Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-02-18
CONGRESSIONAL.
SPEECH OF MIR. BUCHANAN,


IN Senate Rcdaesday january %, lS40-On the IN
dependent Treasury Bill, IN reply to Mt SLAf OF
Kentucky.-[ (onciudcd.l
My great object, however, at this moment Is -
proye from the present condition OF the Bank OF me
IT, s. how hopeless II is expect that any similar IN
stitution can be relied upon as regulator OF uc
currency That Bank still exists, fits present c'nu
ton NAV be called exlstence and this IS The hrst occa
SION on which have ever known inc senator 10 &c
pu,lty Of unrratefuy abandoning old friend in the
hour OF calamity. Before take my seat, Shall en-
deavor 10 identify tie gentleman and ms party WIN
this institution. "They Were lovely III ne, ana III
death they shall not be divided
Ii is said that the Bank OF the Y. ). IS now but
mere State institution. But IS its character changed
by changing the source whence It derives IT'S charter
Is it still the institution that ever has been,
with the same capital, the directors, the same
stockholders aud, until very recently, has mol been
governed By the controlling Will: Has not been
eXutngly proclaimed by its former president that 1t
now has much better charter from Pennsylvania man
that which II had received from Congress: ms IS
strictly the truth for such charter as that under
which il now exists was before granted TO any
banking corporation, either in Engan or this country
The U. s, 1t is true ceased to be stocKAoder: but II
enjoyed the privilege of selling their millions Of
stock for which it could have procured and doubtless
did procure, large advance.
From the very nature of things tins vast monopoly
with capital Of $50 600 ,0UD could not have become
State institution. 4 sin Gle State, with than
sufficient number of State Bank already in existence
could have furnished employment Tor lis immense
capital. 1t would have starved within such marrow
limits
Did it, in point fact confne its operations to Penn
sylvania No, sir it aspred TO regulate the currency
and exchanges of the whole Union This the
high political duty to the performance of which pro-
claimed itself destined To tell me that this Bank all at
changed its character and became mere State
institution, merely because II had received char-
Ter from the Legislature of Pennsylvania, is TO deny
the evidence of our own senses Was not the currtn-
cy issued under the charter, well as that under
the old declared l-.:n, TO bc III" best currency winch
the world had ever seen: DID not IN" ncw notes com
n,and the same premium all over i.ir Uuon, with Tie
old oaes; and would they not Still continue II con-.
mand the premium II 1t had no; iaic!-ia!en
from its high estate:
Why sir il became, in fact, mo-c Bank OF the L..
s after it received It's Pennsylvania charter than had
ever been before. 1t bought up State banks and con-
verted them into branches, in Louisiana and IN Geor-
ga and shot its branch agencies over the whole
Union In New York il has established branch bank,
under their free banking law
Since its new charter, not content with the whole
L. S. the theatre Of its operations, 1t has established
agency in England, and asped ito beard the lion
IN his den ' and to become the rival of the Bank Of
England in London itself 1t scorncd to confne itself
10 banking operations alone: but has invaded the pro-
vince of the merchant, and has attempted to monopn
lie and regulate the whole cotton trade between Eu-
rope and this country And yet this Bank Is now SAID
10 be mere Pennsylv an.a institution
Now, SIR how has il succeeded III the task which II
imposed upon itselt-of regulating the bank issues,
and the foreign and domestic exchanges oi the Union
In little more than year after its charter from Con.
cress had expired, whilst in all respects it under
the same government, and continued TO pursue the
very Of policy that 1t had done before, IT
became nsolvcnt and suspended specie payments with
less than one mllioa and half Of gold and silver in
its vaults, or less than dollar For twentythree OF
lis capital 70 meet al! its immense liabilities. Their
amount at the time do not recolcct present, nor
have The means Of asccra.ninr IN my possession.
Now SIR would ask the Senator, is there the least
reason believe that this bank had continued to be
the dcpGsary of the public revenue until May 1857,
that its fate would have been avered, that should
then have had general suspension Of specie pay
ments; Why sir, the public dcpositcS would only have
added fuel TO the flame and would have tempted the
Bank engage in still wilder specuations The over
banking and overtradng of oil 1880, which were con-
Quoted under its auspices, would have become still
greater-the expansion would have been still more eX
iravagant-thc bloated credit system, which enabled
in that year to import foreign merchandise TO the
value of nearly hundred and ninety millions OF dol
lars, might have raised imports up two hundred
and fifty millions; and the catastrophe which followed
would have been still more dreadful.
In order to repair its fallen fortunes, true the law
of lis nature, this Bank has proceeded from one
extravaganza TO another, until II is almost heap
Of ruins. Instead of controlling and regulating the \
other banks of the country, has n"toously been the
chief nay, almost the only cause, OF the existing
pension of specie payments. The glory of which its
friends now boast is, that it has been able 10 borrow
ESG0,G sterling, at eyravagant rate Of interest,
from private bankers in England, to it from i'm
mediate bankruptcy and ruin. Alas! how the
mighty fallen
And i, is BY the creation Of another such institution
that the Senator seeks to regulate the currency, and
control the bank issues of the country! Why, this is
faith against fact; speculation against experience
This would be TO adopt, grand regulator, in
su,on precisely similar 10 that which has been III"
rc, author of vast bank expansions and bloat
cd credit system, and which has fallen under tI,
weigh, Gifts extravaganza With all the expert
ence which hc people of She United States have had
upon this SUBJECT, il will be long, trust, very long,
before they return 10 Bank the United States.
But | proposed prove that, even if a Bank OF
the United States had the disposition to restrain the
loans and issues of the State Banks il would pos
sess the power suppose for the sake Of the
argument, which can scarcely exist because, as
regulator of the currency, it would have duty 10
perform directly al with the n,crcS, Of its stock
holders. i
The only mode BY which it has been thought that ]
this object could be accomplished for the Bank of
Inc IT, s., combining its own business within safe and
proper limits to receive the Of the State Banks h
IN deposite and in payment and TO call upon them al 4
hort periods to pay the balances in specie But in the
nature of things il would be impossible for such bank
o receive the notes, and restrain the orerIssues Of
more than a very few Of the eight hundred banks, c
hich are now scattered this country. Each OF
hese banks has its limited sphere of circulation,
they not compelled to receive the paper Of each
Their In point of fact this is moi generally done;-
or could any Bank of the IT, s. he required TO receive
II the which these eight hundred paper manufac
orics constantly pouring out upon the public Q
rom the law which regulates currency, that which is
worst has always the most extensive circulation e
Individuals will always hold fast to the gold and silver
nd pass away the bank notes; and of these notes. in
icy will pay out the doubtful, and preserve those c;
h:ch are above suspicion No Bank of the L. s,
owever great its capital and extended its powers, CT
,uld ever reach the evil 1t could never transact til
,siness with bank in ten might say in twenty,
the whole number. "
BUTT il in vain to speculate upon this subject Elk tn