The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-06-05

and thereby toreduce their circulation. recur to
these things with no disposition 10 censure pre-
existing administrations Of the Government, but
simply in exempli6caton of the truth of the posi-
ton which have assumed. If, then, any fiscal
agent which may be created, shall be placed
without due restrictions, either in the hands OF
| the administrators Of the Goyernment or those
of private individuals, the temptation to abuse
will proye 10 be resstless. Objects OF political
ACCOMPLISHMENT may seduce the first, and the
promptngs of boundless cupdity VIII assall
the last. Aided by the experiences 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 far as
human wisdom can accomplish IL, on footing
OF perfect security. Within fewyears past
! three different schemes have been before the
/ country. The charter of the Bank OF the Y. s..
expired by its own limitations in 1886 an ehort
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 veto power, and the measure was defeated.
A regard to truth requires me to say, that the
President was fully sustained in the course he
i had taken by the popular voice. His successor
TO the Chair of State unqualifedly pronounced
his opposition to any new charter OF similar
institution and not only the popular election
which brought him into power, but the elections
Il
i dictate concurrence with him in sentiment on
the part Of the people. After the public moneys
were withdrawn from the u. States Bank, they
were 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
i whether that experiment was made under pro-
i pitious or adverse circumstances, It may safely
be asserted that 1t did receive the unqualified
i condemnation Of most of its early advocates,
4 nd ia tot xUae a
popular sentiment The existing Sub-treasury
system does not seem tostand in higher fayorwith
1.-THE people, but has recently been condemned in
manner too plainly indicated to admit of doubt.
4 Thus, in the short period Of eight years, the.
popular voice may be regarded as having sue
lcessively condemned each Of the three schemes
of finance to which have adverted. As TO the
first, il was introduced at time (lS16) 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
i prevailed with Great Britain. Whether, it the
United States Bank charter which expired in
i 1871 had been renewed in due season. 1t 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, problematical;
and, whether the U. s. Bank Of 1916 produced
"a restoration OF specie payments, or the same
was accomplished through the instrumentality
4 Of other means, was matter OF some difficulty
at that time to determine, certain it is, that for
the first years of the operation Of that bank, its
course was as disastrous as, tor the greater part
/ of its subsequent career it became eminently
successful. As to the second, the experiment
| was tried with redundant Treasury, which
i 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 to, 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 transmu-
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
pealing to their more immediate representatives.
The late contest, which terminated in the eection
OF General Harrison to the Presidency was deci-
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 to have been
concurred in. To you, then, who have come
more directly from the body of our COM
mon constituents, / submit the entire question,
as best qualified to give full exposition ftheir
! wishes and opinions. shall be ready to concur
with you in the adoption of such system as you
may propose, reserying 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-
! try-a power which could not part with even if
would, but which will not believe any act of
yours will call into requisition.
cannot avoid recurring, in connection with l
this subject, to the necessity which exists for
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 ofa 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 ,justi6ably be CIV
en- by Congress in advance Of any action by the
States as an inducemenl 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 il 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 unrestrained exercise of the
power Of creating banking corporations, This
power can only be limited by their consent.
With the adoption of financial ag ency of a
satisfactory character, the hope may be indulg-
ed that the country may once more return to q
state Of prosperity measures auxiliary thereto,
and in some measure inseparably, connected
with its will doubtless claim the attention
of Congress. Among such distribution of the
proceeds off the sales Of the public lands provided
such distribution does not force upon Congress
| the necessity Of imposing upon commerce heav-
er burthens than those contemplated by the act
| OF 1893, would act as an efficient remedial
measure by being brought directly in aid Of the
States As one sincerely devoted to the task of
preserving Just balance in our system of Gov
eminent by the maintenance Of the States in
condition the most free and respectable lin the
full possession of all their power, can no other
wise than ldesirous fortheir emancipation from
! the situation to which the pressure on their
/ a.....<. rory s,,h;octs thorn A nd while musf