The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-12-15

momentous duty and exhibit a useful example for
imitation.
In period Of peace and comparative sxemption from
nnhe debt as well A. from serious dfcuity In imam
ia urations il would hardly proper 70 atiempt
more by assumptions Of doubtful powers and by forced
constructions in favor OF measures oy no means GER
tain il adopted not TO aggravate rather than diminish
existing evils and not 20 produce Others OF character
.til more dangerous Much less can Il be considered
respectfu either TO State rights the people and Ger
ainly not competent in the opinion OF the
10 exercise such powers by creating moneyed corpora
tons among them which many OF their number
have reueaedly denounced of unconstitutional, and
the authority establish which was originally refused
rather than confded 10 the General Government by
the peorle and the States that formed H. But some
other powers pressy conferred cam without question:
be exercised further than has yet been done by Con-
gress and in such manner az TO produce very bene-
fetal consequences upon the currency. Still, II Is
hoped they will be pushed so rs 10 trespass on
ground really doubtful under the Constitution, ana
prevent the States from continuing TO exercise all the
legitimate authority they now possess as to banks and
debts however much it may be regretted that public
opinion has yet with more strength against the
abuses OF BOTH and led to their prompt correction IL
is not proposed this time 10 60 into the consideration
Of farther details on these points But the danger 10
be guarded against seems to be rather oil an oppo
site character from that of overacton by the General
Government in the exercise of its express powers On
the contrary apprehensons exist that may not
tnue firm in the support of all which has already been
accomplished in connection with the currency. II II
should not and should thus not aid TO correct in any
degree the rashness of many to force something like
formidable steam power into all kinds Of business
without due guards to prevent constant and fatal
plosions myrads Of individuals, well as some corpo-
rations and States, are likely to be overwhelmed in
still wider ruin, and will long probably look TO no
escape except the application of the sponge OF general
bankrupt law to all private liabilities, and the uncon
stituional assumption of the public ones by the Gene
raj Government TO tax oppressively those portions
OF the community who have any thing let to pay fol-
the losses and follIes of the rest.
A remedy which has been adverted to by some, and
which consists the creation of credit, to cure
the mischcief of existing excess OF credit, or the
formation of larger banks with like power OF abuses,
In order TO correct smaller ones must usually aggra
vate the evil and therefore where is free from
sttutionai objections, may, in point OF expectancy
alone, well be dscountenanced.
plan of free banking adopted by the States, pro-
perIy guarded and secured by provisions similar to
those recommended by the undersigned as long ago as
1886 with such others reflection and experience
may sanction appears far preferable. But, independ
ent of that no changes in the present system as to
banks seem worthy of strenuous exertions except
those whose direct object shall be to make safer, to
restrict control and regulate better the institutions
that already exist rather than to incorporate
Above ALL should public efforts he directed to strength
the certainty of prompt specie payments as to all
notes out and Of nearer approach 10 uniformity IN
the amount of issues in similar states OF trade and OF
specie hand instead of multiplying them for specu-
ation cupidity and thus keeping up succession OF
expansions and contractons, which will only infame
the existing disorders and renders the continuance of
great fluctuations in all public well private affairs
Unavoidable endless, and runous.
With much respect,
LEVI WOODBURY.,
Secretary of the Treasury.
To the PRESIDENT of the Senate Of the U. 5.