The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1838-07-10
SPEECEH OF RAEE. DAVIS,

OF MASSACHUSETTS, UPON THE BILL REPORT
ED BY THE COMMITTEE OF FINANCE, AND
COMMONLY CALLED THE SUB-IREAsURY
BILL. (CoNTINUED)
(DeLlrered in The Senate Of tic u S. 0nfhe 2oM %
February and 1st Of Aarch, 1882
Mr. President, having presented to the senate,
Yesterday, some of the leading points OF policy
lending to shew that from the time it was ascer-
taned that the bank OF the United Suites could
not be worked as a political engine, the execu-
tive resolved to establish government bank on
the public revenue, and that this object has not
been lost sight of to this day, will not further
recapitulate the evidence but that may not be
misunderstood, or my views msapprehended,
shall before proceeding further, state to the
ate, that | have uniformly been decidedly OPP
posed to excessive banking, and to all rredeema-
BILE paper. When, therefore, contend that
sound paper is Indispensable to active and pros
perous business, in country like ours of great
Geographical extent, and filled with energy and
enterprise am far from being satisfied that it is
not unsafe and greatly injurious to permit ex
.cessive banking, to authorize the reception, or
to countenance, by law, the circulation of paper
not redeemahe at sight.
Mr. President, ought perhaps, in justice to
myself to say that early in 1884, before these
questions of currency were agtated here, my
opinionS which | am aware are OF little value,
were officially made known TO the public. 1
then commended that it was desirable TO draw in
to circulation more specie, but that it could not
he done without dispacIng paper Ii was, there
fore expedient to abolish small bills, and let spe-
Gle take their place. This opinion have had
no occasion to change. Time and experience has
confirmed it. Many of my friends also know
that was one among those who were anxious,
when the Bank of the United States was before
congress for recharer, to curail all powers as
much as possible, leaving it with the ability only
IL rIi buc
readily concede that such IN institution, with
onlythe authority necessary TO operate it, holds
a power which may be eXerted in an Injurious
manner I was also DESTROYS that lis capital
should be diminished, believing, myself, that a
bank with less capital, which collected and dis
lsirsed the public revenue, would answered. rea-
sonable purposes of regulating and rendering
uniform the currency. ! was OF opinion that 1t
was necessary institution, but OF IA character
that had much better be too weak than too strong;
for it is easy to strengthen it if necessary, while
unnecessary powers only tempt those who may
hold them TO perpetrate abuses.
MY WISH in regard to all banks, has been that
they should, both as to numbers and capital, be
limited within reasonable bounds; and that great
caution and circumspecton should he exercised,
in granting them charters to keep them open TO
inspection 10y public authority, and TO compel
them, at all times to keep greater quantity of
specie than has been practiced for several years
Circumscribed within suitable limits and under
prudent restraints securing the public against
imposition and spurious Issues never nave
doubted that banking was highly useful to the
public, nor, on the other hand, do doubt 1t may
be- has been and is so conducted in many m
stances as to be highly pernicious. deeply de-
plore the present state ofthe currency, and earn
estv hope a return to specie payments may very
soon occur All we need, therefore, is wise ana
iudicous regulation, and the question ought to
be one of regulation, not OF overthrow. fohucs
poison banking wherever they mlngle with It,
The legitimate object oil II is TO aid BUSINESS, not
to strengthen power.
But, Mr. President, begging pardon for trou-
bling the senate a moment about any thing APP
pertaining to myself, return to the subject IN lis
connection with tine policy pursued by the adj
ministraon. now propose TO draw your at
tention distinctly to the doctrine OF an ex-
elusive metallic currency which the party Tor
some time past have advocated. The public has
been led to believe it the sincere policy and hon,
est purpose ofthe administration TO establish me-
tai in the place Of paper.
Nobody in the country knows better than the
late and present president that an exclusive me-
taic currency could not be established without
first suppressing the paper currency; they
knew i'm the outset of hls career as well as they
now know, that specie and paper could form
Joint circulation only where paper lett open chan
nels for specie to Cow in. What space paper
does not occupy specie will hll ana hothlng De-
yond. Experience long ago settled the matter,
that specie is used Just far as necessity requires
and no farther. If there be no bills of less de-
nomination than ten dollars, then specie is used
in all matters below ten dollars it fills that space
in business. If, however, the bills descend to
one dollar, then specie fills the vacuum of change
only. The amount of specie, therefore, which
will circulate depends first, upon the fact wheth-
er there is any paper and next upon the denom-
nations, and lastly upon the amount of paper;
for good convertible paper and 1 speak of no
other, will always displace the metals. Nothing
can be more manifest than this. In 1880 we
were supposed to have forty-five millions of spe-
Gle, but we saw none except to fill the spaces
which bills had left open In 1886 we were
supposed to have eighty millions; yet the same
state of things existed; we saw no more in bust
ness. The introduction of this great addition
made the truth neither stronger or more appa-
rent
What then were the motives of the admins