The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-08

nu s, VI Pouanua AMI Il & dificul 20 determine
where the depreciation VIII sloP; n s,rh circum
banks resume specie payments unue ,,unt n cary
stances You might Ius a We fs,ssstay bv storm
I,ho,,, ibe ala al cannon or scaling laaaers ina'
The Federal Government can gfealy GU ~ 'es'osins
cnnfdence ia the binhs, and in relieving me coun.
frnm is emblrrasslnents, can Dc aonnoahIy proved
- M history Of the British Government and OF our
80 XVhaf was II Sir, that gave such extended
credit 70 the bank Of England Tor ~ years that u re-
fused 10 pay specie but the reception o. rs paper y
~ RriiSh Government N What restored conn
Sancs h The blnks in 1916 and enabled them TO re-
sumo snecie payments as they did, but The Of
fer Of The Government, by joint resolution OF Con
gress 10 receive their notes IN payment OF the pubc
revenue, as soon as they should resume specie pay
ments9 And what saved the United States Bank
in 1872 and relieved itand many OF the Stale Banks
from the necessity Of stopping specie payments dur
ing that, and sc feral years afterwards pnt me hns'
raj and fostering prtronage they received rom lne
Federal Government, both in the reception OF their
paper in the payment Of the public Dues and in Ibis
raj loans of the public money witnoul inleIes, ~
that day the public funclionaries under inc iiperai
enhgh ened, and patriotic administration OF Mr.
Monroe fell their duty contribute all Of the pa
and surplus funds OF the Government TO re-
hey. the b INKS and through them suffering com
munity. Nosyslematic war was then waged against
the banks and the credit system, either BY The
speeches of violent politicians in and ut OF Con-
gress or BY client essays and editorials, addressed
10 The lowest passions and preludices OF the people
through the columns Of the organ OF The admns.ra-
ton and other public journals No, sir all men,
then without distinction OF party or station felt IL
the lrt of wisdom and patriotism To unite in support
OF the INKS and the credit system as The only means
OF relieving embarrassed and distressed people
and but for this course, there would have been an
universal state of bankruptcy.
I'll wing. las think clearly established the posi-
tioa thai the Federal Government can and ought 70
aid ia the relief Of the ,nks and Through them the
country, from It's present emb lrrass nens, LEG vs.
n3w inquire whether the Sub Treasury bill will az
ford any such relief II proposes ultimately, the
entire collection of the revenue in specie, and con-
seouenty the entire exclusion of the paper Of The
blnkS, and the substitution for banks of Executive
Agcnls, Sub-treasure S, or Receivers General, as
the cJStodia OF the public money. We have seen,
thai the r.cep ion OF the public revenue in bunk
notes, and the deposting Il With, and oaning y 70
banks on previous occasions, greatly increased the
credit OF the banks, and contributed TO reSture conn
dence in theni and by this means greatly renewed
the community from its embarrassmens; eonse-
quently, an opposite course OF policy such as IS
proposed by the Snbtreasury bill the collection Of
the revenues exclusively in specie, and the dlscoh-
tnuing of The banks as repositories Off, must neces-
sary, very much increase the present embirraSs-
mentS of the banks and the country, by increasing
the demand for specie and discreiing the paper oil
the banks. But sir, is it practicable to carry this
system out, before the banks resume specie pay
menSl How is the specie 10 BE- Obtained. In such
country ours, it is impossible TO keep the reve-
nue. down to the wants of the government, Suppose
the surplus should average five millions per annum,
which in six years, would amount 10 thirty millions;
and If you add TO this sun ten millions, the sum ne
ces AIRY TO trinsac the business of the government
you will have in the hands of the government, AMI
withdrawn from the people at the end OF SIX years,
the enorm us sum Of forty millions OF specie-mueh
more than half the United States proportion of the
specie of the world which would b. distracted from
the commerce and business OF the country and
holrded up in the vaults and safes OF the govern
menl. II, instead of paying out the specie TO the
creditors of the government the Treasury officers
should pay them in Ire sury drafts or checks, and
these should become part OF the currency OF the
coln.ry, AMI take the place Of bink notes. (Which
will certainly be the caseif the blnks should be
broken down, because in our wide and extended ter
rtory, the intereS and convenience OF the CONNER
cal community will requ re some such facilities for
the trans mission of money TO different parts Of the
Union) will be readily perceived, that in very few
years, considerable proportion OF the specie would
BE- drained from the people, and boarded up in the
vaults and safes Of the government, and thereby the
government would become almost omnipotent A
culltion has just appeared in the public journals,
which appears 10 be founded on official statistics.
IL Is calculated 10 show the misches of receiving the
public revenue only in specie and then boarding it
in the ranLts and safes of the government II is
statement of the annual amounts Of public money in
the Treasury at the end of each year, from 1889 TO
the 80 Sept IS37-ihat the biance in 1875 was
over Is millions-in 1876 % miilions-in 1871
ne rly 25 millions-lnd in 1888, amounting TO 70
7i9 S03 95-and in 1885, to 49, 70S 436-and IN 1887,
estimated to BE- IS, $50 %. The Sub treasury
proposes to keep all these millions OF balance IN
specie under lock and Key, in the hands OF their
Sub. Treisurers with legs-who in this packet
Steamboat and railroad era, can thus plumber and
run AWAY at will"
That this system will augment the Executive
power to an alarming and dangerous extent il seems
to me no candid mln can doubt II will place all OF
the mixing in Stitutions al the mercy oil Inc Secreta
nv of the Treasury, and the whole monetary system
of the country under his control. Il will place
large proportion of the specie of the country in the
hands Of his agents. subject TO his control and dl-
rection, who, together with these Sub treasury
Agents. Rec .ivers General, and their long retlnus
of Collectors Receivers Clerks, Deputies, and Sub
Deputies. hold their offices at the will OF the Presi~
dent and subject 10 be removed at his pleasure
Now, let me inquire, sir, won not the public mo-
ney be completely under the control OF the Presl
dent as if it in his breecheS pocket, or under
his own lock and key z This would indeed BE- unit
ing the purse and sword in The hands of the Pres-
dent With this power in the hands OF an ambitious
and corrupt President, what would become Of oar
Hb,r.y? Il would b, no difficult task 10 overturn
our free institu ions and convert our freedom into
slavery. Al all events, we should endeavor 10 profit
from experience, by guarding ehectually against
such possible contingency, never forgetting that
the price of liberty is eternal vigilance
But we are told that the Souih is to be benefited
by this system. SO far from this being true think
that it could b. elsily demonstrated that instead Of
the South being benefited by il, il will become more
tributary TO The North than ever Wherever there
will be The lirgeSt amount of revenue collected,
there will be the greatest demand for specie, which
will as naturally flow TO meet this demand, as wafer
will seek its level Ii is well known that there is
more than twice as much revenue collected at New
York as is col ecied at all the other seaports in the
United Safes; consequently, the principal demand
for specie will be at that place. and will flow there,
SO that 1t will soon become the London OF America
large portion OF the United States being supplied
b. New York with goods, its merchants would gene
rly be indeb ed to that city and the paper OF the
Ciry Banks being equivalent to specie in the pay
ment of these deb s. &c the bank notes should not be
supplanted BY Government paper,) il would be in
graf demand thronghnlt The whole country trading