The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-13
SPEECH OF aR. TIPToN,
or INDIANA,


IN certain cases, &c, the, question being on Mr..
Rness substitute for the bill
Mr.. Upton said nothing but the peculiar position
which he was compelled TO occupy before the country
on the question under debate here, could have in
duced him to obtrude himself the notice OF the Sc
nate. This consideration (said Mr. To obliges me to
claim your indulgence, while briefly present the
which incline me to vote against the bill under consi-
deration and prefer the proposition brought forward
BY the honorable Senator from Virginia. Mr.. Riyes In
the remarks am about to make, (sad Mr., shall
conhne myself to the subject before the Senate, and
shall not wander from il discuss the politics Of the
country aa
The Sub-Treasury BILL sir, provides for separation
OF the Government, in its fiscal operatit rom all
banks and, after short period prohibits ~eipt Of
bank paper in payment of public dues, and enacts that
all debts duo the United States shall thonceforwad be
paid bard money, Believing as do, thathese mea
sures, adopted will be injurious to the country can
not sanction them with my vote. Since their rejection
at the extra session, have carefully noted the express
sons OF public sentiment in different quarters OF the
country, and consider them as having been condemned
by the people themselves well by their representa-
,ives at the other end Of the Capitol In every State
where there has been Legislative expression OF opinion
that expression has with exception, been against
them The Sub Treasury has friends OF much respect
ability IN the State represented here by my colleague
and myself but they are in the minority. The sus-
pension OF specie payment by the banks and the assaults
made on all banks and banking have rendered these
institutions unpopular; but the Sub-Treasury is
SO. .@"
While the late Bank Of the United States existed the
Government managed its fiscal through that
institution with great facility, and without loss No
country had better currency than that institution
and the State banks of that day furnished u.s. Those
who wanted hard money could easily procure it, and the
exchanges reasonable and safe The paper Of the
United States Bank was at par every where and con
vertbe the will Of the holder into gold and silver
hnt hy ,laf tha
fall Of that bank tho Secretary Of the Treasury by
act Of Congress Of the 23d Of June, 1885, was directed
to select suitable number of the banks chartered by
the Legislatures Of the States and Territories and of
the banks Of the District of Columbia, repositories of
the public money. He prohibited from deposliing
in any bank that did not pay specie for It's notes, that
should after the 4h day Of July, 1886 issue pay out
notes or bills OF less denomination than five dollars.
This last was an excellent provision. BY excluding
small bills, large proportion Of the precious metals
would be infused into the circulation. When the banks
suspended specie payment all connection between them
and the Government dissolved, except that the
Government retained the right enforce the collection
Of the public money remaining in the vaults Of the de-
poslte banks The suspension of specie payments by
the banks embarrassed the pecunlary operations Of
the Government, produced sagnation of business Of
every kind and we hear the question asked every day,
what is to be done to restore sound currency? All
eyes anxiousy looking this way to what course
the General Government viii pursue What the peo-
pie and the banksto expect from this quarter provided
the banks again begin and continue in good faith to
redeem their paper with gold and slvera Will bank
paper be received in payment Of the public dues viii
the &c enment pcslst in demanding and enforcing the
payment Of gold and silver for public land in the West,
and permit the receipt Of bank paper payment Of pub
lie dues IN the East thereby discriminating between the
currency used by the people the east and west side
OF the Allegheny mountains, will Congress endeavor
70 establish and maintain uniform currency On
these points, vastly important to the people, con-
celyo very desirable that Congress should decide at
an early day. ....
The amendment of the honorable Senator from
Virginia holds out strong inducements to the banks
to resume specie payment, and cannot doubt The
ability Of the banks to do so, provided confidence is
restored. Ii is not so much a lack of means as of
confidence, of knowledge respecting the intention
and future action Of the General Government, that
prevents them from paying specie for their paper
If the General Government will, by law, make the
paper of specie paying banks receivable in payment
of public dues and if these institutions are but pro-
perlv managed their paper wii furnish sound cur
rency. am aware, sir, that gentlemen, high in the
confidence of the country, whose opinions have great
weight with the people, are in favor of hard mo-
ney currency. Entertaining different views, will
give my vote in favor of the State bank system II
adopted it will restore confidence, and relieve the
embarrassments under which the business of the
country languishes But if the amendment is re-
iccted BY the majority, then 10 that majority we shall
look to give us a sound currency, II seems battle
is to be fought between the supporters OF an excli-
sive metallic and those of mixed currency that's,
hard moaeU ami paper issued metallic basis and
conatytibc 1.-THE rW Of The h0ldcr into gold anS SIT
rer | contend that ii is not practicable, at this age
of the world, TO introduce the former am for re-
turning 10 that currency under which our country
has prospered in times gone by. Should the sup
porters Of the hard money system succeed in intro
ducng it, to the exclusion OF all paper, so great d.
miption of the money in circulation Will injurious
L. affect the business of our country Instead OF
4htn a.nn IL,
$50 100000 of hard money as the measure of value
of all our property. Should we drive bank paper
from circulation, it will increase the demand for
precious metals and thus raise the standard value OF
gold and silver and proportionaby depress the value
of property of every description. No civilized ma
ton has at any age of the world, been able to dis
pensc with some measure of value. The gold bill
OF 1884 by raising the standard value of gold forced
into our country larger portion ofthe precious me-
tails than share, in proportion to the quantity in
the commercial world il has made but a short stay
with us; the payment of our foreign deb!, and The
natural course Of trade, forced ii out again il is
now in demand and at a premium. We have here
tolore gone on very well and prosperously with
mixed currency but the West does not produce the
precious metals. And if hard money be established
as the currency, we must depend on the gold region
of the South, or go beyond seas for IT, If the West
ern people are compelled to raise hard money 10 pay
their taxes and for all other purposes of life, they
will be compelled to sacrifice their produce and
manufactures in the Southern market for whatever
the purchaser may see fit to give them in hard mo-
ney. Iput this question to honorable members IS
it possible to establish and maintain for any length
of time, two currcncieS-one for the General, and
one for the State Governments? Or, if you please,
one Tor the General Government and one for the
people ......
Whatever currency is received in payment for the
public lands in the West, and for public dues IN the
East, should be the standard currency to pay debts
among the people, and taxes to the States
7 a, "A RI mol a rl who
have been for years ringing the sound of rords not OF
hard money, in our ears to come forward and tell us
where this hard money is, or whence it Is TO come to
supply the place Of bank paper and credit which they are