Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1838-03-22

'e''eu a"u 'ahueu operations, confluence
would be lost in the notes OF the local banks,
their paper would gradually cease to circu,
late, and The banks themselves would be
crippled end broken. The paper of the Gov
eroment bank would ultimately Till the vac
uun, as II would INSTANTLY occupy the place
OF the notes oil The late Bank Of the United
States.
am aware. Mr.. President. that bv the
10Th section oi The bill, in order TO disguise
the purpose oil the vast machinery which we
are ABOUT constructing, i, is provided that it
81 snail DC the duty OF the Secretary OF the
treasury to issue aud publish regulation, TO
enforce Inc speedy presentation of all Gov
e'""e"' urahs ior payment at the place
where payable, SC. Now, whs, tremen
dous power is here vested in the Secretary,
ne Is 10 prescribe rules and regulations to
eoiorce the speedy presentation Of ali Gov.
eminent drafts al the place where nyable.
The speedy presentation! In the case have
supposed, man has his SlO 900 in drs,,s on
the receive. general al New York. The
Secretary 10 empowered 10 enact regulations
requiring him speedily TO presen, them and
u he do not, the Secretary may order them
TO be paid al ST. Louis. AT New York thew
may he worth premium OF five per cent !.
on 81. LOUIS they may be liable II discount
oil i've per cent. Now, in tree government
who would ever think Of suhjecling the pro
perry or money Of a citizen to the exercise of
such Power by any Secretary of the Treas
nry! what opportunity does il not afford
20 reward partisan or punish an opponent /?
IL Will be impossible to maintain such an obi
Gus aud useless restriction Tor any length of
time. Why should the debtor Gas the Gov.
eminent would he in The case of such drafts
as have supposedly require his cretlitur las
the holder ct the draft would be) To apply
within prescribed time for his payment -
No, SIR, the system would control YOU you
would not So control The system. Blu, il such
RIDICULOUS restriction could he conlisneJ
The dralis would, nevertheless, whilst they
were 0ut, he the time long or short, perfurm
the ofhce of circulation and money.
Let ns trace litile further the operatinn
oil thls Government bank, and follow i, out
To It's flnal explosion. ! have supposed the
appropriation OF some thirty millions II dol.
lars annually ny The Government, tn he dis>
oursed IN The farm OF drafts, issued at w ash,
Ing'on by The Treasury Department. upon
the deposiiaries. or thai amount. some Ten
or ffteen millions would remain, the first
year, IN circulation at the end of another
year, similar amount would continue in
circulation; and so on, from year To year. I'm :
I'll al The end OF q series of some FIVE ar six
years there would he in circulation. 10 sun.
ply The indispensable wants of commerce and
oil general medium OF uniform value M,
less than some sixty or eighty millions of
drafts issued by tho Government. These
drafts would be generally upon The receiver
generals at New York, because, on that
point, they would be preferred, and thew
would command premium, or be a, mar
through the whole extent of the Uniied
States; and we have seen that the Secretary
OF Inc Treasury is invested with ample au :.
'horiiy TO concentrate at ihsi point the " hole
revenue OF The United States.
All experience has demonstrated that in
banking operations much lsrger amount of
paper can be kept out OF circulation than the
specie winch II IS necessary 10 retain in The
vaults 10 meet il when presented tor pay.
theh'. ne psoporti9ns " hCh the same ex-
per'ence has ascerisined Ia he entirely safe
are one OF specie to three of paper. II, there
lo!e, me Executive Government had sixty
millions oil collars accumulated at the port of
New YORK, in the hands of the receiver &c.
neral, represented by sixty millions of Gov
eminent drafts in circulation il wouId be
known That twenty OF that sixty millions
| would be sufficient To- retain 10 meet anv n.
mount of drafts which, in ordinary times
would be presented for payment. There
would then remain foriy millions in the
vaults. idle and u0produclive, aud of which
no practical use could be made. We'll. a
great election is at hand in the State of New
.ork, The result of which will seal The fate
~ an existing administration If the appii-
Cation OF ten millions OF that dor mant csuitaI
Could save, at some future dav, a corrupt
Executive from overthrow, can il be doubt
ed that the ten millions would be appled 10
preserve 1t IN power? Again: let us sup
pose some great exigency TO arise, o season
OF war, creating severe financial pressure and
embarrassment. Would no, an issue of ma t.
per, founded upon and exceeding the specie
III 'he vaults, IN some such proportions as
experience had demonstrated mig hi be sa!s,y
emitted, be authorized? Finally the whole
amount OF specie might he exhausted. and
lheh, az u Is easier 10 engrave and issue bar K
| n"es man perform The unpopular Office oil
imposing taxes and burdens, the discovery
| would tie made hat The credit of The Gov.
eminent was sufficient kasis wbereu,.on IN
make emissions of paper money, 10 be re-
deemed when peace and prosperity returned
Then we should have the days of continental
money, and u assignsts, restored Then
we should have that Government paper me-
dunn which the Senator from South Carolina
Mr. Calhoun considers The most perfect OF
| all currency.
Meantime, and during the progress Of this
vast government machine, The State banks
would be proslrated. Working well, az il
may, ii honestly administered. in The FIRST
period OF IFS existence, il will be utterly i'm &.
possible Tor tbem 10 marniain the UNEQUAL
competition. They could not maintain il.
even u The GoyeInmenI were aciua,ai 80. ~.