The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-17

in endeavoring to induce the State Banks 70 an carry
resumption ofspecie payments On jury oi'na'
year, Mr. Dallas wrote the banks as ioiioWsi FROM
the State Banks, sincere and eheetuai exerhon, IN
the common cause OF restoring the legal currency is
certainly expected and required but in return, they
will merit and receive the confidence OF the Treasury
and of The National Bank the transfer of the public
funds from the State Banks TO the National Bank
and its branches will be gradual, and the notes of
the State Banks viii be freely circulated by the
Treasury and the National Bank" In the same
communication, Mr.. Dallas said the Department
felss fiscal interests Of The government and The sue
crssa operations Of he Bank Of he Uaitcd States 10
be intimately CONNECTED tcih The credit and prosperity
eftts State Banks"
Mr. Crawford, on the Goth of November, thus
wrote "From general knowledge of the means
with which the Bank OF the United States will have
10 commence its operations, and OF the difficulties
which il will have to surmount il the State Banks do
not make simultaneous effort, II is manifest that,
without their cooperation, national currency equal
to the indispensable demands of the community cam
not be Obtained by the 10Th of February next, from
the efforts of the Bank and the Treasury under the
legal existing provisions" Again, AS the princi
pal banks in the middle States, in the month of Au
gust last explicitly stated TO this department their
determination not TO resume specie payments before
the LIST of July, 1877, there is no reason to expect
their cooperation before that period unless change
has, in the mean time, been effected in their situa
ton or unless inducements more powerful than those
presented in the Treasury proposition Of the ed Of
July last can now BE- presented to them" Again,
he remarked, "To appeal TO their fears BY refusing
corrective their bills in payments 10 the Government
if that appeal should be Intellectual would be to visit
~ haul thp aat n
Tending citizens, unless the Government was pre-
pared 10 furnish sufficient legal currency TO meet
the indispensable demands of the community" In
conclusion, Mr. Crawford then remarked, 81 is
however, most ardently desired b. the Government
that the necessity of reSortng TO the issue of Go
vernment paper may be avoided by the resumption
of specie payments by the State Banks on or before
the 10Th of February next. As an inducement to
this measure, the Government only aid their
operations by Withholding from circulation as much
of their paper now in the Treasury or which may
hereafter be received as the demands upon the Trea
sury during the ensuing year, will permit. As the
sum which il will be in the power of the Govern
ment retain in the Treasury will be considerable
it may present a sufficient inducement 10 change
their determination not to resume specie payments
before the LIST of July next"
On the 10Th of December following Mr.. Craw-
ford wrote, " The means in the Treasury to aid the
operations Of the banks in ettecting revolution in
the state of the currency SO imperiouSly necessary
to the public interest," are considered ample and the
strongest disposition exists TO apply them, so to
produce the most beneficial results" He continued,
1t is confidently believed that the interests of the
banks and OF the community are not in opposition to
each other, and that any sacrhce which the effort
may cost them, will be compensated by The advana-
ges and facilities which it is in the power ofthe Trea
sury to afford them"
These exertions made, and inducements held out
by the head of the Treasury Department accom-
plished the object and the banks agreed and did
resume specie payments on the Goth February, 1877
In the preceding extracts, are presented some
most important considerations of policy pursued
by the two distinguished individuals who were the
authors of them, and also as to what seemed to them
to be obligations of duty towards the people devov-
ing on the Government, which strikingly constrast
with the policy pursued, and the obligations of duty
from the Government to the people acknowledged in
connection with the unique systems brought forward
at the present day.
On the former occasion the banks were not even
blamed for suspendng. On the recent occasion,
they were denounced in high quarter with being
guilty of perfdy and treachery and undeserving the
confidence Of the people. Formerly, it was looked
upon by those in power, as the imperative duty of
the Government "to furnish sufficient legal cur
rcncy to meet the indispensable demands Of the com
munity." Now the doctrines recently put forth
touching the same subject are d" the power which
Congress may possess to legslae, with such pur-
pose in view is not entirely clear, nor well de-
fnedn
Having shown the course Of policy pursued by
the Government to induce the banks TO resume specie
payments in 1917, will now examine into the con-
duct of the banks since they suspended and the poll
cy the Government has pursued towards them
There has been laid before the community from
time to time, the evidence to show that the banks
throughout the Union, with the exception of those
in three or four of States, have gone on gradually
and undeviangy TO call in their loans as rapidly as
practicable without expressing the community too
severelyi and in reducing their paper in circula-
ton, and augmenting the amount Of specie in their
vaults.
The Banks in large number of the States, APP
pointed delegates TO a convention last fall to consult
AMI fix upon period for simultaneous resumption
Where was the Government? Ii took no part what
ever. 1t had measure matured thai had been act
ed upon in one branch of the legislature and which
II was officially announced was to be brought for
ward as soon as Congress met again. and adopted as
one of the laws of the land dirorcing the Govern
ment from the Banks and directing the future col
lecIonS OF the public revenues to be made in specie
entirely.
Such amcaslrc in prospective well calculated 10
alarm them, and deferred them from assigning day
for resumng, which they would undoubtedly have
ne bat for that circumstance. They agreed to
meet again at future day. before which they cx-