Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-06-14

received. Here was \ direct teqnisition tr Seid ana
siircr exclusively. Well now, sir. how VS. tins
understood by by the Government aud the county
There were then n few State banks IN existence, IS
sung bulls and rcdeeming them on demand IN spe-
eie and 1t is beyond all doubt that. IN the neigh
horhood where these banks existed. OF where thei,
bills circulated, those bills being thus bills of specie
paying banks. were received tor duties ms fulfilling
the demands OF the statute. The number OF banks
soon increased, aud went on increasing. aud the bl lis
OF all were received II they were IN good credit. aud
paid specie FOR then paper on sight. All this. sl,
was done with the fall knowledge and appreciation
Of Government and it was done on the PLAIN aud
simple ground. aud could be authorized or lusliic,
on no other, that bank notes, ior which specie could
be had on demand, are the representatives OF specie
and are its equivalents thnt they are indeed. but
SO many orders go 10 and take the specie when you
wish II that they ara the Instruments with which
you take hold OFF when you need II. And rs Govern
nent must keep its money somow here, y naturally
would use safe banks for the purpose OF keeping II,
whenever such banks could be found, 1t seemed alb
sud aud ridiculous In compel the merchant 10 hring
his Land dollars from the bank TO the custom house Ia
pay his bond. lor no purpose but that they might be
sent back again from the custom house Ia the bauk.
Nhatevef the collector received lac credited 10 the
Government as cash. 1t might be gold aud silver,
II might be a merchants check on IA bank, II might
be bank bIls-aIl went into one and the same ae=
count rs cash.
In l79l the first bank was established, and its bills
were made receivable. in payments to Goveinmcnt,
by a positive provision III It's chatter. lint even
this. so far as know, did not prevent the receipt OF
the bills OF other specie paying banks IN places
where such institutions existed. Thus things went
on during the continuance of the charter Of the first
bank. The charter eNptred IN ISL, and from that
tllpc, therefore,, lllele was no paper IN circulation
but that OF State banks; aud tins paper WAS every
where received, # the bank was in credit, and pad
specie and allow me To repeat, sin, that 1t WAS re
ceiyed, as beng a substantial compliance with the
act OF the 3lsi OF July, lfs9. 1t WAS received rs
cash, and credited rs cash. This state OF affairs
continued until after the declaration of war against
England, IN 1870. So that you perceive, iii, that
Ion five and twenty years the officers of Government
every where received. when offered, the notes Of
specie paying banks as specie, and that tins was
done without complaint by any body.
But now, MIR. President, u great and important
change took place. Within year or two atteI the
commencement oi the war, all the banks soutl, Of
New England suspended specie payments. Then
bills aud notes were therefore no longer equivalent 10
gold md silver, and 4 general crush OF the currency
ensucd. Bank paper lmmedntely became dcprc-
ciatcd, and this depreciation increased moro aud
molc as we went from North to South. The cX
change between Washington and Boston WAS, AT one
period, rs high as twenty or twenty five per cent
Nevertheless. sill, even IN this lancntablc state III
things, the Government continued to receive bank
notes, deprecated as they were, tor duties andiaxcs.
Il also contracted heavy loans, and IN many lnstan
ces received the proceeds OF Its sales of the stock oi
SUCH lbillA III MS Silllf DilIh Ill''I 1T IHt' ~
tins was justified on the ground Of thc absolute ne
ccssity oitlle case. War, pressing on the country
with all It's demands and all It's evils, created an
exigency, in which there seemed no option, since
there was no national institution, but To receive the
paper of State banks, although those banks had
ceased TO redeem their bills by The payment OF gold
and silver, and their paper, therefore, was enormous
~ deprecated.
Well, sir, peace came in the carly part OF 1915;
but still the banks did not resume. When Con
atess assembled. in the Edl Of 1873, the suspension
stll continued, the depreciation was not rcmcdlcd,
aud the Treasury was stlll RECEIVING The degraded
paper Of State banks. Now, sIf, as the wal had
ceased, il was obvious HAT tins mode OF collecting
revenue ought 10 be no longer tolerated. Several
enormous evils flowed itom IT. The FIRST was, that
Government was not sure, and could not be sure, OF
any fixed revenue OF income. 1t lald taxes and
duties but what then : For these taxes aud du-
ties it got nothing but incdrcmable and dsbased pa
per money and the fate OF The old Government un-
der the Confederation, III continental paper money
tunes, was alfeldy staring Congress full III the
face. So much for the distress caused to Govern
mcnt.
The other lnlolerablc evil was the inequality
which was produced between citizens III different
places. Al Baltimore duties on goods imported
were received in notes Of the Baltimore banks, al
though those notes we've ten or fifteen per cent.
below the value of gold and silver, while at Boston,
at the same time, nothing but gold and silver, or
ljtI tUuIfdIcIt, SIttIt lIlIS, NbuIu " y Ill Ill
In The mean time the general mischief, the great
and overwhelming evil of a deprecated and dlscrcd-
tied currency, afflicted the whole country. Every
interest felt its baneiul effects. Commerce stagna-
ted, manufactures could not revive, and business
of all kinds was embarrassed and distressed.
This, sir, was that deplorable state Of the cunen-
cy which ! have already said existed at the close OF
lSl5-a state ofthc currency which had called forth
so earnest a recommendation to Congress from the
President, and which Congress set itself 1T work,
with SO much zeal and resolution, to reform.
As have observed on former OCCASIONS, sir, Mr..
Madlson's message, so far as 1t related 10 the sub
lect Of the currency, was referred 10 a select COM
mlttec in the House OF Representatives., aud the
honorable member from South & rolIna CIR.
CALHouN) was made chairman OF that comnattcc,
LIS FIST measure was 10 establish Il bank AID IN that
measure he succeeded. The law creating the Late
Bank OF the United States WAS approved aud
signed by the Presi lent on the I0tl of April, lSlG.
But the establishment OF a bank was not supposed
10 be all that the condition Of the country required.
Something further, 1t was thought, was indIspensa-
bic to the restoration OF the currency. Accordingly
the honorable gentleman brought forward 4 bll
% for the more efectual collection olthe public re-
venue in the lawful money oftiIe United Statcs.'-
To some Of the provisions Of this bill ! alluded on a
recent occasion. The bill was much discussed. aud
much opposed. Various amendments were made
to II, aud others proposed, III the course oi ITS pro-
gress. In the shape which it finally assuined sup
ported il, cheerfully, because ! thought 1t would an
swer the substantial purpose designed by II, that OF
aiding essentially IN the restoration OF the currency
II passed to be engrossed on a very close vote, but
the next day it was rejected, on the third reading, by
a majority of one. This, SIR, touk place on the 23th
OF April, and Congress had already agreed to 'd-
journ on the 3oth of the same month. Here we
Nptp Ilpp within five DAYS al the end oil lie SESSION.,