The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-13

The friends Of National NIX have proposed plans
for State Institutions, which they think will super
sede The necessity of a Bank Of The Unied States.
Al all events, those who in favor Of National
Bank know that Il cannot Be had, IL IL be had al all,
for some time to come; and hey know thai some
thing must be done Tor the relief Of the country
There Is no other plan which can BE- adopted but The
proposed by the Senator from Virginia. II u
answers his expectations il may satisfy the country
if il does NOT, the public mind will then be settled
down as 10 what the remedy should be. As 70 The
Sub-treaSury, say with the Senator from Massa-
chusets, give me anything, or give me nothing, in
preference 10 II.
What farther evidence had the people that the
destruction OF The Stale Banks part OF the po-
lcy of the Administration Meetings were held by
the Loco Foeos, al New York, Philadelphia Cincin-
nai and other places where resolutions were adopt
ed against the whole banking system, and in favor
OF an exclusive metallic currency. These proceed
ings We're responded 70 by men in high official sta
lions and their responses perfectly satisfactory
Being thus sanctioned by men in authority, these
wild and visionary doctrines began 10 spread Many
who had viewed them destructive Of the best in
terests OF society, began To renounce former OPT
mons, and adopt this radical creed, because they
believed il met the appreciation of those who held
the reins Of party discipline, and who had the power
Of party dispensaon.
The next evidence the prevalence Of this radi-
cal spirit was the manner IN which the subject OF
the suspension OF specie payments was treated. BY
the law of New York, when bank neglecs OF re-
fuses to redeem It's notes in specie for ten days the
Chancellor Is directed TO issue his Injunction, close
lis doors, appoint receiver, 10 take charge OF lis
concerns, whose duty Is 10 proceed to collect the
amount due 10 the bank, TO pay the amount owing
by il, and finally, under the direction OF the Chan
cellor 10 distribute to the stockholders the residue Of
It's effects, according TO their respective interest
There due TO the banks at this time by the peo
pie OF the State, about SEVENTY MILLIONS or DOLLARS.
a forced collection Of this amount, by receivers
would have spread ruin and desolaiion throughout
the whole Stale: The most valuable estates would
have been sold 10 satisfy these demands. There
would have been no competition at the sales-for
very few indeed could have commended the means 10
become the purchasers, The result would have BEEN
that the most desirable property must have been
sacrificed, and bought in by some misery hard money
man, who had boarded his vile trash for the purpose
Of preying upon the misforunes of his fellow cili-
Zens by the receivers for the benefit of the stock
holders. In either event, the community would
have been the sufferers and The hope ofpresen bust
ness or of future prosperity would have been utterly
bighted. Every rational man ioresaw this result
The Legislature was then In session, and law was
forthwith passed, by an almost unanimous vote, TO
suspend the forfeiture of the charters of the banks
for year. This act of the Legislature was open
ly denounced by public meetings in the city of New
York composed of those claiming 10 be the exclusive
friends of the administration-And this denuncia-
tion was reiterated by the official organ of the go
vernnent here, claiming to speak The sentiments of
the administration on. all important public matters.
Why was this act thus denounced2 Because, If
there had been no such interference the banks would
have all been Frustrated, as have already shown,
and we should at once have been br, ught TO the
golden age7 which has been so long desired. II is
true, the great interests of the community would
have been sacrifsed.-But, what of that We
should have had the constitutional currency"-"a
hard money government'-"a successful expert
ment'-and let me add, PROSTATE country and
ruined people Sir, the people were saved from
this awful calamity, by the patriotism of the Legis-
lature The suspension act was not boon TO the
banks was favor to the people. Whilst i saved
pie from destruction. Other States passed similar
laws and thus frustrated the designs of those,
who deemed the suspension OF specie payments the
proper occasion to carry out their favorite plan OF
breaking down the whole banking system of the
States will not say thatthe President entertained
this design, But the people judged him by the ef-
feet OF his measures. On his call Congress assem-
bed al the extra session TO take into consideration
the great and weighiy matters" which he was to
submit to them. The message was delivered, and
the people longer doubted that the President and
the administration intended to destroy the banks.
AT all events, they conlt not doub that such would
be the effect of the measures recommended by him,
They could only infer the intent from the result
which must inevitably follow.
BY the constitution, it is made the duty OF the
President from time to time TO give 10 Congress in
formation of the state of the Union, and recommend
to their consideration such measures as he shall
Judge necessary and eIpedieHt.. He can recommend
no others-and il he deems such as he does recon-
mend both necessary aud erpedient he of course, de-
SlreS mat congress snail tneln, inal lney
shall be carried into full execution. He had already
SEEN that by the Intervention Of the State Legsla-
lures the bank charters of the different States had
been saved from forfeiture, and that the designs OF
those who wished TO destroy them, had been frus-
trated by these acts. Well now, sir, what were his
recommendations, and what therinevitabe results 2
He recommended uniform Laac conceraing bank
rupteies Of eorporatioS and other bankers" as mea
sure !" fully authorised By The Consultations" Such
law under his oath OF office, he must have deemed
e necessary and erpedient" And he must, too have
desired its enactment by Congress, otherwise he
would not have recommendedit. What would have
been its effect, its practical operation, if Congress
had concurred in the views of the President, and
passed a bankrupt law as recommended BY him !?
Why, sir every bank in the Union would have been
forthwith handed over TO commissioners 10 be ap-
pointed by the Executive, under such law and
their concerns closed up-for they had all suspended
specie payments and of course would have come
within its provisions. This would have accomplish.
ed what was prevented by the action of the Legsla
lures, namely, forfeiture OF their charters and
destruction of the banks themselves Sir,
/ do not state this case too slrongly-such would
have been the inevitable result throughout the Union
there is no escape from il. The President could
moi but have foreseen it, II was the unavoidable con.
sequence of his recommendation. He must have
made il with his eyes open, and seen its effects, I'M
less he was blinded and bewildered by this ignis ia
tuus of Loco Focoism. What would have been the
effect upon the business and credit of the country
Utter ruin and destruction from one extremity ofthe
Union 10 the other. Sir, war, peStilence and ia
mine" could not more effectually have done their
dreadful work.
Fortunately for the country Congress did not adopt
this recommendation Of the President, although ii
was urged with great power by of the most pro-
minent friends Of the administration, Mr.. Benton)
Sir, there is another feature ofthis measure which
deserves consideration. This subject was not new
to the President. 1t had received his careful ex-
animation and full delberation on former ucca-
sion. In 1926, when he stood upon this floor, as a
Senator from the State OF New York he maintained
on this subject the same principles which am now
endeavoring 10 maintain. He then represented all
the great interests Of the State, as l am now at