The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-08-22

for money with which be purchased goods, These
goods were sold credit 10 the country merchant,
who sold them on credit 10 his customers Now who
are the real deblors the banks In the supposed
The customers OF the country merchant unqnesiion-
ably. II the bank presses the city merchant, he
presses the country merchant, who Of course must
press his debtors IL the bill holders demand specie
from the banks the banks must make the like de-
mand Of the city merchant, he Of The country mer-
chant, and the latter Of his customers. SO Of the
manufacturer, or Of any other men In active bust
ness. They must be in debt 10 the banks. They
have trusted out their manufactures productions,
and the same connection OF Indebtedness exists In
the case Of the merchants. So then II is true, that
this bank debt was debt due from the people,
that II specie payments are TO be the order Of the
day. the people ultimately must pay the spece,-and
that the indulgence granted 10 their immediate
debtors Is an indulgence granted 10 the people nj
large. Thus the banks by the suspension have been
able 10 give the people time TO convert their property
into money without sacrifice or cost, and from IFS
proceeds 10 fulfil their engagements and pay their
debts And for this shall the banks be brought into
Judgment A just and Intelligent people will an
swer, No. Upon the suspension, the Government
stood towards 10 banks the same as any other de-
positors. BY the joint resolution Of 1876 no bills,
except those OF specie paying banks could be recev-
ed In payment Of public dues, and the singular spec
tacle was presented of a currency possessing the
confidence Of the people, and for which they were
willing to sell their property al fair price, receiv-
able in payment Of the revenue. This, however,
grew Out Of the law. Could the Secretary Of The
Treasury have received the bills, notwithstanding
the suspension and had he received them, confidence
would have been Immediately restored, and the
banks would have long since resumed. Hence Ie-
suited the imperative duty of the Government to
have lent all the constitutional aid In It's power TO
effect what was so highly desired by ALL the resump-
tion OF specie payments But the country was kept
in agitation and uncertainty by new governmental
projects. The specie circular continued, bankrupt
laws were recommended the Loco, Foce presses
were busy 10 arousing, BY falsehood and clamor,
popular feeling against the banks.-The cry Of
hard money! Constitutional currency" g down
with the rag banks" and the Loco Foco clap traps
used in legislative halls and in public prints, and
finally, the recommendation of the SubtreasuTy, all,
all was calculated TO destroy confidence, and to pre-
vent resumption.
What was the course of former republican Secre.
aries Dallas and Crawford, towards the banks, un-
der the suspension of specie payments Of 1916 and
aching under the same joint resolution OF 1876 under
which the present Secretary acts, and has acted =
They did every thing In their power TO inspire con-
fdence 10 sustain The banks and aid them in the re-
sumption Of specie payments. Mr.. Dallas trea ed
the plan o. specie payments for governmental dues
gress, Dec. 1886, he says "There was no magic in
Treasury instruction to the collectors of the
revenue which could by its virtue charm gold and
silver into circulation Ine people did not possess
metallic medium, and could not be expected 10 pro-
cure IL" &c. The powers OF coercng the banks
was limited TO the rejection Of their notes in the pay
ments OF dues and taxes and to the exclusion ofther
agency in the custody and distribution Of the Teve-
nue.. But the exercise Of that power could not ge-
nerate coin currency, although II would certainly
ACT OPPRESSIvELY ON THE PEOPLE, and
put at hazard every Of money due TO The Govern
ment. Until, therefore, substitute was proposed
for the paper OF the banks, Il would have been
measure of lMPOLITIC and USELESS SEVERI-
TY towards the community, TO insist that all conti
buttons 10 the Government should be paid in me-
dunn, which, i Is repeated, the community did not
49, H.
this extract TO the policy Of the present Administra
ton! The banks bad not suspended and most of
the specie being locked up in their vaults, il was
impossible for the Government debtors 10 procure it
TO pay their debts. But the pound of flesh was de-
manded with unfeeling rgor." Specie, nothing but
specie, was required. II instead ofrecommending
destructive bankrupt law, and other ultra and as
founding measures the President had recommended
temporary suspension Of the Resolution Of 1916,
and lef it discretionary with the Secretary the
Treasury to have received, for limited time, the
notes of solvent banks, (though at the time nonspe
Gle paying) all would have been we'll and the banks
long before this would have resumed. This would
have been attended with no risk. The Government
knew, and the people knew the condition Of the
banks Their monthly returns to the Secretary in
formed him Of the fact that the banks in the State
OF New York were abundantiy abe TO meet all heir
engagements and have large Surplus ALI they
wanted was little time 10 collect their dues from
the people. Had II received such notes, its opera
lions would not have been embarrassed, for every
such notes most willingly. This is proved by the
well known fact that every creditor in State was
willing and glad TO receive from his debtor at par
the notes Of our banks. am no advocate for an ir
redeemabe paper currency. ! would submit to il
for the same reason that would, when sick, TO nau.
seating remedies TO restore me TO health.
How different was the course pursued by the Go
vernment towards the banks, from that by the COM
munity! The latter did not dishonor their bills;
they passed current. No demands to any considera-
Bile extent we're made upon them for specie. The
suspension was viewed BY the people as an act both
of necessity, Of duty, and patriotism. II was sane
toned by our Republican Legislature, il was APP
proved of by the people. But other Counsels pre-
vailed at Washington. The banks had commteda
high-handed outrage on the Government, for which
they were 10 be doomed!
70 show the kind and patriotic feeling of Mr.
Crawford, Secretary Of the Treasury, towards the
banks refer to one of the many letters written by
him TO them. They all speak the language Of
cheering and assurance. He profered them all the
aid within his reach to asss, them in the good work
of resumption. In letter dated Nov. %, 1916, he
says:
at is, however, most arden,ly desired by the Co
vernment that the necessity oil resorng 10 the Of
Government paper may be avoided, by the resumption
Of specie payments by the State banks or before
10Th of February next. As an inducement TO this
sure, the Government only aid their operations by
Withholding from circulation much Of their paper
in their Treasury, which may hereafter be received
the demands upon the Treasury, during the ensuing
year will permit as the sum which it will be in the
power Of the Government retain in the Treasury will
be considerable, may present sufficient inducement
to change their determination not to resume specie
payments before the LIST day Of July next
Again he says:
How far the discredi,ng Of their paper by refusing
to receive it in discharge Of dues and taxes, will infu
cnce their conduct only DO ascer,ained BY the
PERTINENT"
Mr.. Crawford not only did all he could do, TO aid
In the resumption but he sustained the banks which