Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1838-04-19
POLITICAL.
REMARKS OF MIR. CALHOUN.
On the cngrossn,ent Of Mr.. Wright's bill,
80. r,.,..<yoJ H., fbe ,nof;on of Mr. Cufb-

]" Mr.. Calhoun said, as late as il is, no
o'clock at mighty and fntigued and exhaust
ed as the Senate must - after sitting ten
hours, he was compelled to iulrude himself
on their patience. The question was OH
the engrossfhcnt of the bill; and, as he could
not possibly vote for it in the shape it had
assumed, he was constrained to assign his
reasons; but lie would do it in the fewest
words possible. Ho said he was most anx-
ious to vote for the measure. He had ta-
ken the deepest interest in it, and felt most
solicitous for its success; and, if he thought
that the bill ,as amended, advanced the great
cause, for which he had been SO earnestly
contending, one inch, he would give it his
vote. But such was not his Impression
On the contrary, hc beloved that it was an
entire surrender Of the cause. He would
70 further, it was rctrograde movement
and would leave tho cause in worse con-
dition than it was. So fur from divorce
from the banks and a return to the constiiu-
tional currency, the bill as it stood, would
virtually restore the deposit bank system
again, with some features more objcctiona-
bic than il formerly possessed; which he
would now proceed to show.
On the motion Of the Senator from Geor-
gia, (Mr. Cuthbertj the Odd section, which
Government in specie, was struck out, with
the aid OF few on this side and the entire
opposition to the divorce OH the other
That section provided for the repeal of the
Joint resolution of 1915, which authorizes
the receipt Of bank notes as cash in the dues
of the public. The effects Of this will be,
should the bill pass in its present shape, that
the Government will collect its revenue,
and make its disbursements exclusively in
bank notes, rs it did before the suspension
took place in May last. Things will stand
precisely as it did then, with but single
exception, ,hat the public depositcs will be
made with the officers Of the government,
instead Of the banks, under the provision of
the deposite act Of 1886. Thus far is Ger
tain. All agree that such would be the
the fact, and such the effect Of the passage
Of this bill as it stands. Now he intended
to show couclusivcly, that the difference
between dcrositins The public money with
the public officers, or with the banks them
selves, was merely nominal, rs far as tho
operation aud profits Of the banks were con
ccrncd; that they would no, make one cent
less profit, or issue single dollar less, if
the deposites he kept by the officers Of the
government instead of themselves; and, of
course, that the system would be equally
subject to expansions and contractons, and
equally exposed to calaslrophies like the
present, in the one as the other mode of
keeping. He spoke Of bank profits and
bank issues generally, as derived from the
deposite Of public money--the aggregate
profits and issues Of all banks, without re-
ference to the distribution Of the profits un-
der the one or the other mode Of keeping
the public money. He would show in a
word, that the bill would no moro divorce
the Government from the banks, in relation
to the deposites, than it would as it now
sshaaqa as IL Observation-Disclosures cash ;"iH;N
dues and disbursements; and that it would
unite them as effectually in respect 10 both
rs they were before the suspension in Nav
Although the assertion might excite some
surprise al first ii would he very easv 10
make plain every word he had said.
The profits which the banks derive from
the public deposites. when their own notes
were collected and deposited, as would be
the case if the bill passed IN its present form,
arises from the Withdrawing Of their notes
from circulation. While their notes are in
depositc, they are as completely withdrawn
from circulation for the time, as If burnt, or
destroyed; and the Withdraw al makes va
cuum to that extcr in the circulation, which
has to be filled up by new discounts, and. of
course increased business aud profits; and
this was equally true whether the notes
were deposited in certain banks,
ns under the deposi,e act Of '36, or in the
hands of the receivers general, and other
Executive officers, as proposed by this bill.
The profit depended, in no degree, on the
places where their notes were deposited:
but OH the amount Withdrawn and the length
OF time they were kept out ofcirculation.-
The larger the amount withdrawn, and the
longer kept out, the greater the business and
profits Of tho banks. Nor cali The issues ex-
coed the sum necessary to fill the vacuum
occasioncd by the dcposites, whether they
DO made with the banks thems ,lves, or tile
officers Of government. When the vacuum
occasioned by the withdrawal is filled, what
over exceeds that, must return on the banks.
without regard to the place of dcposite, and
check farther issues. ltfollows clearly from
all this, that the deposite Of the public funds.
f collected i'll bank notes las proposed by the
Dill as it now unfortunately stands amend
sd) in the custody of the public officers,
would not in the least affect The discounts
md the business ofthe banks. They would
DC as great as if deposited with The banks,
md would keep the circulation of bank
notes as much expanded; and subject to as
many fluctuations and shocks. These pro-
positions he held to be incon,rovertible.- e.-l
He would be glad to hear any member rise
n his place and attempt to answer them.
MOI. would the Treasury be n particle
more independent Of the banks, than under
Inc deposite system before the suspension
d specie payments. The revenue, rs he |
lad SAID, would be collected under this bill, |
'holild 1t pass as it was then, exclusively in
'ahk notes. which, on another suspension
would be just as worthless in the hands of
he officers In whose cIsiod. ,ho., .:I.