The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-06-25
WHOLE NO. 3e2.

for, ask, what manufacturing corporation
throughout the whole country has not already
been guilty of that delinquency; and what on'
will have exemption from IL in future reie
more particularly TO manufacturing corporations
because they, more than others, have fallen un
der my own observation; and yet know the
cofporators to be composed of our most wealthy
and substantial inhabitants, rich in every thing
bnt money, with large stocks Of goods on hand
which have accumulated from mere want Of a
market and hence this want Of money.
Now, sir, by this bill, if one of their five hun
dred dollar notes lies over at bank fifteen DAYS
or one OF their debts Of that amount is presented,
and not paid within the same time, they are at
once to be declared bankrupt, and stripped Of all
their property. What large manufacturing cor
porations, ask, can be found in this whole
country that would not fall under this condemna-
ton Let II not be said that there viii be a
general fofbearance--that those violations OF
punctuality will be overlooked-and that an in
duigent spirit will prevent any rigid application
OF the law. II so, there is no necessity for the
provision that can justify the experiment. Gre
ditors are generally anxious to gather in their
debts, and more particularly so when il seems
most difficult for their debtors pay; they would
sue oitener, were it not for the expense and the
delays oil the law. But this would be 10 credi-
tors very cheap, and, apparently, very speedy
remedy; and il would be used Thu, would
destroy what little of confidence yet remains
every man having debt against corporation
would crowd for payment before its whole ef-
ieets were swept into the vortex which this bill
provides Tor. OF course. every corporation, 10
avoid that peril, would have either 10 break up,
and resort 10 such expedients as they might deem
Their own safety 70 require, or suffer themselves
10 be broken up by the operation Of the law !;
and, IN the latter event, let us see what would
be the situation Of the country about them. Five
hundred dollar debts would be presented 10 cor
poratlons, and fifteen days default of payment
would follow, which would end in exposure TO
commission OF bankruptcy-a commission that
would sweep all their effects into the hands Of
assignees, and Of course there would be an end
OF all the incorporated manufacturing establish
ments OF the country for it is not TO be expected
that assignees would carry on those works.
am aware, sir, that the manufacturing establish
ments are not all incorporated and of course
would not all be subjected TO this law. But there
are 50 many OF them Incorporated and with such
amount Of capital, that the effect which this law
would have upon manufacturing establishments
may be spoken Of in general terms. Besides,
the unincorporated establishments are mostly
owned by that class OF citizens who NAV be de
clared bankrupts under the compulsory principle
Of this BILL
But pass this bill including corporations; what
would be It's immediate effects on trade in their
vicinity Who could sell domestic goods, or
any other property belonging TO corporations =
The general belief that all the effects Of corpo-
rations would soon be under the hammer would
prevent private sales; all would be in reserve
for the occasions that would present bargains at
public auction, and those public auctions would
come. Yes, sir, they would come What
Spfeadid advertisements you would see posted
up IN all public places through the country,
signed by assignees, and Offering for sale domes-
tic goods of all kinds-machinery, new and old,
with preparations and fixtures-mills, dams. and
canals, with steam power, hydraulic power, Ell
ceterd! But, after all, who would be the com
petltors al those auctions2 The withdrawal of
the currency has left penniless that class of
traders who watch those money making oppor-
tunities. Hard money can scarcely subserve
the purposes of daily marketing, credit is out of
the question, and paper money will soon be no
more, for the banks are are TO be struck down BY
the same blow. 1t would have been at least kind,
and, think, judcious, to have spared the banks
for the present, and disposed of other corpora
tons first, so that thnre might be bank bills; poor
as they are, to purchase the manufacturing es-
adjustments with No, sir, our own citizens
would not be able to compete at those sales, al
though prices might be little more than nominal
Foreigners might buy in, and largely too, for,
there is yet money in Europe; and those fo-
reigners, after purchasing, might run those es-
adjustments, or destroy them, as would best
subserve their purposes in furnishing US with
goods. This investment of foreign capital, how
ever, might cut off one source OF our troubles
II might supersede the necessity of that perplex-
ing exercise of legislation-the revision Of the
tariff OF duties.
But, sir, the banks The banks could not be
IN ha nlsrun nd ~,
the fulflment of its provisions, not one of them,
from Maine TO Georgia, will be able to stand
against its destroying operations. The honora-
bic Senatorfrom Massachusetts, (Mr. Webster
from his recent remarks here, seems not so
much alarmed on account Of the banks in his
own State, as for others. Now, entertain not
the least doubt of their soundness and their
strength. But sir let not those banks console
in their own strengths il will afford
them no safety. Nothing is so strong but it
may be broker. | doubt not but most Of the
banks throughout the country are solvent
But their customers are embarrassed under
the general arrangement Of business and cannot
pay them, and of course they cannot pay all
their debts and redeem all their bills within The
limited time prescribed by this bill. They will
be called upon, and a rigid execution Of the law
will level them, and equalize, without improving,
the currency. Can any man suppose they will
not be called upon2 If you had, sir, the bills of
any bank, even of Massachusetts, upon the pass
ing of this law, would you not send those bills TO
the bank, or, through some agent, put them on
their passage home, fearing that something
might happen to that institution2 And would
not all holders of bank bills do the same Would
not this law destroy confdence2 And what is
there to keep bills in circulation after confidence
is destroyed2 Nothing sir; and it is waste Of
words to say that they would rot be sent home.
Now, where is the bank in business that has not
more bills in circulation, and MANY more, than
specie in its vaults How are they to redeem 2
Bills and drafts on other banks would not be ac-
ceptablc and calling on their customers for pay
ment would be an unavailing requistion. All