Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1862-01-15
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MR.. FLAGG'S SPEECH,

Mh' FLAGGS SPEECH.
Speech Of WM. ]. FLAoo, of. Cincinnati. in IN
Ohto House Of Representatives., upon Ma On
LiN's bM to authorize the Suspension Of SOs
c'e Payments, Jan. llth, 1852. ~
e.. lcontlnued.l
Isay, the very last way to keep gold in th,
osate Is 70 suspend specie payments. There ID
cunning IN upon Us from the Treasury at Wash.
ington hood Of one hundred and fifty millions
oI aemand notes to circulate as money, In addi.
lon to the one hundred and fifty millions OF
bank paper already In circulation, doubling our
supply OF paper, and adding thirty seven and q
halt per cent to our total Of gold and paper -
Ihis sudden and great imitation must needs tend
70 the well known effect termed a commercial
expansion, Stimulating our now lanRuid com
merce 70 an unhealthy excitement, inducing
speculation, deranging values, deluding with a
iaise snow OF prosperity, and inevitably tending
70 reVulsion and ruin. say this will be the
tendency of the influx Of demand notes. but
this tendency will be corrected II bank currency
10 allowed to recede before those notes on the
one hand, and gold TO recede on the other hand.
Their natural effect, If time is allowed for the
effect to work out, and no foolish statute laws
attempt rebellion against the laws of trade,
is to disptaee the bank money, or the hard mo.
ney' or both-displaoing the gold by virtue Of
that Law which allows an inferior currency of
local nature to drive out superior one of uni
Versal value, which passes current the world
over, as gold does-and displacing the bank
money by virtue of that other law by which of
TWO currencies, both of them being local, of no
value out OF the country, the superior has pow.
er 70 drive IN the Inferior one Now II, BY
atafnind i'll
to enact we artifcially keep out circulation
Of bank money, 80 that to our ten millions Of
Ohlo bank paper there 10 added the fifteen mil
lions of Government notes which are our sbare
OF the one hundred and fifty millions about be-
ing created, we will surely have an imitation. To
be followed by reVulsion as surely as remorse
follows sin, the horrors follow drunkenness the
rocket stick falls or the soap bubble bursts -
And not only this, but (and here is my point, /,
this imitation OF the two local and inferior cur.
rencles, when well under way, will drive our
gold out nearly as rapidly as the demand notes
flowed in. Is it not plain then that the bill is
calculated In this way, as in the other way, not
70 Keep gold with us, bat to drive it from us7--
If, in 1854, 1857, or 1860 our banks had been
allowed to suspend, whatever bad results might
have followed, 1t would have relieved the peo-
pie, for suspended banks always lend much
more freely than specie paying banks, struggling
70 maintain their standing against q financial
storm. And usually, when banks apply for re-
lief from the penalties and forfeitures Of suspen.
sion, they are backed by the outcry OF the whole
commercial public, wrung from that public by q
thumb-screw pressure which tortures them In
every joint; and such appeals it requires more
iortltude than legislatures usually possess to
confront and resist. rs
Ruk hnuv Ia IL a. y.
there Is no money pressure. Money is plenty,
and about to become too plenty. No one singie
business interest comes up before us to demand
relief Of this sort. The gentleman speaks Of
representing farmers, mechanics, manufacturers
and merchants--but where are they7 Idemshd
to see them, or to hear from them. They are
silent--they are absent The cause 90 ably,
urgently argued before rs is not their cause !;
1t Is the cause Of the banks and of the banks
alone. ~
And II we concede TO this demand of the
banks, alone and unsupported as it is, then let
rs never hope for courage to refuse them any
thing they may ask, but rather let US give them
blank sheets Of paper signed by the, Speakers Of
both Houses, to inscribe on them WhsteyerilsWs US
they choosel When consider this, and reflect
on the extraordinary claim made BY many
around me, that the obligation to redeem their
notes is not needed to keep them within safe
limits, aek myself why have our Lawmakers
ever gone to the trouble Of putting any checks
or guards upon them whateveri A vistational
power 10 said by writer's on law TO be incident
20 every class of corporadons--in some, the
king Is visitor, by the lord chsncellor--in some
the heirs OF the tounder--in others certain off,
GERS designated in the grant Of corporate power,
but depend upon 1t, In the case Of banks Of is.
sue, the only efficient visitor is he who goes day
by day to the counter with the written contract
OF the corporation in his hand, to demand the
coin it has eolemnly promised to pay. And
though the visitor be termed money broker.
and carries q carpet-bag, he Is none the less a
wholesome, useful check upon abuse, corruption
and fraud-usefhl to the bank and useful 20 the
public. 1f'7 s1sT'
Let US avail ourselves Of this absence of dis
tressed, suppliant borrowers, and now, or neyet,
face this bold moneyed cover with resoIute front
and say, NO! you have agreed to pay, now nav
you have promised-perform; you have long
enjoyed the loan from confding people of their
millions without interest, submit now to the loss
incident to a business you volunteered to under.
take, and pay, or break-pay or die--your gold
or your life! At least pay as long as you can
---be honest to the last dollar--prompt to the
last dime, and when you fail, come and ask US
70 forgive you, without demanding of us to be
parties to your wrong by authorizing It in ad,
vance. -,.5 go. -,..t, --..f :
The bill, then, 10 not needed to relieve the
people, for there is no commercial pressure
and the people do not ask for 1t. Il Is not
needed to keep gold in the State, for in more
ways than one its effect would be to drive gold
out Of the State. It 10 not needed to save the
charter Of the State Bank, for Il is expressly
admitted that she can 20 through and redeem
her bills. In the name Of wonder, then, for
what is 1t wRnted7 5o--ra ~, III. NJ
We have the answer, from the mouth Of the
spokesman: Il is for the purpose Of enabling
the State Bank to keep its four millions Of coin
TO button up full pockets-to turn the key on
vaults bursting ~ith gold--aRd this Is all! This,
and the unentcrced duty, hardly amounting to
moral obligation, Of selling US exchange to
pay Interest on our debt, at low rate, is the
sum total OF the considerations urged for the
enactment OF this most monstrous wrong!
That four millions Ia worth, say FIVE per cent.
premium, at the outside, and Its sale to New
York would add Ave per cent. to the value OF
the stock. Five per cent! Good heavens! re.
alike this, If you can. For the purpose Of put.
ting Ave per cent. on four millions Of aiock into
the Golfers Of corporation which does not own
II, and Of keeping 1t from the pockets Of those
who do own it, We are called upon to forget oul
dear bought experience; to reverse our well
established policy; to 90 back twenty years IN
our financial principles; to stain our honor ant
sanction dishonesty; and bring upon our people
all the manifold curses of an irrsdeemabl,
currency! ,,s NJ .5i-,g 49,
| For FIVE per centl Great Is Eve per cent
Our State Treasury system, the result of al
experience that cost us four hundred THOUSAND
dollars stolen BY thieves, system enthroned Il
the hearts Of our people. which lifted our down