Slike strani

Dec. 19, 1856.]

Treasury Circular.


system was occasioned, and every class of the communi been expected; but this seems to have arisen chiefly ty was thrown into a state of embarrassment, the inju- from their having been but very imperfectly aware of rious and depressing effects of which continued for some the vast magnitude of the transactions seliled by their years, and this without any other apparent cause than intervention, and of the extent to which they are emthe monetary derangement which bacl occurred.” ployed. In the great manufacturing county of Lan

“ An undue issue of four or five millions by cashire, and in part of Yorkshire, a bill on London at the Bank (of England) would eventually make an three months is reckoned a money payment; and by far extraordinary derangement in the value of all the prop. the largest proportion of the currency consists either of crty in the kingdom, and be productive of infinite mis the bills of bankers drawn on their correspondents, or chief in a variety of ways."

of those of the merchants and dealers scattered up and 3. Further extract from the testimony o J. C. Dyer, doun the country. The following extracts froin the Esq.

evidence given before the committee of the llouse of "I think the banks, so far from having saved the Loris on Scotch and Irish currency, in the session of country from the effects of those panics, bave been the 1826, show the great extent to which internal bills are cause of those panics, and that they have been the cause now employed. Mr. Gladstone, an eminent merchant of a constant succession of little panics, continually an of Liverpool, informed the committee that we sell our noying the commerce of the country, by monthly and goods, not for payments in caslı, such as are usual in weekly fluctuations."

other places, but generally at credits from ten days to 4. Extract from the testimony of Benjamin J. Smith,

three months' date; these bills we pay to our bankers, Esq., a director of the Bank of Manchester, before

and receive from them bills or cash. We baie a conLord Althorpe's committee:

siderable portion of large Bank of England notes in “The supply of the circulation by the Bank of Eng. circulation; these are generally used for the payment of land subjects our trade to great and injurious Auctua.

duties, and also for the purpose of remittance; but the tions, owing to what is called a scarcity of money, ari.

great mass of our circulation is in bills of exchange. sing from causes of which the public, who are deeply Sovereigns and smaller bank notes are only required for interested in that question, can have no knowledge. The

such objects as charges of merchandise, with duties,

• The objections to the existing system are, that the Bank of freights, and other items.' Lewis Lloyd, Esq. England has a secret and despotic influence and control

wages of workmen are paid in gold or Bank of England orer the destinies of our commerce, which we feel to be

notes; the manufacturer is chiefly paid in bills of ex. a most pernicious one."

change. When a bill is drawn in favor of a manufac11. No local banks of issue in the great county of

turer, he endorses it to the person to whom he pays it, Lancashire, including Liverpool and Manchester. Joland

and the person to whom he pays it pays it again to anbills of exchange used in large dealings; gold in the

other; and it goes on often till it is covered with endorse

ments. common transactions.

Mr. Henry Burgess, a manufacturer at Leeds. 1. Estract from the evidence of J. C. Dyer, Esq., a

• The great mass of the circulating medium of Lancadirector of the Bank of Manchester, before Lord Alshire, as in all the manufacturing districts in the North, is thorpe's committee:

bills of exchange: a part of the circulation is in gold and "The bankers in Manchester who can, do not, issue

silver and Bank of England notes.'" notes, in consequence of the strong feeling that prevails III. Suppression of all banks of issue in England, exin Lancashire againt local paper. There were two oc cept the Bank of England, directly by law, or indirectly, casions when that feeling was publicly expressed; first, by compelling them to give security for their issues. in 1834, and next when the Bank of Manchester was 1. Extract from Mr. McCulloch's notes on Adam formed. Bankers who intended to issue notes abandoned Sipitb: their intention, from a conviction that they could not, under any such circumstances, derive any profit from the

" It seems, therefore, to be indispensable, either tha: issue."

the country banks should be compelled, as has been pre

viously proposed, to give full security for their issues, 2. Extract from Mr. McCulloch's notes on Adam

or that their paper should be suppressed altogether, Smith's work:

and the paper of the Bank of England substituted in its The principal distinction between notes and bills of place.

Now, it is obvious, and is indeed uniexchange is, that every individual passing a bill of ex versally admitted, that the only measure that can be change bas to endorse it, and by so doing makes himself adopted for guarding completely against the misconduct responsible for its contents. Nothing can be more in. as well as the bad faith of the country bankers is to accurate than to represent bank nutes and bills of ex. compel them to give full security for the payment of change under the same point of view. The note is pay. their notes. This, and this alone, can afford a sufficient able on the instant, williout deduction--the bill not until

guarantee to the public that the country paper in circusume future period. The note may be passed to another, lation will be returned when presented for payment, without incurring any risk or responsibilily, while every and that it is really equivalent to gold. endorser of the bill makes himself liable for tbe value of “Every country banker, on applying for stamps, it. Bank notes form the currency of all classes; of those should be required and obliged, previously to obtaining who are not engaged in business, of women, children, them, to lodge in the hands of Government securities, in laborers, &c, who are all, as we have seen, without the stocks or landed estates, fully equivalent to the amount power to refuse them, and without the means of forming of ihe stamps issued to bim." any correct conclusion as to the sclvency of the issuers. 2. Extract from the testimony of Henry Burgesa, Esq., Bills of exchange, on the other hand, pass only, with secretary of the committee of country banks, representvery few exceptions, between persons engaged in busi- ing seven eighths of the bankers in England, who have ness, and who are fully aware of the risk they run in resolved to relinquish their circulation rather than give taking them."

security for it: 3. Further extract from McCullocii's notes:

“ The only strong opinion to which the committee have “ The effects produced by the employment of internal come is, that if securities for their issues were demand. bills of exchange, have not certainly excited that atten. ed, they would relinquish their issues altogether. That tion, on the part of most of those who have speculated resolution was imbodied in a petition to Parliament. on the subject of currency, that might reasonably have

The chief reason why country bankers VUL. XIII.--5

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Deposite Banks.

(l'Ec. 20, 1836.

would cease to issue notes, if called upon for securities, 3. Further extract from Mr. Clayton's report of 1832, is, that it would be giving a preference to one class of to illustrate the conduct of the Bank of the United States creditors over another; besides, giving securities would in loaning much to the few, and little to the many, and be locking up their money in the funds, which money explanatory of the present condition of the money marwould be thus unavailable, and be also placed at risk. ket in Philadelphia, where small borrowers for short

So they would prefer to give up their cir terms pay three per cent. per month discount for money, culation."

which may have come from the Bank of the United States IV. Extract from the report of the commissioners ap. to a large borrower on a term of years, or indefinitely, pointed on the part of the United States to examine into or on immateriality of time: the debts and affairs of the Bank of the United States, April, 1832, loan to 72 persons, $2,404,278 to ascertain the value of the stock, showing above twen.

do 19 do 1,274,882 ty millions of loans at low interest for long terms, or in.

do 3 do 341,729 definite terms, and explaining the reason why borrow.

do 4 do 995,455 ers in Philadelphia are thrown upon brokers at two and

do 1 person,

417,766 three per cent. discount per month. 1. Statement of the debts of the Bank of the United

Totals, 99 persons, $5,434,111
States, &c. on the 3d March, 1836:

Whole amount of loans discounted at
Notes discounted.
the same time,

$5,964,085 A. On bank stock

at 6 per cent. - $1,291,915 72
of which to 99 persons

B. On various stocks and other securi.

4,061,553 71
To all other persons

Loans drawing interest.

These are the loans of the National Bank at Phila. C. On bank stock

at 5 per cent. 1,294,800.00 delphia, April, 1832. D. On do.

6 do.

466,300 00 E. On various stocks and other securities

4 do.

250,000 00

4] do.
652,818 63


5 do.

4,551,865 65

5 do.
1,324,100 00


5 do

1,000,000.00 Mr. WEBSTER offered the following resolutions, and do.

5 do.

355,500 00 do.

asked the unanimous consent of the Senate to their im. 53 do.

471,600.00 M. do.

6 do.

1,296,678 00 mediate consideration: N. do.

6 do.

3,317,605 09 Resolved, that the Secretary of the Treasury commuTotal as above

20,337,136 80

nicate to the Senate the latest statement made at or for

the Treasury of the condition of the deposite banks; exThe length of time for which some of these loans are hibiting, among other particulars, the names and places made is thus stated in the report:

of all deposite banks appointed since the 230 June last; 5 per cent. C, due 24th August, 1837.

their capitals, and the amounts of public moneys actually 6 per cent. D, " when due immaterial."'* per cent. E, due 21st November 1810.

transferred, or ordered to be transferred, to those banks, 41 per cent. É, due 1st April, 1838.

respectively. 5 per cent. G, due 15th March, 1838.

Resolved, That the Secretary of the Treasury commu. 5 per cent. H, due 8th October, 1838. 5 per cent. I, due 1st December, 1855.

nicate to the Senate a detailed statement of all transfers per cent. K," time of payment indefinite."'*

of public moneys ordered since the 230 June last, for 54 per cent. L, due 12th January, 1838. 6 per cent. M,“ when due immaterial.''*

the purpose of executing the act of that date for regulaper cent. N," when due immaterial."*

ting the deposites of the public money; showing the 2. Statement of loans from the Bank of the United

dates and amounts of such transfers; from what place to States to Thomas Biddle & Co., in the years 1830, '31, allowed for such transfers, other than such as were made

what place; from what bank to wbat bank, and the time and '32, taken from the report of Mr. Clayton's commit. tee of 1832, and now to be referred, as illustrative of

in execution of the aforesaid act. some of the above loans on stocks or personal securily:

Mr. WEBSTER said that the honorable member from Missouri (Mr. Benton] bad, in his speech yester.

day, read statements which had been obtained at the Year. Month. Paper. Discounter. Rate. Treasury, for the purpose of showing that sundry banks

had enlarged their issues since the publication of the

Treasury order of the 11th of July. This information 1830. Sept. 17 $144,950 $220,000 5 per cent. (said Mr. Webster) is neither new nor surprising.

Oct. 15 1,131,672 1,123,100 5 do. That' fact has been well undestood. But what banks
Nov. 16 737,112 730,000 | 5 do.

are ihese which have thus increased their loans? Are Dec. 14 737,012 730,000 5 do.

they the banks of the country generally, or the banks 1831. | Jan. 14 722,300 720,000 5 do.

in the principal commercial cities, or a majority of them? Feb. 15 540,400 540,400 5 do.

No, sir. The gentleman's statement was confined to March 13 400,000 400,000 5 do.

the deposite banks, or some of them. All those de April 15 480,000 480,000 5 do.

posite banks were seventy or eighty perhaps in number, May 17 443,098 443,138 41 and 5 while it has been staled that the whole number of banks June 14 571,178 557,968 do,

in the country is near a thousand. Now, as I under. July 15 501,162 504,912 5 do.

stand the subject, one of the strongest grounds of comAug. 16 573,912 579,912 5 do

plaint against the order of the 11th of July, and against Sept. 16 573,912 683,995 | 5 and 6

the manner of executing the deposite law, is, that by Oct. 14 580,000

698,727 do, those measures many of these deposite banks, in places Nov. 15 580,000 752,647 do. where the wants of business did not call for more money, Dec.

16 580,000 689,125 do. have had large and entirely unnecessary sums of money 1832. Jan. 17 58),000 652,388 do.

nevertheless thrown into them, drawn from places in Feb. 17 467,766 488,328 5 do.

which it was wanted, to the great prejudice of other

banks, and of the commercial community generally. I *These are the words of the barik statement.

understand this to be one of the prominent objections




Dec. 20, 1836.]

Reduction of Duties— Treasury Circular.


to the course which the Treasury has pursued. By the On motion of Mr. EWING, the subject was then laid provisions of the deposite law, the deposite banks pay in on the table. terest on sums deposited beyond a certain amount. If

TREASURY CIRCULAR. they receive money, therefore, beyond such amount, they are na!urally tempted to put it out on loans, how The Senate proceeded to the further consideration of ever little real occasion there may be for such loans; for the joint resolutior introduced by Mr. Ewing, of Ohio, otherwise the deposite would be a heavy charge to rescinding the Treasury order of July 11, 1836, and prothem.

hibiting the Secretary of the Treasury from delegating An answer to these resolutions will give us light on the power to designate the kind of funds to be received this part of the case. It will probably be in the power in payment for the public lands. of the Secretary to answer the first resolution without Mr. CRITTENDEN, who had the floor, having more any delay. I hope we can have the answer to that so ed the adjournment yesterday, yielded it to soon as to be before us before the conclusion of this de Mr. BENTON, who read several extracts, to which he bate. Nor do I suppose that any great time will be ne. had referred in his speech of yesterday. Having con. cessary to prepare an answer to the second resolution. cluded, he restored the floor to

Mr. WRIGHT inquired of the mover whether the res Mr. CRITTENDEN. The opening of Mr. C's speech olution was intended to ask for any more than the last was in so low a tone as to be totally inaudible to our re. statement rendered at the Treasury.

porter. As soon as he was distinctly heard, he was obMr. WEBSTER replied that he had no wish that the serving that the Senate had been complained of by the inquiry should go back and call for a voluminous amount Senator from Missouri, not only for having been tardy in of documents; all he wished was the last statement re its appropriations of money for the public service, at its ceived.

last session, but for not having appropriated enough. Mr. WRIGHT made no objection; and the resolution The Senate had voted appropriations to the amount of was thereupon agreed to.

thirty-eight millions, but this was complained of as scanREDUCTION OF DUTIES.

ly measure, and the Chamber had been gravely rebuked

for not having done much more. Now, Mr. C. was very Mr. NILES observed that, on a former sitting, the Sen ready to take his share, and the share of any other gen. ator from South Carolina (Mr. Calhoun) had taken the lleman who was tired of it, in the reproofs of the honorground that the whole subject of revenue belonged to able Senator for an open opposition to a portion of this the Committee on Finance; bu: if that doctrine was a appropriation, and he should bave considered himself forsound one, the Committee on Manufactures would be tunate had he and his friends been so far successful as to left almost without any appropriate duty. He appre

bave defeated them. So far from regretting or being hended, however, that the honorable Senator was mis. ashamed of the opposition he had made to this lavish extaken in the principle he had laid down. The compro. penditure of money, he took it to himself as a merit; so mise act recognised the principle that a reduction was to that, if the design of the honorable Senator, in his exhort. be made on the tariff of duties: the principle existed in ation and reproof:, had been to excite repentance, the the statutes of the country. Whatever committee it bumily had entirely failed. might be who should undertake the very difficult and But the more immediate subject before the Senate delicate duty of devising the mode and measure of a re.

was the Treasury order, which it was proposed by his duction of the revenue, would find that the chief difficul friend from Ohio' to rescind, and to this he should enty in the way was not of a financial character, but had to

deavor to confine himself. The subject had been dedo with the matter of protection, not of revenue. If the baled by the Senator from Missouri wiih all that zeal and subject of reduction affected very exclusively the great ability which usually characterized the efforts of that gen. interests of the country, ought it not to be sent to the

tleman. Nor had Mr. C. any difficulty in readily excuCommittee on Manufactures? In order to test the sense sing even a more than ordinary measure of zeal in that of the Senate, he would make the motion that so much of Senator on this occasion; for he thought, from a variety the President's message as related to the reduction and of facts, pregnant with circumstantial evidence, that he repeal of duties be referred to the Committee on Manu. could very clearly see the true and genuine paternity of factures.

the order in question. He could not but believe ihat its Mr. CALHOUN observed that the question was not

descent from the honorable Senator might be as correctly open to a motion; the reference had been made. If the traced as could be done in any other case of genealogy gentleman wished to move a reconsideration, he could On the 22d of April last, the honorable Senator had not do so unless he had voted in the affirmative.

submitted a resolution that from and afier the day Mr. NILES had supposed it in order to refer the same of — nothing but gold and silver should be receiv. subject to two different committees, who might view it ed in payment for the public lands; and that the approunder different aspects. However, to avoid difficulty, priate committee should report a bill to that effect. The he would confine his motion to so much of the message as subject was resumed on the following day, and by a vote related to the repeal of duties only.

of the Senale was laid upon the table. In that inglori. Mr. CALHOUN said that this was included in his mo. ous repose it had remained by general consent. It was tion as much as the other. Whatever went to reduce permitted to sleep in silence, which amounted to the most the revenue he meant to refer to the Committee on fi. unequivocal condemnation of the measure. This body nance, as appropriately belonging to that committee. then did condemn, as far as it could in such a mode, the And he must be permited to say that no committee in very thing contained in this Treasury order; the author that body could represent more fully all the great inter of the resolution being among the few, the very few, ad. ests concerned in such a subject. The chairman was

vocates who voied in its favor. But no sooner had Con. connected extensively with one branch of Manufactures; gress adjourned, than, on the 11th of July, the very the Senator from New York with another; and the Sen. measure, in regard to which the Senate had expressed ator from Louisiana represented the great sugar interest

its most decided opinion in the negative, was wrought of the South; while he from Missouri represented that up into the form of a Treasury order, surrounded, in, of lead. As to the difficulty of the task, 'none could be deed, and embellished with sundry arguments directed more sensible of it than bimself; none had felt it more against land speculators, and in favor of occupants or deeply. The reduction, thus far, had been effected on squatters. The very proposition which was rejected by ly by exertions such as he should be sorry to repeat. Congress in April was enforced as a Treasury order in


Treasury Circu!ur.

[Dec. 20, 1836.


Jily. Who could have any difficulty in tracing the ori. did possess the right, and considered it good policy to gin of the order to the rejected resolution? No sooner make a discrimination in favor of settlers, by yielding had the Senate condemned and rejected it, than it was them a priority in the purchase of the tracis they had instantly taken up in an executive department, and made cultivaled, how far would this go in advancing the gento possess as complete effect as if the same thing hud | tlemali's conclusion? Because Congress had power to been done by the very law which the Senate refused to do this, did it follow that the Executive had power to

Mr. C. would not, on this occasion, allude to do it? Who ever heard of the Executive setting up a another exertion of executive authority, the circumstan claim of allthority to fix the price of the public lands, or, ces of which very strikingly resembled the present case; what was equivalent, to determine in what species of when Congress, just before its adjournmeni, had decla: currency the land should be paid for? In what sense reil the public money to be safe in the keeping of the could this be regarded as an executive power? It was Bank of the United States, but had no sooner adjourned his place to execute the laws, but it belonged to Conthan that very money was seized upon by the executive gress to judge what the laws should be. authority, and transferred to the deposite banks. In Mr. C. said it had been argued that the laws authoriboth cases the executive authority had been made to zed the receivers at the land offices to receive nothing supply the plice of the legislative. The eloquent Sen but gold and silver, and that this order only carried the ator from Missouri had, in one clause of his speech, in Jaw into effect. Such an argument did, indeed, admit vok. d the genius of the constilution. Now, supposing the authority of the law; but how did it bear upon the that genius would come at the gentleman's bidding, order? If the law required payment in gold and silver would it pronounce a proceeding like this to be in con. for the public land, how could it be dispensed uith, as formity with that instrument? Were not the members it was, hy the oriler, in regard to citizens residing with. of that and of the other House competent to decide on in the Siales wherein the land lay? There was no disquestions of the currency?--questions which deeply af. pensing power confided to the Executive to set aside fecied all their constituents, far and wille. Did it not the law, and no discretionary authority to make a differe belong to Congress 10 settle such questions? And did ence between citizens equal before the law. The pubnot the duty of the Executive consist in carrying into ef. lic lands were common property, which all had a right fect that which Congress in its wisdom might ordain? to buy on the equ:el terms prescribed by law, and the But here that which Congress disapproved and refused Secretary of the Treasury had no more right to assign to enact is immediately carried into effect by the Execuo different modes of payment to different classes of cititive, without any other legislative authority or sanction zens, than he had to give more lands to one, and less to than the profound opinions of the Senator from Missouri. another, for the same money. In this view the order was Mr. C. objected not only to the measure itself, but 10 altogether illegal. the time and manner of its enforcement. Even were But again: on what principle of justice was one class the thing itself not in violation of law and the constitu- of debtors required to pay their debts in gold and silver, tion, still the time and the manner in which it was done and another class in what was deemed by the Governwere derogatory to the dignity, judgment, and authority ment less valuable? With accuracy enough for the purof Congress. What was the time which had intervened poscs of the present argument, the revenue may be stabetween the rejection of the resolution and the enact. lied at forty millions of dollars; one half paid in the West, ment of the order. It was the brief space between the for the purchase of public lands; the other half in the close of April and the 11th of July. What great change East, for du'ies and imposts. What right had the Exechad occurred within that time to justify such a measure? ulive lo declare that the Western half should be exacted Mr. C. would, therefore, be in favor of rescinding the in gold and silver, but that the Eastern half might be order, were it on no other ground than that of vindica- paid in bank paper? The arbitrary inequality and inting the Senale from the disrespect that seemed to him to justice of such a regulation would be clear to every unhave been offered to it by that proceeding.

derstanding. Mr. C. could not be content under a disBut there were other more decided objections to a crimination so invidious and offensive. What must be measure of this character, two of which he would dis. the effect upon the West of continuing such an order in tinctly specify. The first was, that it made an unlawful force? The money was collected by the land offices, discrimination between different classes of American cit. and thence poured into the banks, but it was not expendizens; and, secondly, it made an equally unjust discrim. ed in the West. The great objects of public expendi. ination beiween debtors for the public lands and all oth- cure, as every one knew, were on the Atlantic seaboard. er debtors to the Government. First, it made a person. It was there that the colossal palaces, under the name of al distinction between citizens of the United States; gold custom-houses, were to be found. It was there that for. and silver was demanded of all purchasers of the public tifications reared their formidable front, and bristled domain, unless they were aclual settlers of the land they from point to point along the whole coast. It was there wished to purchase, or bona fide residents of the State that all the great expenditures for the navy were to be within which the lands lay. Here was a personal dis- made. If the money derived from the sale of the pubtinction, grounded merely on place of residence. A l lic lands were to be applied to the ordinary expenditures particular species of currency was exacled from the one of the Government, then this mass of specie which was class, while another less valued species was accepted collected in the West was to be transported from year to from the other class. Could this be done? Was it year to the Allantic States; and it could not be otherwise. consistent with equiry? With equal rights of American The millions derived from the sale of the public lands citizens? The public domain was the common property could not be expended in the West, and therefore there of the whole people; and how did the resident of Illinois, would be a perpetual drain of specie out of the Western or Ohio, or of Indiana, become possessed of higher into the Eastern States. The people of the West could rights in the purchase of it than you or 1? Why was be not be insensible to these results, or otherwise than justentitled to ea sement in the manner of making his pay. Iy indignant at a measure marked with invidious distincments? Where was the law or the constitution giving tions, which permilled their Eastern brethren to pay him sucli a righi? Where could it be found? Nowhere. their debts to Government in the ordinary medium of

But it had been said that the discrimination was the business, but compelled them to pay in gold and silver. game which had been made by various acts of Congress When the knowledge of this order first reached the in favor of actual settlers; avid Mr. C. would not contest place of Mr. C's residence, the objections which he bad that fact. But suppose it to be conceded that Congress slated bad suggested themselves to his mind on the first

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Dec. 20, 1836.)

Treasury Circular.


perusal, but he had at that time no apprehension that The Senator from Missouri had exhibited a table, the ihe effects to be produced on the currency and business results of which he had pressed with a very triumphant of the country were likely to be so extensive. If, as it air. Was it extraorélinary that the deposite banks should appeared, the object of the order was the accumulation I be strengthened? The effect of the order went directly of specie in the banks, he doubled not that there would to sustain them. Bul it was at the expense of all the be a thousand ways devised to evade and defeat it. He other banks of the country. Under this order all the thought that the same thousand dollars, by being made specie was collected and carried into their vaulls, an to travel backward and forward between the bank operation which went to disturb and embarrass the genand the land office, might be made to purchase land eral circulation of the country, and to produce that peenough to satisfy the desires of any number of buyers. cuniary difficulty which was felt in all quarters of ine Mr. C. spoke on this subject from information and con. Union. Mr. C. did not profess to be competent to judge jecture, having had no personal experience. He had how far the whole of this distress was attributable io the never attended a land sale in his life, and knew nothing operation of the Treasury order, but of this at least he of the arts employed; but it was reasonable to suppose was very sure, through a great part of the Western that men who were rruch engaged in business of this country it was universally attributed to that cause. The kind would become expert in availing themselves of Senator from Missouri supposed that the order had proevery advantage in conducting it. But he had also duced no part of this pressure. If nol, he would ask thought that, on this side of the mountains, it would be what it had produced? Had it increased the specie in easier to evade the order than on the other; for there the country? Had it increased the specie in actual was a proviso which admitled a cert ficale of deposite in s and general circulation? If it bad done no evil, what the Treasury to be received in the place of cash. This, gooj had it done? This, he believed, was as yet undis. he supposed, would obviate the transportation of specie covered. So far ay it bad operated at all, it had been to the West, and would require it only to be carried to to derange the state of the currency, and to give it a diWashington, in which there would be no great difficulty; rection inverse to the course of business. The lionora. but he had since understood that a mode had been de ble Senator, however, could not see how moving money vised still more convenient: the intended purchasers across a street could operate to affect the currency; and would obtain drafts on the Bank of the Metropolis. seemed to suppose that moving money from west 10 They woull present these drafts at the counter, and the east, or from east to west, would have as litile effect. ques:ion was asked, do you want hard money? Yes, I Money, however, if left to itself, would always move want to buy land. The matter was easily managed. A according to the ordinary course of business transactions. certain amount of silver was put into a little keg, and This course might indeed be disturbed for a time, but it this was put into a wheel-barrow and carried across the would be like forcing the needle away from the pole; street to the Treasury, where the requisite certificate you might turn it round and round as often as you was granted of so much money deposited in the Treasu- pleased, but, left to itself, it would still settle at the ry. The keg was then wheeled back to the bank, and north. Our great commercial cities were the natural this has been repeated until it became a matter of open repositories where money centred and settled. There ridicule among ihe subalterns of the Treasury. This lit- it was wanted, and it was more valuable if left there tle barrel had been rolled backward and forward from than if carried into the interior. Any intelligent busithe bank to the Treasury and from the Treasury to the ness man in the West would rather bave money paid him bank, a distance of not more than fifty yards, until, ac for a debt in New York than at his own door. It was cording to a calculation wbich had been made, it had worth more to him. lf, then, specie was forced, by travelled about 1,100 miles; and this was the boasted Treasury tactics, to take a direction contrary to the natmetallic circulation. This process did but exemplify, to a ural course of business, and lo move from east to west, considerable extent, the operation of this Treasury order the operation would be beneficial to none, injurious to over the whole country. But, allowing for all these all. It was not in the power of Government to keep it evasions, this order undoubtedly has and must continue in a false direction or position. Specie was in exile to occasion large sums of gold and silver to be tempora- whenever it was forced out of that place where business rily withdrawn from general circulation, and paid into called for it. Such an operation did no real good. It the land offices. From these offices it is transferred to was a forced movemen', and was soon overcome by the the deposite banks--is there subjected to the ordinary natural course of things. banking uses and purposes, and serves to strengthen and Mr. C. was well aware that men might be deluded falten these corporations, to the prejudice of the gener and mystified on this subject, and that, while the delle al circulation, and of those banks from wbich that gold sion lasted, this Treasury order miglit be held up before and silver has been withdrawn. To compensate for the eyes of men as a splendid arrangement in finance; these evils, and this derangement of the currency, what but it was only like the natural rainbow, which owed its adequate good has been or can be produced by this very existence to the mist in which it had its being. The order? I cannot perceive it--it appears visionary to me moment the atmosphere was clear, its bright colors vanto suppo-e that it will aid a single dollar to the amount ished from the view. So it would be with this matter. of the specie of the United States.

The specie of the country must resume its nalural But, sir, the direct operation of this order has not,

Man miglit as well escape from the physical probably, been more injurious, or perhaps so much so, necessities of their nature, as from the laws which gure as its inilirect consequences in producing distrust and erned the movements of finance: and the man who proalarm. When the Treasury raises its mighiy arm, the fessed to reverse or dispense with the one was no greater banks are shaken far and wide. The sudden call for quack than he who made the same professions with re. gold and silver, made by this order, aided by some other gard to the other. Causes, rendered the banks, to some extent, uneasy, and But it was said to be the distribution bill which had created apprehensions in the minds of the holders of done all the mischief; and Mr. C. was ready to admit their notes. The consequence was that thes holders that the manner in which the Government had allempted pressed the banks for payment; the banks pressed their to carry that law into effect might in part bave furnished debtors, and withheld their customary accommodations; the basis for such a supposition. He had no doubt that and thus, sir, derangement and pressure were more se the pecuniary evils of the country had been aggravated verely and widely extended. Such, I know, has been by the manner in which this bad been done. On this the case in Kentucky to a considerable extent.

subject, however, he confessed himself to be but a


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