The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-15

reform which the Legislatures Of several Of the States
have already commenced in regard 70 the suppression
Of small bills; aud which has only 10 be fostered by
proper regulations the part Of Congess 10 secure
practical RETURN the extent required for the the secu
ry Of the currency, TO the constitutional medium. "
sin the instance OF the attack upon The Bank Of The
United States the approach 10 the State Banks is slow,
cautious and insidous, lie REMINDS Congress and the
country that all calculations OF temporary convenience
must be aside that must recur 10 first prlnci-
pies; and that must what II IS that has prevents
ed the legislation OF Congress and The States the sub
ject Of the currency from satisfying public expectation
lie declares his conviction that the Of has
proceeded from the undue connIenance which has been
afforded 10 the spirit Of monopoly All the serious dam
gers which our system has yet encountered may DO
traced to the resort to implied powers and 10 me Rse Of
corporations We have felt he says, but class OF
these dangers the with the Bank Of the United
States, aud he clearly ntmates that the other class is
the State Banks We TO see, he proceeds,
whether IN the present favorable condition Of the
Try, cannot take etecua stand against this spirit
OF monopoly, ReyeIung TO his tayorlIe scheme Of q
government bank, he says IL Is asceralned that Instead
Of being made necessary promote the evils OF
checked paper system, The management OF The repcnae
can be made auxiliary 10 the reform which he is DESTROYS
10 introduce The designs Of President Jackson against
the Stale Banks fully developed and enlarged
upon in his annual message OF 1886, from which beg
leave to quote the following passages
a. beg leave to call your attention to another subject
intimately associated with the preceding oneihe cur
rHRey Of The country.
Iii apparent, from the whole context of the Con-
sltuiion, well the history Of the times that gave
birth to IL, that the purpose OF the convention to
establish currency consisting OF me precious Betais
These, FROM their peculiar properties which rendered
them the standard OF value all other countries
adopted IN this as well to establish its commercial
standard, reference to foreign countries, by perna
men. rule as to exclude the OF muiable medium OF
exchange, such as Of certain agricultural commodities,
recognized by the statutes of State. as tender
for debts or the still pernicous expedent Of apa-
per currency" fE 4
tariableness must ever be the characteristic OF
currency Of which the precious metals the chief
ingredient, which be expanded or contracted
without regard 10 the principles that regulate the value
OF those metals standard Ia the general trade oil the
world With US, bank issues constitute such a cur
rency, and must do So until they made depen
dent on those Just proportions Of gold and silver as
circulating medium, which experience has proved TO be
necessary only this, but all other commercial
countries. Where those proportions not infused
INTO the circulation, and do not control IT, is manifest
thatprces vary according the tide OF bank is
Sues and the value and stability of property stand
exposed to all the uncertainty which attends the ad
nstraon of institutions that constantly liable to the
temptation of interest distinct from that OF the
munlty In which theya are established
But although various dangers to Republican
institutions have been obyiaed by the failure OF that
bank to cxtort from the Government renewal of its
charter, 1t is obvious that little has been accomplished
except salutary change OF public opinion towards
storing the country the sound currency provided for
in the Constitution In the acts OF several Of the States
prohibiting the circulation Of small notes and the
Hilary enactments of Congress at the last session. for
bidding their reception payment public account,
the true policy of the country has been sdvanccd and
largef portion of the precious metals infused into
circulating medium. These measures will probably be
followed up IN due time BY the enactment of State laws
banishng from circulation bank of still higher de-
nominations and the object may be materially promoted
by fnrther Of Congress fohddng the employment,
fiscal agents Of such banks issue notes OF low de-
nominations, and throw mpedimens in the way of the
circulation Of gold and silver.
"rhe effects Of an extension OF bank credits and
over-issues Of bank paper have been srklngly illus
trated in the sales of the public lands. From the
turs made by the various registers and receivers the
early part Of last summer, il perceived that the
ceips arising irom the sales Of public lands IN
creasing TO unprecedented amount. In effect how
these recepts amount TO nothing than credits
banks. The banks lent their to spectators;
they paid to the receivers and immediately re-
turned to the banks, TO be len, again and again,
being instruments to transfer 10 spectators the
most valuable public land, and pay the Government by
credit the books OF the banks Those credits
the books Of of the Western banks, usually called
deposcs, already greatly beyond their immediate
of payment, and were rapidly increasing Indeed,
each speculation furnished for another; for no
Had individual company paid the notes,
than, they were Immediately lent another for like
purpose; and the banks extending their business
and their issues largely alarm considerale men,
and render it doubtful whether these bank credits #
permitted 10 decRmuiate acond ultimately be of The least
rdiuc 10 The Gorernment. The spritof expansion aud
speculation confnedto the deposite banks, but
pcrvaded the whole multitude of banks throughout the
Union, and was giving rise to new institutions to agga-
rate the evil.
The safety Of the public funds and the interest of
the people generally, required that these operations
should be checked and it became the dnly Of every
branch Of the General and State Governments adopt
all legitimate and proper means to produce that sautay
effect. Under this view of my duty, directed the
issuing OF the order which will be laid before you 1.-THE
Secretary OF the Treasury, requiring payment of the
public lands sold to be made IN specie with exception
until the 9Th of the present month in favor OF actual
settlers This measure has produced many salutary
consequences. II checked the career Of the Western
banks and gave them additional strength in anticipation
Of the pressure which has pervaded Eastern,
we'll the European commercial cities, BY pre-
venting the expansion OF the credit system, il
bly, cut off the of speculation, and retarded its
progress in monopozng the valuable Of the public
lands 1t has tended to the new States from a
nonresident proprietorshp-one of the greatest obsta-
cles to the advancement of a country, and the
prosperity Of old one. 1t has tended to keep open
the public lands for entry by emigants at government
prices, Instead OF their being compelled TO purchase OF
speculators at double treble prices And it is
Seying into the interior large in silver and gold
there 10 permanently into The currency OF the
country and place Il on firmer foundation. IL is
hdently believed that the country will find, in the
motives which induced that order and the happy con-
sequences which have ensued, much to commend, and
nothing TO condemn"
II is that he again calls the attention OF Con-
gress to the currency OF the country, alleges that
apparent from the whole context of the constitution
well a. the history of the times that gave birth it, that
the purpose OF the convention establish cur
iancy consisting OF the precious metals; mputes vaIia-