such the
cause lie did not consider the analogy drawn by
the President between the situation Of Great Britain
and Of this country In both countries the question Of
recharlering the National Banks Simultaneous in
Great Britain the bank recharered, and the credit
and currency of the country restored while here,
we refused TO recharer U. s. Bank, and our credit
and currency are destroyed II the U s. Bank had
been rccharered the currency would have been yet IN
good condition. and should have been free from en-
barrassmeBt.
Among the evils resulting from the refusal TO rechar-
ter the United States Bank the establishment Of
system Of local banks In the Stale Of Kentucky. The
policy Of the late Administrations in reference TO the
promise act should be ranked among the causes Of the
distress. The southern gentlemen, particularly the
Senators from South Carolina, entitled 10 great
respect for the efforts they made 10 preserve the prov
Of that act but the administration had taken
course the most injurious in its character 70 the mana-
acurer, because II convinced him that there could be
no reliance on the policy Of the Government, however
solemn the pledge which may be given. II the Govern
ment had adhered TO the pledge in the compromise act,
there would be Of mportations, because
manufacturers would have kept up the stock OF domes
tic goods. The Senator from South Carolina had ad-
yered 10 the tariff Of 1925. That tariff the work
Of the open enemies Of the protective system, concocted
with the enemies OF the policy but, unpopular
this tariff il would not have produced the evil
which was apprehended by it, If the compromise had
not been carried into effect The veto Of the land bill
Of the Of the present distress Another
that for the last several years have not had
the benefit Of free government We have had the
form indeed, but the spirit not there. We have
been under despotism. If the jackson party had
possessed more fnnness they would not have governed
the country ill., They had wisdom, but not hrmness
There majority Of that party against the refusal
to recharter the United States Bank against the
moval Of the deposes; against the continuance OF the
specie circular but the despotsm Of individual over
powered the voice Of that majority While Legislative
bodies had turned round passing resolutions a, one
session against bank, and at another IN favor Of
bank. He referred also to the Inconsistency OF Mr.
Dallas who after carrying through the Senate bill to
recharter the United States Bank heading popular
sembly in the state house yard Of fhIlsdelpha, and
appauding the veto Of that very act That individual
left the world Judge Of the motives which influenced
such course Of action He expressed himself as will
ing TO embrace every member brother who could
point out mode Of escaping from the gloom around us
He tfsn proceeded 10 examine In detail the various
measures brought forward and proposed to be submitted
The Bankrupt law, as recommended by the President
he totally against unconstitutional in reference
to the States But in particular, he denounced the bill
relative the Banks Of the District Of Columbia which
made it indctable offence for any individual to take
the only currency he could get He took view Of the
effect Of the bill to postpone the transfer Of the fourth i'll
stalment Of the surplus revenue. Suit to be com
menced against Banks which did meet the demands
Of the Treasury and thus the Banks in the south and
souih-westand he knew il would be so in Kentucky
would be subjected TO interest Of IL or lS per cent
on the OF their debts from the time OF the de-
mand In regard the establishment Of currency Of
the precious metals he asked in the first place. il it
desirable He laid it down mat there is not sufficient
amount Of specie in the world to carry al the CON-
mercial business Of the world in this country
there sufficient for all the commercial business Of the
country. The sum required for the city Of New York
alone would be two millions day. Il would, there
fore, tend only to cripple and embarrass condition
Banks expand most when they have most specie, and
curta when they have the least He expressed his
constituent that distinguished Senator should have de-
clared himself favorable to any issue OF paper which
rredeemable. There may be cases when small portion
Of rredeemable paper world be beneficial but there
great danger to be apprehended if the Government
shall set example Of this character He advered to
the irredeemable issues Of the Commonwealth Of Ken
lucky Bank That paper deprecated rapidly-the de-
probation being in proportion TO its amount but as the
issues were discontinued the depreciation also became
less and i has now almost got up to par.
But if desirable to establish hard money currency
is it practicable! There power in the General
Government put down the local banks Of the States
What then does become us to do! Does not wisdom
point out that shall moderate legislation as to
conform to state Of things which is not in our power
TO change!
The attempt press the banks, would produce pres
the debtors of the banks. He considered that
the most dangerous experiments were then made on
the established habits of people, and predicted tina,
effort to destroy the banks would be productive of
civil revolution. He adverted to the insecurity of the
system proposed In his state two three trea-
surcrs became defaulters in consequence
Of lending the money Of the public to their personal
friends The Secretary Of the Treasury had thrown
discredt the system, when he required that these
ubreasurers after having collected certain specified
sum, should deposite il in the nearest bank. He
sdercd the system objectionable because it would add
to the patronage Of the Executive What had become
Of the 100000 officers who according TO report made
two years ago, were welded by Executive will i
Where is the veto power! Where the still more
alarming power of retaining bills in the case fthe
Land Bill, and the currency bill Where the expung-
ing power-thc power Of creating and turning out off,
ccrs--and the power Of administering the laws he
understands them Has the chief magistrate come
forward with any disclaimer Of these points Has he
not rather followed in the footsteps Of his predecessor
Did he not retain the Treasury Circular against the
acts Of Congress and the people, He hoped no
would fall into the Of supposng that the opposi
ton to the late administration, of personal cha
ter or opposition TO the person Of General Jackson