The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-17

tard and 0bslTuct il. In the run u would cree
ate on the banks for specie, both by the de-
mand il makes Of il for the uses of the govern
neni, and by the general discTedil which the
high example Of the government would stamp
ON bank paper, il throws new and insnrmount-
able obstacles liz the way Of resumption.
But the Honorable Senator from New York
says that the resumption OF specie payments
by the banks is no concern OF this govern
nient-that il is exclusively an affair OF the
states and of the banks themselyes--and we,
who urge the necessity Of promoting by every
proper and practicable means, the accomplish
ment OF this great object. are reproached WIN
using an argument, which, he tells us, belongs
10 the friends Of National Bank. Now, SIR,
beg /. ave to say 10 the honorable Senator
that both reason and experience prove that the
only efeetual means OF preventing National
Bank is TO bring about resumption oil specie
payments by the State Banks, and that moth
ing is more directly calculated TO lead to the
re-cstablishmeut of Bank of the U. s., than
the course ofthose who would do nothing to-
ward efiecting that resumption. Let the ho-
norable Senator look back 4, that most instruc-
tive period rich in lessons for the present
times-the former suspension oil specie pay
ments by the banks from 1914 10 lSl7-and
he will see that il was the unwilingness or
the inability ofthe State Banks thento resume
specie payments, which alone led 10 the esta-
blishmcnt of National Bank. Let him read
the official correspondence of Mr.. Dallas
the numerous reports and communications Of
that able and patriotic man, worthy Of him
and Of the country-and he will find through
out, an explicit recognition of and unvarying
testimony To this great truth--that if the State
Banks could have been induced more prompt
ly TO resume specie payments at that time,
there would have been no occasion for a Ma
tiona Bank, and that that institution would
not have existed The true means of pre-
venting its re establishment now is by the in
sirumentality of the State Banks, under the
lead and encouragement of the government, to
restore TO the country sound, convertible
currency.
This government can and ought TO aid in
this great work. Its vast reuenue power, and
its pervadng action, coextcnsire with the
whole Union, give it means aud influences
which the states do not possess. II hnlds. in
deed, throughih that power, lever Of the great
est efficacy, for controlling the entire currency
of the country. Though its collections and
disbursements, it can hold out inducements of
the most influential character to sway the
course of the banks. In the mode Of conduct
ing it, receipts and payments, it has it in its
power To set an example OF the most persuasive
influence toward the restoration OF general CEN
fdence. In disturbed state Of the currency
like the present, these are powers TO be eXer-
cised in spirit of liberality and henignity-
nit Of menace, denuncialion or vengeance.
The occasion demands the language Of encou-
ragement and support--not OF severity and
siernness. Look at the communications of
Mr. Dallas and Mr.. Crawford with the banks
during the former suspension of specie pay
ments and it will be seen in what spirit the
influence oflhe government was then exerted,
and effectually exerted, in the end, 10 accom-
plish return to specie payments. The banks
were not then ontlatred by The official press
they were not then put under the ban OF the
gorernment-they were not then pursued as
conSpirat0rS, but were treated as institutions
having thems Ives a stake in the common
veal, and with which the common interests Of
the whole country were identified. ltwillhe
ediiying, for moment, TO look back to the
manner in which the government then conduct
ed It's relations with the banks and | must
say that if the exertons OF the banks, gene
rally, since the recent suspension of specie
payments, to prepare themselves for a re-
sumption by a steady and persevering curtall-
mrnt of their business and profits, be compar-
ed with the course of the banks, on the for
mer occasion, in taking advantage OF the sus-
pension 10 enlarge their issues TO a most ex-
travagant extent, and in obstinately refusing
to apply the valuable public stocks held by
them to acquiring the ability to resume, the
banks now are entitled, at least, 10 as much
lberaliiy and favor as were shown to them
then.
By the joint resolution of April, lSl6,which
has been so often referred to, it was made the
duty of the Secretary of the Treasury to take
such measures as he should, deem necessary
to effect a collection of the revenue in gold
and silver, Treasury notes or the notes fspe-
Gle paying banks. In the discharge of this
duty, Mr.. Dallas very soon opened cores
pondcnce with the State Banks to induce them
to return to specie payments. In circular
which he addressed to them on the 22d Of July
1916, he used this language:
'From the State Banks, sincere and eectual exer-
ton in the common Of restoring the legal curerr-
Cyl is certainly expected and requred but III return
they VIII merit ana rCccrG me codcce OF the reasu-
ry and Of The National Bank; the transfer Of the public
funds from the State Banks to the National Bank and
It's branches will be gradual and the noies Of The Stae
Banks ,r be freely circulated BY The Treasury and thc
National Bank"
In preceding part of the same letter, he
says
"The present opportunity is embraced TO repeat the
ass RANGES which have been uniformly given and mann
ta,nsd that this Department feels the fiscal interests Of
he eorunme, and the successful operations Of the
Bank Of the IT, States, 10 be intimately connected ruh
The credit and prosperity Of he STATE Banks"