Wheeling times and advertiser. [volume] (Wheeling, Va. [W. Va.]) 1839-1849, 1840-03-28
SPEECH OF Mr.. BUCHANAN
or PENNSYLVANIA.
on THE B-TREASURY BILL
IN SENATE-January %. 1870

inedo,n. In 1886. the rate Of foreign exchange Was
argcly against England. The specie of the bank a.
therefore,, gradually drawn ffom lie .lu for expor-
alton. IL became s,ry. for lie own salvntiou
hit il should make vigorous efort To diminish the
amount Of the circulating paper medium. and thereby
restore the equilibrium Of the foreign exchanged The
bnnk credits and currency OF England had become -
n:laed sni in consequences. the p.i Of all arii-
rles had advanced to such st ndard. that, use the
language oil British stat snan il had become the beet
ronniry 10 sell in, and the worst country 10 buy in
throughout the world IL profitable. therefore,
10 import every foreign production which could be- al
mted 20 entry. and the high paper pri.
ccs OF thor domestic productions their e1pors were
greatly diminished. The consequence was coniin- J
ued aud rninous drain Of ece from the hank OF Eng
land to adjust the balance of the trade against that
country. The bank well knew that At il coulI luii,
the amount VI the pap circulation. it would reduce
the price of their home productions in the same pro-
Pcron and thus render il profitable for foreign mer
chants TO export British manufactures instead OF spo.
cs For this purpose il contracted IFS loans and is
Sues m the vain hope that the joint stock and private
banks woud he compelled 10 follow its exampe In
our slang. put the screws upon them. What was
tho rcsaf shall not upon detail of particu-
lana Ii Is sufficient say that rs IL contracted the
DINER banks OF the kingdom expanded their loans and
heir issues; and that in greater proportion than
ITS loans md issues diminished. Prices still
continued 10 rise and bullion still continued to be
drawn out Of the bank for exporatiou The utter inn
Nj
trol the other hanks and keep the pap,r currency of
the kingdom within such limits arrest the eypor
taon OF gold and silver has thus been % clearly do
monstratcd that many of the ablest British
despair Of accomplishing the object in nnv other man.
ner than by restricting the issues Of paper money to
snsie oahk and regulating their amount by the agcn-
G! Oh tae government. Here then. is an importnnt
iaci incon,csiaby established. Ii this be true-and
there can be no question of the truth would ask
the Senator how National Bank. even with capt.
tai of fifty millions Of dollars. could regulate and re-
strain. within proper limits, the loans and issues of
eight hundred State banks scattered over the whole
extent OF this vast couniryi The thing impossible
II could not be accomplished by such bank.
And what is the condition Of the Bank Of England
AZ the present momentl According 20 the testimony
OF Mr. Hershey Palmer its President given before the
secret committee of the House of Commons previous
to its recharier in 1888 the principle which il had
ocecded in regulating its issues keep much
coin and bullion ina its Golfers as amounted TO a third
part OF It's latilitcs including deposited well
A. notes in circulation. Experience had established
the fact that this rule Of for three of circulation
and dcpostes was the safe proportion Its necessities
have compelled il depart widely from this rule
its creation. Instead Of being able 10 regulate
the banks II has with difficulty been able itself
IL has been going down and down. until according
the las. quarterly statement Of It's condition which
have IT had not pound sterling in bullion for
seven of its circulation and deposiies In this RESI-
a u IN much condition TINT many of the banks
m our country. In order 10 save itself from Ut
ter ruin British pride has humbled itself much that
the Bank Of England became u suppanr to that Of
Funce for a supply of bullion. which was rracieusly
though condcss endngly granted. This fact is The
highest evidence which Is possible present OF the
advantage which country the baSs Of whose circu-
ation is gold and SILVER. enjoys another country
whose paper currency sgrcaily expanded. The Bank
of England will probably the day. under its
present charter, when It's bullion will again be equal
10 onc-thrd OF its circulation and deposites Indeed
one bad crOp, its present condition would drain
IFS gold and silver for the purpose of purchasing Jr.
eicn grain and compel IL TO suspend specie payments
Neither This bank. The Bank ofIhe United Sines,
can ever be relied upon regulators Of the loans
and issues Of The other banks Of their respective coun-
tries.
The Senator from Kentucky would have "rreH reg
u!Gtei Bank ofihe United States" lie lays great en-
Phass upon The words" reiLrfgu!0ted." Doeshe mean
's n-nva'e fbe present Bank ofIhe United States un
der its charter from Congress was not the best regula
:. ted bank which the world sawi ! had thought
that, in his opinion. this bank perfection tser-
The truth, however is that any regulation " hch YOU
can prescribe IN the charter. Of such nsii ution
WI be disregardcd whenever powerful interest die
iates their violation. Like the strong man in the
Scriptures. il will snap the chords by which is bound
as il they thread IL will calculate upon via-
ting It's Garter with perfect mpuny because il is well
known how unwilling Congress wor.d ha 10 mfr
50 mach evil upon the country would necessarily
institution into successful operation, and you can no
longer regulate its motions by the restrictions Of lite
charter. The present bank a lawless insti.
tuition. up until tho day when il lrauduIeny seized
upon the entire circulation Of the old bank illegal
branch drafts and ALL and compelled Congress to pass
law making pentenitery offence in it's officers To
reissue these resurrection n-fes" Under its State
charter. IL has been true 10 its original character Al
though now has charter such as no other banking
institution ever bad IL has already been gay Of
raj palpae violations Of this charter. independently
I Of having twice suspended specie payments shall
trouble the nate with the enumeration Of these
violations. IL is ut the mercy of the Legislature
IL has pronounced lis own conn under lis own char
ter and IL only remains for the Legislature or the
Governor 20 carry this sentence into execution through
The agency Of the judicial tribunals. Whether they
shall enforce this forfeiture for them in their
wisdom 10 determine for me. ] shall no. in this
place. attempt TO interfere with their high and respon-
si5e duties although should consider il the great
est Of all bank reforms il this bank could DO blo,ted out
Of existence.
The Senator ridicRled the idea that the establish
men Of a new Bank Of The United States could prove
dangerous TO civil liberty. Such bank with q CAPT.
tal Of from fifty 10 hundred millions Of dollars with
branches in every State OF the Union directing by its
expansions and conraciions when prices should rise
and when they should fall, would be a most trcmep-
dops instrument Of irresponsible power. II would be
machine much more formidable than this Govern.
ment. even if the Administration were rs corrupt rs
the fancy d some gentlemen has painted it, There Is
natural alliance between wealth and power Mr.
Randolph once said Male and female. created nc
hem" Combine the Hioneyed srisocracy Of the
country, through the agency Of Naional Bank. with
the Administration, and their united power would
create influence which iiwosIld be anOsf possit
for The People 10 Withstand. We should never again
these powers IN hostile army against each other
IL the days Of Genera, Jackson Witnessed The
cepon. not The rule. Give any President such bank
- 7roye hal and hall laNp
most peaceful succession With al the power Of the EI.
eculiVe combined with al the wealth of the couniry
he would he thc most arnat blockhead IN the world
u no were not able 20 recleci himself and 10 nomi-
naie his successor All fhe forms Of me Constitution 4
might aill remain. The People might sf be deludcd
WIN the dea that elected their President but fhcsn-
lmai'ng spirit 81 our free institutions would be gtne
brewer secret bui all.rerysding rhoneyed inhu- 4
enee would sap the foundation Of liberty ard render
u an empty name
The immcme power Of such an institution vas
manifested IN the tremendous efIoris which Il made
against Cseneral jackson Had he MOI er;,..a -.