The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-17
SPEECH OF THa HON. HENRY CLAY,


VT Ah2 HUM HENRY SA1Ah
or KENTUCKY,
Establishing deliberate design on the part of til
iaie and present Executive of the United States
10 break down the whole banking system Of th
unlled States, commencing with the Bank OF III
nhiied States and terminating with the Stat
Banks, and TO create on their ruins a Government
treasury Bank, under the exclusive control 0
,se Ex9catiye and in reply 10 the speech Of tn
ing thai Treasury Bank. Delivered in the Sena
OF the United States, February 10. 1888.
CONTINUED.
In the quotations which | have made from the las
annuai message Of General Jsckson, he speaks of the
extension OF bank credits and the oyerssues Of bal
paper IN the operations upon the sales of public lands
~ ms message Of only the preceding year, the vas
amount OF those sales had been dwelt upon with pecu
af complasance, illustrating the general prosperity
OF the country, and proof Of the wisdom OF his adm
nis.faion But now that which had been announced
pessihs Is deprecated calamity. Now, his oh.
Ject pehg 10 assa the banking institutions Of the States
ana 70 JUSTLY that fatal Treasury order, which shall
have occasion to notice, he expresses his ap
Pfehehsion OF the danger which we are exposed oil
losing me public domain, aud getting nothing for but
ea1 credits lie describes, minuely the circular pro.
cess b which the notes Of the banks passed out of those
institutions to be- employed in the purchase Of the pub
nc lands and returned again to them the form OF ere
dts 10 the Government He forgets that Mr. Secretary
laney to reconcile the people Of The United States to
,he daring measure OF removing the public deposites,
mad stimulated the banks to the exercise of great be
iaty IN the grant OF loans He informs us, in that
message, that the safety of the public funds and the
interests OF the people generally required that these CO.
rous issues OF the banks should be checked and that
Inc conversion OF The public lands mere bank Gre
dts should be arrested. And his measure TO accom-
plsh these objects tho Treasury order already adj
verted to- Let Us pause here for moment and conten-
plate the circumstances under which it was issued The
principle OF the order had been proposed aud discussed in
Congress. But one Senator, as far as know, in this
branch ofthe Legislature, and not a SOLITARY member
within my knowledge, in the House of Represcnt
was in favor Of IT, And yet in about week after the
adjournment OF Congress, the principle, which with
no conntenancc from the legislative authority was en-
bodied in the form Of Treasury edic and promulgated
under the Executive authority, to the astonishnent of
the people OF the United States
II we possessed no other evidence whatever of the
hostility of President jackson to the State banks of he
United States that order would supply conclusive proof
Bank notes. bank issues, bank credits were distrusted
and denounced by him. 1t proclaimed to the peo-
pie that they were unworthy OF confidence, The Go
Fernmen could longer trust in their sincerity And
at moment when the banking operations extend
ed and stretched to their utmost tension when they
were almost all lettering and ready TO fall for the want
OF that metallic basis which they all rested the Exc
cuve announces It's dstrust issues the Treasury ORDER
and enters the market for specie, by demand Of
traordnary amount TO supply the of purchasing
~ tHe safes nau continued IN the same
ratio they had been made during the previous year. that
is at about the rate Of twentyfou millions per annum
this unprecedented demand created by Government for
specie must have exhausted the vaults OF most of the
banks and produced much the catastrophe which
occurred IN May last And what extraordinary
THIS wanon demand for specie upon all the banks of the
commercial capitals and in the busy and thcky peoped
portions OF the country, that might be transported
into the wilderness aud after having been used in the
purchase Of public auds deposited the credit Of the
Government in the books Of western hanks, in Of
which, according to the message there were already
credits to the Government greatly beyond their inme
date of payment" Government, therefore, did
not itself receive rather did RETAIN the very spe
cie which it pofcssed TO demand the Only medium
worthy Of the public lands The specie, which so
country, aud placed in the vaults another banks
in the interior, forming only those bank credits to the
upon which President Jackson placed so
slight value .+
Finally when General Jackson about to retire
from the of government he favored his country
men with farewell address The soemnIty OF the
occasion gives any opinions which he has expressed
in that document claim TO peculiar attention. II Will
be seen on perusing it, that he denounces, more en-
phatcay than in any of his previous addresses, the
bank paper of the country, corporations, and what he
chooses to dcnominaic the spirit Of monopoly. The
Senate will indulge calling It's attention to certain
parts Of that address, IN the following extracts
"Thc Constitution of the United States unquestion-
ably intended to to the people circulating me-
dun of gold and silver But the establishment OF
national bank by Congress- with the privilege Of issuing
paper money receivable in payment OF the public Dues
and the unfortunate of legislation IN the several
States upon the subject drove from general crcu-
laon the constitutional currency, and substituted one
OF paper IN its place. H., !,
The mischief springs from the power which the
interest derives from paper currency, which
thew are able to control from the multitude OF corpo
rations with exclusive privileges, which they have sue
ceeded in obtaining in the different States, and which
are empoyed altogether for their benefit and unless
YOU become more watchiu in your States, and check
This spirit of monopoly and thirst for exclusive privileges,
YOU WILL in the end find that the most important powers
Of Government have been given or battered away, and
the control your dearest interests has passed INTO
the hards Of these corporations"
But it will require steady and perscverlng exertions
on your part 10 rid yourselves Of the nqul,es and mis-
chiefs of the paper system, and to check the spirit OF
nonouoy ard other abuses which have sprung up with
it, and OF which it is the main support. so many lne-
rests are united resist all reform this SUBJECT that
Won must not hope that the conflict will be short one,
nor success easy Ny humble efforts have not been
shared dhrng my administration Of the Government,
IN restore the constitutional currency Of gold and silver
and Something trust has been done towards the accom-
nIshpeut of this most desirable object. Bn enough
VET remains to require all your energy and perseverance
The power however, Is IN your hands, anti Inc remedy
must and will be applied, If you determine upon H.
The mask is thrown OIL and he boldly says tnat
the Constitution Of the United States nnq"eshondby
intended to secure to the people circulating medium
of gold and silver. They have not enjoyed he SAYS
that benefit because Of the establishment OF national
hank and the unfortunate course Of Legislation IN The
serer.t States He does not limit his condemnation oil
the past policy of his to the Federal Goverh
men Of which he had just ceased TO be the chei' put
he extends it TO the States if they were incompetent
to Judge of the interests of their respective eillzehs.
He tells us that the mischief springs from the power
which the moneyed interest derives from the paper
currency, which they able control and the multi
,ude Of corporations and he stimulates the people TO
become more wachfu in their several States, to check