The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-07-18
gmsmtp-@ trth Congress.
UNITED STATES SENATE,

PROCEEDINGS ON THE DISTRICT BANK BILL.
Continued from me lIadisoaion Of Thnrsday, Jniy
llth lS40)
The question being the motion TO reconsider the
vote by which the bill had been rejected
Mr. PHELPS opposed the motion to reconsider.
lie thought If the bill before them had been finally
passed instead of bringing relief To the people, q
,ooid hare produced reaisr and st more perpsring
enrbarrassments. He WAS NOT TnEN, son EVER HAD
nrrs, THE ADVOCATE OF laREDErMaBLr PAPEni but he
was willing To extend such privileges as would enable
these banks go until the currency of the power
fu States by which this District surrounded be-
came healthiul.
Mr. ANDERSON Of Tennessee, rose, and in a
abored haranguc, endcaSored TO make issues for the
Opposition, by representing them as in favor Of an If
rcdeemablc currency. This is an old trick Of the
Federal Loco-iocos.
Mr. MERRI,;K replied al large Much had been
said about the responsibility be- incurred by voting
against this bill Wen, he would take the RESPONSE
biity Of voting against H. lie believed that !, would
be found on full examination of all It's features To
be enineniy pcrncious and dangerous 10 the best m
tcrcsts of the People and that if passed, il would
leave in the hands Of the banks the means of opprcs-
sion and ruin 10 their debtors. The Senator rom
Tennessee (Mr. Anderson said Mr.. NJ thought l
clauses in the Senate bill TO prohibit the banks from
paving out the Of specie paying banks dis
tan from the District but what were the facts OF the
case In that bill there was no immediate conpnlho-
~ resumption. The banks could not pay out the
notes of other non-specic paying banks but they
could pay out their their own responsibility
II a of security To the People but that
feature coupled with the specie resumption clause,
changed the whole aspect Of matters, and would OF
necessity prevent the banks from doing any business
that could bring relief To the People. Every dollar
that would he issued would be bought up for exporta
ton 10 that il would be impossible for the banks TO
stand the constant drain that would be made upon
their rcsourccs-that was the essential difference be
tween the clause as applied 10 the one bill and the
other.
Mr. M said he never would be willing TO allow 4
bill 10 pass, if he could prevent il, which would give
the banks the Of expressing the People and ne
ready 10 meet all the responsibilities OF such a
step; he never had in his life shmnk from response
biy Of any kind, and he trusted in God he never
should particularly where the interests OF the People
concerned Why was he tainted about 'responsi-
bHfyY' Did he make the bin what Il then was or
was il made so by the aid Of any of his political friends
or associates No; the bill sent from the Senate
would have enabled the banks 10 have gone on econ
fning the circulation al the District TO Their notes,
with which the People Were well acquainted i'nri
rassu with their neighbors Of the surrounding States.
My political opponents (said Mr. nj made this bill
what il Il they changed the whole character and
features of my measure and then ask me to become re-
-ponsilc for its action upon the People Sir, desire
10 lei responsibility rest where il ought will take
the responsibility OF rejecting this bill il leans but
" i'll no, take responsibility fur the action oil others.
The Senator from Tennessee Mr. Andcrson) asks
where the people Of Maryland and the SURROUNDING,
country will find market for their flour, tobacco, ana
o her productions il the currency IN Tins Distrct y
an rrrccinable one and inlinales that they may not
thank me for my Interference Ief them indsf!-
some OF them my constituents. am Wiling 10
stand The test, and abide their Judgment who pro
pose an lrrceemablc paper Not J, s'r, nor my po-
htical friends On the contrary, we have always con
tended against IT, | have asked for PERMISSION Tor
these banks TO be nowedio 90 ont remedial measure
for the Peopc) those OF Maryland and Virginia
have been permitted to do lncdremahle paper IL not
the proposnn, Il IL the sanction OF . mere tempo
rary suspension IN which the People aclncscc, that
H. rcqnrcd-such had been asked for from other lc-
gsIaurcs and freely granted and the suspended notes
~ freely taken by the People
MIR M did not put himself forward NJ the advocate
oi the banks he regarded them mere instruments
created for the benefit and convenience Of the People
and these banks might make this very hill excuse
for grinding and expressing their debtors u was 10
their advantage TO have il, because IL would enable
them 10 hold up as an excuse Tar immediately pro-
cccdlng 10 cocc, every dollar that due them, to
the absolute ,uin OF thousands in the District and
out Of il and, believing lie did, he could never
consent 10 give his vote for any such measure,
Mr. DIXON went into an examination OF the in
He conicndcd that il incorporated an old company
under new charter with new provisions and condi-
tons useless TO the public and dangerous TO the stock
holders and that without their consent for by the
proposed il was in the power of The President and Di
rectors to accept the charter commence business
and bind the stockholders TO those new and unrca
sonabe conions even against their will
That il would induce the banks adopt severe and
coerce for the Immediate collection Of their
debts in order to enter upon their new busincss-that
the banks would be likely to place themselves in po
siton by attempting TO do business in future spc
Gle basis that they could not maintain it they did il 10
any extent while the larger banks Of the surrounding
community remained in their present condition; and
that by second suspension they would dlaappont the
vain hopes they had inspired, ana cas-, rcproach
on the banking system, already too much abused
On the suggestion Of Mr. Buchanan, who wished to
speak the following day the Senate laid the
subject informally and went into Executive session.
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