The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-07
WAsmSoTos, March %, 1888.


called the spscic clause was stricken out Mr. Tip
ton then moved 10 insert a section In lis place. re-
curing The notes OF specie paying banks TO be receiv
ed in payment OF The public revenues, under such
restrictions and regulations Congress should pro-
vide, which was rejected section was then adopt
ed on motion Of Mr.. Webster taking from the Sc
cretary fine Treasury the power OF discriminating
10 the kind OF funds ~ be received IN the differ
ent branches OF the public revenue. In this shape
the bill passed The Senate.
Now, as 10 its practical operation-By It's provi-
sions the Government is thrown back upon the Joint
Resolution OF 1916, under which the Executive
claims the right 10 prescribe the kind OF funds 10 be
received, whether specie the notes OF specie pay
ing banks Under his construction OF the Joint Re
solution the late President issued the specie ciTcu
lar by which he required specie in the payment Of
public lands, whilst the notes ofspece paying banks,
under certain restrictions, were received for Gus
toms. Mr.. WebStefs amendment takes away this
right of discrimination. The President must, there
fore, either require specie or the notes OF specie
paying banks in all the different branches ofthe pup
lie revenue, and cannot receive kind OF funds in
one branch, and different kind in another. He
must, OF course rescind the Specie Circular which
relates to the public lands, or he must ex.end TO
the Customs.
Which will he do9 some have supposed he would
authorize the receipt Of the notes Of specie paying
banks and disbufse Them in the public seryice,this
under certain restrictions might be DONE and might
perhaps be made 10 operte benetciay upon the dil-
ferent interests 10 be effected by 1t. Probably this
was the expectation OF some.of those who voted 10
strike out Mr.. Calhoun's specie clause TOR although
Mr.. Tipton's amendment was rejected still il was
avowed in debate that il was opposed on the ground
that il implied dstrust in The President as TO the
proper performance of his duty.
The question then recurs, which ofthe two descrip-
tons Of funds will he direct to be received /
should think he would hardly direct the public dues
be paid in specie after the expression OF the Senate
against il by striking out the specie clause he must
then, direct the receipt of notes of specie paying
banks, under such regulations and restrictions as
may be prescribed As to wha those will be, we
are leil to infer from the facts before us the PreSi
dent in his message the extra session said I" If at
short and fixed periods, they (bank notes) were con-
uerted into specie to be kept by the officers of the rea-
sury of the most serious Obstacles TO their re-
ception would, perhaps be removed To retain the
notes in the Treasury, would be % renew, under
another form the loans OF public money to the banks
and the evils consequent thereon"
took the ground, at the extra session. that if the
bank notes to be converted into specie as above
suggested by the President it was imDaeral TO me
whether specie or the notes of specie paving banks
were TO be received-the practical effect would be
the same in both cases.
Mr.. Wright, in his speech at the extra session,
said, For himself he agreed with the view of this
matter which he understood his honorable colleague
10 take, that in the depoSteS were confined to
the safe keeping of the officers Of the government it
was question of much less interest TO the banks than
seemed TO be generally supposed II the banks were
not made the repositories, il could not be supposed
their notes if made receivable, would be retained for
any length of time in safe keeping. 1t would be a
necessary result of this mode Of keeping the public
funds that all bank notes receired must be presented al
M0rt Intervals for payment; and he could not that
ii would be any very valuable favor TO the banks as
permanent system, to receive their notes merely
for the purpose OF immediate pre&atmem and pay
ment" AT the present session. Mr.. Wright said IF
the notes of the banks continue TO be received in pay
ment Of the public dues and the repositories are d.
rected as in that lse they unquestionably would be-
to call frcquently and at short Intervals for the ba-
lances against the banks, and 10 demand specie for
those balances this must operate as powerful check
upon all the banks in the vicinity Of those deposito-
rieS where the collections are large"
From the above quotations, and from the sources
from which they come trust there can be no longer
any doubt on the public mind as to the manner in
which the Sub Treasury bill, if il shall become
law in its present shape, will be carried into effect
and leave il TO the judgment of every rational man
To say, whether the receipt of the notes of SFecie
paying banks under such regulations and under the
discretionary power claimed by the Executive is
not far worse than the positive and absolute receipt
of gold and silver only In the latter case the banks
would only suffer in consequence of their specie
being drawn from them, and deposited in these Sub
Treasury vaults, by which they would be disabled to
extend those accommodations TO which the mercan-
tile community is entitled. In the former it would
subject them to the same Inconvenience by the pre-
sentiment Of their notes for specie and put il in the
power of the Executive TO pull down or build up any
bank he pleased, from the manner in which he could
accumulate its bills if it continued 10 do business
and suddenly present them tor specie, The same
remark is also applicable TO Mr.. Calhouns PROPOSE
ton (whisl bank notes received) by which one,
sixth was TO be received in specie the first year two
sixths the second year. and so on till the whole re-
ceips Of the public revenue should be in gold and
silver. Who can fail to see that under such svs-
TEN, every bank throughout the country may be
destroyed, and all those evils which have been so
fully depicted during the discussion of this question:
inflicted on the community. Ii is in fact establishing
a gold and silver currency for officers and contract
nrS nf cow ~ he annla tl,c
mercy of the Executive or the Secretary of the Trea
Sury. The banks cannot resume continue specie
payments, if they continue to do business under
such system. Nay, they cannot live but by Execu-
tive cemency.
The great evil consists in the adoption of the Sub
Treasury system in any form. That done all others
follow. There is no way in which the objections
10 its adoption can b. overcome 1t is not capable O.
being made by any amendments either useful or
harmless hope the country will not be deceived
by the present foImof the bill 1t was right to Strike
out the specie clause if we could, because that was
giving blow which destroyed that little congruv
il had, and left il in shape in which it was hoped
none would seriously think Of passing it.
1t contains powers which lead directly to an unmiti-
gated deSpoiism opinion. You have not failed to see
in reference TO the progress Of this measure the dan
gcrous extent of Executive influence. You can
scarcely imagine the evils which may follow the ex-
ercise Of the additional powers proposed to be con
ferred BY this bill on that department of the govern
ment Away, then with the whole syStem-away
with these vaults and safes, these bars and bolts
Let the government dcpoSte its funds in sound in
stuonS and let there be received the notes of such
banks as the deposte banks will agree to credit the
government as cash. Let the government then make
its drafts those repositories and let the holders
draw such currency as they desire.
lam utterly astoniShed at the manner in which this
measure is attempted to be forced upon Congress and
the people If the collection of the in gold
and silver be so essential for the general govern
mcn why is it not equally for every State govern
ment? The same argument would apply in the one
case as in the other. What would be said TO such
proposition in the State OF New York believe it
al frat, IJa1