Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-10-02

if an unrestricted commerce was the policy
of the one, 1t coul1 not be so of the other.
Ny friend from North Carolina (Mr. CLING
MANI suggests that the bank act of 1874 was
suspended in the late revulsion.
Mr.. CoLLAMER. 1t was suspended by the
British Ministry Immediately upon the revul-
sion occurring.
Mr.. BELL. There was no suspension OF
specie payments by the bank. There was a
suspension, at the suggestion Of the Ministers
of the Crown, Of the restriction imposed
upon the amount of the notes the bank
was authorized to issue by that act; and
the bank proceeded to issue large amount,
l believe, of one pound notes-not to protect
the bank itself or the Government from dis
credit, but for the relief of the suffering
business interests of the country, and there
by prevent the bankruptcy of thousands.
That Is the difference between English policy.
English wisdom, and American policy and
folly.
Mr.. CLINGMAN. viii the Senator excuse me
for interrupting him for moment?
Mr.. BELL. Certainly
Mr.. CLINGMAN. If understand the matter,
the Bank Of England was only authorized to
issue dollar for dollar upon the securities 1t
held and the specie it had; and the conse-
qucnce was that when this difficulty occurred
there was no danger of its suspcnding specie
payments; but the act was suspended so as to
allow it to issue more The safety of the
system in England seems TO have arisen
from the fact that the bank could only
issue in proportion TO the bullion it had. Now,
do understand the gentleman as favoring,
In the United States, proposition To put
our banks on the same footing. and require
them only to issue a paper dollar where they
have dollar in bullion to meet il? Do
understand him as advocating that policy
here?
Mr.. BELL My friend from North Carolina
will understand me presently. l see his
object, but | do not mean to commit myself
to any folly; if know it. He will presently
see what my views are on the subject.
Mr.. CLINGMAN. | only meant this: the
gentleman spoke of the folly of the United
States as compared with England. l admit
England is wiser; and [ wanted to see if we
could get at the English system, so as to
prevent the over-issue of our banks, which
| presume led to the evil.
Mr.. BELL. | see the Senator's mind is di-
rected to the same object that mine is in res
pect to currency, though we may differ as
10 the means by which that object is to be
reached. Yes, sir, England is wiser, not
only in regard to the restrictions she has i'm
posed on bank issues, but wiser in her COM
mercial policy. There is not a principle or
uORilli bl DOIltlCdl tCOHOuuy, dS HOW taught
in the schools, in regard to which England.
il my judgment, may not be said to have
reached the very acme of wisdom, in its prac-
teal application of them, in its broad ad-
mission or qualified rejection. in its enact
ments relative to all the important indus
trial and commercial interests of her people
and her empire. England rejects principle
or policy at one time which she adopts at
another, just as her condition and varied cir
cumstanccs demand.
Mr.. CLINGMAN. The Senator says England
is wiser in her commercial regulations. Does
he allude to her having a lower tariff, a
lower rate of duties than the United States?
If so. can he support this measure, which
will. in effect, largely increase our present
duties?
Mr.. BELL What measure?
Mr.. CLNGMAN. The measure introduced
by the Senator from Rhode Island.
Mr.. BELL. Twill try to satisfy the Senator
as to what my views are before conclude;
but | do not suppose that he and L shall
agree altogether.
My object in calling the attention of the
Senate to the extract from a British journal,
which has just been read, was to show that
high British authority agreed with our Presi-
dent in attributing all the mischief and the
ruin TO thousands which have resulted from
the late rcvulsiOn to the ill-regulated paper
currency Of the cOuntry-to the abuse OF
our banking system, and to that cause alone.
l am not at all surprised to find this
concurrence of sentiment between English
statesmen and the President upon this point.
But, assuming that the true and sole cause of
the late rcvulsion and all its train of evils
which, by-the-by, | deny-under which the
country is now suffering. is justly attributed
to the banks; and when, more especially, we
4 4I...A
stated intervals, are never to end as long as
we have paper currency consisting of notes
issued by so great number of irresponsible
banks, it becomes a subject of the last impOr-
lance to inquire whether any remedy can be
found for so great mischief. The President
as he ought, has felt the force of this obliga-
ton resting upon himself And what sir, is
the remedy he prescribes? A bankrupt law,
to include banks IA war against the banks :
wish my friend from North Carolina (Mr.
CLINGMAN) to watch me and see if | do in
justice. l understand the war is to be against
all banks and all paper circulation. If that
is not the policy of the President and his poiti-
cal friends | should like TO have it disavOwed.
4 question has even been raised as to the
constitutional power of the States to charter
State banks. Upon that point i will refer
the Senate to an argument which appears TO
me to be conclusive. In Gen. Jackson s
time, and when the question of currency and
the right of the General Government to con-
troll it was one very much discussed, Mr.
Gallatin, who took deep interest in all such
questions, was asked, in a mixed company
whether, in his opinion, the State had the
constitutional power to charter banks of
issue? He replied to this question by asking
one in his turn, which was, show many of the
States had chartered such banks?' The
gentleman who had made the first inquiry
replied that he believed all but one or two
well. them" said Mr.. Gallatin, IL ought to
consider the question very carefully before
decide that the States have ito power to
charter banks:" implying of course that "a
power which had been exercised from the
time the Constitution was formed, aud
antecedent to that time under the old
Confederation, which nearly every State in
the Union had exercised, il was at that late
day idle to suppose could be determined
differently, or that the States would ever
surrender the power; and it is well for the
country that it is so. Any attempt TO bring
the chartered banks OF the State under the
control of the Federal Government by a
bankrupt law would be equally idle and
abortvc 1t would be regarded as equivalent
to "A denial of the constitutional power OF the
State to grant bank charters and fragrant
violation Of their reserved rights. Yet this is
the only remedy tne Erlsiuent Is able 10
discover for the prevention or mitigation of
those commercial hurricanes which have SO
often swept over the country; and this one,
venture to say, will never be seriously
pressed even by his own political friends. 1t
may be questioned, in fact, whether il was
ever intended TO DE pressed. Why, then, is
this war upon the banks renewed at this timer
for it is but renewal. a taking up the notes
of the same war-cry which was raised in 1887
upon the failure of the deposit banks, and
which have been feebly echoed ever since in
some. sections of the country. 1t is the
of the perish credit, perish
comm rec" doctriue contemporaneously
proclaimed.
repeat the question. why is it that this
war upon the banks and paper currency u
renewed ut this time, when no just exptcta
lion can be INDUCED that either the one or
the other can be put down. or brought under
the control of the Federal Government |