The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-28

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the United States, to be collected and paid in the
legal currency of the United States, or Treasury
notes, or OF notes Of the Bank of the United States
or IN notes d banks which payable, paid on de-
mand, in the said legal currency of the United
States.n
These several acts Of Congress expressly stpulate
that no duties taxes, debts, sums of money, pay
able to the United States ought to be collected or re-
ceived Otherwise than in specie, in evidences OF the
public debt IN Mississippi Land Scrip in the notes OF
the Bank OF the United States or in the notes Of the
State banks, payable on demand in legal currency
Here is an enumeration Of currency media of pay
ment, in which payments were to be made, for the
public domain, as well other public dues.
The laws of antecedent Congresses, approved of by
successive Executive Magistrates have been referred
to- in support of the proposition which laid down,
that the Government have uniformly preserved the
policy OF discriminating what money shall be re-
ceived in payment of dues to the United States, and
that in making this discrimination, the Government
has said that the paper of banks, convertible at WILL
into gold and silver should be considered the medium
of payment.
We will not say that the sanctoning ofan act by one
Congress obliges every succeeding Congress TO APP
prove all similar proceedings. But where a measure
of important necessity is adopted it must be some
motive different from regard from principle, that
could influence Congress, at another PERIOD to disap
prove of similar measure and productive of similar
benefit
1t is thought unnecessary to enter infinitely into
inquiry in relation to the powers of Congress to adopt
the measure We shall leave this discussion to those
~ bofy OH IN
important and necessary measures.
We contend, that if the Exchequer should he
adopted invested with all the powers which the report
Of the Chairman of the Committee on Finance claims
70. it, it will be powerful auxiliary in aiding the
State Banks in revivng specie circulation, and es
tablishing credit, both public and private We ask
did the resumption of specie-payments in 1916 and
1877 take place unaided and unassisted The history
of those times negatives the suggestion With the
view Of efecting restoration Of metallic currency
it deemed necessary to extend the utmost indul-
gence State Institutions whenever they manifested
desire to return to payment Of specie. This was
the nducement to the compact of the 3ls of January
1917. If this arrangement had not been consum-
mated, the day would probably have been quite dis
tant before the banks would have been able to have
resumed.
In confirmation Of this view Of the subject, we beg
leave refer another period in the public history Of
the country showing most conclusively that the Gov
should lend its aid in enabling the State in
stutons to return the legal currency Of the Uni
ted States 1t will no doubt be recollecled, that
general suspension Of specie payments took place in
1887, throughout the Confederacy. Previous to De-
cenber, 1888, seven hundred and thirty banks re.
M How eff tLa
means resorted to to accomplish this great and desirable
ohject-will be fully understood by the following
tracts from Mr.. Woodbury. annual report made De
cemher the 81, 1888
at was urged that each bank act Of sound polio
Cyl less than Of strong moral obligation and impera
tive duty under the lave, should resume specie pay
mens the moment it was able safely to effect them.
The adoption Of that course in some States, how
much the measure was questioned at the time
and perseverngly opposed by many banks as well as
influential individuals, has proved Fortunate and re-
fleets great credit the sagacity, fairness and inte
gence of those who adopted it.
g The ENCOURAGEMENT GIVEN BY THE DEPART MENT
to such INSTITUTIONS AS RESUMED sPEc'E-PAYMENTs
TAKING PAPER BUT THEIRS FOR PUBLIC DUES AND
BY PREFERRlNo THEM IN THE TRANSACTIONS OF PUBLIC
BUSINESS, WAS NOT WITHOUT SANITARY INFLUENCE"
!" Indeed every facility pas promised and ertended
These are the doctrines maintained by Mr.. Wood
bury 1t is manifest that the resumption of specie
payments was brought about by the policy pursued
by the Secretary of the Treasury towards the State
banks. Then, as now, deprecated currency
isted; then, now, unfavorabe state of exchange
prevailed If il was prudent measure in 1888, to
receive the paper of the State banks, we will ask the
ex-Secretary of the Treasury, upon what ineligible
principle will he resist the adoption of similar mea
sures at this critical juncture of our affairs
But it must be remembered that in the year 1888
the banks had much larger amount of cash ana bull
lion in their Golfers than they have had in their POS
session, at any period subsequent to their restoration
to a specie basis. From the commencement of the
year S3S, the stock has been progressively diminish
ed. The dimnuton has taken place in consequence
of engagements which many of the banks enter
ed into TO assist the States in liqudating their TO-
reign obligations; yet, with these facts and results
before the eyes of our opponents they stand
before the country the advocates for the extension
Of the paper of State Banks in the adjustment OF
governmental transactions. Against the soundness
of such doctrines oppose the practice of the Go
vernment in lSl6-l7 and that pursued under Mr.
Van Burcn's Administration. In both instances the
reception OF the notes OF specie paying banks by the
Treasury Department have been accompanied With the
most healing effects 1t relieved the country from the
deprecated evils of disordcred, worthless currency.
Moreover, we contend, that the paper of The Exche
quer and that of the State Banks cannot in the
same channels of circulation. A valuable and dis
credited currency, or good and better currency can
never flow in the same cistern. They must inter
mngle together upon terms of equal value, approx
mate somewhat to it, or they cannot associate at all
Now, contend that unless the Federal Govern
ment extend its aid and influence to the State Banks
the day of resumption must be postponed. The data
on which any reason with respect to the amount of