The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-20
THE POLICY OF THE ADMINISTRATION
IN REFERENCE TO THE FINANCES.

THE POLICY OF THE ADMINISTRATION
IN REFERENCE TO THE FINANCES.
This subject we continue from our last
When the President speaks Of " the unfore-
seen withdrawal of much foreign capital as
one Of the causes of the embarrassment"
with which the country has been visited, we
are at loss to conjecture even to what he re-
fers. Does he refer to the discontinuance to
grant the extraordinary credits which had been
too liberal and too profuse from the European
merchants to the Americana Ifso, that was
mere withdrawal Of credits and not Of capt.
tai. If he refers to the amount of foreign
capital invested in American securities, he
will find on proper inquiry that those invest
ments abroad have been constantly augment
ing, and thereby, the foreign capital has been
steadily increasing in lieu Of being withdrawn.
In this the President looks for the cause Of
our embarrassments not in the right quarter.
We repeat, they had their origin and were hur-
ried to their final disastrous height by the NAL
administration of the public finances.
Both the Message of the President and the
Report of the Secretary lay claim to great
credit, for the alleged instrumentality Of the
Government in restoring specie currency
through the resumption of specie payments
by the banks. The former says, "the agen-
cy Of the Government in producing these re-
suits has been as efficient as its powers and
means permitted )" and the latter says, !" it is
manifest that, the resumption of specie pay
ments and the equalization Of exchanges have
been facilitated by the course Of policy pur-
sued in many respects by the General Govern
ment on topics connected with the circulating
medium and the banks"
The only efficient resumption of specie
payments by the banks took place on the 18th
day of August, after Congress had adjourned,
and after the banks consequently felt safe from
all harm from that quarter. 1t is true, the
banks in New York resumed at an earlier Pc
Rod, to save the forfeiture Of their charters;
but, the resumption was merely nominal, as
they dared not do any business that would
lead to causing any demands to be created
against them. So far, therefore, that partial
resumption was an injury to the community as
well as to the banks themselves.
II was not until the Sub-treasury scheme
had been entombed withoutthe possible chance
OF resurrection, that the banks, generally,
dared, or could with propriety even think of
resuning, with any safety to themselves. So
far, the administration, by its policy, procras-
tinated, rather than fastened or even aided in
the resumption.
We would respectfully inquire of the Pre-
sident whether the bankrupt act, specially APP
plcable 10 corporations, recommended by him
TO Congress at the extra session, had any
agency in inspiring confidence and restoring
specie payments?
The President claims to have assisted in
restoring specie payments and confidence
generally, by "leaving several millions at
long credits with the banks, principally in one
section of the country, and more Immediately
beneficial to it, and at the same time, aiding
the banks and commercial community in other
sections, by postponing the payment of bonds
for Duties" &c. The Secretary, referring to
the same report, says, "every facility was