Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-15

Of Mr.. Madison, did he dsorsdit and dscountenance
the issues Of tho banks by refusing to receive them
in payment Of the public dues I Bid the State Co
vernments spon the former the late occasion, re-
fuse to receive them IN payment Of the dues to them,
And Il the irredeenabIe bank notes
are good enough for State Govern ments and the peo
pie, are they net coed enough for the Federal &C.
vernment Of the same People1 BY exacting specie,
in all payments to the General Government that Go
vernment presented itself in the market as powerful
and formidable competitor with the banks, demanding
specie al a moment when the banks were making
unexampled struggles to strengthen themselves and
prepare for the resumption OF specie payments. The
extent of this Government demand for specie does
net admit of exact ascertainment; but when we re-
feet that the annual expenditures of the Government
we're at the rate, including the Post Office Depart
n,ent, OF about thirty-three millions of dollars, and
that It's income, made up either OF taxes or loans,
must be an equal sum, making together an aggregate
of sixty six millions il will be seen that the amount
of specie required for the use of Government must be
immensely large. IL cannot be precisely determined,
but would not be less, probably than fifteen TWEEN
ty millions of dollars per annum Now, how IS II
possible for the banks coming into the specie market
in competition with all the vast power and influence
Of the Government, 10 provide themselves with spe
Gle in a reasonable time to resume specie payments?
That competition would have been avoided, if upon
the stsppage of the banks, the notes of those of
whose soliety there was no doubt had been contin-
ued to be received in payment Of the public dues,
was done in Mr.. Madsons administration. And
Va Il
Why should not this Government receive the same
description of medium which is found 10 answer all
the purposes of the several State Governments =
Why should thsy have resorted to the expedlent Of
issuing an nferier paper medium, the form of Trea
sury notes. and refusing TO receive the better
of safe and solid banks? Do not misunderstood me-
Mr.. President. No man is more averse than am TO
permanent inconvertbls paper medium. 1t would
have been a temporary measure only that should
have thought it expedent receive the notes of good
local banks. If along with that measure the Trea
sury order had been repealed and other measures
adopted TO encourage and coerce the resumption OF
specie payments, we should have been much higher
that desirable event than, fear, we now In
deed do not when it is possible for the banks to
resume specie payments, as leng as the Government
is in the field, making war upon them, and in the
market demanding specie.
Another conclusive evidence of the hostility to the
State Banks, on the part of Mr. Van Buren,, is to be
found in that extraordinary recommendation of a
bankruptlaw contained in his message at the extra
session. According to all the principles any bank
rapt system with which | am acquainted, the banks,
by the stoppage OF specie payment had rendered
themselves liable TO It's operation. II the recon-
mended law had been passed, commissions of bank
ruptcy could have been Immediately sued out against
all the suspendng banks, their assets seized and the
administration of them transferred from the several
corporations TO which it il now entrusted, to COM
mssioners appointed by the President himself
Thus by one blow, would the whole of the State
Banks have been completely Frustrated, and the
sury Bank; and is il not in the same spirit of an
frlendliness to those banks and with the view
of removing all obstacles TO the establishment of
Government Bank, that the bill was presented TO the
Senate few days ago, by the Senator from TeRnes-
see (Mr Grundy) against the circulation of the notes
of the old bank of the United StStes2 At a time
when theres too much want of confidence, and when
every thing that be done should be DONE to revive
and strengthen We are called upon to pass law de-
nouncing the heaviest penalty and ignominlous pun
ishment against all who shall REISSUE the notes of
the old Bank of the United States, of which we are
tsld that aboat seven millions Of dollars in crcu
laton; and they constitute the best portion of the
paper medium of the country; the only portion Of il
which has a credit every where, and which the
purpose Of a general circulation; the only portion
with which a man can travel from one end OF the
continent 10 the other; and do not doubt that the
Senator who has illuminated these severe pains and
penalties against that best part of paper medium
provides himself with sufficient amount Of ii when
ever he leaves Nashville TO take him to Washington.
Here Mr.. Grundy rose and remarked-No Sir al
ways travel on specie. All, continued Mr.. Clay, my
old friend is always sPEcIEous. am quite sure that
members from distance in the interior generally find
il indispensable TO supply themselves in commencing
their journey, with an adequate amount Of these den-
teal notes to defray its expenses. Why, sir will any
in his senses deny that these notes far better
than these which have been issued by that govern
msnt banker, Mr. Levi Woodbury., aided though he be
by the Chancellor of the Exchequer Il beg his pardon
] mean the ex chancellor) the Senator from New
York (Mr. Wneht) am not going to stop here
to inquire into the strict legality Of the REISSUE
of these notes: that question, together with the
power of the government TO pass the proposed
bill, will be taken up when il is considered. l
am looking into the motive of such a measure
Nobody doubts the perfect safety of the notes;
ne one can believe that they will not be fairly and
fully paid. What then is the design of the bill Is
it 10 assail the only general medium which the
people possess Ii Is because II may come in COM
petition with Treasury notes or other Government
paper. Sir If the bill had not been proposed by my
old friend from Tennessee, weud say its author bot
ter deserved q penitentiary punishment than those
against whom II s directed l remember to have
heard of an iustrious individual, now in retirement,
having, some occasion burst out into the most
pa rotic indignation, because of wagesh rick play
ed of upon him, by putting note of the late Bank Of
the United States into his silk purse with his gold.
Bat II il unnecessary 10 dwell longer the nnu-
merable proofs of the hostility against the State
banks and the deliberate purpose of those in power
TO overthrow them. Wehear and see daily through
out the country, among their parsans and presses,
denuneiatiens against banks corporations rag barons
the spirit Of monopoly, &c; and the howl for gold
hard money, and the constitutional currency; and
none can listen TO the speeches of honorable mem
bers friends Of the administration, IN this House and
the other without being impressed with perfect
vction b at the destruction of the State banks
dtated.
Ihavo fulfilled my promise, Mr.. President, to sus-
tain the first four propositions with which sat out.
now proceed to the fifth proposition:
5. That the bill under consideration 10 intended to
exesute Mr.. Van Buren's pledge, complete and per-