The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-10-26

Hrtnce, IN the lstanu u o.. Donsn'So, )" wy
place Of f. ID. Cummins declined.
TREASURY NOTES AND " SPECIE CLAUSES"
In our last we clearly proved the whole ope-
ra,ive clause Of the " Sub Treasury" to be now.
a, ever. in full force. There are just as many
preven,ives against official delinquencies now
as before the repeal > Lbs act; just as severe
punishment for convictc6s sAiistactors because
the great moving prime pc of the whole act, is
still in complete operation.
We now propose few remarks upon the
specie clause" Of this celebrated biIl-the prsc-
tce Of the Government before and since.
BY vote Of both Houses in the Congress OF
1885, the Secretary of,he Treasury was required
and directed to adopt such measures as he might
deem necessary to cause all duties, &c. accruing
or becoming payable to the United States, to be
collected and paid in the legal currency Of the
United States, or Treasury notes, or notes OF
the Bank of the United States, as by law provi-
ded and declared, or in notes of banks which
were payable and paid on demand in the said
legal currency Of the United States, &c.
BY this resolution il will be seen the Secretary
ofthe Treasury is authorized to receive Treasu-
ry notes in payment Of Government dues-a
practice that has existed, with some modi6ca-
tions, ever since.
Mr.. Woodbury., when Secretary of the Urea
sury--,here being deficiency in the revenue
accrung from customs, public lands, &c. to meet
the expenses Of the Government-was author
lied by an act of Congress to issue Treasury
notes; to procure loan sufficient to lquidate
the engagements of the Government. These
notes, of course, were receivable in payment of
duties and sales of the public lands; and the
debt thus contracted has not wholly yet been ex-
tirpaed
These Treasury notes bore interest, and were
Immediately seized upon by capitalists as desi-
rable investments of surplus moneys; thus bene
fitting the People only by the temporary accom-
mediation they afforded Government-au accom-
mediation, by the way, for which the People paid
an interest Of per cent. The constitutionality
of the issue of these notes was not doubted at the
time nor the tax upon the People Of the 6
per cent. supposed necessary to find purchasers.
These notes, it is true, became no circulating
-i;---n az 49,. -------y" ..~.,
however, from any legal restriction, but from
the fact they rere hmsbanded by the banks,
who paid out their own notes to the People for
a currency, by which they realized profit
double in amount-one half from the legal and
natural interest upon the Treasury notes they
held, the other from the circulation of their own
notes as substitute currency!
Thus, certainly, the banks were fostered, and
at the expense Of the People.
Sec. 18th Of the "Sub-Treasuryn bill modi-
fed the resolution of the 30th June, 1916 Of
which we have been speaking, as to cause all
duties, taxes, &C., accruing to the United
States, after 30'h June, 1910, to be paid in The
legal currency; after 30ih June, ls4l, one other
fourth; after 30lh June, lS42, one other fourth !;
and after 30th June, ls43, the remaining fourth
or the policy spirit Of this clause, we do
not purpose speaking at length. Some sup
posed il the most obnoxious Of the whole bill /;
others, the only obnoxious and some as honest
the great reedeeming feature.
We can imagine state OF things, when
such law, if not absolutely necessary. might
have been remedial Of many existing abuses
aud preventive of much threatened evil
Such a state the author Of this clause may have
supposed existing Al the time he so fervently ad-
vocated the passage Of the bill. Between the
years Of 1880 aud 1895, over three hundred
banks were chartered, with an amount of CAPT
tai almost incredible, and with fscile tendency
TO discount entirely so. This banking bubble
broke Immediately il reached its natural inha
ton and in 1886 suspension Of all the banks
occurred, TO the ruin Of thousands. Bot the
evil, though great. would not have been so dis
astrous or fatal in its consequences, had honest
legislation compelled immediate liquidation
Such course was not pursued on the con-
trary pole was undertaken which, in pro-
The system, s!reas!hspsan its rdaHiss 9YSS he
sale of State stocks, and in 1889 an en,r-
nous amount was manufactured and sent over
Tor sale, the proceeds of which enabled Amer.
can institutions 10 recommence their extensive
career OF folly and crime. 10 1899 imitation
had done Its worst and, in the fall Of that year,
private and public credit were alike enpulphed
IN the dreadful collapse that followed the rash
and fraudulent extension.
The defalcaiops and attendant discredi,. had
reached their possible height at the commence
men, Of the "dark year" of 1910, and wh,Ie this
same "Sub- Treasury" bill was maturing. the orr
glnator OF the "spccie clausen might have sup
posed IT expedenI, because no paper. whether
OF private individuals, Of incorp rated compa-
MES, or even Of States, was safe to receive or
hold. He therefore wished the Government,
dues and the Government funds, receivable and |
retainable in specie, that The p.onIc Cor ,,,h..