The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-03-01

III Bolu ana silver conn., should De receNaDie III al
payments to the United States'
In 1897, another act was passed, authorizing the
receipt of evidences of the public debt
In 1914, an act was passed, authorizing the Pres-
dent to cause to be issued from the Treasury, cer
Gates OF stock to certain claimants to lands under
" The Upper Mississippi Company"
The act of 1916, Incorporating the Bank of the
United States, made the bills and notes Of the Bank
receivable in all payments to the Government
The joint resolution of 1876, required all duties
taxes, and debts, sums of money becoming due to
the United States, to be collected and paid in the
legal currency of the United States, Treasury
notes, of notes of the Bank of the United States
or IN notes of banks which payable, paid on de-
mand, in the said legal currency of the United
States"
These several acts of Congress expressly stpulae,
that no duties taxes, debts, sums of money, pay
able to the United States ought to be collected or re-
ceved otherwise than in specie, in evidences of the
public debt in Mississippi Land Scrip in the notes of
the Bank of the United States, 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 as other public dues.
The laws of antecedent Congresses, approved of by
successive Executive Magistrates have been referred
to, in support of the proposition which we laid down.
that the Government have uniformly preserved the
policy of discriminating what money shall be re-
ceved 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
MI pOld n
of payment.
We will say that tie sanctoning of act by
Congress obliges every succeeding Congress to APP
prove all similar proceedings. But where 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 mlnutey into an
inquiry in relation 10 the powers of Congress to adopt
the measure We shall leave this discussion to those
who fond of raising abstract objections to the most
important and necessary measures.
We contend that if the Exchequer should be
adopted, invested with all the powers which the report
of the Chairman of the Committee on Finance claims
fo- it, it will be powerful auxiliary in aiding the
State Banks in reviving specie circulation and
tablishing credit, both public and private. We ask
did the resumption of specie payments in 1916 and
1917, take place unaded and unassisted The history
Of those times negatives the suggestion. With the
view Of efectng a restoration of metallic currency,
it was deemed necessary to extend the utmost ndul-
gence to State institutions whenever they manifested
desire to return to payment OF specie. Ihls was
the nducement to the compact of the 3lst OF January
1917. If this arrangement had not been consum-
mated the day would probably have been quite dis
tan before the banks would have been able to have
resumed.
In confirmation of this view of the subject, beg
leave to refer to another period in the public history of
the country, showing most concusively that the Gov
eminent should lend its aid, in enabling the State in
sltutions to return to the legal currency of the Uni
ted States. 1t will no doubt be recoected, that a
general suspension of specie payments took place in
1887, throughout the Confederacy Previous to De-
cenber, 1898, seven hundred and thirty banks re-
sumed specie payments. How this was elfected-the
resorted to to accomplish this great and desirable
ohect-wll be fully understood by the following ex
tracts from Mr.. Woodbury's annual report made De-
cemher the 3d. 1888:
cy, less than of strong moal obligation and mpera-
tive duty under the laws, should specie-pay
ments the moment it was able safely to effect them"
% The adoption of that course in States, how
ever much the measure questioned at the time,
and perseveringly opposed by many banks as well as
influential Individuals has proved fortunate, and re-
fleets great credit the sagaoity fairness and nelll
gence of those who adopted it.
q The ENCOURAGEMENT GIVEN BY THE DEPART MENT,
tn s1irh AS A
TAKING NO PAPER BUT THEIRS FOR PUBLIC DUES, AND
PREFERRING THEM IN THE TRANSACTIONS OF PUBLIC
BUSINESS, WAS NOT WITHOUT sALUTARY INFLUENCE.
Indeed every facility promised and extended
which the limited power of the Department permitted"
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 ex-
sted then as now an unfavorable state of exchange
prevailed. If it was prudent measure in 1885, to
receive the paper of the State banks, we will ask the
ex-Sccretary 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 specie basis. From the commencement of the
year 1888, the stock has been progressively diminish
ed The diminution has taken place in ca uence
of engagements which many of the banks enter
ed into to assist the States in iquidating their TO-
reign obligations yet with these facts and results |
before the eyes of opponents they stand
before the country the advocates for the exclusion
of the paper of State Banks in the adjustment of
governmental transactions. Against the soundncss |
of such doctrines oppose the practice Of the Go
vcrnment in ISl6l7, and that pursued under Mr..
Van Burcn's Administration In both instances the |