Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1838-04-19
POLITICAL.'
REMARKS OF MIR. CALHOUN.

bert to strike out the specie section.
IS Mr.. Calhoun said, as late as il is, (1O
o'clock nj uight) and fntigued and exhaust
ed as the Senate must ~ after sitting ten
hours, he was compelled to in,rude himself
on their patience. The question was OH
the cngrosshhcnt Of the bill; and, as he could
not possibly vote for it in the shape it had
assumed, he was constrained to assign his
reasons; but he would do it in tho fewest
words possible. Ho said he was most anx-
ious to vote for the measure. He had ta-
ken the deepest interest in it, and felt most
solcitous for its success; and, if he thought
that the bill,as amended, advanced the great
cause, for which he had been SO earnestly
con,ending, one inch, he would give it his
vote. But such was not his IMPRESSION
On the contrary, he beloved that it was an
entire surrender of tho cause. He would
co further, il was rctrograde movement,
and would leave the cause in a worse con-
dition than it was. So far from divorce
from the banks and return TO the constitu-
tional currency, the bill as it stood, would
virtually restore the deposit bank system
again, with some features more objcctiona-
bic than il formerly possessed; which lie
would now proceed to show.
On the motion of tho Senator from Gcor-
gia, (Mr. Cuthbertj the Odd section, which
provides for the collection Of the dues of the
Government in specie, was struck OUT with
the aid of few on this side and the entire
opposition TO the divorce on the othcr.-
That section provided for the repeal Of the
Joint resolution Of 1915, which authorizes
The receipt of bank notes as cash in the dues
of the public. The effects Of this will be,
should the bill pass in its present shape, that
the Government will collect its revenue,
and make its disbursements exclusively III
bank notes, rs it did before the suspension
took place in May last. Things will stand
precisely as it did then, with but a single
exception, that The public depositcs will be
made with the officers Of the governmen
instead of the banks, under the provision o.
the deposite act Of 1886. Thus far is GER
tain. All agree that such would be the
the fact, aud such the effect Of the passage
Of this bill as it stands. Now he intended
to show couclusivcly, that the difference
between dcrosting the public money with
the public officers, or with the banks them
selves, was merely nominal, as far as the
operation and profits Of the banks were con
ccrncd that they would not make one CEN,
less profit, or issue single dollar less, if
the deposites bc kept by the officers Of the
government instead of themselves; and, of
course, that the system would be equally
subject to expansions and contractions, and
unlly exposed TO calaslrOphies like the
present, in the one as the other mode of
keeping. He spoke Of bank profits and
bank issues generally, as derived from the
deposie Of public moncy-the aggregate
profits and issues Of all banks, without re-
ference TO the distribution Of the profits un-
der the one or the other mode Of keeping
the public money. He would show in a
word, that the bill would no more divorce
the Government from the banks, in relation
to the deposites, than it would as it now
ss1qad as IL Observation-Disclosures cash iii i,s
dues aud disbursements; and that it would
unite them rs effectually in respect 10 both
rs they were before the suspension in May.
Although the assertion might excite some
surprise al first it would be very easy 10
make plain every word he had said.
The profits which the banks derive from
the public deposites. when their own notes
were collected and deposited, as would be
the case if the bill passed in its present form,
arises from the Withdrawing of their notes
from circulation. While their notes are in
deposi,c, they arc as completely withdrawn
from circulation for the time, as if burnt, or
destroyed; and the withdrawal makes va
cuum to that extcr in the circulation, which
iHo w oS ihiSe uP Wy hC" uiStouIItS, duu. Ol
course. increased business aud profits; and
this was equally true whether the notes
Withdrawn were deposited in certain banks,
as under the deposi,e act Of '36, or in the
hands Of the receivers general, and other
Executive officers, as proposed by this bill.
The profit depended, in no degree, on the
laces where their notes were deposited;
but OH the amount withdrawn and the length
of time they were kept out ofcirculation.-
The larger the amount withdrawn, and the
longer kept out, the greater the business and
profits OF tho banks. Nor cal, The issues ex-
coed the sum necessary to fill the vacuum
occasioncd by tho dcposites, whether they
be made with the banks thems ,lves, or tile
officers Of government. When the vacuum
occasoned by the withdrawal is filled, what
over exceeds that, must return on the banks,
without regard TO the place of deposite, and
check farther issues. ltfollows clearly from
all this, that the deposite Of the public funds.
if fcolIectcd i'll bank notes las proposed by the
bill as it now unfortunately stands amend
edD in the custody of the public officers,
would not in the least affect the discounts
a:id the business ofthe banks. They would
be as great as if deposited with The banks,
and would keep the circulation of bank
notes rs much expanded; and subject to as
many fluctuations and shocks. These pro-
positions he held to be incontrovertible.-
He would be glad to hear any member rise
in his place and attempt to answer them.
Nor would the Treasury be n particle
more independent Of the banks, than under
the deposi,e system before the suspension
Of specie payments. The revenue, as he
had said, would be collected under this bill,
should itpass, as it was then, exclusivclyin
bank notes, which, on another suspension
would be just as worthless in the hands of
the officers in whose custody thew minh, ho