The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-06-03

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tionable power of discriminating IN The iunds 70
be used in payment, by different classes oil pubic
debtors. A discrimination which was doubtlessly
designed TO correct this most ruinous state o
things, by the exaction OF specie IN all payments
for the public lands, but which could not az
once arrest the tide which had SO strongly
set in. Hence the demands Tor specie be-
came unceasing, and corresponding prostra-
ton rapidly ensued under the necessities
created with the banks, to curai their discounts,
and thereby TO reduce their circulation. recur 10
these things with no disposition 10 censure pre-
existing administrations OF the Goyernment,b ut
simply in exempifcation OF the truth OF The posi-.
ton which have assumed. II, then, any hscal
agent which may be created, shall be placed
without due restrictions, either in the hands oil
the administrators of the Government, or those
| of private individuals, the temptation TO abuse
will prove to be resistless. Objects OF political
ACKNOWLEDGEMENT may seduce the first, and the
promplings of boundless cupidty will assail
the last. Aided by the experience of the past,
il will be the pleasure Of Congress so to guard
and fortify the public interests, IN the creation
Of any new agent, as to place them, so Tar as
human wisdom accomplish IL. on footing
OF perfect security Within a few years past
three different schemes have been before the
country. The charter Of the Bank Of the U. -
expired by its own limitations in 1886; an effort
was made to renew il which received the sane
ton of the two Houses of Congress, but the
then President of the United States exercised
his reto power, and the measure was defeated
A regard TO truth requires me TO say, that The
President was fully sustained III the course he
had taken by The popular voice. His successor
TO the Chair of State unqualifedly pronounced
his opposition TO any new charter OF a similar
institution and not only the popular election
which brought him into power, but the elections
through much Of his term seemed clearly TO in
The part of the people. After the public moneys
we're withdrawn from the u States Bank, they
we're placed in deposite with the State Banks,
and the result of that policy has been before the
country. To say nothing as to the question
whether that experiment was made under pro-
pitious or adverse circumstances, it may safely
be asserted that it did receive the unqualified
condemnation of most of its early advocates,
and it is believed was also condemned by the
popular sentiment The existing Sub-reasury
system does not seem TO stand in higher favor with
the people, but has recently been condemned in
a manner too plainly indicated TO admit OF doubt
Thus, in the short period of eight years, the
popular voice may be regarded as having sue
cessively condemned each OF the three schemes
Of finance TO which have adverled. As to the
first, il was introduced at time (1Sl6) when
the State Banks then comparatively few in
number, had been forced to suspend specie pay
ments by reason OF the war which had previously
prevailed with Great Britain. Whether, II the
United States Bank charter which expired in
1911, had been renewed in due season, II would
have been enabled to continue specie payments,
during the war, and the disastrous period to the
commerce of the country which Immediately
succeeded, is, to say the least, problematica;
and, whether the U. S. Bank OF 1916 produced
a restoration of specie payments, or the same
was accomplished through the instrumentality
of other means, was matter OF some dilhculty
at that time to determine, certain it is, that for
the first years of the operation OF that bank, It's
course as disastrous as, Tor the greater part
of it's subsequent career il became emlnently
successful. As 10 the second, the experiment
was tried with a redundant Treasury, which
continued TO increase until it seemed to be the
part of wisdom TO distribute the surplus revenue
among the States-which operating at the same
time with the specie circular, and the causes be.
fore adverted 10, caused them to suspend specie
payments and involved the country in the great
est embarrassment. And as TO the third, If
carried through all the stages of its transmit
tation, from paper and specie, to nothing but
the precious metals, to say nothing OF the IN
security of the public moneys, its injurious
effects have been anticipated by the country,
in its unqualified condemnation. What is
now to be regarded as the judgment Of the
American people on this whole subject, have
no accurate means of determining but by APP
The late contest, which terminated in the election
of General Harrison to the Presidency was decl-
ded on principles well known and openly de-
clared and while the sub Treasury received in
the result the most decided condemnation, yet
no other scheme of finance seemed 10 have been
concurred in. To you, then, who have come
more directly from the body of com
mon constituents, | submit the entire question,
as best qualified TO give full exposition of their
wishes and opinions. / shall be ready to concur
with you in the adoption of such system as you
may propose, reserving to myself the ultimate
power OF rejecting any measure which may, IN
my view of it, conflict with the Constitution, or
otherwise leopard the prosperity of the coun-
| fTv-a power which could not part with even II
| would, but which | will not believe any act of
yours will call into requisition.
cannot avoid recurring, in connection with
this subject, TO the necessity which exists Tor
adopting some suitable measure, whereby the
unlimited creation of Banks by the States may
be corrected in future. Such result can be most
readily achieved BY the consent of the States,
to be expressed in the form off compact among
themselves, which they can only enter into with
the consent and appreciation Of this Government.
A consent which might, in the present emer-
gency of the public demands ,justiliaby be Civ
en- by Congress in advance of any action by the
States as an inducement TO such action upon
terms well defined by the act of tender. Such
a measure addressing itself TO the calm reflection
of the States would find in the experience OF
the past and the condition of the present, much
to sustain it-and it is greatly TO be doubted
whether any scheme of finance can prove for
any length of time successful, while the States
shall continue in the unrestraned exercise OF the
power Of creating banking corporations. This
power only be limited by their consent.
With the adoption of financial ag ency OF
satisfactory character, the hope may be indug-
! cd hat rqfn n a
state of OBSERVATION-DISCLOSURES auxiliary thereto
and In snme mrasure insennrahly connected