Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-02-13
CONGRESSIONAL.
SPEECH OF MR.. BUCHANAN,

SPEECH Ot hk BUItiANAS,
Or PENNSYLVANIA,
In Senate, WtdacSday January %, 1S40-On the In
dependent Treasury Bill, in reply TO MIR. CLAY OF
Kentucky.
MIR BUCHANAN rose aad said Mr.. President
Il not my purpose the present occasion, 10 60
very much at length discussion OF the provisions
OF this DILL intend, in great degree indeed almost
exclusively, TO confne myself to reply or at least to
an attempt to reply to the remarks OF the Senator
from Kentucky, (Mr. Clay)
In all discussions If we desire arrive at satisac
tory conclusion, it is absolutely necessary that we
should distinctly understand what is the question to
be discussed. Then let me ask, what is the nature
and character OF the Independent treasury Dill now
before the Senate
Since the origin of the Government our own re-
sponsble officers have always collected the public
venue and have always dsbursed the public revenue
Heretofore, during the intermediate space OF time be-
tween its collection and disbursement, il has been de-
posted with banking corporations. The object OF tins
Dill TO provide that responsible officers shall
be substituted depositares instead of these banking
corporations and that these officers shall hereafter
not only collect and dsburSe the public money as
they have always done; bu, that they shall also have
the custody of between its collection and dsburse
Incnt.
Under the provisions Of this bill every officer through
out the u. S. who receives public money constituted
depositarv But there certain points where very
large of public money are collected or are dis
bursed, both, and at these points, both the security
OF he revenue and the public convenience required
that there should be deposares distinct from, and in
dependent Of the collecting officers These points
Philadelphia New Orleans, n York Boston, Charles
ton, and St Louis Accordingly, the bill proposes to
convert the Mint at Philadelphia and the Branch Mint
a, New Orleans into places Of public deposte, and en-
trusts the custody of the public money to the reasurers
of these institutions respectively; and II creates SUP
rcasurics, each he under the control OF receiver
general al New York, Boston, Al Charleston and at
st. Louis.
Thus far SIR it will be perceived that this bill makes
no change the settled policy Of the country, except
merely to provide that the public money IN the inter-
mediate time between its receipt into the Treasury and
its disbursements shall be entrusted to respon
sble officers instead of irresponsible corporations
In addition to these provisions the Dill contains what
has been commonly denoninacd the specie clause
This section provides that oncourt at the dues OF the
Government shall be collected in gold and silver alter
the 3Oth June 1S40 half after the 3Oth june ic4l,
three-ourths after the Goth June, 1872 and after the
Both June lS43, all the revenue of the Government
shall be collected and all its disbursements shall be
made in gold and silver CON-
Now sir, when separated from the details necessary
to carry these principles into execution this IS the BILL
the whole bill, and nothing but the bill, which has eX
cited much unnecessary alarms throughout the coun
Try.
In discussing this BILL the Senator from Kentucky
has divided his remarks into two general heads lie
has first considered the bill according what its friends
say it u.s. and in the second place, has discussed il ac-
cordinp TO what he himself believes it to be. in my
reply shall nvert this order; because it is necessary
first TO prove that the Senator himself has entirely
mistaken the nature and effects of the measure and
that its friends entertain just conception OF its cha
racter.
The Senator held up the bill trumFhantly TO public
view and declared that it contained within its provi-
sions great Government Treasury Bank. Now, If
cannot make it manifest the light Of day, that in
shis proposition he is entirely mistaken, shall then
s1.cc TO surrender the whole argument The Senator
has had unsuccessful chase through the provisions
o: this bill, after the lurking monster. Had he sue
ceeded in dragging him into light, should have been
Of the first in the country to assist in putting
him to instant death. But,
.:e mus, have optics sharp, ween,
Who secs what IS not TO be seen'
This, think, has been the with the Senator
from Kentucky
Now, sir, what is hank; According to the usual
acceptation of the word in country, it performs
three Offices II receives depostes, itloans money up
discounts and it issues paper currency. ac-
knowledge that order to constitute bank, il is not
necessary that it should perform all these three func-
tons There banks OF discount and deposi,e
r. and there also, banks of depose and issue only;
and this latter class of banks the secure Of
any in the world, when the deposites confined to
the precious metals, and the issues in The form of
,iEcates, do not exceed the actually deposited
Such the Bank of Amsterdam, and such is now
the Bank of Hamburg 1t would be difficult TO form IN
idea Of the bank of Issue alone without depostes dis
counts; although / know from the utter inability
of the Bank Of England to regulate the paper cur
rency of that kingCcm, the question has been Sc
riousy considered whether one bank of issue ought
not 10 be established, and whether all other banks
ought not to be prohibited from emitting paper
rency. 1t is certain that at the present moment, u
bank issue, purely bank of issue, does not exist
the face Of the earth Now, sir, this bill does not
authorize the public depositarcs TO receive money from
individuals deposite; a1pfSat only does not
thorse them to loan the pubic money entrusted to their
care, bu: it makes such act felony Punishable by
hne and Imprisonment This bill, then, clearly does
not create bank either of deposte Of discount and
the Senator has not commended any such proposition
He has confined himselfto prove that it will create
bank Of issue; and shall examine this proposition
little more in detail.
And, in the first place. If there be hank lurking in
the BILL then have had Treasury bank in full one.
ration ever since the origin the Government without
having the least idea of its existence until the Senator
from Kentucky made the discovery. There has been
no period of time, since General Washington first
inaueurated in 1870, until the present day, when the
Treasurer Of the United States did not draw his
rants, either on banks receiving officers, in favor Of
Without this power the Treasury Department could
exist Debts could not be paid to individuals, neither
could the public revenue be applied 10 accomplish the
objects contemplated by tho Constitution There is no
other conceivable mode of conducting this branch of
the public business The bill makes no change what
this ancient and necessary practice, except TO
impose important limitation upon it which has never
heretofore existed and yet, according to the Senator
from Kentucky, creates bank ofssue and the drafts
drawn by the Treasurer the public depositaries in
favor public creditors and disbursing officers, to
be the paper currency which it will throw into circu-
lation This is the and substance Of his whole ar
sunaent on this point. He might with the same rea-
son contend that, if individual in extensive business
had deposites in several banks and was in the habit OF
paying his debts and advancing money to bis agents