The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-09-18
Extracts from The
SPEECH OF Mr.. BELL, OF TENNESSEE,
ON THE TREASURY BILL.

ON THE SUB-TREASURY BILL.
But now another scene opens in the progress
of this financial drama Soon after the adjourn
ment of Congress in the summer of 1886, it was
for the first time discovered that the issues of
bank paper had become erceSsire that extra
VACANT speculation and oyertrading, especially
in the public lands, had been the consequence
and thereupon the extraordinary step was adopt
ed OF issuing the "specie CIRCULAR requiring,
after specified time, that all payments into the
land offices should be made in gold and silver,
except by residents and settlers in the States
and Territories in which the Offices were stu
ate. This was done upon the ostensible ground
of reducing the quantity of paper money in cir
culation; and upon the further ground of saving
the pubic domain from the grasp OF the specula-
tor. The consequence of this movement was as
might have been anticipated. The whole State
bank deposite system, constructed with such
care and by such questionable means exploded.
The Administration had, with great toll, reared
vast and costly fabric, and then turned delibe-
rately round, took away the foundation on which
it stood, and permitted 1t to tumble to the
ground
But how, sir, did it happen that the late Adj
ministration continued SO long blind TO the in
creasing and excessive issues of bank paper; or
to the fact that the public domain was in danger
of being devoured by swarms of spectators
1t is pretended that these unfavorable crcum-
stances were never developed before the sum
mer of 1886. The fact that banks and bank
capital had greatly increased within a few prece-
ding years was not and could not have been a
secret The sales of the public lands had risen
to fourteen millions in the year 1S35-an excess
Of more than ten millions over their former ave-
rage. In the same year the revenue from Gus
toms had greatly exceeded the estimates; still
the President and his friends looked on with
pleasure and appreciation. In the message sent
to Congress at the meeting OF that body, near
the close of the year 1895, these symptoms Of the
rapidly increasing prosperity and resources OF
the country were pointed to by the President in
a spirit Of triumph and congratulation. In truth,
they were regarded by his devoted followers as
the unerring evidences Of the profound wisdom
and patriotism of his Administration. In the
same message, the President took up, and ex-
pressed his views freely upon, the subject of
the large surplus then in the Treasury. 1t was
clearly foreseen or believed that it would con-
tinue to increase for some years; still he thought
it might all be, proftably expended upon the va
rous public establishments. At the same time,
the sentiment was strongly expressed by him
that no alteration should be attempted Of the ia
riff, as adjusted by the compromise act The
subject was altogether too delicate and import
ant to be meddled with at that time; vet, in a
few short months afterwards, the increasing cir
culation of bank paper, the large payments made
into the Treasury for public lands, and an accu-
mulating surplus especially, came to be regarded
as hurttu excuses! The scales fell from the
eyes of the Administration it suddenly perceiv-
ed the evil Of all these things; the surplus was
no longer desirable in the Treasury; it was no
longer improper to NEEDLE with the tariff in exc
cution OF the policy of reducing the revenues to
the wants of the Government; and the sales Of
the public lands required to be checked instead
of encouraged as formerly Well, sir, what was
the secret of this sudden light which beamed up
on the darkness of their understandings
Whence this abrupt change in the principal
points Of their policy 1t can all be explained
in single sentence. On the 23d day of June,
1886, Congress resolved that the surplus moneys
in the Treasury, instead of being expended by
the Adminlstration-instead of constituting a
! fund for increasing the patronage and power OF
the Executive-should be distributed among the
| Statcsi This is the true solution of the enigma
! of the riddle.
Still the bubble of the deposite bank and paper
! system, blown out to such an extent by the for
cling policy of the Administration, did not ex-
plode all at once, under the operation of the spe-
Gle circular The deposite bank system was
still the theme of unqualified admiration with
the party in power; il continued to deceive and
delight its projectors until the President had time
to retire from Office, which he did in a fanced
blaze of glory having succeeded in electng a
successor to follow in his own wise footsteps
triumphing in the success of his experiment in
reforming the currency, and felicitating himself
and his fellow citizens upon the prosperous and
happy condition of the country
| Ii cannot be denied that the State banks
| eighty in number) had well deserved, at least
from the party in power, all the applause which
was SO lavishly bestowed upon them. They
had fulfilled the expectations of their patrons in
many important respects; they had made great
efforts to supply every facility to trade, in the
way of exchange and discounts; they had, by
extending their issues, contributed their full por-
ton to that tide of prosperity which, whilst il
had filled the public Golfers, enabled the party in
power TO point to it as the work of their wisdom,
and TO triumph overa powerful opposition, which
did not fail to ring in the public ear the charge
Of corruption and prohigacy. But, sir, when