The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-07-04
SPEECH OF MIR. GARLAND,

Freeze the genial current OF the soul
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SPEECH OF MIR. GARLAND,
Or VInoINn.
AGAINST THE UB-TREASURY BILL
Delivered in the House of Representatives, u. s.
"WEDNESDAY, June 20, 1888.
(CoatiaEed.)
II the object of the bill under consideration, be
not as IL Is profeSsed not TO be- 10 destroy the bank
circulation, IL would be well 10 inquire how far II
is calculated to produce that effect The extent OF
a bank note currency and lis value as circulating
medium, depends entirely upon public confidence;
for confidence is the very soul Of its existence and
the main ingredient by which il is sustained; de-
prye il of this and Il becomes palsied and worthless
There Is no individual confidence, however general,
that can impart 10 a bank note circulation so high
degree of credit or such extensive usefulness as
that of the Government, and can successfully i'm
pair credit, or destroy that usefulness its with
drawal. The extent Of circulation, and value as a
medium which the confidence OF the Government
impaired TO the notes of the late Bank OF the United
States is familiar TO all without il their circulation
would have been local. and subjected 10 all the de-
probation Of the notes Of the local banks The fact
that the Government had been in the habilual receipt
of the notes Of specie-paying banks and its sudden
rejection Of them now would be Of themselves sufh-
Client TO nfcl the deepest wound upon the credit of
the banks and destroy the value Of their circulation
The present state Of things amply demonstrate this
fact. II Congress shall sanction the present views
Of the Executive, the blow will be mortal and the
banks cannot recover, they may lnger out an exis-
tence OF few years, but they can never recover their
former health and vigor, and maintain that sound
circulation which the trade and commerce of the
country SO imperousy demands In support OF this
opinion of the indispensable necessity OF confidence
TO sustain sound bank note circulation, cite from
aspeech Of the honorable gentleman from New York,
(Mr. Cambreleng) delivered IN this House on for
mer occasion, the following expression: But the
credit Of the banks does depend upon The amount
OF their specie, il il did every hank in England,
Scotland, Ireland, and the United States would have
long since permanently suspended their payments.
Bank credit depends upon public condolences destroy
that and the institution must suspend its payments"
II confidence be SO indispensable to credit the want
Of il is whitening and destructive.
But sir, u this specie policy be permanently adopt
ed BY the Federal will it not lead to its adoption by
the State Governments and ultimately 10 the annhi-
laon of the whole banking system; for nothing can
more efectually annihilate the State institutions than
the refusal OF their notes in payment OF the Federal
and State Government revenues Their circulation
would be so restricted and so local without it, as 10
be utterly worthless This would reduce the coun-
Try to its specie circulation which have shown to
be utterly inadequate. Sir this exclusive gold and
silver currency is but vision Of the imagination,
dream Of the night which vanishes with the break
OF day; i is like the & Dead Sea fruits,
(Which tempt the eye but turn to ashes on the lips"
None, sir, would be willing to reduce the value Of
their property to the mere specie standard consent
TO meet debts contracted according 10 the value Of
the usual currency at the specie standard The sacr
flee would be ruinous and destructive.
Mr.. Chairman, gentlemen say that they do not
desire to destroy the banks ask them if they could
adopt measure better calculated to effect in II any
measure be successful in the work of destruc
ton as that which is founded upon the imputaon of
fraud, corruption and insolvency, and proscribes
their notes in the receipts of the Government And,
yet such are the reasons upon which this measure is
sustained If gentlemen do not desire the destruction
OF the Banks, why arm the Executive with power
which will enable it to overthrow them at its
pleasure1 Why place them entirely at the mercy Of
the Treasury Department. Already the operations
Of the Treasury Department have inflicted severe
blow upon the credit OF the Banks and now il is ask
ed TO strengthen the arm Of the Department by inn
parting to il powers which will enable it 10 strike
more decisive and effective blow. ask gentlemen
to pause and ponder before they impar to the Execu
tive this extraordinary power over the Stale nstitu-
tons Sir, when these institutions are crunbng to
pieces before ewes we shall feel the extent Of the
power which has been impaired to the Executive,
and mourn, when il is too late the folly of RASH
ness. I~ .@. ... ~
Mr.. Chairman, never can and never will con-
sent TO impart TO this Government powers by which
i, can subject the institutions of the States to its iron
will, or annihilate them forever III could should
feel as If had broken down the strong wall of de-
fence by which the States are projected against the
power Of this Government and surrendered the ca-
del Of their rights discretion 1t is very easy to
impart power but very difficult to resist its operation
when impaired Already the barriers which protect
the rights OF the States against the power and usurpa
tions OF this Government are crumbling to pieces
Pass this bill and every vestge is destroyed Under
the deceptive garb Of an Independent Treasury"
you place the institutions of the States completely in
the power of the Executive. The manner in which
the destruction of the banks may be effected is mani
fest. The public money while in the hands of the
collectors and receivers may be employed in specu-
lating in bank paper and thus keep constant and
exhausting run upon the banks for specie to their
utter destruction.
But the blow will not fall upon the banks alone if
il would should feel bur little concern but il will
fall heavily and more desructively upon the people
themselves. The Banks to be enabled to meet the
constant demands upon them for specie must collect
from their customers to an extent which will greatly
Cypress and harrass them. The Indebtedness 10 the
Banks by the people is about s450000O 600 and that
to be paid under diminished and diminishing cir
culation, and reduced and reducing value of pro-
perry and prices ofproduce, would produce state of
plate Is this House-Is this country prepared for
this? trust not
But, Mr.. Chairman, confine this measure TO the
considerations of economy alone, and who does not
perceive that, from wear and tear, and the costs of
transportation that the advantage is decidedly in ia
vor of convertible bank notes In France the bust
ness of the Government is much more extensively
transacted in specie than in England or in British
India, but much more in India than in England The
annexed table Of the costs of collection in these three
countries will very accurately test the economy of
each system so far as Government is concerned e..
UgUI =.