Litchfield enquirer., 1838-06-14

tho washington cotfes Poi'sc.ns " 49, !, 49,.
more Patriot, contains the tullest sKeIcn a Ina'
Ser. n support Of his recent important reso-
luton. AS this measure is one Of exceSd.ng
importance to the whole coumunlty-D
Is eIIect the repeal Of q measure winch mas
hcer e, lono 0,;asi non intercourse act 10 the
ss9ssasE -.vva ara confident thar we can give
Ge5l;60 that viii be read with equal interest:
se WAsHKGToN, May %, 1888.
Mr.. Webster's resolution lannuLling. the
snncie Circular, anil prohibiting all such or
aers hereafter) has PASSED the Senate oy
large maiority--no less than ticcntyGus!
\ 3 The distinguished statesman, though LABOR
itip under indigposition, made speech wor-
nv Of his fame, lucid, interesting, forcible,
ana conclusive, in support Of his proposition.
The Treasury Specie Circular. he main
tanned, was ndefensible in principle, because
ii created an odious Discrimination between
the different classes of persons who pay dues
" fhe Government. There were different
Tn;nions among the members of the Senate
~ Ia lie authority Of the Secretary to issue
u this order, and as TO its expediency at the
time. But most of them concur in the belief
that its abolition now will be useful. In the
present condition Of the country its contlnu-
ance would be prejudicial TO the resumption
kof specie payments by the eastern ana IVES
term Banks; injurious as diminishing ine a.
Nbilities Of the banks to give accommodation
IN tha neople-and as tending to keep large
party Id the country in 2 state OF agitation
IL this order shall be abolished, he said, one
iniportant thing will be done. There are
many other things, however, which ought to
be done and to the consideration Of some OF
them. he would take an early opportunity of
drawing the attention ofthe Senate. The re-
peal of this Order will bring the country back
To, whore II was under the joint resolution q
IS much nisconception prevails in refer
eEce 10 this resolution, said Mr. w, that !.
viii be important to look little into the real
history Of that measure.
Down To the suspension of specie payment
in 1914 the collectors had been in the habit
.of receiving specie bills. They took them
az money. They credited them as they
would specie. They kept no separate ac-
counts -One for bank notes. another for spe-
ciei And no one denied the propriety Of the
Collectors receiving these specie bills, and
.crediting them as money. When the banks
suspended specie payments in 1914, the Col
slectors could not, Of course, take these bills
as specie, and credit them as such, unless the
Government would 50 receive them. The
Collectors obtained the authority OF the
Treasury to take them, and during the war
they went On, and received this deprecated
paper. The Government itself took this de-
apreciaied paper IN loans, when they negoci-
ated and they continued until the close Of
the war. # isgss
II has been argued here, said Mr.. W.. as IT
the object the Joint Resolution Of 1885 was
to authorize for tho first time the receipt Of
speeds notes in payment of Government dues.
Such an idea Is erroneous. 1t was always
the practice Of the Government 70 receive
these specie notes.
ssl The real object Of the Joint Resolution Of
1916 was 10 prevent the receipt Of any but
SPECIE Morris. The debates on the subject
ut the period in question. demonstrate this
fact. Il, was a source Of grievous complaint,
that the practice Of receiving the notes Of
non -specie paying banks created great ine-
duality. The banks Id the North generally
liad not discontinued payments in specie
But those In the South, mostly, had suspen-
,ded. and the farther South you went, the
greater was the depreciation. AT sbme points,
the notes Of the best banks were twenty per
cent below those Of Boston. Mr.. Webster
gave some striking illustrations Of the Inc
quality which resulted from. this state Of
things, in the payment of imports, &c.
Under these circumstances, the President,
at the session cf 1916, called the attention of
Congress to the subject. The Finance Com
rnittee reported d bill for the collection Of the
revenue Ia the lawful money Of the ccuntry.l
Some Of the provisions Of that measure were
strongly Objectionable TO part Of the House !;
and four or I'VE days after the adjournment,
the billWas rejected BY one vote.
The next day MIR. Webster introduced this
Joint Resolution. Az originally introduced,
\ ii did not contain word about specie bills.
And why did it not contain any reference to
them! Simply because 4 was not thought
that any provision ofthe kind was necessary.
II was known that the uniform practice Of the
Collectors was 10 take specie notes. No one