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DEC. 21, 1836.]

Public Deposites.

[SENATE.

reached him. He had then been in a foreign country. The enemies of liberty throughout the world were all looking to this country with anxious eyes, and with hopes highly raised, that this last experiment in favor of human freedom would prove to be a failure. The most exag

orable gentleman from South Carolina. Let him, then, adopt the President's recommendation, and the evil apprehended could not take place. But should the Senate pass the bill which had now been introduced, they would have passed the Rubicon, and the distribution policy would, in spite of all opposition, become the settled pol-gerated accounts of the division of opinion in this counicy of the Government.

Mr. W. called upon the Senate and upon the country to remark that they were now invoked by the gentleman from South Carolina to create a surplus for the purpose of distribution.

He

Mr. CALHOUN, in reply, complained of having been entirely misstated by the Senator from Mississippi. had not invoked the Senate to any such act, nor had he said any thing like it. But he had said that no administration could honestly plead any necessity for demanding back the deposites from the States, unless in the contingency of a foreign war. So far from having expressed a desire to create and distribute a surplus, he had, on the contrary, expressly declared that he should greatly prefer a reduction of the revenue, if it could be safely ef fected; and he had expressed his willingness to send the bill to a committee opposed to his own views, that, if possible, this might be effected. Yet the gentleman accused him of a design to create a surplus.

The gentleman had again said that one of the arguments urged by him in favor of the distribution bill had been, that the deposite of the public money in banks was a great instrument of fraud and speculation. This was a great mistake. He had said no such thing. The President, however, had undertaken to legislate on the subject, and had issued an order, which was much more like an act of Congress than an executive measure. The President deemed the evil so great, and the remedy so specific, that he had ventured on a great stretch of power to realize the object. Now, after what the President hard said on this subject, any man who should vote to leave the public money in deposite banks stood openly convicted of being in favor of speculators.

Mr. C. hoped the Senator would not persist in his motion to refer the bill to a committee which he knew to be utterly opposed to it. Nothing could be more unparliamentary. He hoped the gentleman would at least indulge him with a special committee.

Mr. BUCHANAN, without expressing any opinion on the merits of the bill, was in favor of its commitment. The subject extended itself into so many ramifications, was so complex and so extensive, that no leading measure ought to be adopted in relation to it without its previously undergoing the careful investigation of a committee. There were two counter projects now be fore the Senate, which were essentially incompatible with each other. One had been reported by the Senator from Kentucky, [Mr. CLAY,] which proposed to distribute the proceeds of the public lands among the States on certain conditions; the other to deposite the surplus that might accrue, under the provisions of the bill of the last session. Both these plans, it was obvious, could not prevail; while the President had recommended the sale of the public domain to actual settlers only. On this matter Mr. B. expressed no opinion, but should be guided in a great measure by the wishes and opinions of gentlemen coming from the new States.

Should the President's recommendation be adopted, there would probably be no surplus. He should like to see a responsible report from the Committee on Finance. On the question whether there would or would not be a surplus on the 1st of January next he expressed no opinion.

While up, he would add one word on the subject of what was commonly called the compromise act. Never should he forget the impression made upon his own mind when the news of the passage of that act first

try, on the subject of the tariff, were spread throughout Europe, and the expectation appeared to be general that our Union would be dissolved, and the republic expire. In such circumstances, when he heard that a compromise had been effected, his bosom had been pervaded by a feeling such as he had never known before. Without being acquainted with the particulars of the bill, he was prepared to approve of it in advance. On further examination, however, he could not say whether he should have supported the bill or not, but the country had received it; the great manufacturing and agricultural interes's had welcomed it, and to this moment relied upon it as, in some sense, the charter of their hopes. Other prevailing interests of the country shared in the feeling, and never would Mr. B. give his vote in favor of touching one of its provisions. That could not be done without extensively and injuriously affecting, not only the agricultural and manufacturing, but another great interest of his own State. He referred to the mining interest. On the whole, he hoped that they should have a report from a committee; and should it even be adverse to the bill, yet, such were the wellknown zeal, perseverance, and talents, of the honorable gentleman from South Carolina, that he would still find ways and means to bring the merits of his project fully before the minds of the Senate.

Mr. WALKER said that the Senator from South Carolina had appealed to him to indulge him with a special committee. But that gentleman would do well to remember that, when on a former occasion he (Mr. W.) had introduced a bill of great importance to Mississippi, and asked its reference to a select committee, that gentleman had opposed the motion, and had sent the bill to the Committee on Public Lands, which he well knew to be opposed to every one of its provisions. In insisting, therefore, on his original motion to refer this bill to the Committee on Finance, he had only followed an example which the gentleman had set him.

Mr. W. then went into some explanations to show that he had not misunderstood or misrepresented the objects of the Senator from South Carolina. If that gentleman should oppose the President's recommendation in regard to selling the public lands to actual settlers only, it would, in effect, be equivalent to voting to create a surplus. Mr. W. said he had no wish to alarm the manufacturing interest, toward which he entertained no hostility; but he would now tell that interest throughout this country, that if they wished to preserve the compromise bill, the mode was to prevent an exorbitant sale of the public lands. If this were permitted to continue, a surplus revenue could not be prevented without touching the compromise bill. Mr. W. had, on the last session, offered a resolution calling on the Secretary of the Treasury to ascertain and report to Congress what reduction in the tariff and in the price of the public lands would be necessary to bring down the revenue to the wants of the Government, but in such a manner as not to infringe on the compromise. The Senator from Massachusetts [Mr. WEBSTER] had moved to lay that resolution on the table; not because he was particularly hostile to it, but because he wished to press some other subject which was before the Senate; and afterward there had been no opportunity to call it up. Mr. W. should not now depart from the spirit of that resolution. He had no wish to violate the compromise, but desired that the reduction should be in conformity with the 6th section of that bill, (which he read.)

SENATE.]

Public Deposites.

[DEC. 21, 1836.

Committee on Finance, but as the Senator from South Carolina considered the denial of a special committee as

The Senate had been told by the gentleman from Kentucky [Mr. CLAY] that the faith of the nation stood pledged to preserve that bill inviolate. But that bill de-involving some want of courtesy, he would state the conclared, in the most express terms, that the reduction of the revenue was not to be made by depositing it with the States-that was no feature of the compromise-but by a reduction of duties. He had ascertained that the reduction which his plan would effect would amount to three millions of dollars. Deduct this from the eight millions derived from the sale of public lands to actual settlers, and it would leave five millions of dollars, being just the amount which the Senator from South Carolina had thought it was proper to retain as an unexpended balance in the Treasury. Mr. W. insisted on his motion for referring the bill to the Committee on Finance.

Mr. CALHOUN rejoined and explained, with a view to show that the case of which the gentleman from Mississippi complained was not parallel to the present, and still insisted on the propriety of allowing him a special committee. If, however, the Senate should resolve to send this bill to the Committee on Finance, he should not be at a loss to understand the movement. He had read the President's message attentively. It was an extraordinary document. He had read with no less care the report of the Secretary of the Treasury: that, too, was an extraordinary document. The perusal had suggested some suspicions to his mind; and should the present bill be sent to the Finance Committee, those suspicions would be fully confirmed. Such a measure would go far to convince him that the policy of the ad. ministration was agreed upon, and that it would be to make a demonstration on a reduction of the revenue, but, in fact, to leave that revenue in the deposite banks. The end of this session was not far off, and that would tell whether he were not correct in his opinion. He would now, in his turn, venture to become a prophet, and he would predict that, if the present motion succeeded, that very thing which the President in his message had most decidedly condemned would be the thing actually realized. Notwithstanding the President's op. position to the collecting of the surplus revenue, and all he had said on its tendency to promote speculation and corrupt the public morals, that was the thing which would be done. He was sorry he did not see the Senator from New York [Mr. WRIGHT] in his place. On that gentleman, peculiarly, lies the obligation to provide for the reduction of the revenue. Mr. C. well knew the difficulty of touching this subject. He had himself had a full and sound trial of that operation. He knew the efforts by which the existing reduction had been effected, and he felt very sure that the Senator from New York could not be sanguine in the expec'ation of effecting a reduction to any great amount. He had heard much said in private on that subject, and he could not but regret that the President, when alluding to it in his message, bad not referred to the difficulties attending it. Mr. C. thought he saw how things were to go, and he thus openly announced what his conviction was. He believed nothing would be done to reduce the revenue; that the money would still be collected, and would be left, not where it ought to be found, in the treasuries of the States, but in the deposite banks.

If the Finance Committee would report an adequate reduction of the revenue, Mr. C. would consent to withdraw his bill. He should infinitely prefer a reduction to a distribution, provided the thing could be done. In the meanwhile the South claimed the execution of the compromise bill; it had not only closed a long and painful controversy, but had enabled them to make some feeble stand against the progress of executive influence. He concluded ty moving for a special committee.

Mr. RIVES was in favor of referring the bill to the

siderations which led him to the conclusion that that would be the proper committee. The Senator himself had said, but yesterday, that the Committee on Finance was the committee to whom the entire subject of the reduction of the revenue specially belonged. The Sena tor had entered into a calculation to show that there would be a surplus in the Treasury at the commencement of the year, and on this be grounded his bill. The question, therefore, at the root of the whole matter was, whether there would be such a surplus. This was a question which obviously pertained to the Finance Committee. The gentleman, relieving himself from every thing like a pledge to abide by the provisons of the compromise act, expressed his strong preference of a reduc tion of the revenue to its distribution; but the question whether it could safely be reduced certainly was a question coming within the range of the appropriate duties of that committee. Mr. R. reverted to the history of the deposite bill, and expressed his satisfaction at the reflec tion that he had rendered it his hearty support. He did not now recede, in the slightest degree, from the ground he had then occupied. But the Senate was now in a different position; they were at the opening of a new session of Congress, and were enabled, from all the lights of past experience, to look ahead with something like certainty. If they foresaw the probability of a surplus of revenue, they were bound to guard against it by attempting a reduction. That, beyond question, was the true policy. Mr. R. adverted to the prophecy by Mr. C. that the policy of the administration was to be a false and deceitful demonstration on reduction, while none was to be made, and the money was to remain in the deposite banks. [Mr. CALHOUN shook his head at the words "false and deceitful."] Well, a demonstration, at all events, was to be made, and all that had been said by the President in his message against surplus revenue would turn out a delusion. [Mr. C. assented.] Yet the gentleman had, no longer ago than yesterday, expressed the highest satisfaction with the Finance Committee, and been lavish of his compliments on the gentlemen composing it, when the object was to refer this very measure of reduction to that committee. Did the gentleman mean nothing more than a demonstration? Had he not been in earnest? He hoped the gentleman had no such policy, nor could he suppose him to have.

Mr. CALHOUN repelled the charge of inconsistency. He had been in favor of sending the subject of a reduction of the revenue to the Committee on Finance, be. cause he considered the subject as appropriate to their specific duties; but he was opposed to sending this bill to that committee, because they were known to be adverse to its object. In one case, he had gone on the great parliamentary principle that propositions were to be referred to committees favorable to the object proposed; and in the other case, he still had sent it to a committee at least not unfavorable to the measure. He was

rejoiced to hear the honorable Senator from Virginia de. clare so explicitly that he did not repent the course he had taken in reference to the compromise bill; he was confident the gentleman never would have reason to repent the able and honorable course he had pursued on that memorable occasion; and he trusted the gentleman would agree in sentiment with those who were opposed to leaving the public money in the deposite banks. Mr. C. had given many evidences of his desire that a reduction should be made in the revenue; and had, on a former occasion, sent a bill to the Committee on Manufactures for that object, which afterwards had passed the Senate almost unanimously, and had been sent to the other Ilouse, after which it was never again heard of. He

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DEC. 21, 1836.]

Treasury Circular.

was not the man, however, to disturb the terms of the compromise, which had so happily been effected, unless it should be done by common consent. The South were prepared to assent to such a step, and if the North would also agree to it, there need be no difficulty in the case. The gentleman from Virginia seemed to suppose that, because it was the duty of the Finance Committee to consider the question whether there was likely to be a surplus revenue or not, therefore this bill ought to be sent to them. The argument was too wide: on the same principle, every proposition which related to the application of any portion of the public resources must be sent to that committee. It would swallow up almost all the business of the Senate. He concluded by demanding the yeas and nays on the question of commitment.

Mr. RIVES briefly rejoined. As the Senator from South Carolina was only conditionally in favor of the proposition in the bill, in the event that there would be a surpius, and that the revenue could not be reduced; and as the question whether it could be reduced belonged confessedly to the Committee on Finance, it involved no violation of the parliamentary principle to which the Senator had alluded, to send this bill to that committee. Mr. R. hoped he should not be understool as wishing wantonly to interfere with the provisions of the compromise bill; he was far from desiring any such thing. He held the compromise in great respect, as having effected a great national good in the settlement of an agitating and alarming question. But he was free to say that, if any mode could be devised of bringing down the revenue to the wants of the Government, without interfering with the enactments of that bill, he should be opposed to disturbing them in any way. But it was a fundamental duty of legislation to dispense with all unnecessary taxes, and reduce the burdens of the people as far as the necessities of Government would permit. If this could not be done without touching some parts of the compromise bill, it must be touched; but if it could, then that bill, in all its provisions, ought to be sacredly maintained.

The question of referring the bill to the Committee on Finance was taken by yeas and nays, and resulted as follows:

YEAS-Messrs. Brown, Buchanan, Ewing of Illinois, Fulton, Grundy, Hendricks, Hubbard, King of Alabama, King of Georgia, Linn, McKean, Niles, Page, Parker, Rives, Robinson, Ruggles, Sevier, Strange, Tallmadge, Walker, Wall-22.

NAYS-Messrs. Bayard, Benton, Black, Calhoun,
Clay, Crittenden, Davis, Ewing of Ohio, Kent, Knight,
Moore, Morris, Nicholas, Prentiss, Robbins, Southard,
Swift, Tipton, Tomlinson, Webster, White, Wright-22.
The yeas and nays being equal, the Chair voted in the
affirmative.

So the bill was referred to the Committee on Finance.
TREASURY CIRCULAR.

The Senate proceeded to the further consideration of Mr. EwING's joint resolution, rescinding the Treasury order of July 11th, 1836, and prohibiting the Secretary of the Treasury to delegate the power to specify the kind of funds to be received in payment for the public lands. The question being on ordering the resolution to a second reading,

Mr. WEBSTER rose and addressed the Senate as follows:

Mr. President: the power of disposing of this important subject is in the hands of gentlemen, both here and elsewhere, who are not likely to be influenced by any opinions of mine. I have no motive, therefore, for addressing the Senate, but to discharge a public duty, and to fulfil the expectations of those who look to me for op position, whether availing or unavailing, to whatever I

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[SENATE

believe to be illegal or injurious to the public interests. In both these respects, the Treasury order of the 11th of July appears to me objectionable. I think it not war. ranted by law, and I think it also practically prejudicial. I think it has contributed not a little to the pecuniary difficulties under which the whole country has been, and still is, laboring; and that its direct effect on one particular part of the country is still more decidedly and severely unfavorable.

The Treasury order, or Treasury circular, of the 11th of July last, is addressed by the Secretary to the receivers of public money, and to the deposite banks. It instructs these receivers and these banks, after the 15th day of August then next, to receive in payment of the public lands nothing except what is directed by existing laws, viz: gold and silver, and, in the proper cases, Vir ginia land scrip; provided that till the 15th of Decem. ber then next, the same indulgence heretofore extended, as to the kind of money received, may be continued, for any quantity of land not exceeding 320 acres, to each purchaser who is an actual settler or bona fide resident in the State where the sales are made.

The exception in favor of Virginia scrip is founded on a particular act of Congress, and makes no part of the general question. It is not necessary, therefore, to refer farther to that exception. The substance of the general instructions is, that nothing but gold and silver shall be received in payment for public lands; provided, however, that actual settlers and bona fide residents in the States where the sales are made, may purchase in quantities not exceeding 320 acres each, and be allowed to pay as heretofore. But this provision was limited to the 15th day of December, which has now passed; so that, by virtue of this order, gold and silver are now required of all purchasers and for all quantities.

I am very glad that a resolution to rescind this order has been thus early introduced; and I am glad, too, since the resolution is to be opposed, that opposition comes early, in a bold, unequivocal, and decided form. The order, it seems, is to be defended as being both legal and useful. Let its defence, then, be made.

The honorable member from Missouri [Mr. BENTON] objects even to giving the resolution to rescind a second reading. He avails himself of his right, though it be not according to general practice, to arrest the progress of the measure at its first stage. This, at least, is open, bold, and manly warfare.

The honorable member, in his elaborate speech, founds his opposition to this resolution, and bis support of the Treasury order, on those general principles respecting currency which he is known to entertain, and which he has maintained for many years. His opinions some of us regard as altogether ultra and impracticable; looking to a state of things not desirable in itself, even if it were practicable; and, if it were desirable, as being far beyond the power of this Government to bring about.

It is

The honorable member has manifested much perseverance and abundant labor, most undoubtedly, in support of his opinions; he is understood, also to have bad countenance from high places; and what new hopes of success the present moment holds out to him, I am not able to judge, but we shall probably soon see. precisely on these general and long-known opinions that he rests his support of the Treasury order. A question, therefore, is at once raised between the gentleman's principles and opinions on the subject of the currency, and the principles and opinions which have generally prevailed in the country, and which are, and have been, entirely opposite to his. That question is now about to be put to the vote of the Senate. In the progress and by the termination of this discussion, we shall learn whether the gentleman's sentiments are or are not to prevail, so far, at least, as the Senate is concerned. The

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[DEC. 21, 1836.

far as I know, or so far as we are informed, in the manner of receiving payment for the public lands. Every thing stood on the 11th of July, 1836, as it had stood at the opening of the session, in December, 1835. How so different a view of things happened to be taken at the two periods, we may be able to learn, perhaps, in the further progress of this debate.

The order speaks of the "evil influence" likely to result from the further exchange of the public lands into "paper money." Now, this is the very language of the gentleman from Missouri. He habitually speaks of the notes of all banks, however solvent, and however promptly their notes may be redeemed in gold and silver, as "paper money." The Secretary has adopted the honorable member's phrases, and he speaks, too, of all the bank notes received at the land offices, although every one of them is redeemable in specie, on demand, but as so much "paper money.”

We are now fast approaching the day when one administration goes out of office, and another is to come in. The country has an interest in learning, as soon as possible, whether the new administration, while it receives the power and patronage, is to inherit, also, the topics and the projects of the past; whether it is to keep up the avowal of the same objects and the same schemes, especially in regard to the currency. The order of the Secretary is prospective, and, on the face of it, perpetual. Nothing in or about it gives it the least appearance of a temporary measure. On the contrary, its terms imply no limitation in point of duration, and the gradual manner in which it is to come into operation shows plain. ly an intention of making it the settled and permanent In this respect, also, sir, I hope we may know more as policy of Government. Indeed, it is but now beginning we grow older, and be able to learn whether, in times its complete existence. It is only five or six days since to come, as in times recently passed, the justly obnox its full operation has commenced. Is it to stand as the ious and odious character of "paper money" is to be law of the land and the rule of the Treasury, under the applied to the issues of all the banks in all the States, administration which is to ensue? And are those notions with whatever punctuality they redeem their bills. This of an exclusive specie currency, and opposition to all is quite new, as financial language. By paper money, banks, on which it is defended, to be espoused and main-in its obnoxious sense, I understand paper issued on tained by the new administration, as they have been by credit alone, without capital, without funds assigned for its predecessor? These are questions, not of mere curi-its payment, resting only on the good faith and the fuosity, but of the highest interest to the whole country.

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In considering this order, the first thing naturally is, to look for the causes which led to it, or are assign d fr its promulgation. And these, on the face of the order itself, are declared to be "complaints which have been made of frauds, speculations, and monopolies, in the purchase of the public lands, and the aid which is said to be given to effect these objects by excessive bank credits, and dangerous if not partial facilities through bank drafts and bank deposites, and the general evil influence likely to result to the public interest, and especially the safety of the great amount of money in the Treasury, and the sound condition of the currency of the country, from the further exchange of the national domain in this manner, and chiefly for bank credits and paper money.' This is the catalogue of evils to be cured by this order. In what these frauds consist, what are the monopolies complained of, or what is precisely intended by these injurious speculations, we are not informed. All is left on the general surmise of fraud, speculation, and monopoly. It is not avowed or intimated that the Gov. ernment has sustained any loss, either by the receipt of bank notes which proved not to be equivalent to specie, or in any other way. And it is not a little remarkable that these evils, of fraud, speculation, and monopoly, should have become so enormous and so notorious, on the 11th of July, as to require this executive interference for their suppression, and yet that they should not have reached such a height as to make it proper to lay the subject before Congress, although Congress remained in session until within seven days of the date of the order. And what makes this circumstance still more remarkable, is the fact that, in his annual message at the commencement of the same session, the President had spoken of the rapid sales of the public lands as one of the most gratifying proofs of the general prosperity of the country, without suggesting that any danger whatever was to be apprehended from fraud, speculation, or monopoly. His words were: "Among the evidences of the increasing prosperity of the country, not the least gratifying is that afforded by the receipts from the sales of the public lands, which amount, in the present year, to the unexpected sum of eleven millions." From the time of the delivery of that message down to the date of the Treasury order, there had not been the least change, so

ture ability of those who issue it. Such was the paper money of our revolutionary times; and such, perhaps, may have been the true character of the paper of particular institutions since. But the notes of banks of competent capitals, limited in amount to a due propor tion to such capitals, made payable on demand in gold and silver, and always so paid on demand, are paper money in no sense but one; that is to say, they are made of paper, and they circulate as money. And it may be proper enough for those who maintain that nothing shou'd so circulate but gold and silver, to denominate such bank notes "paper money," since they regard them but as paper intruders into channels which should flow only with gold and silver. If this language of the order is authentic, and is to be so hereafter, and all bank notes are to be regarded and stigmatized as mere "paper money," the sooner the country knows it the better.

The member from Missouri charges those who wish to rescind the Treasury order with two objects: first, to degrade and disgrace the President, and, next, to overthrow the constitutional currency of the country.

For my own part, sir, I denounce nobody; I seek to degrade or disgrace nobody. Holding the order illegal and unwise, shall certainly vote to rescind it; and, in the discharge of this duty, I hope I am not expected to shrink back, lest I should do something which might call in question the wisdom of the Secretary, or even of the President. And I hope that so much of independence as may be manifested by free discussion and an honest vote is not to cause denunciation from any quarter. If it should, let it come.

As to an attempt to overthrow the constitutional currency of the country, if I were now to enter into such a design, I should be beginning, at rather a late day, to wage war against the efforts of my whole political life. From my very first concern with public affairs, I have looked at the public currency as a matter of the highest interest, and hope I have given sufficient proofs of a disposition at all times to maintain it sound and secure, against all attacks and all dangers. When I first entered the other House of Congress, the currency was exceedingly deranged. Most of the banks had stopped payment, and the circulating medium had then become, indeed, paper money. So soon as a state of peace enabled us, took some part in an effort, with others, to

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restore the currency to a better state; and success followed that effort.

But what is meant by the "constitutional currency," about which so much is said? What species, or forms of currency, does the constitution allow, and what does it forbid? It is plain enough that this depends on what we understand by currency. Currency, in a large, and perhaps, in a just sense, includes not only gold and silver and bank notes, but bills of exchange also. It may include all that adjusts exchanges, and settles balances, in the operations of trade and business. But if we understand by currency the legal money of the country, that which constitutes a lawful tender for debts, and is the statute measure of value, then, undoubtedly, nothing is included but gold and silver. Most unquestionably there is no legal tender, and there can be no legal tender, in this country, under the authority of this Government or any other, but gold and silver, either the coinage of our own mints, or foreign coins, at rates regulated by Congress. This is a constitutional principle, perfectly plain, and of the very highest importance. The States are expressly prohibited from making any thing but gold and silver a tender in payment of debts; and, although no such express prohibition is applied to Congress, yet, as Congress has no power granted to it, in this respect, but to coin money, and to regulate the value of foreign coins, it clearly has no power to substitute paper, or any thing else, for coin, as a tender in payment of debts, and in discharge of contracts. Congress has exercised this power, fully, in both its branches. It has coined money, and still coins it; it has regulated the value of foreign coins, and still regulates their value. The legal tender, therefore, the constitutional standard of value, is established, and cannot be overthrown. To overthrow it, would shake the whole system.

But if the constitution knows only gold and silver as a legal tender, does it follow that the constitution cannot tolerate the voluntary circulation of bank notes, convertible into gold and silver at the will of the holder, as part of the actual money of the country? Is a man not only to be entitled to demand gold and silver for every debt, but is he, or should he be, obliged to demand it in all cases? Is it, or should Government make it, unlawful to receive pay in any thing else? Such a notion is too absurd to be seriously treated. The constitutional tender is the thing to be preserved; it ought to be preserved sacredly, under all circumstances. The rest remains for judicious legislation by those who have competent authority.

I have already said that Congress has never supposed itself authorized to make any thing but coin a tender, in the payment of debts, between individual and individual; but it by no means follows from this, that it may not authorize the receipt of any thing but coin in payment of debts due to the United States.

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vide for the receipt of sundry things, besides gold and silver. As early as 1797, the public stocks of the Government were made receivable for lands sold; the six per cents. at par, and other descriptions of stock in proportion. This policy had, probably, a double purpose in view-the one to sustain the price of the public stocks, and the other to hasten the sale and settlement of the lands. Other statutes have given the like receivable character to Missi-sippi stock, and to Virginia land scrip. So Treasury notes were made receivable for duties and taxes; and, indeed, if any such should now be found outstanding, I believe they constitute a lawful mode of payment, at the present moment, whether for duties and taxes or for lands.

But, in regard both to taxes and payments for lands, Congress has not left the subject without complete legal regulation. It has exercised its full power. The statutes have declared what should be received, from debtors and from purchasers, and have left no ground whatever for the interference of executive discretion or executive control. So far as I know, there has been no period when this subject was not subject to express legal provision. When the duty act and the tonnage act were passed, at the first session of the first Congress, an act was passed also, at the same session, containing a section which prescribed the coins, and fixed their values, in which those duties were to be paid. From that time to this, the medium for the payment of public debts and dues has been a matter of fixed legal right, and not a matter of executive discretion at all. The Secretary of the Treasury has had no more power over these laws than over other laws. He can no more change the legal mode of paying the duty than he can change the amount of the duty to be paid; or alter the legal means of pay. ing for lands, with any more propriety than he can alter the price of the lands themselves. It would be strange, indeed, if this were not so. It would be ridiculous to say that we lived under a Government of laws, if an executive officer may say in what currency, or medium, a man shall pay his taxes and debts to Government, and may make one rule for one man, and another rule for another. We might as well admit that the Secretary had authority to remit or give in the debt of one, while he enforced payment on the other.

I desire, sir, even at the expense of some repetition, to fix the attention of the Senate to this proposition, that Congress, having by the constitution authority to dispose of the public territory, has passed laws for the complete exercise of that power; laws which not only have fixed the price of the public lands, the manner of sales, and the time of payment, but which have fixed also, with equal precision, the medium, or kinds of money, or of other things, which shall be received in payment. has neglected no part of this important trust; it has delegated no part of it; it has left no ground, not an inch, for executive interposition.

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The only question, therefore, is, what is the law, or what was the law, when the Secretary issued his order? The Secretary considers that that which has been uniformly done for twenty years, that is to say, the receiv

These powers are distinct, and flow from different sources. The power of coinage is a general power; a portion of sovereignty, taken from the States and conferred on Congress, for the sake both of uniformity and greater security. It is to be exercised for the benefit of all the people, by establishing a legal tender and standing of payment for the public lands in the bills of specieard of value in all transactions.

But when Congress lays duties and taxes, or disposes of the public lands, it may direct payment to be made in whatever medium it pleases. The authority to lay taxes includes the power of deciding how they shall be paid; and the power granted by the constitution to dispose of the territory belonging to the United States carries with it, of course, the power of fixing not only the price, and the conditions, and time of payment, but also the medium of payment. Both in respect to duties and taxes, and payments for lands, it has been, accordingly, the constant practice of Congress, in its discretion, to pro

paying banks, is against law. He calls it an "indulgence," and this "indulgence" the order proposes to continue for a limited time, and in favor of a particular class of purchasers. If this were an indulgence, and against law, one might well ask, how has it happened that it should have continued so long, especially through recent years, marked by such a spirit of thorough and searching reform? It might be asked, too, if this be illegal, and an indulgence only, why continue it longer, and especially why continue it as to some, and refuse to continue it as to others?

But, sir, it is time to turn to the statute, and to sce

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