Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-07-14
Hepealable CHARTERS.


cy of the National and State Government The
whole population who had been exulting il the sup
posed possession of the most unmessured prosperity
found themselves almost simultaneously involved
in the most deep and lasting pecuniary embarrsss-
ments. All public and private improvements ceased,
and it said that fifty thousand laborers in the
city of New York we're without employment and their
families suffering for the nacessaries Of life; and
the laborns population in The other cities md all
over the Union, TO some extent. were in the sans
cOnditiOn-the treasury of the United States had
been filed to overlooking By duties paid on foreign
goods, and the goods sold and not paid for and
also By the proceeds of sales of public lands paid
for with bank credits. These gums had been de
posted with the State Governments, until called for,
the Chief Magistrate refusing his assent to an act
of positive donation. The Treasury was now empty
in measure, as it had not a dollar Of metallic
money which the public creditors had o right to
demand in payment of their dues.
Congress was called together in extra session to
provide the ways and means Of carrying on the
Government, and measure was brought forward
unde the rauspices of the National Administration
to collect the revenues in gold and silver coin in
conformity with the original act Of 1871, to appoint
treasurers, under heavy bonds, to keep and
pay out the public moneys to the creditors of the
Government, without the use of the banks as depos
itories and to subject the officers of the Government
to the penalties of felony in the event of the en-
hezzlement of the public money. 1t was said, in
opposition to this measure, that it would require
vast masses Of coin TO be removed from one point
Of the country to another greatly to the incOnve-
nience and cost of the Government; that it would
require 80 millions to be counted Eve times in each
year; that the Government was to be competitor
in the market for specie against the banks that
the measure was brought forward to destroy the
State banks, and would accomplish that result and
that upon their ruins great Government Bank
founded on the resources of the Nation, was to be
erected and to be subject to Executive control On
the other hand, it was said, by the Chief Magis-
trate and by the Chairmanof the Committee on FL
nance in the Senate, (Mr. S. WRIGHT that it was
nothing but what it purportsd to be, the establish
ment of Independent Treasury to collect the
taxes and pay the debts of the Government in CON-
by its own officers; as nearly all cyilised govern
ments did; that it had not been brought forward
with any intent to destroy the banks; and that it
would not have that effect; but that it would
curtail the amount of bank paper employed,
infuse a larger portion OF the precious metals
in the circulation, and give sOlidity to the exis
ting Banking Institutions. An antegonistic meas
ure was brought forward at "a subsequent pc
riod to charter National Bank, with view TO create
paper medium, in which the debts Of the Govern
meut could be collected and paid instead Of the en-
T,lov NJ of md oil ~ ND
also with view to regulate the issues Of the State
Banks, whose "abuses, excuses, AMI delinquen-
eies," it said by Mr.. CLAY, "were the greatest
cause Of all the fnancisI and pecuniary cnbarras.
mems" of the times.
After one Ofthe longest and severest collisions of
parties that have ever taken place withia tae United
States, the proposition to ehsrter Bank was aban-
doned, and declared by Mr.. WEBSTER, one of its
ablest advocates to be an obsolete idea, and the
Treasury was aaslly adopted in 1917,
and has become to be regarded as the settled poli-
cy of the country; and the idea of incorporating
body Of floating stockholders, with power to des-
troy, and with the intent to regulate control the
institutions of State-a power which Congress, it |
was conceded by all, had no right directly 10 exer-
cise-has utterly ceased to DO even topic of con-
versstion.
It being conceded that excessive impOrtations
had been the source at once Of the private ;ndebt-
edness of the country and Of the excessive reve-
nues in the treasury previously, it was proposed
now TO tax those importations heavily TO pre-
hibit, to some extent, the people Of the United
States from buying foreign goods and thus prevent
by breaking down the foreign COM
- 81 /
after 1919, as well as in 1857, and in 1852 1t has,
however, never become the policy of the country.
The evil of government and private debt has been
raced to its true source "the abuses, excuses,
md delinquenciesr of the Banks and the disregard
VI the standard Of value established by the Con-
ttutiOn; and this conviction is slowly but surely
eading TO the reformation or destruction of the
whole system of paper issues.
Two Bankrupt laws we're also brought forward
The first law to enable the creditor of the Banks
y application of the creditor to the Federal Courts,
o secure the effects of the Banks which refuse to
ay their notes, as the creditors Of other persons
re by original or final process and distribute
heir effects among their creditors. This measure
ould be made most eff 3ient and severe proceed
ng for the enforcement Of specie payments by
wing the creditor right to proceed 10 the Fed
raj Courts as soon as a Bank note was protested
,r nOn-payment, or it could be made more lenient
= giving the right only after continued suspen-
on Of six or twelve months; or, as Mr.. CRAWFORD
lggested, in 1920, by declaring the issuance of (
otes after suspension an act of bankruptcy. II
as not adopted.
The other Bankrupt law authorized debtors un-
er certain circumstances, to be discharged from
Ieir obligations on surrender of their property.
was declared that Congress had full and express
lthority in the Constitution to pass uniform laws
l the subject of bankruptcies" and that bank
ptcies meant failures, and that Congress had.
lthority to exercise this power at; the in
ance and for the benefit of the debtor. TSee A
EBsTER's speeches. 1t was said By CAL
DUN, ard Benton, and others, that there was
wide distinction between bankrupt laws and
solvent laws; that a bankrupt law was credi
RS remedy, brought forward by the creditor, by
hieh he discharged the debtor on the surrender of
s property that insolvent laws were at the in
ance of the debtor; that there never had been
Oh bankrupt law which placed all the contracts
the country at the option oHpthe debtor to dis "
arge them or not. The bill passed, did its work.
scharged debts, yariously estimated from one 4.
three hundred Millions and was then repealed
the same Congress which passed it. Bills we're A