Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-06-14

1916 is u question which I shall not now discuss at
any length My opinion on that point differs from
hat entertained by the Senate. As the bills of spe-
Gle paying banks stand in the resolution with the lc-
gal currency of the country, Treasury notes, and
bills of the Bank of the United States, and as all
arc under tho in1uencc Of the very same words.
cannot but think that ii is the duty OF col
leetots To receive either when offered. II IL said,
however, that the resolution only permits the receipt
Of these bills, and that public officers may sill RI
insc them If they see fiji. But it is to be remembered
that the receipt Of these bills is authorised BY the We
" same words which reject the receipt Of the bills of
The non specie paying banks. How, then, IN the
injunction to be regarded rs imperative for one pur
pose aud pormissive only as to the oiherf
No doubt. sir, there are certain limitations and
qualifications imposed by the very nature of the
case, and which must be respected. The bills, 10
be receivable, must be hills of specie -ray,vg banks.
and the collector must Of course know them 10 be
such. lie must be acquainted with the general
eharac'e, of the institution from which the bills rssnc
", perhaps, II would not be reasonable to expect him
10 possess tins knowledge in relation 10 any other
banks Than suel, as were in his immediate neiehbor-
bo,liood, with whose character and daily operations
he was conversnnl. Certainly he would not bn
bound To act upon vague and general information
respecting distant institutions which were unknown
10 hun Wnii these necessary limitations. | cannot
but tlinh the resolution imperative. The decision,
however. las been the other way. and acqniescc in
II. Both Houses Of Congress has acted upon thc
s1ppositlon that there still exists n discretion IN the
~ W 'lt ! ifbsuIN. VI present PURPOSE ~,
therefore, 10 restrain and control that discretion, aud
to put IN end 10 II IN one important particular.
no eonslitntonaIty OF the resolution OF 1916 has
been DENIED but cannot doubt that Congress may
authorize the reception OF bank bills il it chooses.
10 lie sure, all taxes and duties must be uniform,
aud Therefore must every where be paid in I, currency
oi nnioim value. But the value OF coprertibfc bank
notes Is lust rs uniform ~ the value OF specie itself.
l~tarpca,s To me, sir, that on tnese subjects we sur
round ourselves viii, ideal difficulties, and cmbarrass
] n / a a ~ lgu1p I,t,n tt,,.n i,sta I,.l a.f,a.I
have seldom any existence. A better knowledge OF
actual transactions, and oitho usual modes oil bnsi
ness, would Often very much improve our judgments.
Tn AL these subjects, we are to remember that,
ordinarily, the Government has IN its own hands
neither specie nor bills that its funds arc in ,lo
keeping oi somebody that after all, they arc hut
credits III account that they exist, not M specific
masses Of gold aud silver, nor in specific parcels OF
bank bulls, bur IN balances due rom collectors and
receivers; that successive collections are carried us
new credits 10 these accounts; that. rs drafts are
received, they are paid in any manner that suits
the holder, and charged in the account. All per
sous acquainted with sucl, affairs know that, OF the
whole amount received at the custom. house, very
litllo Is paid otherwise than by merchants checks,
by means OF which the proper amount IS transferred
nom the account of The person paying to that Of the
collector, either IN the same banA or some otler.--
Ordinarily there arise but three occasions Tor the
dlect use oi specie IN large amounts: one is, to
adjust balances between different cities another oc-
ours when the state Of foreign trade requires an cS-
po1t1lion oil specie to ADJUST national balances and
the lllird IL, a demand for gold aud silver for carry
'ng on some particular branches of commerce. suelI
as The China trade was. These uses Of specie do
not, OF course, include hat portion of old and sill
'r which IL Intended to pass from hand 10 hand,
'id TORN part OF the general circulation. ! speak on
y OF the occasions in which specie may be called for
IN masses, for the purpose ofshowing tina, occasions
Tor such calls are not frequent. Thus we have
seen thai, IN the four or FIVE months that we have
been debating, here, upon theories and abstraerrons.
upon schemes and projects, several OF The States
lave negotiated large loans, realized the proceeds
III specie OF its equivalent, conducting al their opc-
rations successfully through the agency Of skllluf
men, and making no commotion by violent moviaes of
the precious metals. really wish, sir. that we had
n l1ttlc more OF this quiet and practical wisdorn.-
We might well exchange Tor II Sumo part of our C.
labolate and long continued thcoretic reasoning on
general principles.
Mr.. President, it is lac fashion now a DAYS to dc
nonncc all banking institutions, to call them hitIe
missionaries and odlous monopciics, and 10 find in
them causes sufficient FOR the overthrow of the
Governments, and The destruction OF popular liberty.
II is the temper OF the times to indulge in the ebnlli-
ton of this spirit. Banks are separated from the
People HEY are supposed to have b. en- created for
their own benefit only to lave been, from the first,
enemies oflie public good, and To be nuisances
which the People should get rid of as soon as posi-
Bile. Now. sir, all tins is very unlike the feeling
which prevailed IN 1916. AT tina, time banks were re-
garded as institutions which the People of the States
had established for their own convenience. We in
tended, indeed, that they should perform their daiy,
but we meant. at the same time, TO aid them rn
the performance Of IL, AS FAR as was in our power.
The whole temper aud tone OF Government towards
the banks were then unlike wholly unlike what now
prevail. Look To the history Of the administration
oithe Treasury Department, recur to Mr.. Crawfofd's
correspondence, you will SEQ a disposition every
where to encourage the State banks, to give thent
assistance, and TO inspire the community with conf
dcncc IN them. There was, indeed, sir, one pro-
position made in Congress at that period, which con-
trasis ~sttIkingly with opinions and sentiments now ar
IDENTITY supported. The honorable gentleman flom
South CarClina himself brought forward a measure
Tor an issue OF Treasury notes 10 the amount
of fifteen millions ofdollars, TO be loaned u HE banks,
ON such security as the Secretary Of the Treasury
might approve, reimbursable in annual instalraenis.
THIS was done On the avowed principle of lendingt to
these institutions the support and credit of Govern
mcnt, in order to enable them TO resume payments
aud restore the currency. The proposition did not
succeed, but il met with considerable favor. II was
supported on the ground that the banks were but in
stIlutlous created for the benefit of the People, and
thai, in the existing state of things, the community
wouldbe benefited by whatever should enable them
to redeem their deprecated paper, and thus re-
store the currency Of the country. How different.
sir, how widely different, is all this from those loud
and vehement tones OF rebuke, reproach, and denun-
citation which have filed, and almost shaken, tho
walls of these chambers for months past
| conelude. Mr.. President, by repeating tho
expression of my perfect CONVICTION shat thS
passage of this resolution will be productive of
much good thai it will act powerfully on the great
object Of assumptions; and that we shall see its effects
Immediately. SO soon, sir, as it shall have passed.