The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-09-18

heavy burdens which their official friends had
LAID upon their shoulders; when, afew months
after the close of the late Administration, they
fell under the joint pressure Of the specie circu
Lar and the overtrading TO which their excuses
had gwen rise, those men-that party-that very
Administration which owed their political exist
ence, their triumph over their competitors for
power, 10 those excuses Of the banks which
they had commanded, turned upon them, pur-
sued and denounced them as unfaithful, treache-
rous, and rotten the bane OF all industry and
substantial prosperity a curse to the country !;
the hotbeds Of aristocracy a form Of associated
wealth, dangerous to the liberty and fatal to the
welfare of free people
In the history Of man, Of government and of
nations, know Of no instance Of hypocrisy,
ireachery, and ingratitude more disgraceful and
infamous than that which is exhibited in the
conduct OF the party in power towards the State
banks-most of them having sprung into exist
ence under their patroniging hand yet, the mo-
ment they could no longer minister to the neces-
sites and support Of their powerful patrons, they
are sought to be made the victims Of their disap-
polntment and rage.
But the conduct Of the present Administra-
ncn, IN their course upon the subject OF State
stocks and State debts, is scarcely less discre-
dilable and reprehensible. When the whole
country looked confidently TO their downfall in
1887 their boosted experiment upon the cur
rency and finances exploded; the Treasury ex-
hausted the customs reduced one-half; the land
sales fallen off from twenty -four to six millions
in a single year and a buoyant and powerful
opposition, flushed with the hopes OF victory
hanging upon their skirts, and taking every ad-
vantage Of their weakened condition, what re-
| source had they left-how were they to sustain
themselves-fll the public Treasury, carry on
the public works already begun pay the expenses
of the Florida war keep up prices and every
other delusive indication of increasing prospe-
rity which had SO long sustained them before
the public, and bid defiance to their enemies?
They had choice of two expedients-either OF
which would have answered their purposes
either to borrow largely upon the credit of the
Federal Government, or on account of the States.
The first mode OF supply was not so acceptable
| to them as party for public debt could not
have been contracted but in an open and indie
pendent manner; and besides, it was contrary
to their proessed creed, and would have ex-
posed them to the taunts and just rebuke Of the
Opposition The other expedent presented no
such obstacles, and they awaited themselves of
It TO the fullest extent, as will demonstrate.
There were other alternatives, it is true there
was United States Bank, but they could not
embrace that with any decency or consistency.
There was the resuscitation of the deposite and
| State bank system, which might have been re-
stored to credit again by discussing the notes Of
such as were solvent, and such other aids as
were in the power of the Government to give
| but that was too slow a remedy for their neces-
sites; it looked TO the diminution OF expendi-
| lures and patronage, and the fall would have
been too great; and, besides, it was their policy
! to make the banks the scdpe goats of all the sins
| of the party. State stocks and State debts were
therefore, looked to and relied upon to restore
the business and commerce Of the country, to
renew the delusive symptoms of prosperity, and
| to uphold the cause of the sinking party nor for
a time were they looked to in vain. Their only
mistake was in their estimate of the term OF
their career. They did not calculate that the
foreign market would be so soon glutted.
So confident were the leaders of the, Admi-
nistration in Congress that the business and re-
venue OF the country would soon revive, that the
appropriations for 1888 amounted to upwards OF
thirty-fve millions. In the spring of that year,
when the second Treasury note bill was under
discussion, the Chairman of the Committee of
| Ways and Means, and the organ of communica-
! ton between the Executive and the House, (Mr.
Cambreleng,) made speech on that subject,
from which beg leave to read a few passages
to show the grounds of their calculation
As to the prospect of our future revenue (sad Mr.
c. every thing was encouraging. Confidence and
years of stagnation because such succeeded the
vusion in 1919. There is resemblance whatever
between the condition of the country in 1915 and
1885"
toration of confidence and revival of trade. Our
Northern banks have resumed specie payments earlier
than was anticipated twelve months ago"
this resumption, sir, is powerfully susta ned, and
our Northern banks have nothing to fear. AT for
period have our foreign exchanges and currency
been well fortified. They strongly sustained
by annually increasing export of cotton and tide
of emigration to this continent Lattcrly the stocks
and bonds of every description transmitted abroad for
market form what is equivalent to a heavy item in
export trade"
The gentleman from Virginia, (Mr JONES, J
the present chairman Of the Committee of Ways
and Means, must have some unpleasant remin
iscences on this subject. He cannot forget that
he united with other gentlemen in keeping up
the dcusion which prevailed in regard to the
true condition Of the Treasury. MY estimate
of the condition of the Treasury in the fall Of
1897 was based upon limitation Of the expen-
ditures of the last quarter OF that year to indis
pensable objects and showed that, by paving
the public creditors in the notes of the suspended
deposite banks, as they had done already in
some cases, the means of the Treasury would
have been ample to meet all necessary demands
upon it, until the regular meeting of Congress
in December. But this policy was rejected
The Administration would neither receive and
disburse the notes of suspended banks, other
wise in good standing nor would they reduce
The expenditures They only asked the privi-
leges of issuing Treasury notes until they could
realize their anticipations from another source,
They asked the means of making themselves
independent of Congress and the People-the
pou sto for carrying the sub Treasury. warn
ed my Wing friends at the time, that if that
power was given, the ub-Treasury would be
established in despite of all opposition but, in
an evil hour, some of our friends gave their
voices for it. The Administration was, from
that moment, beyond our control The State
| banks and their circulation were BY the same