Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-03-30
REMARKS or MIR. MARSHALL,
Ga ths Loan Bill

Iteration of the bill 'for the extension Of the loan
OF 1884, and tor addition OF hve millions OF dol
lars thereto"
NIr Fillmore (under the direction Of the Commit
tee Of Ways and hesns) had moved To amend the
bill by adding thereto the following as section S:
And bs IL 0srhsr enacted, That the moneys arising
ic imported United ststes be- and tho same are
erssJ pc sSd Tor me payment Sni redemption OF stock
tho act Of July 81 ISL hereby amended, and much
s'oek and edcem the samc When que is hereby appfo
tcd to that object! to be SpPnei by the Secretary Othc
Which said amendment MIR Wise had moved to
amend, 10y adding thereto tie following proviso;
P,-rded That shah be the duty Of the Secretary ~
thg Ieasnry, Il sa'd s'oes hersoS Irseed 10 be issued
caio below Pas, TO purchase aud redeem the same.
And the question being on the amendment, 10 the
amendment
MIR MARS HALL addressed the House in near.
ly the following terms, as understood by the Re-
porter:
The proposition OF the gentleman from Virgins,
now under consideration by this Committee, left to
itsell and without any explanation by the mover,
strikes mo one OF the most extraordinary propo-
siiions that brought forward in this or any
other country claiming to know and 10 act upon
the principles OF national or commercial credit
IL - here proposed TO provide, by law, that, at
the TINS when the Govcrnm.nt stands in the great
est need OF money-when the Treasury is empty
and does not possess the means of meeting its imme
date and pressing engagements, without relying on
anticipate the depreciation OF its bonds and di
tho Treasurer OF the United States to avail him.
self Of such depreciation when it shall occur. and
enter into competition with the other brokers n the
money market to shave with them the psper of the
United States, Now, say ihat, considered with 60
out explanation by the mover, such proposal ss
this would strike me direct and Oman VIC ation
ofeycTy principle OF finance ever heard of in INV
!r The credit OF the Public Ike the credit of an
individual, is IN the compound ratio Of its known
eans, and OF its disposition TO avail itself OF those
80
Government 10y which mean ITS sincere desire
honestly 20 meet and satisfy all its ensasenerts)
: Of more importance than that OF an indyitu,
and for this reason there are means 10 coerce mi
vatc individual, though he may be personally un-
hing, 70 pay his debts; but IN the case Of 10
v'rnment there can be no such thing as legal coer-
con; for there are no means by which TO collect n
debt against It. Therefore say that a disposition
on It's part to meet its engassmen's IS OF more i'm
plran-c TO the credit of Government than TINT of
an individual is tn existence and continuance of
his credit. But here VIC openly invited 10 anti.
pate the depreciation OF cur own written oblis,.
tons, and TO take measures TO avail ourselves ~
such depreciation and make profit out of II, We
sell our bonds at par and then are TO calculate
on being able 10 buy them ia at a depreciation
Now. considering all the means Of cont,ol possessed
~ this Government over the subject, | saw that
could the worl1 only be so far imposed upon as TO
take bonds al par in the first place the measure
Of the honorabe gentleman from Virginia would
present one of the incest and most delicate systems
Of speculation that ever knew II our object is 10
make money out Of the peope, this shows US wav
m which this Government may be converted into
one Of the keenest shaving shops in the world Let
only get our bonds out at par, and then proyjde
NOT that our Secretary Of the Treasury shall in
case OF depreciation redeem securities al their
par vsue-ah no-that is not the amendment-bu,
that he shall avail himself Of the de 5recated state
o the market, and save TO the Government the dif
ference between the market price of It's obisatons
and the amount which they bear upon their face
We have certsIny means enough, If skilfully an
pied, 10 destroy our own credit at pleasure; nay
think could even devise the means OF making for
the Treasury ten cents upon the dollar within very
snort lime after the issue Of its obligations II would
he quite q new and very admirable financial oaera.
ton 10 send the Secretary TO buy them up at that
discount. Again, must say that, Standing alone
and without any thing intrinsic to throw LIGHT upon
u, " seems the most extraordinary suggestion ever
made to this Government since its inception or al
least that has ever been thought of being acted upon
No The principle was settled, once for all al
tie close OF our Revolution, on which this Govern.
mfrt will act IN regard to its own obligaions.-
Those Obligations were then deprecated TO = lamen
table degree; they were IN the hands OF assignees
not ~ the hands OF those whose services had been
paid IN these securities; they sunk in value nj
most to nothing. II was then, rs early as in 1890
settled as the American principle of cred T. that no
matter how or by whom The bonds OF the Govern.
meni might have been bought, the Government was
bourd IN honor TO discharge them strictly according
20 The terms expressed on the face OF The ins,ruo
mcnts, whenever should he in is power 10 do So
not was the doctrine then held and il is the true
and only principle for any Government 10 adopt
that would maintain its credit at home or abroad
Bot explanation given by the honorab bic mover
OF this amendment 10 the bill is that II never was
meant by him as furnishing the means for q whole.
sale swndng operation by this Government but
rs supplying the true and only basis in practice
iJr the credit OF our bonds 10 be ssCed for this os n
We are told Gy tue gentleman from Virsinil thai
% we will only provide by law that the Secretary
nay purchase the bonds wnen deprecated at their
money value in the market there will be no need
ri oar piedsng the public lands or any particular
fond or branch OF the revenue whatever Send forth
ms order TO the country, md you may dispense
win oil other legislation TO meet this deJt. Tia,
was his argument. And is 1t not very strange
ONE How did this loan bill come into th 5 House
Because we have no money on hand, and because
We want the money, thus 10 be raised, to meet our
present obligations that the Government credit
m'y be no longer di'honored. The loan Itself i
crcusloncd solely by the necessity OF ssendng the
money as soon rs we get IL. Well we get the -
millions or Whatever sum Il is seek to raise and
them moke a law that the Secretary of the 'Trea
Guty, in case of the depreciation of our bond shall
redeem them AT whatever price hey may bear
without pledging any fund for the repayment, and
when the money we get for the bonds is already
spent. When the depreciation has taken pace
and the Secretary goes into the marke, to buy up
the Government bonds, In other words TO shave
the Governments own notes. what is he T. buy
them wi,hi From what fund is he 10 draw the
mcans3 The only resource mus. be a new loan
lie ran give $50 revenue as a substantial bnsis Of
credit-io new loan he must resort lie mus, is
sue new bonds, and that is 10 be his means of sus
tanning the Government credit
The proposition Of the chairman OF the Com
mittee Of Ways and Means originating as II did
with the Secretary Of the Treasury, did, 1 admit.
anticipate depreciation Of the Government bonds
hu' 10 never proposed .hnt the Government II the
United States shoulduvail itself Of that depreca-
ton. and boy UP its own paper below par. Oh.
MOI According TO the plan Of the Committee. no
matter how Low the public securities were IN the
market the Government was TO redeem every one
Of them At its full par value.
This debate has taken a course, and remarks
have proceeded from the gentleman from Virginia
and gone forth TO the world, which, in my iudg.
ment, have q very important bearing, or we're 81
intended, on the character Of the committee and jts
chairman, and upon tie in'ores, OF the country
The proposition Of the Committee OF WAYS and
menrs-which, as said, was the proposition OF
the Secretary Of the Trensury-was secuted by
the honorable gentleman. Heireated nas pro
posiuon which that committee, or rather its chair.
m'ni (who, Dc seems, belongs TO tho Pavfair frni-
iy) introduced into the House. not ne n ,nensu,e
having thcif own consent and appreciation b1t es
introduced bY them MS the cntnlics NJ ttc Pc,
dent Of the United States with n ,is,y ~ "a,
dIsrrodit on his Administration. The rentI,n,,r
f7Id lhat there vas not one personal or polit,c,l
trend Of the President placed upon that commute
that q was composed, for the most part OF his NJ.
cuI.ar enemies, and had been orgarized npparsnt.
", on principle Of hostility to him and his Ad.