Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1841-10-21
SPEECH
OF Hon THOMAS II. BENTON, of Missouri.
on the Loan Bill, delivered in the Senate.
Monday, July, 10, 1871.
Concluded. ]

(Conciuded.)
Inc next provision which these economical
gentlemen make for themselves is in the loans
, which are proposed for building up their Bank.
Inc States have had such fine luck i'm going to
Europe and BORROWING money 10 establish hsnkS
upon, that we must try the same experin,ent:-No
matter Tor our poor Constitution, which never
dreamed OF borrowing money to bank upon; no
matter Tor the lessons of political economy. Which
condemns all banking bottomed OIL borrowing
money no matter for the experience of the ago !;
our new administrators must borrow, and they
must bant and Tor this purpose we find three
entries IN their new books first, a loan of ten
millions Tor the first subscription to the capital.
on twenty years time, at five per cent Interest,"
ms makes ls interest equal to the principal to
LOT te ihciuentaI expenses IN vv.~~-.-, con,
from the people, the burden imposed upon them
by this first loan is twenty-five millions ofdollars:
secondly, the United States is to take the third
part of the twenty millions increased capital when
raised to fifty millions, (Which will soon be, and
to raise 1t by loan the same terms, and for the
same time. This would be six millions and two
thirds for the principal the same for the interest
and ten per cent. for incidental expenses; i'm all,
$l4,333,333 l-3. In the third place, the United
States to take the one-trd of the thirty three
and one-thrd millions reserved for private stock
holders, If not taken by them in three months af.
ter opening the books. That it will not be taken
is certain. Europeans will be shy of a United
they have been defrauded by the late Bank and
some others. The idea of the REPEAL will
keep off all real capitalists. Jobbers spectators,
and gamblers will take little, in order to get the
privilege Of helping themselves to much out of
the public funds in the bank. They will put in
thousands, in order to take out millions and thus
this contingent subscription will fall upon the IT,
States, and is to be made up like the two former by
borrowing for twenty years, at five per centum
interest. The principal in this third subscription
may be eleven millions of dolars-the interest
the same-add ten per centum for incidental ex-
penses in all S2i 100000.
The totality which the Government may bor-
row to pay up its three subscriptions TO this new
tangled Fiscal Bank, is twenty-seven millions
and two-thirds, devvlving thereby burthen upon
the people of more than double that amount. |
know the argument of those who 90 for these
loans, and who consider ii great money making
business Tor the Government to borrow from the
English at five per cent. and to lend to its cti-
zens at six: l know their argument, and that it
is the true and veritable derivation of the fable of
the milk maid and her basket of eggs, the catas-
trophe which is known to little children by read
ing q to grown men by banking; and which, it
seems, the Federal Government must now learn
through the fate of the Fiscal Bank. GMr. b.
here read the fable of the milk maid and her bas-
ket OF eggs, for the instruction of the champions
Of this fscaity, and went on 10 say:1 The
whole scheme of this Federal project of banking
Is as unconstitutional, in point of law, as it is de-
rogatory In character, fallacious in practice and
disastrous in termination. This Federal Govern
ment was not created for banking, and especially
Tor banking on borrowed money; and, above all,
it was not created to collect solid money from the
people, and give it to corporators in exchange for
paper money, to he circulated to the exclusion of
the constitutional currency. But let us 90 on
with the inquiry on hand.
now come to the third and last class of en-
tries In these new books, consisting of moneys,
wasted, sqnandered, or given away; or attempted
to be wasted, squandered, or given away, by those
economical gentlemen whose promises before the
election were so magnificent, and whose perform
ance since is so ridiculous. The first item under
this last head is for money wasted to wit, about
half million of dollars for the expenses Of this
extra session of Congress. This is clear case of
waste: for the session is far worse than useless,
and never would have been held if the Democra-
cy had continued in power, or if the consels of
the discreet part Of the Federalists had prevailed
We all know how 1t came to be ordered; and
now, as often heretofore, acQuit the late Presi-
dent General Harrison) of all blame forit; hold
ing it to be case in which he justified in
yielding to the decision OF council.
The next item among these entries is the land
revenue, estimated at three and half millions
per annum, nominaly given TO the States, but
substantially to be transferred to the British hold
ers of State bonds and to increase in their hands
the value OF the securities which they have bought
low, and now want raised high. Counted for
one year, and this squandering is three and half
millions: counted as representing capital at
six per centum, and it would be fity-eight MILL
ons of dollars. Nominally the bill has a limia-
ton to its duration; it is limited to the cou-
mencement Of foreign war; but the limitation
is iilusory. If the land revenue goes once, it is
gone forever. If this bill passes now for annual
distribution, we shall have, next year, bills to
make general distribution at once-to kill the
goose, and get all her golden eggs at once. If
we cannot retain this fund while we have tiff
we cannot apply il to the public defences now.
while the lands are still in our hands, according
to the patriotic motion of my colleague--if we
cannot do this now, the lands are gone forever;
and the customs and other revenue will follow.
What is absurdly called the debt due to the
States under the deposite act, for the fourth III
stament, is another item, found in a different
form In these new Treasury books. The present
Secretary Of the Treasury has found new dis
position for this sum- he proposes TO put 1t into
the Treasury bank, as so much stock subscribed
on the part Of the States, and to punish those
that will not accept the Bank by giving their
share to States that will accept Here is seduc-
uon on one hand, and chastisement on the other ;
and between the two, the Secretary no doubt
thinks all the States will be brought into the
snare, and accept the Bank-ihnt Bunk evhict
hes behind tie one beforc lie Senate, and
Wh,ch rs as much ncOrse Man that as tie superaddi-
ton " Jrand, bribery, heachery and hypOcrisy can
mafe 'oorSe DIN act originally bad Nine millions
Is the amount OF this sum proposed TO be squan-
dered as douceurs to the States, TO 90 from them
to the British, whose agents have honored this
session of Congress with their attendance, and
who have applied to the administrators to
assume the State debts. Twenty-seven millions
were deposited with the States under sacred prom