Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1838-06-19
CONGRESSIONAL.
Correspondence of the Baltimore Patriot.
WASHINGTON, May %, 1888

Correspondence of the Baltimore Patriot.
WASHINGTON, May 90, 1888
Mr.. WEBsTER's SPEECH ON THE REPEAL.
OF THE TREASURY CIRCULAR.
Mr.. Webster's resolution (annulling the
Specie Circular, and prohibiting all such
orders hereafter) has PASSED the Senate
by large majority-No less than tacenty-
fUe!
The distinguished Statesman, though
laboring under indisposition, made speech
worthy of his fame, lucid, interesting, forci.
bic, and conclusive, in support of his pro-
position.
The Treasury Specie Circular, he main.
tanned, was indefensible in principle, be
cause it created an odious discrimination
between the different classes of persons
who pay dues to the Government.
There were different opinions among the
members of the Senate as to the authority
ofthe Secretary to issue this order, and as
to its expediency at the time. But most
concur in the belief that its abolition now
will be useful. In the present condition
Of the country its continuance would be
prejudicial to the resumption of specie pay.
ments by the Eastern and Western Banks:
injurious as diminishing the ability of the
Banks to give accommodation to the PEG.
pie and as tending to keep a large par.
ty in the country in a state of agitation
and excitement.
If this order shall be abolished Che said)
one important thing viii be done. There
are many other things however which
ought to be done; and to the considera-
ton of some of them, he would take an
early opportunity of drawing the attention
ofthe Senate. The repeal of this Order
will bring the country back to where it
was under the joint resolution of 1916.
So much mIsconception prevails in re-
ference to this resolution (said Mr.. W.
that it will be important to look a little
into the real history of that measure:
Down to the suspensio n of specie pay
ments in 1914, the collectors had been in
the habit ofreceiving specie bills. They
took them as money. They credited
them as they woald specie. They kept
no separate accounts-one for bank notes
another for specie: And no one denied
the propriety of the Collectors receiving
these specie bills, and crediting them as
money. When the Banks suspended spe-
Gle payments in 1914, the Collectors could
not, of course, take these bills as specie,
and credit them as such, unless the Govern
ment would so receive them. The Col
lectors obtained the authority of the Trea-
sury to take them, and during the war
they went on, and received this deprecia-
ted paper. The Government itself took
this deprecated paperin loans, when they
negotiated: And they continued until the
close ofthe war.
Ithas been argued here (said Mr.. W.
as if the object of the Joint Resolution Of
1915 was to authorize for the first time
the receipt of specie notes in payment of
Government dues. Such an idea is erro-
neous. It was always the practice of
Government to receive these specie notes.
The object Of the Joint Resolution Of
1916 was CCTTo PREVENT THE RECEIPT OF
ANY BUT SPECIE NoTEs.1E1 The debate
on the subject at the period in question, de-
monstrate this fact. It was source oil
grieyous complaint, that the practice Of
receiving the notes Of non-specie paying
banks created great inequality. The
Banks in the North generally had not
discontinued payments in specie. But
those in the South, mostly had suspended;
and the farther South you went, the great
er was the depreciation. AT some points,
the notes of the best banks were twenty
per cent below those Of Boston. Mr..
Webster gave some striking Illustrations q
the inequality which resulted from this
state Of things, in the payment of imports
&c.
Under these circumstances, the PrEsi
dent, at the session Of 1916, called the at.
tention Of Congress to the subject The
Finance COMMITTEES reported a bin for hl
collection Of thereVenue il the lawful mo
ney Of the country. Some of the progi
sions ofthat measure were strongly OBJ
] jectionable toa part ofthe House; and foul
or five days before the adjournment th
Bin was rejected 81 one votes
The next day Mr. Webster introduces
| this Joint Resolution. AS originally ia
PRODUCED, t did hot contain a word abou
j the receipt ofspecie bills. And why III
!, Il not contain any reference to theml Sim
ply because i was not thought that an,
provision Of the kind was nece ny.
was known that The uniform practice {
the Collectors was to take specie note.
one imagined that il would Be changed.
Mr. Webster then stated that o. nj
Calhoun himself introduced tie proVisio
authorizing the receipt of the bills ofspec
paying banks. e however dia q
! think i necessary. but acted o. tie surge
2 tons. and in compliance with The Wh
Z Of others. Mr. Webster OPPOSED i 6
! The ground thai + vas onnec i g