The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1843-10-26

TatlVe cIauSe OI tue = CuU teaSuTy " uc low,
as ever, 10 full force There are just as many
preventives against official delinquencies now
as before the repeal Of the act just as severe
punishment for convicted nalefactors because
the i3lh clause, whien we nave sbowr 10 be
The great moving principe Of the whole aci. is
still in complete operation
w pcw propose few senarks upon the
ss-ess,e s.,se or i, is celeprn,ca bill Ire rrac-
tlcs OF the Government before and since.
BY vote of both Houses in the Congress OF
1916, the Secretary ofthe 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 Unit States, &c.
BY this resolution it 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-
lions, ever since.
Mr.. Woodbury., when Secretary Of the Trea
sury-lhere being deficiency in the revenue
accruing 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 liquidate
the engagements of the Government. These
notes, of course, were receivable in payment Of
duties and sales of the public lands; and the
thnc cfp6 hoo hOllv hoop
tirpaled.
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-an accom-
modaiop, by the way for which the People paid
an interest of per cent. The constituionalty
of the issue of these notes was not doubted at the
time; the tax upon the People Of the 6
per cent. supposed necessary to find purchasers.
These notes, it is true, became no circulating
medium" "no Government currency"-not,
however from any legal restriction, but from
the fact they acre husbanded by the banks,
who paid out their own notes 10 the People for
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 a substitute currency
Thus, certainly, the banks were fostered, and
al the expense of the People.
Sec. l9th of the Sub Treasury" bill modi-
fled The resolution of the 30th June, 1916, of
which we have been speaking, as TO cause all
Cd
States, after 30lh June, 1910, TO be raid in the
legal currency; after 30th June, 1S41, one other
fourth; after 30tb June, 1912, one other fourth
and after 30lh June, 1S43, the remaining fourth.
OF the policy spirit Of this clause, we do
not purpose speaking al length. Some sup
posed it 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
and preventive of much threatened evil
Such a state the author of This clause may have
supposed existing the time he ferventy ad-
vocated the passage of the BILL Between the
years of 1880 and 1885, over three hundred
tai almost incredible, and with fscile tendency
10 discount entirely so. This banking bubble
broke Immediately it reached its natural inha
ton and in 1896 a suspension Of all the banks
occurred, TO the ruin of thousands. But the
evil, though great, would not have been so dis
astrous fatal in its consequences, had honest
legislation compelled immediate liquidation
Src
trary pol cy was undertaken which, in pro-
tracing the system, strengthened the disease
Open credit was found in London, through the
sale of State stocks, and in 1S35-'39 an en1r-
nous amount was manufactured and sent over
for sale, the proceeds of which enabled Ameri-
can institutions TO recommence their extensive
varcrr OF folly and CRIME. In 1899 imitation
had done its worst: and, in the fall of that year,
private and public credit were alike ,ngulphed
in the dreadful collapse that followed the rash
and fraudulent extension.
The defacations and attendant discredit. had
reached their possible height at the commence
ment Of the "dark year" of 1910, and while this
same 'Sub~ Treasury" bill was maturing, the orr
ginator of the "specie clause" might have sup
Po9eu IL eAPeuiep', oecduse ~ PdPef' Wnether
of private individuals, Of incorporated 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 he people, for whose
benz it Government was Instituted and it's ne
cessary expenses incurred, might not suffer the
more from the objectionable extravagance OF
spectators, or The criminal conduct of de-
faulers.
But such period has passed away The
banks in existence are obliged TO pay specie,