The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-06


sessions and 6aaly produced legislation. was, 10
DAY. that the Government actually locking ~ "a lhe
banks all the money Of the country, while The honest ana
hard-working citizens suffering for rs use q.
morrow the almost countless millions were oaneu ~
the pet banks 10 favorites or the Executive aud s
beers OF the dominant political party, to enable them 70
mako specuations in the public lands ana " ~ o'us.
descriptions Of property, the INJURY o. iaf BUSINESS
men. and the ruin Of the poor 80 lac were theso 81"
plants carried, inconsistent and e0nuahN'oi rI,s
mind aud finally 10 induce almost al Inc mu.hoes =
thus body 10 vote for the deposiIe law Of $500, WINCH
was TO dssipale this boarded iund ana p'sos .s a
keeping uih the States The Secretary q .ne iisa-
sury commenced the necessary measures ~ execute ss
'aa 900 c,,nd maj the money which had teen
;',,,o,lv hnard,d IN our debates here, had been IN
fact rather TOO much dsslpsted heioTe Congress inter-
fycd yvith h This raised another complaint The Se-
,s,.,v was wnnony executing The law. because he did
M, ne lis provisions. lie giving drafts upon the
hanks hc had the money for acceptance and payment
us the law required; whcn il no had given them for
transfer merely the banks would not have been injured
During the FIRST part OF this process tho sale oil The pub
lie lands continued at accelerated pace; and although
Congress made strennons, but fruess, effort 10
medy the evil, tic complaint commenced again that the
public domain being exchanged for irresponsible
bank paper The President took up the subject afler
Congress ief H. and directed the land officers 10 receive
nothing hut gold and silver In payment for lands This
laid the foundation for aud continuing complaint
The payment OF the immense dcposes 10 the States
produced The necessity for equal collections on the part
Of The deposite banks from their customers These col
leetons oceaSoned scarcity OF money, aud i was the
Specie Circular which had done T. Their foreign
debts pressed upon the merchants and the calls upon
them from the banks dsenablcd ihemto p1y bal me
Specie Circular had wrought The mlseacl ny marching
all the gold and silver Of the country 10 ihe west 10
purchase lands Embanassmens continued 70 increase,
extensive failures Of merchants ani Others took place
and finally m May last, all the banks oil the country
suspended payment, Sill the Government was prlnci-
paly in fault the Specie Circular had taken all the me-
iac currency the interior, and prevented 4 hon go
ing rio Europe pay debt; and the hanks could
not paw specie until that debt cancelled Tune passed
on rhe funds OF the Treasury were ~ the banks and
co nd be- commanded. and extra call OF Congress
became relieve the debtors oil the Goyern-
eit and supply the Treasury with funds. The banks
complained Of for their exceSses and hnproydence;
aid the fault was that Of The Government for having
placed in their hands slch immense deposLes, To be
called for suddenly, and for having checked their ex
cessive issues OF paper by the Specie Circular. Con-
gress convened and the present President transmit
ted his Message, proposing end these complaints by
an entire severance from all business connection be-
tween the National Treasury and the banking nstu-
tous. This once. changed the face Of things, and
showed the President aud the Administration hostile 10
the banks; and now, although the foreign debt is paid
and foreign exchange down par the banks cannot
suine payment for fear of the Government.
He would ask, in all candor, and in all sincerity, If
any history OF facts could show, conclsively the
Improperly OF this connection between the finances Of
the country and the aars Of individuals and banking
interpretations II there who heard him,
who did not aud feel the necessity OF relieving The
Government OF his country from these and
Trajectory complaints The proposed system WILL do
that aud, in his Judgment that alone would be one
OF the greatest benefits which could be conferred upon
the nation.
II such will be the influences upon finances and
Government, oil the system proposed what influences
to be expected from the State bank system Ger
tainy. to place the money Of the people beyond the
control OF the servants OF the people, aud within the
control Of the banks dsenahle the Government TO
pay It's debts except in deprecated currency whence
the notes OF the banks deprecated or aban-
don It's money. collected ard accumulated in the hanks
to meet IT'S debts resource for that purpose, and to
resort TO it's credit to raise the by which legal
payments be made, 10 render the country, at all
tunes, under all circumstances and emergency
that of excepted aud after the money for
the public has been collected from the people, hnan
cially dependent upon banks. in the management Of
which has voice, and which has control;
TO subject the Government 10 all the complaints which
have been reespitulated and volumes Of Others Of like
character in short to subject the Treasury Of the
ton all the fluctuations, which ordinary banking
commercial house is subject to make it instrument
tai in promoting in both, and then chargea
BILE with oil the evils which may hefali either ITSELF
the banking aud mercantile interests. Should he spend
the OF the Senate prove that these the
cesssy consequences Of the system OF State bank depo
sites In the face OF recent and severe experience both
the Treasury and the country would proof
positions be called forl That experience furnished the
ceares and strongest proof and those whom II had not
convinced il vain for him TO attempt to convince,
by fact or argument Such TO his mind were the
paratve influences of the two systems upon the govern
ment Of the country and its finances.
.Sirh He would extend his comparison to single
other poin-the Influence Of each system upon the ge
neral currency. and dismiss this part Of the argument
The system proposed was clear aud certain ID It's
ton, in this particular 1t would sound and
standard currency for the National Treasury, whether
that currency should be gold and silver or bank paper
and il would exempt that Treasury from the fluctuations
Of an unregulated and varying currency So far there
fore, Us the money operations Of the Government could
influence the currency Generosity the Influence excrtcd
by this system must he saluary, it must he to
tain general currency equally 10 its own standard If
that should coe time, he gold and silver
only, the system would another beneficial lnfu
cnce. II would not only present standard Of currency
worthy Of imitation, but, TO the extent Of the whole
public disbursements, il would constantly circulate
among the people basis for the PAPER currency Of the
State banks, and thus aid them in keeping their repre-
sentation Of stable aud firm, and equal in value
itself Beyond these influences. il would leave The
people and the States regulate, their way, aud
without the interference Of federal power, that portion
OF the general which by the divisions OF power
under system, falls within their Jurisdiction and
the constant subject Of their action 1t would then be
clear to all If that portion OF the currency should sink
below the standard OF currency for the public Treasury
that wrong existed somewhere State legislation or in
the management Of those entrusted by State legislation
with the regulation Of that currency; and the federal
authorities would be free from nputatiou or suspicion,
and would stand before the whole country holding up
the true standard OF currency, and inviting from the
State authorities correction OF the errors which should
at any time disturb deprcciae that portion committed
to their care
How, in this respect, does the opposite system act
The Stale banks to much the greatest il the