The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-07-11
THE LAW OF I7so--THE RESOLUTION
OF 1916.


OF 1916.
Since the defeat for third time OF the Sub
Treasury in its original abominable shaPe'
two other efforts have been made by ITS adVo-
Gates to accomplish the same object IN other
forms; one by Mr.. Buchanan's special depo-
-. scheme, and the other, by Mr.. Wright's
proposition to abrogate all law, and place the
public money at the uncontrolled disposition
of the Executive.
The advocates Of both these propositions
considered the adoption Of them as falling
back upon the law of l7s9, and the resolution
Of 1916. They even assert now, that, the
public finances are hereafter to be admins
tered according to the provisions and meaning
of those two acts Of Legislation.
The act Of 1889, the Sub-Treasury advo-
Gates insist, contemplated the receipt in pay
ment Of the public dues, Of silver and gold
only, and the doctrine is maintained that II
was violation Of the Constitution, TO receive
any thing else; as well also, to employ State
Banks as repositories Of the public money.
A similar doctrine was repealed in 1894,
by some of the same individuals who now adj
yocate it.
Respecting the practice Of the Government
from 1889 down to 1884 We find i fully ex-
planned in the following extract from speech
delivered in the Senate in February Of that
year, by the Hon. JOHN FoRsYTH, now Sc
cretary Of State. He said:
With the certain consumption of portion of the
Senaies time and no little danger Of exhausting its
patience, | venture TO give, BY reference TO public
documents, brief sketch OF The history Of this
branch OF our polity By the act Of Congress Of 1882
sec 80 il is provided that nothing shall be received
in payment Of duties but specie Now, sir, this first
act this subject has never been obeyed. The Sc
cretary OF the Treasury not only directed where the
depository Of bonds was TO be made by his collectors,
&c. as he had right to do, but he disregarded the
provision Of the act OF Congress, and permitted bank
notes 10 be taken as specie. On the 23d OF April,
lT90 In obedience to a call of The House Of Repfe
sentatives, Mr. Hamilton made detailed report on
the subject Of that act of 1859, imposing duties on
goods, wares" &c. The part relating to section 80,
although long, is SO striking that shall read the
whole Of it,
"SEc. 80 This section provides for the receipt OF
the duties in gold and silver coin only. The Sc
cretary has considered this provision having for
object the exclusion OF payments in the paper ennis
sons of the particular States, and the securing the
specie, as intended toprohb to individuals the right
OF paying in any thing except gold or silver coin,
but not to hinder the Treasury from making such
arrangements its exfgenctes, the speedy command
OF the public resources and the convenience of the
community, might dictate; those arrangements being
compatible with the eventual receipt Of the duties in
specie. For instance, the Secretary did not imagine
that the provision ought to be SO understood as to
prevent, If necessary anticipation OF duties by
Treasury drafts, receivable at the several custom
houses And if it ought to be understood in this
sense, i, appeared to him that the principle of diff
ferent construction would extend to the permitting
the receipt of the notes Of public banks, issued
specie fund. Unless il can be supposed that the
changing of SPECIE after it has been received, for
the bank notes to be RENTED 10 the Treasury, is also
nerdicted, it seems difficult to conclude that the
receipt Of them, in the first instance, is forbidden
"Such were the reflections of the Secretary with
regard to the authority to permit bank to be
taken in payment Of duties. The expectancy Of
doing it appeared TO hmto be still less questionable
The extension of their circulation by the measure
is calculated to increase both the ability and the in
clinalion of the banks to aid the Government. 1t
also acceleraes the command of the product Of the
revenues for the public service and 1t facilitates the
payment of the duties. II has the first effect because
il business occasions the notes TO be sent beforehand
to distant places and being ready on the spot either
for payment or exchange, the first post after the du
ties become PAYABLE or are received, conveys them
drafts anticipating the duties could hardlyb made
without some sacrifice on the part OF thenpublic As
they would be drawn up time, and upon the ex-
pectaton OF funds TO be collected and of course
tingen, it is not probable that they would obtain
ready sale but al discount, upon long credit. As
they would also be more or less liable TO accident
from the failure of expected payments, there would
be continually degree of hazard TO public credit.
And TO other considerations may be added that the
practice of anticipation this kind is in its nature, so
capable of abuse, to render ineligible nslru-
ment OF administration in ordinary cases, and fit
only for times OF necessity
th.t laa 10 Ill II
then the relying wholly upon Treasury drafts would
be productive Of considerable delay. The know
ledge that funds were in hand must precede the is
sung oil them. Here would of course, be some loss
OF time. And as the moment Of demand, created by
The course OF business would frequently elapSe there
would as frequently be further loss Of time in wait
ing for new demand In snch intervals the public
service won I'D suffer, the specie would be locked up
and circulation checked Bank notes, being con-
Venient species of money, whatever increases their
circulation, increases the quantity of current money.
Hence the payment Of duties is. doubly promoted by
their aid; they al once add 10 the quantity of me-
dium and serve TO prevent the stagnalion Of specie
THE tendency of the measure to lessen the ne
cessity of drawing specie from distant places TO the
seat OF Government, results from the foregoing con-
sderations The slow operations Of Treasury drafts
would frequently involve necessity Of bringing on
specie 10 answer the exigencies of Government; the
avoiding of which, as much as possible, in the par
hcnar situation Of this country need not be insisted
upon.
But convinced, as the Secretary IS oil the uSeIui-
ness OF the regulation. vet considering the nature Of
inc clause upon which these remarks arise he thought
Il MS duty TO bring the subject under the eye of the
Rouse! Inc measure is understood, by all con-
cerned to be temporary.
indeed, whenever National Bank shall be in
stituled, some new disposition of the thing will be
matter Of course"
thus construction OF the act of Congress was
quietly acqnesced in, indeed egitimated, by the
singular authority given to The Secretary by the sub
S,c,qnent act OF 1872, quoted Gy thc Senator from