Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1838-05-23

hension tina there would be another OK |
plosion, and he thought it just as likely to
occur under the Sub Treasury scheme as
any other. A United States Bank would |
act as regulator, a kind Of a balance
wheel, 10 the other institutions and pre-
serve sourdness and order in the currency.
So far as we had any experience, the ma
ton had cause 10 be proud of such an in.
stiiu,on--and almost all the Ills we had
suffered, were caused by the improper war
made on that bank.
. Mr.. CALHOUN said he certainly did
not think that the Senator from Kentucky,
[ Mr.. CLAY, "was so silly" as 10 introduce
a bill TO charter Bank of the United
States, after the sense of the Senate had
been so unequivocally expressed against
any such institution. He even considered
him not little indiscrcct in promising to
present the outlines of bank, considering
the object which he hns in view. 1t was
maniestly his intention TO the public atten-
ton as strongly as possible towards bank
as the only measure Of relief. What he
Mr.. CALHOUN wanted, on the other hand
was some definite plan ofsuch an institution
to be proposed by its friends, in order to
have something tangible, between which
and the Sub. Treasury comparison might
be drawn. He felt very confident, when.
ever it was presented, that il would not be
difficult to demonstrate the superiority Of
the latter to the former. He might be mis-.
taken, but he could notfeel, after much re-
fleclion,thatthe establishment ola National
Bank, under existing circumstances, for the
purpose of regulating the currency, would
prove curse 10 the country. If made
sufficiently powerful TO effect that object
it would be too strong for our liberty but,
if not strong enough, it wot Id be to weak
to effect the object proposed, and of course
would not prevent the explosion in the cur.
rency, which, it is conceded on all sides.
must again take place, if the Sub Treasury
be surrendered, and no eflectual remedy be
supplied to prevent it.
Mr.. PRESTON opposed the reference.
Mr.. +. admitted that another explosion was
not at all improbable, if they went on in the
same wild way in relation 10 the Deposite
System. The great object of Government
should be to limit these moneyed corpora.
tons, and to regulate them by means of a
United States Bank. He thought it inf.
nitely better to regulate the system by law,
than to leave it to Executive usurpation.
Mr.. NILES was opposed to the resolu.
ton. 1t contains, said he, the novel and dan.
gerous principle Of iegalizing paper cur
rcncy IN the transactions of the government
This has never been done, excep. so far as
respects paper deriving its authority from
~ h al
have never been n leg al currency in the
collection and disbursement of the revenue.
So far as bank notes are now authorized 10
be received and discussed, it is subject to
certain regulations, limitations, and restric.
tons. The joint resolution of 1916, the do.
posite act Of 1886, and an act passed the
Same session, in regard 70 the payment of
bank notes, all contain restrictions and
limitations which this resolution would en-.
tirely sweep ava. He said that the dis.
connection of the government and the
banks had arisen from the failure on the
part oftho banks, which threw them out of
the pale of the laws. When the banks re-
sumo, said he, the laws will again be in
force, and the banks will be entitled to the
benefits of them. 1t will the duty of the
Secretary Of the Treasury to employ them
as repositories, and he will no doubt author.
ize the receipt Of their notes, subject TO the
restrictions of the law. What occasion
then, is there for further legislation ? The
majority of the Senate have decided in ia.
vor Of disconnecling the finances of the
government from those of the banks but,
if this measure shall fail, we have only to
fall back on the existing laws, and
when the banks resume, things will be pre-.
cisely where they were. The connection
revives without the aid ofCongress. There
is no compulson on the Secretary to take
bank notes, but he is fully authorized to do
It. If there was ever any doubt about the
construction of the resolution of 1916, the
question has been settled by practice of
more than twenty years. Although there
is nothing compulsory as to the receipt of
bank notes, yet it has been the practice of
the Treasury to receive them and pay them
out, under certain restrictions and regula.
tons.
The soundbanks, said Mr.N., do not want
any aid from this government. Ifthey I'm.
derstand their own interest, they will saw to
US "hands off, tho "lef-us alone. policy" is
all we ask Of you. But if il was in our
power to aid the banks, would not sudden
and powerful stimulus from the government
at time like the present, be highly danger.
Gus? What is most TO be feared is that
their action will be to rapid and violent;
that, recovering from their torpid state, they
will spring into life with all tho vigor of q
giant. From the long suspension of bust.
ness, and the vast influx of the precious
metals, there is powerful stimulus opera.
ting upon them.
Mr.. BUCHANAN was in favor ofth
resolution being referred to the committee
on finance. lie said that if he had boon
successful in obtaining the floor at an ear.
lier stage of the debate, he thought he could
have demonstrated, that in every statesman
Ike and in every practical view OF the sub.
jcct, the resolution of 1916, in regard to
the receipt of the notes of the specie paying
banks, was better than the resolution pro-
posed by the Senator from Kentucky. If
his resolution had merely proposed to revive
the resolution of 1916 in regard to tho pub.
lie lands, and 10 place them upon the same
footing with the customs, il should have re-
ceved his Mr.. B.'s] support. The par.
poses for which the Specie Circular was
called into existence, had long been accom-.
plIsed. NO reason any longer existed 10
continue. the discrimination between the