Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1844-03-21
"THE FAIR PROPOSlTION."-No. S.
THE BANK oUEsTIoN-Cosr,svsp.

nave consulted no source of ,nformat;n, which
we did not deem entirely authentic, and most OF
our narrative Is drawn directly from the official
records Of the country Ii have faller into an
error We are not sensible Of it, bu, if our neiybbor
d me Enquirer, or any one else, will do us the
FAVOR 20 scrutinize references, and detect any
'onder, We will most cheerfully correct il.
we th.1k We hazard little in saying that we
have established by ncon,rovertible evidence the !
ioiiowing, among other propositions:
LIST. Iha, the Bank OF 1871 was NOT n E.d,,,,I
measure, but that 1t was passed before the divi- |
sion OF parties, and received the support of men
OF distinction, some Of whom were afterwards
ciassed among the most eminent of the Republic
cans, and others Of the Federalsts.
I'd. That the proposition to re-charter the Bank
In 1911, was not a Federal measure, but received
the warm support OF VIM. II. Crawford and ma
ny other distinguished Republicans, and tina, i,
Tailed from considerations entirely foreign from
party divisions.
le!4-'l5 instead Of being prompted and sustain
ed 6y the Federal party, were warmly opposed by
the leaders OF that party land mainly support
Cd by the Republicans, with Calhoun, Lowndes,
Forsyth, &c. at their head.
IL now remains for us to review the history Of
the passage of the bill of 1876 for the ncorpora-
ton OF the late Bank Of the U. S.
ihe first session of the 18th Congress COM
menced on the 9th December. 1915. President
Madison, in his annual message to that body, in-
vted us attention to the establishment of Ma
tlona Bank; and MIR Dallas, the Secretary of the
treasury, urged the necessity of such an institu-
lion, as the only means of restoring sound cur
rency and facilitating the collection and disburse
ment of the public revenue.
On the 10th OF December, so much Of the Pres
adent's Message as related to the subject, and
day or two afterwards the report Of MIR. Dallas,
were referred 10 a select committee Of 9. This
committee consisted of JOHN G. CALHOUN.
offs c, NATHANIEL MACON of N G, JAS.
pLEASANTS, Of Va, MIR HOPKINSON of Pa,
Mr. ROBERTSON of La, HENRY ST. GEO
TUCKER Of Va, and TIMOTHY PICKER
ING Of Mass.
The committee met al an early dav, and de-
termlned ''tha, National Bank is the mos, GER
tain means OF restoring to the nation specie cur
rency" and instructed Mr. Calhoun TO correspond
with MIR. Dallas, as TO the plan on which it should
tie organized. On the 2ith December, 1915, Mr.
Dallas addressed long letter TO Mr. Calhoun, in
which he sketched the outline Of tho Bank, as il
was afterwards adopted, (Doc Hist b u GLIB to
62I.)
On the 9Th January, 1916, Mr. JOHN C CAL
HOUN reported the Bill for the incorporation of
the Bank TO the House.
On the 26th February, 1916, Mr. Calhoun OPEN
ed the debate on the bill. We beg such of our
readers as have not examined that speech 10 give
1t an attentive perusal. 1t is worthy of the great
mind from which it emanated He commenced
by saying:
''He proposed at this time, only 10 discuss gem
eral principles, without reference to details He
was aware that principle and detail might be uni
ted, but he should at present keep them distinct
lie did not propose to comprehend in this discus
sion the power oil Congress 10 grant Bank char.
te!s nor the question whether the general tendency
OF Banks was favorable or unfavorable to the lib
erty and prosperity OF the country; nor the ques-
ton whether Narional Bank would be favorable
TO The operations Of the government. To discuss
'hese questions he conceived would be an useless
consumption OF time. The constitutional cues
ton had been already freely and frequently
discussed, that all had made up their minds on it,
The question whether banks were favorable TO
public liberty and prosperity was one purely spec
uiative The fact of the existence Of Banks and
their incorporation with the commercial concerns
and industry Of the nation, proved that inquiry to
come too late. The only question was on this
hand, under what notifications were Banks most
useful, and whether the U. States ought, or
ought not, to exercise the power 10 establish
Bank. AS 20 the question whether a National
Bank would be favorable 10 the administration of
the finances Of the Government it was one on
which there was so little doubt that gentlemen
would excuse him if he did not enter into it,
Leaving these questions lie proposed t. examine
the state and causes of the disorder of the curren-
cy, and whether it was in the power Of Congress,
by establishing National Bank 10 remove those
disorders.
Gas TO the state Of the currency Of The nation"
Dir Calhoun proceeded to remark, "hot IL ,uas &C.
ing TO the different sections of the country that il
was ga stain on the public and private credit, and
injurious to the morals Of the community :" that
1t 'was opposed TO the principles of the Federal
CONSTITUTIONS; that ''the power was given to
Congress by that instrument, in erpress Terms TO
regulate the currency of the United States - that
''in point Of Fact, that power was not in their
hands," but was ''eSercised by banking insttu-
tons, no longer responsible for the correctness
with which they managed it, that ''n lieu of
gold and silver they had paper medium, une-
aualy bat generally deprecated, which Affects
ne SAID, 'lhe trade and industry of the nation
which parayzcs the national arm which sulles
the faith, both public and private, of the United
Staes;" "the right" he continued, "of making
money--an attribute Of sovereign power-a sa.
cred and important Tigh-was exercised by two
hundred and sixty banks, scattered over every
part Of the United States, not responsible to aDy
power whatever for their issues Of paper"
He next alluded to the ercess Of those paper is
the banks, more than fifteen millions Of specie,
with capital amounting to about 80, 600, 900 of
dollars;" and "this," he argued, "was the true
and only cause Of the depreciation Of the curren-
cy." lie then turned his attention to ''the man.
ner in which that excess had been produced-it
was intimately connected with the suspension of
specie payments; and advantage had been taken
Of that suspension issue still greater floods of
IT," Besides, he said, "the banks had underta-
ken TO do q new business; to make loans to the
Government, not as brokers, but as stockholders
practice wholly inconsistent with the system Of
specie payments" He commended, ''tiat the ex-
listing state Of things would not cure itself-that
Il rested with Congress 10 make them return to
specie payments; and "that introduced the sub |
ject of the national BANK
GA national bank he said, "payiDg specie it. !