The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1838-02-21

e which had been so injuriously boarded, il
{ our debates here, had been, in fact, rathe
TOO much dissipated before Congress inter
D fered with it. This raised another com
plaint The Secretary was wantonly exc
cutting the law, because he did not like it,
e provisions. He was giving drafts upon th'
I banks which had the money, for acceptance
and payment as the law required; when, j
) he had given them for transfer merely, the
E banks would not have been injured. Du
! ring The first part Of this process, the sal,
, Of the public lands continued at an acceler
, ated pace and, although Congress made 4
strenuous, but frultless, effort torenedy the
evil, the complaint commenced again that
. the public domain was being exchanged fol
, irresponsible bank paper. The President
took up the subject after Congress left it,
. and directed the land officers to receive
f nothing but gold and silver in payment for
lands. This laid the foundation for new
and committing complaint The payment
of the immense deposits to the Suites pro-
duced the necessity for equal collections on
the part of the deposite banks from their
customers.
These collections occasioned scarcity
of money, and it was the Specie Circular"
which had done it. Their fereign debts
pressed upon the merchants, and the calls
upon them from the banks disenabled them
to pay; but the Specie Circular had wrought
the mischief, by marching all the gold aud
silver of the country to the West to pur-
chase lands. Embarrassments continued
to increase extensives failures of mer-
chants and others took place; and, finally,
| in May last, all the banks of the country
suspended payment. Still the Government
was principally in fault the Specie Circu-
lar had taken all the metallic currency to
the interior, and prevented it from going to
Europe to pay our foreign debt; and the
banks could not pay specie until that debt
was cancelled. Time passed on. The
funds of the Treasury were in the banks,
and could not be commanded, and an ex
ira call of Congress became necessary to
relieve the debtors Of the Government, and
supply the Treasury with funds. The
banks were complained of, for their exces-
ses and improvidence and the fault was
that of the Government, for having placed
in their hands such immense depostes, to
be called for so suddenly, and for having
checked their excessive issues of paper by
the Specie Circular. Congress was con-
vened, and the present President transmit
ted his Message, proposing to end these
complaints by an entire severance OF all
business connection between the National
Treasury and the banking institutisns.--
This, at once, changed the face of things,
and showed the President and the admins
tration hostile to the banks !; and now, al
though the the foreign debt is paid, aud for
eien exchange down to par, the banks cam
not resume payment Tor fear of the govern
ment.
He would ask, in all candor, and in all
sincerity, if any history Of facts could show,
more conclusively, the improperly of this
connection between the finances of the
country and the affairs of individuals and
banking interpretations If there was n
man who heard him, who did not see and
feel the necessity of relieving the Govern
ment of this country from these constant
and contradictory complainlsl The pro-
posed system will do that, and, in his judg-
ment, that alone would be one of the great
est benefits which could be conferred upon
the nation.
! If such will be the influences upon our
/ finances and Government, Of the system
proposed, what influences are to be expect
ed from the State bank system Certain
Iy, to place the money of the people beyond
the control of the servants Of the people,
and within the control Of the banks to
discnable the Government to pay its debts,
except in deprecated currency, whenever
the notes Of the banks are deprecated or
to abandon its money, collected and accum
ulated and in the banks to meet its debts,
as a resource for that purpose, and TO ie-
sort to its credit TO raise the means by
which legal payments can be made to
render the couutry, al all times, under all
circumstances, and in every emergency,
even that of war not excepted, and after
the money for the public use has been col
lected from the people, financially depen-
dent upon banks, in the management of
which It has no voice, and over which it
has no control to subject the Government
to oil the complaints which have been re-
capitulated, and volumes of others of a
like character in short, to subject the
Treasury of the nation TO all the fluctua-
tons, to which an ordinary banking or
commercial house is subject; to make 1t
instrumental in promoting excesses IN both,
and then chargeable, with all the evils
which may befall either itself, or the bank
ing and mercantile interests. Should he
spend the time of the Senate to prove that
these were the necessary consequences Of
the system of State banks deposites In
the face of recent and severe experience
both to the Treasury and to the country,
would proof Of these positions he called
for, That experience furnished the clear
es, and strongest preof, and those whom j,
had not convinced, il was in vain for him
to attempt to convince, by fact or argu-
men,. Such, to this mind, were the CON-
narrative influences of The two systems upon