The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-10
CONGRESSIONAL.
SPEECH OF MIR. RIVES,
OF VIRGINIA,
In Iaror Of an amendment proposed by
him to tie Bank Bill
IN SENATE UNITED STATES,
July 1, lsi


July 1, 1871.
Mr.. RIVES moved to strike out a palt Of the 10th
article of the tn section of the bill and insert the
following
"That the said corporation shall establish conpe
tent office OF discount and deposit in any State by
the assent of the Legislature OF such State whenever
the directors may think fit to do and when estab.
shed, the Office shall not be Withdrawn without the
assent OF Congress and the said corporation shall have
power to commit the manag cement OF the said Offices
and the bushes thereof ecely to such persons
and under such regulations they shall deem proper,
not being contrary TO law constitution OF the bank
or, instead of establishing such offices, II shall be law
fu for the directors of the said corporation from time
to time TO employ any individual, agent, any other
bank banks be approved by the Secretary of the
Treasury, any place OF places that they may deem
safe and proper TO manage and transact the business
proposed aforesaid, other than for the purposes
discount, and To perform the duties hereinafter required
of said corporation, 10 be managed and transacted by
such officers under such agreements and subject
such reg ual ions they shall deem just and proper"
The amendment beng read, Mr.. RlvEs remarked
that the Senate would perceive 1t was in the precise
words of the PROJECT submitted TO the Senate time
since by the Secretary of the Treasury. Ii required
the of the Legislatures OF the States to tue
adjustment of branches offices of discount and de-
post, within their respective limits This principle
had been pTetermttcd IN the bill reported by the Srna-
tor from Kentucky, Mr.. Clay,) which expressly en-
powers the directors of the corporation 10 establish
iices of discount and deposit, wherever they think
fit without regard TO the consent of the States. he
object of the amendment TO restore the principle of
the Secretaiy's proet.
Before he proceeded to the consideration of the
amendment, however, MIR Rves said he begged to say
few words IN regard 10 the general question involved
in the measure before the Senate All would
agree that something must be done to put an end to
the present unsatisfactory eIninently injurious
state OF things. The necessities of the Government,
and the dcranged and suffering condition of the
try equally demand It, fiscal agency of some sort
other must be constituted to conduct the varied and
important concerns of the Treasury, and at the
time, To exert salutary aud restorative influence upon
the general currency OF the county The Subtrea-
suIy system OF the late Administration, it is now frank
y admitted by many OF is advocates, has been decl-
svey r.pudlated by the deliberate judgment of the
nation and in obedience 10 their voice, bill for It's
repeal has been recently passed by large majority OF
this body which will doubtless, become the law
of the land. What then, to be substituted In for
mer periods OF our history the employment of State
| Banks had been considered the true and legitimate
alternative of Bank OF the United States In 1891,
when the Republican party Of that day opposed the
Enlistment OF the first Bank of the U. s., and again
In lSl when they resisted and defeated the renewal
OF its charter they, with undivided sentiment, pointed
to the State Banks furnishing the proper and sutii-
c,ent means Tor conducting the financial operations of
! the General Government, without the necessity OF IN
cooperating national institution.
/ Mr. RVEs sad he had himself preferred that sys-
tenn and still preferred IT, II It could have fair trial
because he believed il perfect in all respects, but
yet capable, under proper regulation and management,
OF meeting the leading wants of the Government and
the country while 1t steered clear of the fundamental
objection OF an assumption of unconstitutional power,
and avoided that concentration of moneyed influence
which had always made purely national Institution
object OF Republican jealousy in this country. Mr..
Rives said he firmly believed that II the party, which
had adoptedhs system on the removal OF the public
moneys from the Bank of the United States in 1888,
had remained faithful to tiff they had not wantony
or unwsey betrayed it into dlilicuuesor even after
it had been thus involved in embarrassment manly 10y
the errors of the Government, they had pursued The
and sustaining policy of Dallas and Craw
ford towards the State Banks III similar hut lar more
difficult crisis the system would, this moment, have
been in vigorous and successful operation, and have
answered every Just expectation of the country But
the very parents of it had, with unnatural and tero-
clous violence turned upon their own offspring They
had made war upon the State Bank system, ull they
had 80 crJnped energies and dlscrcdted lis charac
ter in the opinion OF the country that all rational nope
of an efficient rcorganiz ition oil 1t has been exun-
puishcd NV colleague and myself SAID Mr. X,
would now probably be found the only advocates OF II
on this floor
Ills true that distinguished Senator from South
] Carolina (Mr. Cahoun) who has heretofore made
the Pet Bank System he calls IT. the iaNoflle suo
cct of his denuncation as rtckeHy ana r0ttch con-
cern seems to be wiling now, Judging from the mo-
ton made bv him few weeks ago 10 take II uhuer
| his kind protection. But can we conhde IN Nun as
our leader when as he hosts his broad pen
nant, and is tainted by the Senator from hentucky
! (Mr. Clay with being the Commodore OF ms lltle
fleet he Indignantly Tepcs the lmputaiion and boldly
proc aims that he Will fight only under the flag OF the
| Indep,ndent Treasury.
[Mr. CALnouN here rose, and said he scorned any
connection with the Pet Bank system
Mr.. RIvEs. And yet the Senator seemed very ready
to take II under his command, when he proposed To
ref it for another voyage, by repeating the provision
OF the OF 1886 respecting the issue Of notes under
s., which was supposed to present the only material