The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-07-16

as much as he could then, while the poor man
who owes but little must loose his all to pay that
little. Thus, sir, Of all plans to make rich men
richer and poor men poorer, | know of none more
efficient than those set in motion by this people
loving, aristocracy- hating Administration The
miserable mlser in his attic, insisting upon his
pound Of flesh because il was nominated in the
bond, could not have devised course Of legisla-
ton more satisfactory TO himself than that pur-
sued in this Capitol
Our state debt is about twelve millions, for
which am glad TO say we have value received
The interest is about 100000, and this must
be paid by the products Of our labor, levied in
the shape OF tolls on the produce we SELL and
the goods we consume, and the deficit must be
provided for by taxation. Last year 100000
bushels of wheat would have paid the interest
now it will take 100000; and il the low prices
are to continue, result which we are told is to
be productive of so much good we shall find our
debt practically doubled as well as our interest.
My esteemed colleague (Mr. Rarrish) ac-
counts for the low prices OF our produce by
charging II, most conveniently too, on the banks
which are made to carry not only their own sins
but every body's else, and he exhibits tables,
showing the contractons and expansions for
eighteen successive months, with the fall and
rise in the price of flour. Well now, sir, if the
price of our flour depended upon bank discounts,
It must rise and fall to correspond with the in
crease and dminutlon of the discounts but if
any gentleman will take the trouble to examine
the tables, he VIII find no apparent relation be-
tween them---he will discover in certain periods
during which, the banks contracted, say 10 per
cent, that flour fell 20 per cent, and when the
contractions were 20 per cent, -four fell 10 per
cent. The rise and fall of the price OF -four de-
ponds upon causes beyond the reach Of our
banks-it must depend upon the value at the
m a,t,r,
tard somewhat the sale and transportation, as
expansion would facilitate them, but neither
would materially effect the price. If -four be
worth ten dollars in New York il will sell
promptly in Ohio al from to 50, whether our
banks expand or contract.
But why have our banks conracted2 Why,
sir, independent of general causes existing all
over the country, the Solons in our Legsla-
ture, for we have them there as well as here,
wished to show their financial skill by making
experiments on their own account--they wanted
to do their share Of the great work of reforming
the currency, that they might participate with US
in the glory to result from it; the first expert
ment was at the session before the last; our
banks had been in the practice of keeping their
surplus funds in the Eastern cities, on which
they could draw at sight for commercial purpo-
ses, and for the redemption of their notes, a
draft always being worth more than specie, and
in fact but few years ago, bank or an indi-
vidual sending home notes for redemption would
think injustice done if they could get nothing
but specie. But our Legislators, in the pen-
tude Of their wisdom, decreed that the banks
should keep coin in their vaults at the rate OF
one dollar for every three in paper this com
PEELED them to withdraw, in coin, the balances
due them east, thus helping to increase the en-
barrassment there last year, diminishing the
prices of our produce, as we had done on larger
.,al, frIapI rhar tl,a,r
gold but they Were also compelled to curtai
their discounts and collect their debts, to bring
the specie and circulation in relative proportion.
At the last session, they voted small bills q
nuisance, and decreed they should no longer be
tolerated, and this compelled the banks to raZeee
again, because the vacuum created by the with
drawa must be filled with specie and that must
be drawn from the banks.
But our Legislature was not only plenary in
wisdom, but penary in power; and they there
fore, at the late session, asserted and exercised
the power OF repeating banks and all other char
ters whether the right had been reserved or not.
And although the power was exerted perhaps in
proper cases only, provided the right had existed
yet its tendency was still further to agitate the
public mind, already sufficiently feversh.
True, sir, this was looked upon by men intel
lgent in such matters as mere brutum fuimen,
for we have fortunately Supreme Court, ortho-
q
deny to the sovereign People the right to do in
their collective capacity, that which each one
Individually, not being married woman, child,
a fool, lunatic, or a mailman, may do, to wit:
make a contract that shall be obligatory. ! ought,
sir to ask pardon Of my married female friends
for putting them in such category, but wish
ed to state the exceptions, that the absurdity of
the proposition sustained by our Legislature
might be the more apparent.
IL
intend to compel the General Government to
assume the debts of the States. Where, sir, is
there an iota Of evidence Of this design to be
found? Is il in the suggestion of a London bank
or, that il would add greatly TO the value OF the
State stocks2 Sir, we all remember what pro-
tractcd debate there was in the Senate last winter
on resolution declaring thatit would be nexpedi-
ent and unconstitutional for this Government to
assume the State debts, when not State in the
Union had even intimated wish that il should
be done. 1t would be supplementary for me
to say on this floor that the whole affair was SUI
pcrlatively ridiculous, but may be permitted to
say that believe every body without the ten
miles square thought so.
AT all events, Mr.. Chairman, whatever other
States may do, Ohio will never knock at yonder
door suppliant, begging this Government to
pay her debts. She is able and willing to pay
principal and interest to the uttermost farthing
and her creditors need give themselves no I'M
easiness about her complying with her engage
mcnts hereafter as she has done heretofore, and
which has so justly given her stocks the character
they have at home and abroad
Mr.. Chairman, have trespassed longer than
intended upon the time Of the committee. |
have forborne to examine the details Of the bill,
my principal object being 10 show that the plan
itself was Objectionable in pecunary view,
and highly dangerous in its political bearings !;
and that judging from the past no reliance could
be placed upon either the ability or the integrity
Of the men in power, and therefore that we ought