The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-06-09

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moi been passed He recolected perfectly well the Sc
nsiors horror OF surplus in any shape and the untirng
efforts he made to get rid Of What seemed probable
ono We all recolleet his splendid system Of ioiifea-
lions, which he urged upon the Senate with 50 much
zeal Suppose he had succeeded in carving thai ball
through, what would have become Of surplus The
whole would have been absorbed in the cosl-
mencement OF the works contemplated by Il and in
stead OF being now called upon for Sl0,00O,OOO Of
treasury notes. to meet the ordinary and current expen-
SEES OF the government, Congress would have been ask
ed for $50 900 900, carry this splendid system Of
fort fcstions or else must have made up minds
TO lose the enormous amount which would have been
already invested in them. and suffer them go into
Of diapidation. Such would have been the dis
position Of the surplus II the Senator from MISSOURI had
had his way IL would have been wasted in extayagant
schemes and millions upon millions would have fol-
lowed il If the system had been carried out Fortunate
for the country, the honorable Senator did
coed But his efforts peseverng, that the ad
minstra,on itself became alarmed at the rapid strides
he was making aud the Secretary OF War was directed
to report against IT, This able report from that officer
pu, end 10 that magnificent system and the surplus
deposited with the states instead Of being deposited
with stone and mortar,
MIR. r. said that having taken part in the discussion
Of the depos,e act at the time OF It's passage, he felt 1t
dne to himself 10 say has much IN IT'S defence al this
time In regard to the treasury note bill, now under
consideration he willing to vote for any amount ne
cessaIy for the present exigency Of the government,
even four or i've millions, bat he was unwilling TO
adopt this mode OF raising money as permanent sys-
en and could not therefore, vote for the 1000
proposed by the BILL bnt willing give the balance,
any further that requisite IN the shape Of
loan.
Mr. Benton said he meant to speak ont Of the book,
nasmuch as the Senator from New York (Mr. Tall
madgel had denied that the distribution &C, had eontr
bu,ed the suspension Of the banks. and gave as his
authority information derived from gentlemen who were
directors of two Of The New York banks Now he had
report made by Albert Gsllaiin and Others con-
yention of the city Of New York banks; and as that
report made for all Of them, the two banks alluded
TO BY the Senator have been Of the number The
report made before meeting Of all the banks OF
the city, aud approved Of By the whole OF them MR.
b here read extracts from the report, III which
serted that the immediate causes which compelled the
banks of New York to suspend specie payments were
well known they the simultaneous withdrawal Of
the public deposiles, sc. After the reading, Mr.. b.
continued Now, here was enuine ration OF the
causes which produced s,oppage Of the New York
banks. Four causes we're gwen; aud one OF them
the simultaneous Withdrawal Of the public deposites
&c Now what caused the withdrawal of the public
depositcs II was caused by the distribution act, and
not by the Secretary Of the Treasury and the report
adopted meeting of all The banks, assigned this as
The tirst cause This is what he asserted. and he
supported IN the assertion by all the banks OF New York
None Of the ex.raysgant appropriations mentioned
in the report Of the New York banks His forthcaton
bill was not mentioned and even the specie circular
was not thought Of
Mr. Tsmadge said he wished TO say word in reply
TO the Senator from Missouri The Senator had read
from report Of the banks Of New York. which they
assigned the deposte Of the OF their
embarrassment, and the suspension Of specie payments
Mr. IT, said be had not recently that report, but he
had understood from leading bankers and business
IN New York that their great embarrassment, from
the effects Of the specie circular, and from the
IN which the depose act carried into effect tina.
might have been made, in the hands OF skiul fnan
cer operate benefcialy for the general interests and
to facilitate greatly the domestic exchanges Of the
try. Here Mr. T. into some illustrations 10 show
the disastrous effects Of the mode adopted aud how
easily they might have been avoided by different
course and concluded by saying, he would not APP
prove by his silence, the Of right in
ITSELF because the Executive Government had rendered
disastrous in its execution. '...