Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-01-03

-: -o"ey ".hout even the prctcnce OF speci,
basis to support it.
Mr b. said he had never been a great friend u
me exisnns banking system OF the United States
rs oeheved II was last going to ruin; il contained
me elements OF its own destruction within ITSELF
Let II 90; he should give il no impulse. he woul,
leave 1t TO itself In that respect he would not say
whether this new Government bank would wori
sood or evil; but certain it was that il would 5000
make an end OF the State banks. Ii went TO invad,
their most precious prerugatiye: IL was en,powerec
10 issGe hve collar bills. whereas hitherto Treasury
noes had never been permitted OF u less denom
naien IMAM nifty dollars but, in issuing so low a,
hVe dollars, II would come in immediate contact
WIN every petty local bank in the country, anu
'hey must 20 down. Ii wouid cause a sad retro
grade motion in another respect. Experience hat
SHOWN mat there never could be u sound specie
basis maintained when bank bills were allowed &c
oe issued as low ms five dollars. They had been
suussnng 10 get twenty dollars fixed us the lowest
point, ana let all sums below that bc piid in gold
anu SILVER, so that laborins might receive thei,
wages M gold and silver, and leave tho merchants
una capitalists TO receive the larger bill; but here
inc uenomnniion was to be reduced to FIVE dollars
ana that with circulation xceedns by millions thai
oil the old Bank Of the United States
MIR. Benton, speaking across. Yes: and they
WI, soon have down 10 one dollnr.l
ies; they may get it down even TO that.
MIR. Is. said nc should feel much greater alarm in
LOOKING at tins new scheme of bank, were il not
that he believed in his soul that, a financial mea
sure, u would wind up in six months. Why, where
would the centre OF its circulation bel II might
senc It's bills north, south, cast, and west, but the
centre oil their circulation, after oil, would be IN
Wall street. Now York was the settling Mace for
the Union, and must DC. There specie was deman d-
ed for expectation. These no;cs would be boarded
! IN tho West TO pay debts 10 the Government and
ior, purposes of exchange n, New York. Then let a
sudden demand Of specie come from abroad, on whom
must 1t first falll Tho local banks would take care
| TO proicc: themselves well as they could; thew
would hoard these Treasury notes in their vaults,
and the FIRST run would be on the Treasury of the
United States. And in what condition would the
Treasury bo to sustain run, aztec the issue of IF
teen millions OF paper on five millions in specie 2
| The Government itself must blow up. The Trea-
siry scheme would succeed III one way, certainly
Captain ry would be headed by i, more efec,ual.
~ than by all the contrivanccs yet thought Of
| Then the cry would Immediately be heard, swell,
you see the last experiment has failed, and no W
there IS nothing else for 1t, but must have good
oldfashloned Bank OF the United States" However,
| exclaimed MIR. b., there is one event in which I'm.
Gle sam will be safe-he can't be sued IA laugh
| don't Know that he can't take the benefit of the
| bankrupt law. But 1t may be useful in another
way; spectators can get the hank bills cashed, and
hen get clear OF their debts. The two Plans will
I work admirably together. 4 taught
| They Of Mr. BIS party had long been making
war on the principle OF allowing the money of the
teoplc to bc used Tor any purpose but paying the
| pubic debts. Ii was this which had ruined the
dcpoSitc banks yet that very thing viii CHI had ruin
ed them, with all their capital as security this Gov
eminent was asked TO do, and yet 10 EXPECT
not 10 lose great part of the money loaned In the
very able letter y; the Secretary OF the Treasury
| It was stated 10 toe OF the greatest rccommenda
| tons OF the new Exchequcr scheme that the money
oi the People would not be locked IN but used Gor
the benefit of the Pcop,c.
With all personal respect for the President of the
United States, MIR Is. confessed that he viewed this
| scheme with dsmly. What was it that had impair
| ed the public morals, and beyond all other things
| injured the character and credit of the country
| Was 1t lot bank defacations2 Was there n d,v
passed that We did not hear of new frauds and for
| serIes, and new defalcatons and clopements1 The
thing had got TO be so common Ihlt il no longer
produced any sensation. And where were the men
VINO had been guilty OF these crimesl In our prl.
sons and pealientinries7 Not ut ALL they were
walking about through the land, and so thorough
| had the contGgion become, had il blun,ed the
moral sense of the community that such offenders
were received into society, and treated as # they
| never had been guilty OF a crime. The case had
become proper subject for the thunders of the pull
pit. Vice had become so general that vie. was
growing unconscious of its mllignty. And should
| We now, when this iniqutous system was about IN
| run down and perish by its own corruption-whec
| the Bank of the United States has DESTROYED the
widow and the orphan, and pundered all who had
trusted to H. again Hood the land with new corrup-
ton by estabshinsa bank principles as false
and baseless those OF the worst institution in the
| lanfl lie trusted not.
! few wo'ds more, and he was done. lie asked
warrant III the Constitution SIich
| an institution! Would any gentleman mint il ont
! 10 hlml Did scheme like this come from the GOOD
| old school OF Virginia abStraciions2 Was this in
accordance with the principles OF the oyer.memora-
| tie resolutions of lT9s and 997 BY what mode of
construction could such measure be warran,ed7-
! Was such thing this Exchea uer Board neces.
sary or proper means 10 carry into effect any Of the
| enumerated powers of this Government
This bill, IN It's leading principles hld teen shad-
owed forth on this floor in 1887; but Mr. B. had then
/ TaSfe taIf haar Ran arFa all
| Ii was then coniended that the United States Co
| vcrnment he'd rsh! TO issue paper money for cir.
cuaiIon, and thereby 10 control the issues OF the
State olnks. Yes, this same scheme had been
Swallowed forth by the great eIpounder ofthe Con.
| sttution--one who had earned that title by ndont.
ing the utmost possible latitude of construction which
could be put upon that sacred instrument MIR H. had
| then felt proud in opposing II. But where was the
constitutional doctrine now1 IL was not asserted
| the question was not argued. Mr. b. had then de-
MED the power to regulate the currency rs not to
| be found in the Constitution. IL was claimed os
incidental to the power 10 regulate commerce. What
ri OF construction was ,his2 Our fathers were
jealous oil FedeTa! power iH tho Consiiiuiinn that
power was dealt out with a niggari hand The power
| TO regulate commerce had bcengrantcd simply for
this reason: different States of the Confederation
had imposed different rates OF duty on the impor,a-
ton OF foreign articles, and those States whose ,a-
riff was the lowest introduced the goods from broad
and then pushed them into those States which CT
acted higher duty; and thus there was perpetual
war ofrustom houses going on. BESIDES this, we
were unable TO make any cOnmercill treaty with n
| foreign nation, because tie Government had no
power TO eninrce It's observance. Hence the power
| TO regulate commerce.
| But what would the venerable patriots OF that
day think or say, could they witness an attempt to
| perven thls power 10 tho creation OF great Co
yernment bank, with power to issue such Cavern.
ment papec money as they had themselves lust ex
poded' power to regulate presupposed that
| there was something existing TO be regulated. As
Chief Justice Marshall had observed the mower 10
| regulate commerce was nothing but the power 10
prescribe rules according to which it should be con
| Quoted. n similar course of reasoning might inst
well be urged 10 cover works of internal nDroys.
ment by the General Government. II il were said
! commerce could not DC conducted without a currency
and therefore the power to regulate commerce was
| a power TO regulate the currency, il might be as
well said commerce could not be conducted withou,
railroads and canals, and Congress had mower 10
make roads and cinas ny similar reasoning the
| Treasury might 10 empowered TO purchase up cot
ton TO protect the Southern planter. Congress had
power TO coin money, and therefore to establish
mint and hence soma gentlemen had drawn the
| monstrous, the revolving inference that Govern.
ment Ind power to issue paper currency and to
establish paper mint!
Such construction Of the Constitution was nj
war with the whole history Of the time whom il was
adopted. The Confederation had conferred on the
old Congress the power to borrow money, and to
issue bills Of credit but the convention which fran
ed the Federal Constitution struck out the latter
clause. Two attempts were made 10 get il inserted
m that Instrument but both efforts were negatiyed
Yet that very power which was expressly refused
by the convention, and struck ont Of tho articles Of
confederation was now, forsOoth commended for in
ITS utmost latitude, under the commercial and the