The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-12-07

for gold and silver, which rs M many parts, so lar
deprecated, as not 10 be received except at large
discount in payment Of debts or In the purchase OF
produce. II could earnestly be desired that every
bank not possessing the Of resumption, should
follow the example Of the late United States Bank oil
Pennsylvania and go into liquidation, rather than by
refusing to do so TO continue embarrassments IN the
way Of solvent institutions, thereby augmeniing The
difficulties incident the present condition OF things
/ Whether this Government, with due regard 10 the
rights of the States, has any power to constran the
banks either to specie payments, or to force
them into liquidation, is an inquiry which WIN not
/ fail 10 claim your consideration. In view oil the
great advantages which allowed the corporators
not among the least Of which is the authority contain
cd In most OF their charters, to make loans 10 three
times the amount Of their capital thereby often de-
irving three times as much interest on the same
amount of money any individual IS permitted by
law TO receive, sufficient apology can be urged Tor
long continued suspension of specie payments
Such suspension is productive Of the greatest delr
ment to the public, by expelng from circulation the
precious metals, and seriously hazardlng the success
Of any effort that this Government can make, TO m
crease commercial facilities and TO advance the pub
| lie interests.
This the to be regretted, and the ndispensa-
BILE necessity for sound currency becomes the more
manifest, when reflect on the vast amount OF the
internal commerce of the country. OF this we have
statistics, just data for forming adequate opn-
ions But there can be doubt, but that the amount
of transportation coaswise by sea- and the transport
alton inland by railroads and canals, and by steam
boats and other modes of conveyance over the sur
face of vast rivers and immense lakes, and the
value of property carried and inerchanged by these
means, form general aggregate, to which the for
egn commerce Of the country large as II IS, makes
but distant approach.
In the absence of any controlling power over this
subject which by forcing a general resumption Of
specie payments would al once have the effect of
storing sound medium of exchange, and would
leave 10 the country but little to DESIRE what mea-
sure of relief falling within the limits OF our const
tutional competency, does it become this Govern
ment to adopt II was my painful duty at your last
session. under the weight of most solemn obligations,
TO differ with Congress on the measures which pro-
posed for my approval, and which Il doubtless re-
garded corrective of existing evils. Subsequent
reflection, and events since occurring, have only
served To confirm me IN the opinions then entertained,
and frankly expressed.
must be permitted to add, that no scheme oil gov
ernmenta policy unaided by individual exertons,
can be available for ameorating the present condl-
ton Of things. Commercial modes Of exchange and
good currency, but the necessary means Of COM
merce and intercourse not the direct productive
sources of wealth. Wealth can only be accumulated
by the earnings Of industry and the savings Of iru-
gality and nothing can be more ill-judged than TO
look to facilities in borrowing, or to redundant cir
cnlation for the power Of dschargng pecuniary OBJ
legations The country is full of resources and the
people full Of energy and the great and permanent
remedy for present embarrassments must be sought
in Industry economy, the observance oil good Iaiui,
and the favorable influence Of time.
In pursuance of pledge given to you my last mes
sage to Congress which pledge urge as anapoogy for
adyentrng TO present you the details oil any plan The
Secretary of the Treasury will be ready to submit to
you, should you require it, plan OF finance which,
while il throws around the public treasure reasonable
guards for its protection and rests on powers ac-
know lodged in practice TO exist from the origin OF
the Government, WILL at the same time, furnish to
the country sound paper medium, and afford all
reasonable facilities for regulating the Exchanges
When submitted you will perceive in II a plan
amendaiory of the existing laws in relation to the
Treasury Observation-Disclosures in all respects to
the will of Congress directly, and the will of the
people indirectly should II be found
in practice to realize It's promises in theory, and
pealable at the pleasure Of Congress. II proposes
by eectua restraints and by invoking the true spirit
Of our institutions, to separate the purse from the
sword more properly to speak, denies any other
control to the President the agents who may be
selected TO carry it into execution, but what may be
indispensaby necessary TO secure the fidelity Of such
agents and by wise regulations keeps plainly apart
from each other, private and public funds 1t con-
Templates the establishment of Board Of Control at
the Seat of Government, with agencies al prominent
commercial points, or wherever else Congress shall
direct for the safekceplng and disbursement of the
public moneys, and substitution, at the option of
The public creditor of Treasury notes, in lieu of gold
and silver. 1t proposes TO limit the issues TO an
amount not to exceed $4,000, 000-wthout the eX-
press sanction Of the Legislative power. 1t also a
thorizcs the receipt of individual deposits OF gold and
silver TO a limited amount, and the granting certih-
Gates Of deposit, divided into such sums as may be
called for by the depositors II proceeds step FUR
ther and authorizes the purchase and sale of Domcs
tic Bills and drafts, resting real and substantial
basis PAYABLE at sight, or having but short time TO
rum and drawn places not less than one hundred
miles apar--whch authority, except in so far as
may be necessary for Government purposes excu-
syely is only TO be cxerted upon the express con-
dition that lis exercise shall not be prohibited by the
State in which the agency is situated.
In order to cover the expenses incident TO the plan
it will be authorized TO receive moderate premiums
for certificates issued ON deposits, and on bills bought
and sold, and thus as far its dealings extend 10
furnish facilities to commercial intercourse al the
lowest possible rates, and TO subduct from the
ings Of industry, the least possible sum. II uses the
State Banks at distance from the agencies, aux
iliaries without imparting any power to trade in its
name. II is subjected to such guards and restraints
as have appeared to be necessary II is the creature
of law, and exists only at the pleasure OF the legis
lature IL is made 10 rest on an actual specie basis
in order TO redeem the notes at the places OF issue
produces dangerous redundancy OF circulation
affords no temptation TO spcculation--s attended by
no initiation of prices-is equable in its operation
makes the Treasury Notes, which it may use along
with the certificates Of deposit and the notes of spe
cie-payng banks--conyerble al the place where col
lected, receivable in payment OF Government dues
and, without violating any principle of the Constu
ton affords the Government and the people such
facilities as called for by the wants Of both.
Such, it has appeared TO me, are its recommends
tions, and in view of them it will be submitted
whenever you may require it, to your consideration
| ! am not able to perceive that any fair and candid
objection can be urged against the plan, the princi
pal outlines Of which have thus presented can
not doubt but that the notes which il proposes to fur
nish at the voluntary option Of the public creditor,
issued in lieu of the and its certificates OF de-
post, will be maintained at equality with gold
and silver, every where. They are redeemable in
gold and silver demand, at the places of issue.
They are receivable every where in payment of Go
vernment dues. The Treasury notes are limited TO
an amount of one-ourth less than the estimated an
nual receipts Of the Treasury and in addition they