The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1838-06-26
Congressional.
Tnnadnu. Juno l2th.

deposit act which prohibits the receipt by tho trens-
ury of the notes Of any bank, which, since Maroh
1886, has issued notes of u less denomination 'heh
Eve dollars.
Webster sad--The present state of thingsls trn-
" singular. An effort for general resumption OF
specie payments by the banks is making, and ABOUT
10 be made all over the country.
Some of the banks have resumed. But now, sir,
what IS the attitude in which the government
stands?
By the new specie circular It is proclaimed that
specie or Treasury notes will be required, unless
debtors to government can procure notes OF spe-
Gle paving bank OF the denomination of twenty DOL
lars or upward which bank shall not have issued
or paid out, any note under five dollars, since July,
1886 No postmaster may receive any note less
than twenty dollars
This refusing to receive notes under twenty dol.
lars is, doubtless, founded the provision in the
act Of April 1886, tina: no Disturbing officer shall
offer in payment any note less than twenty dol
lars
cannot say think this part Of the circular abb
solutoly necessary so long as the dePosite system
exists; but at the same time, the provision Of the
act Of April countenanoes this regulation in some
degree, if not entirely.
But taking this state of law and this circular to-
gather, can II be said that Government is smcour-
aging resumption of specie payments, or facilitating
the restoration of things to proper state OF pros
perity? Is there in the spirit of these regulations,
any thing 10 remind us of the course of Govern
ment, under similar circumstances, in the days Of
Mr. Dallas and Mr. Crawford?
In New England, IA | believe, all the banks,
with one two exceptions, have issued or paid
out small bills since July, 1886 If there be more
than or two exceptions, have not heard Of
them.
In New York, the Legislature leis itself mPera-
lively called upon to alter the law OF the State and
authorize, al least for time, The issue Of small bills.
The popular branch of the Legislature nearly
unanimous for unqupliiiod repeal. The Senate
preferred a suspension, suspension was the hnal
result.
It is admitted, believe, all hands, that tLs
measure WAS called for by the people. 1t was not
the result of any banh management, or of the ope-
ration Of any private interests whatever. 1t was
the result of clear, loud aud irresistible demand
Of the public will II cannot be charged 20 party,
to management or to any thing bus universal
conviction THAI the measure would be useful and
necessary. It's beneficial effects are not doubted,
believe, by any body, in aiding tho banks in the
great work of resumption. Now, suppose, that
all the banks in New York, with perhaps two or
three exceptions in tho city, have awaited tbem-
selves Of this suspension law and have issued small
bills. Their notes, therefore, cannot be received
at the custom house, the post office, ar elsewhere,
whore debts to government are TO to be pad. sup
pose the same state Of things exists in New Jersey,
and many other States, both Atlantic and Yves.
tern.
have SAID on former occasion, and still think
that the measures pursued by government have
overthrown, at least or the present its own policy
of disseminating the of small bills. A state of
things has arisen in which the people Of States which
had begun TO act on that policy, have compelled
their legislatures to give up the attempt for tho pres
ent. In some Instances the laws against small notes
have been repealed in others modified or suspend
ed. Al this, / repeat, has been the work OF the
people themselves, acting directly on their own
legislatures. Under existing circumstances, they
find small bills useful if not indispensabIe.-And
as there is reason TO doubt the solveRcy Of the
banks which issue such notes, more than that OF
others, the question may be asked, as it Is asked,
with significancy and effect, by the committee OF
the associated banks in Boston, why not. put the
notes of all specie paying banks upon tho same
ground?
think, Dir, it is the duty of Government, "a the
present important moment, to extend large and
liberal confidence to the banks, and to encourage
their efforts, and assist their struggles for resumP
ton by all proper means To this ond think the
prohibition contained in the fifth section Of the de-
posi,e law ought to be- repealed, suspended for
considerable time and until circumstances shall IA
vor renewed attempt 10 sustain the policy hereto
fore pursued. am Of opinion thatt is not enough
merely 80 abolish the Incapacty, arising from what
has been done, contrary TO the provisions OF the
statute. think it necessary TO provide that bank
notes Of specie paying banks may hereafter be re-
ceived at least for some time, although the banks
issuing them continue 10 issue small bills. Moth
ing shors OF this give otiectuaI relief. The
banks cannot now, without great public inconven-
fence, again recall their small notes. The people
will not consent that they should. This is point,
believe which there is little difference of opin-
ion in those States in which small notes issued
On The whole, my opinion is that the best thing
to be done under all circumstances, is to repeal the
prohibition, and to wait for more fayorable OPP
portuaity 10 establish the policy which it was in
tended to sustain. | hope we may see our way on
this subec some what clearer some time hence than
now sec 1t. If repeal, however, be objected
TO, q suspension is ludispensably necessary; and
this suspension should be for such length of time
as will enable the banks and the public to dust
their to the state of things which will then
be before them But suspension only be agreed
to, and day fixed when it shall expire, and ospe-
cially if that day be one, the banks will be
ompeed Immediately 20 begin to call in theil
bills, and the relief afforded, if 10 be any relief al
all, will be crippled and Intellectual. Another pres
sure will commence, and renewal of past troubles
ensue. My opinion is therefore, that, taking al
circumstances into consideration, it is best to repea
the prohibition, and retain of course, the power o
renewing it, when state of things shall hereafter
arise TO justify such renewal.
From the same reasons, think the second sec
ton of the act Of April should also be repealed.
Webster then, in pursuance of previous notice
asked leave 10 introduce the following
bill making farther provisions for the collsc
tion of the public revenues.
Be il enacted. &c. That the opsration of Sc