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THE MADISON IAN. THOMAS ALLEN, editob and noriiiToi. ?? . TUM. Semi-weekly, per ?n. 00 | Weekly, |>er an #3 00 " " six mouths, 3 00 | " six months, 3 00 No dilute nation will bo taken for ? singlo copy of* either edition, for ? term abort of aix month* ; nor uti le** paid for in advance. PRICE or ADVERTISING. Twelve lines, or less, three insertions, - 91 00 Each additional insertion, ... 25 Longer advertisements at proportionate rates. ? A liberal discount made to ihote who advertise by the year. IE7 Subscribers may remit by mail, in biUa of solvent banks, pottage paid, at our risk ; provided it shall ap pear by ? postmaster's certificate, that such remittance luu been duly mailed. A liberal discount will be made to companies of five or more transmitting their subscriptions together. Postmasters, and others authorized, acting as our ?gents, will be entitled to receive a copy of the j?s|H<r grain for every five subscribers or, at that rate per cent, on subscriptions, generally ; the terms being fulfilled. letters and communications intended for the esta blishment will not be received uulcas the pottage it paid. PROSPECTUS. Tiie Majhsonian will be devoted to the support of the principles and doctrine* of the democratic party, aa delineated by Mr. Madi*on, and will aim to consummate that political reform in the theory and practice of the national government, which has been repeatedly indi cated by the general sufferage, as assential to the peace and prosperity of the country, and to the perfection and perpetuity of its free'institutions. At this tnno a singu lar state of ailairs is" presented. The commercial in terest* of the country art overwhelincd.wnh embarrass ment ; its monetary concerns are unusually disordered ; every ramification of society is invaded by distress, and the social edifice eeems threatened with disorganization; tivery ear is filled with predictions of evil and the inur inurings of despondency ; the general government is boldly assailed by ? large and respectable portion of the people, as the direct cause of tkcir difficulties ; o|?en resistance to the laws is publicly encouraged, and a spirit of insubordination is fostered, as a necessary defence to the pretended usurpations of the, party in power ; some, from whom better things were hoped, are malting the "confusion worse confounded," bv ahead long pursuit of extreme notions and mdeliuite | hantomi, totally incompatible with a wholesome state of the country. In the midst of all these difficult*? and em barrassments, it is feared that many of the less firm of i the friends of the administration and supporters of democratic principles are wavering in their confidence, and beginning, without just cause, to view with distrust those men to whom they, have been long attached, and whose elevation they have laboured to promote from honest and patriotic motives. Exulting in the anticipa tion of dismay and confusion amongst tbe supporters of the administration as the consequence of these things, the opposition are consoling themselves with tho idea that,Mr. Van Buren's friends, as a national parly, are verging tb dissolution ; and they allow no opportunity to pass unimproved to givo eclat to their own doctrines. They are, indeed, maturing plans for their own future government of the country, with seeming confidence of certain success. This confidence is increased by the fact, that visionary theories, and an unwise adherence to the plan for an txclutive metallic currency have unfortunately carried some beyond the actual and true policy of the govern-' ment; and, by impairing public confidcnco in the credit system, which ought to be preserved and regulated, but not destroyed, have tended to increase the difficulties under which the country is now labouring. All these seem to indicate the necessity of a new organ at the seat of government, to be established upon sound prin ciples, and to represent faithfully, and not to dictate, the real policy of the administration, and the true sentiments, measures, and interests, of the great body of its sup porters. The necessity also appears of the adoption of more conservative principles than tho conduct of those seems to indicate who seek to remedy abuses by de stroying the institutions with which they are found con-, liectcd Indeed some measure of contribution is deemed ?sscntial to the enhancement of our own self-respect at home, and to the promotion of the honor and credit of the nation abroad. To meet these indications this undertaking has been instituted, and it is hoped that it will produce the effect of inspiring the timid with courage, the desponding with hope, and the whole country with confidence in the administration of its government. In this view, this journal will not seek to lead, or to follow any faction, or to advocatc the views of any particular detachment of men. It will aspire to accord a just measure of sup port to each of the co-ordinate branches of the govern ment, in the lawful exerciso of their constitutional prerogatives. It will address itself to the understandings of men, rather than appeal to any unworthy prejudices or evil passions. It will rely invariably upon the prin ciple, that the strength and security of American insti tutions depend upon the intelligence and virtue of the people. * The Madisonian will not, in any event, be made the instrument of arraying the north and the south, the cast End the west, in hostile attitudes towards each other, npon any subject of either general or local interest. It will reflect only that spirit and those principles of mutual concession, compromise, (ind reciprocal good-will, which ?o eminently characterized the inception, formation, and subsequent adoption, by the several States, of the con stitution of the United States. Moreover, in the same followed spirit' that has, at all periods since the adoption of that sacred instrument, characterized its defence bv the people, our press will hasten to its support at every emergency that shall arise, from whatever quarter, and under whatever guise of philanthropy, policy, or principle, the antagonist power may appear. If, in this respoj*iwe undertaking, it shall be our good fortune to sifi-ceed to any degree in promoting tho harmony-and prosperity of the country, or in conciliating jealousies, and allaying the asperities of party warfare, "by demeaning ourself amicably towards all; by indulg ing personal animosities towards none ; by conducting ourself in the belief that it is perfectly practicable to differ with others in matters of principle and of expe diency, without a mixture of personal unkindncss or loss of reciprocal respect; and by " asking nothing that u not clearly right, and submitting to nothing that is wrong," then, and not otherwise, will the full measure of its intention be accomplished, and our primary rule for its guidance be sufficiently observed and satisfied. This cntcrprize lias not been undertaken without the approbation, advisement, and pledged support of many of the' leading and soundest minds in the ranks of the. democractic republican party, in the extreme north anil in the extreme south, in the cast and in tho west An association of both political experience and talent of the highest order will render it competent to carry forward the principles by which it will he guided, and make it useful as a political organ, and interesting as a journal of news, Arrangements also have been made to fix the establishment u|H>n a substantial and permanent basis. The subscriber, therefore, relies upon the public for so much of their confidence and encouragement only as the fidelity of his press to their great national interests shall prove itself entitled to receive. THOMAS ALLEN. Washington Citv, D. C. July, 1837. DEFINITION OF "LOCO FOCOISM." A correspondent in Trenton desires to know what we mean by a Loto Foto. A loco foco, in the present ac ceptation of the term, is a man not satisfied with any thing as it exists ; but is in favor of an equal distribution of property, an uprooting of the institutions of the coun try, and a substitution of some monstrous and impracti cable fancy of his own in their stead He professes to be in favor of " Equal rights, equal privileges, and equal laws," by wluch he means rights, privileges anil laws which will make him as rich, as influential, and as con sequential as his more industrious, prudent, able, perse vering, and thriving ncightiours, without any particular talents or execution of his own. A loco foco wants a new constitution ; he desires that there should be no credits ; that all debts should be debts of honor ; that no man should be superior to himself; that we should have no medium of exchanges but gold and silver ; that the whole form of sonetv and government should be changed, and that he should have the privilege of con cocting a better. He is a restless, insatisficd mor tal ; and could he have all his heart desires to-day, ho would-grumble to-nforrow just as lustily as ever ? L'tica Obterrtr. FAME. When fame's.loud trump hath blown ita noblest blast, . Tliouuh long the sound, the echo sleeps at last; And glory, like the Phrriux midst her fires, Exhales her odouis, blazes, and expires, THE MADISON IAN. VOL.1. WASHINGTON CITY, SATURDAY, AUGUST 19, 1837 NO. 2. SPEECH OK MR. liivta, OK VIRGINIA, On Ike currency*/ the U. Stale., andIkecoUul,on of ike VMk Revenut,?Delivered in Ike Senate V. 8. J u h\hi i y 10, 1B37. The following resolution wm submitted liy Mr. *IVKS, M?:SuU for .to resolution of Mr Ewing, of Ohio, proposing lo rescind ih? Treasury Order of July 11. 1H3U: Resolved. That hereafter all sums of money accruing or becoming payable lo the United State., whether from custom, pulSTc land*. tales, debts, or oltorwise ?hal to collected and paid only Ui the legal currency of,h" United Sla eTor inlW note, of bank. which an payable and on demand in the .aid legal currency, under the ftl fowini: restrictions and conditions in regard to such *o7eL that is, from and after l.he p^age of t ... rc?, u lion the notes of no bank which shall issue bills or notes of a'less denomination, lhan five dollars, shall to received I in uavment of the public due.; from and after the first dav of July, 1839, the notes of no hank which shall i?suc lulls or notes of a U-ss denomination than ten dollars, 1 .hill m." hie; and from and after .to first day of ! July 1841, the like prohibition shall be extended lothc ! notes of hII hank, issuing bills or notes of a nation than twenty dollar"; Provided, I hat no notes .halt to taken, in payment by the collectors or re ceiver*. which the banks in which they ?1^to ed .hall not, under tto supervision and control ol me Secretary of the Treasury, agree to p?s to the cn-d.t of the United Slates as cash. Thg question being on the adoption of his substi tutc? Mr Kivbs said, that in asking the indulgence of the Senate, it * a. not hi. design to abuae ito.r j-t.enc? by rearguing ihe questions which had already been ao fully I and so ably discussed, in relat.on to the legslity or the policy of the Treasury Circular. It was hi. wish on v to state, somewhat more at Urge than he had yet hud an opportu.fity of doing, the views under the influence of which he had offered the proposition which is now pending before the Senate as sn amendment to ihe I resolution of the Senator from Ohio, (Mr Ewing ) In reference to the most important objecta of the 1 reasury ' Circular, he regarded that measure as having done its office ; and the interests of the country are now much more concerned in ihe provision we .hall inakc for the future, than in anv decision we may pronounce upon the past. When I had the honor, .oinc days ago, said Mr R , of .addressing a few remarks to the Senate on 'this subject. I said what 1 take great pleasure now in repeating, that in whatever different lights the operation of the Treasury Circular , may have been viewed, of ? one thing 1 was thoroughly pcnmaded-ihat the mo tives which had induced the high functionary at the head of the Government to direct the issuing of it, were in perfect consonanco with that elevated and patriotic spirit which had so conspicuously marked the whole course pf hi. public life ; and that no defect of legality, in mv estimation, had been shown in the authority un der which it was issued. I added also, that the mea sure was properly to be viewed as a tem|>orary one, to continue in operation until the action o Co...reas on the whole subject could be obtained ; and that the 1 re sident himself, as shown by the evidence of his mes sage at the commencement of the session, attached no importance to its adoption as a permanent rule ol ^One of the leading objects of the Treasury Circular, at the tiine it was issued, was to check that tendency to extravagant bank issues and bank credits, which has ?o signally marked the history of the last twelve or eighteen months. But, so far as that object is concern ed, the same effect will now be produced m a manner not less certain, though by a process more gradual, and therefore easier and safer to the community, bv the operation of the depo.ite act No one can doubt, Mr President, that one of the chief causea of the recent over-action of the banking wstem in this country, is to to found in the immense |ums of money, left in the dcposite bank., and which have been used and traded upon by them, as an addition of so much to their banking capiuU. This is a state of things which h?* been eminently pernicious in all its bearings. Ihe correction of so great nn'cvil formed in ray mind one of the strongest considerations for giving the cordial support I did lo the deposite act of the last session ; a measure which, however much misconceived or mis represented in regard to it. true character, has. in my opinion, conferred upon the country a double benefac tion of the highe.t value : first in putting out of the w.v of the Government the temptation, whose power ful influence we were already beginning to fcfcl, to use less, extravagant, and anti-republican expenditure ; and, secondly, in taking from the dcposite banks that gratui tous and artificial increment of their capitals, which has been a main cause of the unnatural distension of our paper currency, and of that inordinate spirit of specula tion, which has prevailed through the country. In gra dually withdrawing, as we arc now doing by the act ol the last session, these large amounts of the public trea sure from the possession of the dcposite bunks, and m avoiding, as, I trust, by a wise and provident legislation, we shall do, the accumulation of any idle surplus in In turc,the Government will take away the stimulus which itself has given to the excessive issues and credits of the bank. ; and we may then hope that, under the saHi lary control of the laws of trade, they will return with in those safe, proper, and natural limits, which the busi ness of the community requires. .????? While on this branch of the subject, Mr. President, I will make one other observation. However necessa ry or desirable the contraction of our paper circulation may be, (if it be indeed, the large excess which is sup posed bv many.) it must be borne m mind that there is no operation more .delicate than the reduction of the currency of a country. A decreasing circulating medi um it i. agreed alike by the theoretical writers and by enlightened practical men, is precisely thai condition in the monied affairs of the community ?h:ch is the most critical and distressing. It i? a transition from high to low prices, from a certain and liberal reward of labor to diminished wages and precarious employment, from active and prospering industry'.to general languor and de pression Mn all the operations of business. It is a change to which society always adjusts itself slowly and painfully ; and. under the most favorable circumstances, must be attended with distress?otun with extensive ruin. Great caution, therefore, is necessary, lest it be unduly precipitated in its progress, or harshly aggravated in its' effects. We have, in the history of our own country, at a period not too remote for the recollection of most of us, a memorable example of the distressing effects of a rapid reduction of the circulating medium. It is strikingly exhibited in all its dcta-ls in, the able re port of Mr. Crawford, then Secretary of the J reasury, on the currency, in 1S20. It is there shown that the circulation of the country, in throe years from lNin to IS 19, had been brought down from 110 millions in the former, to 4.r> millions in the latter: making the enor mous reduction of 65 millions within that short periot The scene of wide-spread rum and distress, which en sued, is fresh in the memories of all who witnessed it. It inculcates, at least, the necessity of caution in the ac tion of Govcfnmcnt., on this subject. It is our duty to withdraw from the hanking operations of the country that artificial stimulant which the Government itself has administered ; but thAt being done, a just policy, in ge neral, requires that the concerns of trade should be left to regulate themselves by their own natural remedial laws. Regarding, tlien, the. Treasury Circular as having mainly done its office, we arc now called upon to es tablish some permanent and equal rule for the collection of the public revenues. It is a duty which we cannot evade, if we would In the joint power whu h Ihe (.on stitution invests iu Congress, to " lay and colled ' taxes, our duty is read to us in terms too significant to tie mis taken. It is as much a part of the legislative authority to sav in what manner and by what rule the collection ot the public revenue shall to effected, as to say what amount and from whnt sources it shall be r.nsr./ Im portant as such a regulation is at all tunes, H derives, at the present moment, a particular interest, from its close connection with the subject of the mrrmry It is in that connection, that all who have participated in this debate have discussed the question before the Senate . and it is. doubtless, in that connection that the public attention is turned with most anxiety to our decision up on it I feel, Mr. President, all the magnitude and all the difliculty of this great question of the currency ? There is none that rises higher in importance, or de scends more deeply into the in'erists of society. ^ '? comes home to the business aft. iosoms of men. It affects alike the humblest laborer and wealthiest capi talist ; on it depend the security of property, the sta bility of contract., the comfort aud support of families, and, I will add, in a great degree, the public morals, for nothing, m mv opinion, is more calculated to unset tle the moral ?ense and habits of a community than the dispositions and pursuits fostered by the lottery ol a fluctuating currency. In approaching such a auljjcct, 1 feci all the diffidence which a just sense of it. difficulty ai-d importance properly inspires. But having submit ted to the Senate a proposition, which, would, if adopted, I flitter myself, exert no .mail influcncc on this great intercut; and ?? the friend* of the administration (uiy silf among the numlier) ha*e been accused of enter taining visionary, impracticable and pernicious notions, in regard to a reform of the currency, 1 must beg the indulgence of tlie Senate while I state, with as much precision as I may, the viewa of that reform, which I entertain, ami which have determined I lie stupe of the proposition now under their consideration. In discussing the question of a reform of the cur rency, it is necesssry to settle our ideas clearly as to two things : first, the nature and extent of the end to lie aimed at ; secondly, the means by which it is to be at tained. If I am asked, what is the end I propose? whether I am iu favor of a sjM-cic circulation exclusive ly, and I he total suppression of bank paper, I answer, no. Even if such an object were desirable, it is plainly impracticable. In the present state of commercial pro gress and refinement throughout the world, it would probably lie impracticable any where; but in this coun try, and under our aystem of government eapecially, it is obviously wholly unattainable. Whether right or wrong, we find twenty-six independent atate legislatures possessed of the jtower to'cruate banking corjtoralions. Whatever speculative douhtalftay exist in the minds of some as to tne constitutional validity of this power, the states now actually possess and exercise it, as they have invariably done from the foundation of the Govern ment, and there is not the slightest probability that they will ever.be divested of it. In every sober and practi cal scheme of |>o!icv, we must proceed ujioii the as sumption that tins independent state power will remain. How, then, can the banking aystem bo suppressed by this Government! Such a notion, if entertained any where, would Iks Utopian and visionary. My object, then, would be, not the destruction of tbt* ? hanking aystem and the total suppression of bank pa per, but an efficient regulation of it, and its restriction to safe and proper limits ; not tho exclusive use of spe cie as a circulating medium, but such a substantial en largement and general diffusion of it, in actual circula tion, as would make it the practical currency of com- J moil life, the universal inediu^ of ordinary transac tions?in short, the money of the farmer, the mechanic, the laborer, and the tradesman ; while the merchant should be left 'in the enjoyment of the facilities of a sound and restricted paper currency for his larger nit rations. Such a reformation in the currency as this, would, in iny opinion, be productive of the most beno ficial results. It would give security to the industrious classes of society fur the products of their labor, against the casualties incident to the paper system. The labor er, in returning lo the bosom of his family from Ins weekly toil, wobld no longer find his similiters broken by the apprehension that the hard earnings of the week, |>erhaps the accumulation of long years of honest indus try, might be dissipated, in a moment, by the extilosion of a bank, or the bursting of some paper bubble. It would give security, to a great extent, to the whole body of the community, against those disastrous fluc tuations in the value of.pro|>erty and contracts, which arise from the ebbs and flows of an unrestricted paper currency. It would give security to the banks them selves, by providing them, in the daily internal circula tion of the'country, an abundant and acccssiblo fund for recruiting their resources, whenever they should bo exposed to an extraordinary pressure. This, sir, is the happy state of things We might pro mise ourselves from replacing (as it is the aim of tho jiroposition which I have had the honor to submit, to do) all bank bills under the denomination of twenty dollars, with a solid circulation of gold and silver. Is there any thing wild, any thing visionary, any thing pernicious, iil such a system of currency as this ! It has the sanction, Mr. President, of the profoundest writers on questions of political economy, and has received the practical as sent of the wisest nations. I am well aware that it would ill become mo to present for the consideration of the Senate any scheme which was not thus tested anil approved. Of all the writers.who have treated and ex amined questions of this character, none (jossess,>o high an authority as the author of the " Wealth.of Na tions." It has been well and justly suid, that Adam Smith had done for the science of political economy what Racou and Newton had done for physical science, and Sydney and I^ockn for the science of government, and the fundamental principles of civil and j>olitical li berty. His work, aptieanng contemporaneously with tho American revolution, was deeply imbued with tho free spirit, and the large and vigorous thought, which so remarkably distinguished that great era. He came forth as the zealous and powerful champion of free trade, the inflexible opponent of monopoly and restriction in all their multiplied forms, the ardent advocate of every thing that is hlieral, generous, and popular, in tho insti tutions of society and the intercourse of nations. .No work has ever exorcised so large an influence for good on the policy and destiny of nations, and none, I am sure, considering the stamp of liberty- as well as wis dom impressed upon it, is better entitled to the respect of an assembly of American legislators. Adam Smith, by a strange mistake, has been held up, rather oppro briously, as tho advocate of a paper system?as tin* founder, in fact, of the paper school! Sir, there can be nb greater mistake than this. While, he recognized the utility of a judicious system of banking, in libera ting and putting into productive employment capital which would otherwise remain dead and inactive, and the facilities it is calculated lo afford to commerce, ho vet insists that the general circulation of the country should be of gold and silver. As the general principles he has laid down on tho sub jects of banking ami currency continue still to be ap pealed to by the enlightened writers who'have followed him, as affording the soundest exposition of thojc sub jects, whatever modifications of subordinate points may have been made by subsequent inquirers, 1 will give to the Senate, and principally in the words of Adam Smith himself, an outline of his system of currency. After speaking of the advantages to be expected from a judici ous and properly conducted system of banking, he says expressly, that " the commerce and industry of a coun try are not so secure when suspended, as it were, on the Diedalian wings of paper money, as when they travel aliout on the suhil ground of fold and silver." He says, therefore, it is the policy of wise governments "to guatd, not only against tiiat excessive multiplication of paper money which ruins the very banks which issue it, but even against that multiplication of it winch enables tliem to fill the greater pail of the circulation of the coun try with it." He then proceeds to show that "the circulation of evorv country may be considered as di vided into two different branches ; the circulation of the dealers with one another; and the circulation between the dealers and consumers." His next position is " tliat^ paper money may lie so regulated as either to confine itself very much to the circulation between the different dealers, or to extend itself likewise to a great part of that between the dealers and consumers," This regu lation is effected by fixing the denomination of the notes permitted to be issued. "It were better," ho adds, " that no banknotes were issued m ariy.part of the king- ! dom for a tmnllrf sum than five pounds. Pa|>cr money ( would then confine itself to the circulation between the different dealers and where this is tho case, he says, " there is always plenty of unld and silrer " " Hut where it extendi itself to u considerable part ol the cir | culation between dealers and consumers, it haniskes gold and silver almost entirely from the country " The sys tem of Adam Smith, then, resolves itseli into this : that tho circulation between dealer and dealer may be of pa jier, but that the circulation between denier and consum er should be of precious metals ; that this result ought to be secured bv prohibiting the issue of bank note* tor a less sum than five jiouiids. and that if such a restric tion bo adopted, thcie " will always be plenty of gold and silver" in circulation, performing all the offices of exchange in the "ordinary transactions" of society, while the use of paper would lie confined to commer cial operations of a larger scale. Instead of being tho advbeate, far less the founder, of au uiiieatrictcd paper system, he urges :!ie necessity of confining it to com mercial accommodation in the larger transactions be tween dealer and dealer, lie is m favor of the suppres sion of all banks notes under five pounds , whereby gold and silver will be t^c ordinary channels of circulation, and become, iu fact, the common practical currency ol the country. Hut this system docs not rest on the authority of Adam Smith alone. Not to mention the illustrioua names or the |>olicy of other enlightened nations m su|> itort of it, it has received the successive sanction ol a long line of the ublest practical statesmen in England It is a remarkable fact, that the great work of Adan i Smith having appeared, in 1776, tho Parliament of (!re? t Ilntain, in the very next vear, passed a law prohibitir g all bankers from issuing notes under the denommatic n of five ]H)unda. This continued to lie the legislalr o policy of that country till the memorable year of 179 wheti, in consequence of the exigencies and embarra *s ments of that tremendous conflict, growing out ol the French revolution, which desolated and convulscd F Eu rope for more than twenty years, the Hank of Kngla .id, with the sanction of the Government, suspended *p? tie payments, and, at the same tune, resorted lo an i? sue of one-pound notes. As soon, however as tho war wa? ?t *>) end, and the country wu in ? situation to admit ?of the leaoiuptiou of specie payments by the hank, tho ?-nlij;hieiied statesmen of England recurred to the pro Jiibmoii of all note* under the denomination of live pound*. This return to a sound policy, however, wag not accomplished, nor has it been inaiiilained, withvut unr-uuntering a strenuous and |ierscvcrmg opposition. There is something so instructive in the history of this reform of the currency in England, that il dcsciVea tohu traced somewhat more in detail. In 1819, a. law was passed directing a complete resumption *f specie paynumts by the bank in three years, to wit, 1822 ; and at live same tune, it was enacted that in two years after, in 1NV4, all small notes under the denomination of live pounds should be prohibited. The first provision was carried fully into effect at the designated period; but such wa.i the influence of the country bankers, and other associated interests, that, before the appointed time for the suppression of the small notes arrived, the latter provision was repealed, and the final suppression of the amsll noieh was adjourned to 1833, the year of the ex piration of the charter of the Bank of England. But the greatcor.imcrcial convulsion of 1825, which swept banks, merchants, farmers, every thing before it, with tho dc structivo fury of a tornado, noon after occurred, and forcibly admonished the British statesmen of the neces sity of seeking a remedy?in part, at least?in a more solid constitution of tbeir currency. Accordingly, in the beginning of 1826, l,wJ Liveipool and Mr. Itobinson, the one the First Lord of the Treasury, the other the Chancellor of the F.icheouer, introduced and carried a bill providing for the prohibition, after April, I82'J, of all small notes under the denomination of live pounds Thia hiw was stoutly and zealously opposed at the time of its enactment, arul repeated attempts w ere subsequent ly made to procure its repeal; before the period Used for its operation. But these efforts were happily una vailing ; and the doe-trine of Adam Smiths in regard to the prohibition of all notes under the denomination of five pounds, re-established in 1820, after experiencing the Mutter fruits of a temporary departure from it, may now lie considered os the final and settled policy of the Bri tish Government. It has received the sanction and sup port of her ablest statesmen?of Liverpool, of Peel, of Canning, of llusfcisswi, of Brougham, of Wellington; all of whom, upon the fullest experience and considera tion, have, from time to time, borne their testimony to the value and importance of this essential restriction upon a paper circulation. And what has been the result in practice ? Whv, to give to the |>et>ple ef England virtually a metallic cur rency; for gold and silver form there the daily luihitual medium of all ordinary transactions.. A Iwtvk note, ex cept on social occasions is a sort of phenomenon On this point we have precise information It appears, from statistical returns referred to by the Chance-lion of the Exchequer in the House of Commons, a few years ago, tlait the amount of gold then in circulation was iTi,' 0#0,000 (twenty-two millions ef pounds sterling) and of silver /8,000 000, (eight millions of pounds sterling.) I do not speak.of gold and silver locked up in vaults of bulks ; but of that which pauses daily from hand to h?id, in the ordinary transactions of business. "Mr. Gallatin, in his mstructive pamphlet on the currency, pirfilished in 1830, slates the metallic circulation of Eng lacwl at precisely the same amount. Allowing nothing far any augmentation since, the people of England have, Usbii, an actual circulating medium of gold and silver to tb- amount of about one hundred and ftfey-millions of ! dollars. The Secretary of the Treasury, (who, doubt j lens, has access-to the most authentic sources of in | formation on the subject.) in bis annual report at the I commencement of the session, states the whole paper !' cart-ulation of England, at this time, at one hundred and fifty-two millions of dollars. We may, therefore, cort cfridc that what Mr. Gallatin says, in the pamphlet just referred-to. is substantially correct?that '"by the sup (pression of all notes of a less denomination than lb ster ,l?ig, the amount of the circulating metallic currency in England has become equal to that of bank notes .of every inscription." One-half of the entire circulation con se-us of gold and silVer, constantly passing from hat.d U* hand, and performing all the olliccs of exchange in 1 tfce ordinary business of life, and thus forming, in fjet, ] tfc?- practical currency of the country. It is tlus large i ixjf'i.-inn of the precious metals which has preserved the currency of England, in the main, in a healthy condition, uasler a system of banking wluch her Prime Minister hinv seif (Lorvj; Livcrpod,) in 182(5 pronounced to be, in odber respects, '? the most insecure, the most rotten, the vtry worst, which it is possible to conceive." Much h*s been sajd recently, I know, Mr President, of great conmiicmsl embarrassments in England, which arc at trim ted bv many to a deranged state of her currency llscse embarrassments, in my opinion, are viewed in nm h too serious a light; but if they arc not, it must be borne in mind thnf all commercial countries, however sobd tiie constitution of their currency, will occasionally be visited by revulsions m trade. If, too* they are to be considered as indicating a derangement in the currency of England, tlie source of that derangement is to be found in those defects of her system of banking which were referred to by Lord Liverpool as making it so inse cure ind precarious, and not, surely, in that salutary chock, the prohibition of small notes. On the contrary, the abundance of gold and silver which that restriction secur ?s m the common circulat;on of the country is the gtcat preservative of the system, and the anchor which cnabl t-s it to ride in safety amid fluctuations and tem pests that ini?ht otherwise overwhelm or subvert it. It i? this abundant supply of the precious metals, fill ing ai id saturating the ordinary channels of circulation, which I desire to sec brought about in our own coun try. That is the mil to be aimed at. What are the tnrt ra by which it is to be accomplished W'c have seoii that in England it has accomplislied bv the prohi bition of all bouk notes of a less denomination than lb. Similar means will, doubtless, accomplish the some end hcrv i and. I must aild, nothing dm unit. It is in vain toc.t jeet to lirirtg gold and silver coins into circulation, wtthi lut a previtws suppression of all notes of corres ]>ondi jig denominations. " The reason is obvious. If thare exist in any country two distinct currencies, both of the m answering equally well the purposes of domes tic circulation, Nit one of them possessing only a local value,, confined to the country of its emission, while the otlwr ]ias a universal and equal value throughout the worlt'n in quest of the riches and productions of foreign iiatio ns, leaving the former at home to perform an of fice which it does equally as well, though it would be whol |y without use ot value abroad. The total incom patib ilily, therefore, of a paper and metallic currency of the *tamc denominations bus grown into an axiom. Edm und Burke, (whose sagacity in questions of this sort i s well known,) at lite memorable period of the bill brou jht forward bv Mr Pitt for tho suspension of specie payn icnts by the Bank of England, in 1797, in a letter, writ' .en during his last illness, to Mr. Canning, winch the 1 alter gentleman brought most touchingly to the no tice of the House of ("ooimons, in u debate of great mtei est and instruction on this whole subject, at a much more- recent jx-nod, ,(1826,) used these memorable word .* : " Tell Mr. Pitt that, if lie consents to the nwuc of oi te-potiiid notes, he will never see a guinea again." I he prophecy, sir, been me history. No one saw a guin ea in circulation in England while the bank ron tinui id the issue of one-pound notes. in 1828, when a great struggle again took place in the ] 3ruisli Parliament, on the final consummation of tho i ilfort to restore metallic currency, there was not a smgl e distinguished man who did not bear his testimony to th e truth of Mr. Burke's axiom. The Chancellor of tli e Exchequer said, on that occasion, "there was a liatl) rat antipathy between tike one-pound note atid the sovi reign. They would not exist together, for the note sooti drove the sovereign out of circulation." The Dnk e of Wellington, who was eminently a practical man. and spoke from the teachings of cx|>cricncc. ^aid, "th^ experience of the last few years hud proved the truth of the tlieory, that onp pound notes and gold stive reigns would not circulate at the same time. If y ou are to have gold in circulation, you cannot have ?me-pound notes," Mr. iluskisson, whose fanuliantv T.vith questions of this sort was the result of profound studies, as well as matured experience, said, still more (?omtedly. " Kheu the paper is let in, the gold will dis appear. 1 hey might vote the money, they might coin tt; but how could they retain it in the country ' ' Tlu* remark applies moat forcibly to our present situation \\ o have voted the metallic money ; we havF coined it; '<ut it w ill not circulate Since we corrected, by I iw, i heumjerva luation of the gold coins, (but little mofc iharrTwo years ago.) the quantity of gold in the country, ?according to the late annual report of the Secretary of the I rcasury, has increased fifteen millions. We have ?coined at our own mint, within ctltat luue, according to the same authority, ten millions of gold. But where is it' In the vaults of the banks, or hoarded by indi viduals ! and we Shal+-iievTr see it in circulation, until we have or ened lite way for it by a previous suppression of the small notes. If we mean to do any thing practi cal and effectual for introducing a more general circula tion of specie, we must begin at the right end, by first petting dow n the small note circulation. Tin. is the true policy of the Government, and is tliat 9r actual rtfuim of tlm currency which haj been steadily held in view by the present administration and ita j friends.^ The honorable .Senator from Massachusetts (Mr. \\ elister) discovered great solicitude to know what is to be the system of policy of the new administration [ upon this subject. 1 have no means of knowing, Mr. , President, which that gentleman does not equally poa ! seas It is generally supposed, however, that the eom | lit); administration ?vil|, m the main, conform ita policy to the exemplar of the present. The inquiry 0fthe honorable gentleman, then, may lie satisfied, by showing him what has been the policy of the present adiuinistra tion ; and that cannot be better stated than in the worda of our venerable and patriotic Chief Magistrate himself I beg the indulgence of the Senate while I read a very unequivocal and explicit passage on this subject in the Preaident'a me usage of the last year In that document, he says : " It has been seen that without the agency of a great moneyed monopoly, the revenue can lie Collected, and con venient ly and safely applied to all the purposes of the public expenditure. It is also ascertained that, instead of being necessarily made to promote the evils of an un checked puiier system, the management of the revenue ekn he mode auxiliary to the reform which the legisla tures of several of the states have already commenced in r-?ard to the suppression of small bills, awl which has ""'V kr futtered by prviicr rrgulations on the part of Con grttt tn nturt a vriutieal return, to the eitent required for the tcenrttu of the currency, U the cvntHtntunuil medium.? : ocYcrt-iJ frum the covermutM am political engines, and I ?ot susceptible of dangerous extension and combination, | the state hanks will n.>t be templed, nor Will they have the power which we have seen exercised, to divert the public binds from the legitimate purposes of the'Government ? j rhe collection and custody of the revenue being, on the contrary, a source of credit to thein, will increase the se curity which the states provide for a faithful execution of their tiusts, by multiplying the scrutinies to wluirh their operations an4 accounts will be subjected. Thus dis posed, as well from interest as the obligations of their charters, it- cannot be doubted lh.it such conditions as Congress may see fit to adopt respecting the deposites in these institution* with a view to the rrruM disuse of the tmull btlit, will be cheerfully complied with ; and that we shall soon gain, in the place of the Hank of the United State*, a practical reform in the whole paper syatem of the country. If, by this policy, we can ultimately wit ness the suppression of all huuk bills below tn mtxj iMlart, it is apparent that $old and silver will take their place, awl become the principle circulating medium in the com mon business ot the farmers and mechanics of the coun try. The attainment of such a result will form an era in the history of our country, which will I* dwelt upon with delight by every true friend , of its hberty and indepen dence. It will lighten the great tax which our paper syir tein has so long collected from the earnings of labor, and do more to revive and perpetuate those habits of econo my and simplicity which are so congenial to the charac ter of republicans, than all the legislation which lias vet been attempted.' Here we have a complete delineation of the policy of the admniisfration-on this great question of t-he currency. Neither the President, nor the body of Ins friends, have proposed a total suppression of bank paper, or an ex clusive metallic currency ; but, to use his own words, they have desired to see " a jiracretal reform in the bank | ing system, by the ultimate suppression of all bank bills below twenty dollars; so that gold and silver mi^ht take their place, and become the principal circulating medium in the coqimon business of the fanners and me chanics of the country." This, he expressly declares, w ould be " a practical return, to the extent required for the setirrily of the currency, to the constitutional me dium and tho attainment of which, he adds, " will form an era in the history of our country, which will be dwelt upon with delight by every true friend of its liber ty and independence.'' There is nothing in tH? Treasu ry Circular inconsistent with this interpretation of the administration. That measure, as I have already anid, was an occasional and temporary act, resorted to under a (>ecuiiar emergency, till the power of Congress could j he interposed to apply a more systematic remedy, and ; cannot lie considered as a departure from a settled and j general line of policy. Orvthe contrary, the President, in his message at the commencement of the present sos | moti, expressly recurs to the suppression of the lower 1 denominations of bank notes, by the concurrent Jcgisla j tion of the General and State Governments, as forming " the true policy of the country," by which only " a j larger portion of the precious metals can be infused in j to our circulating medium." No other plan can be cf j fectual for the accomplishment of such a result; and, j until it shall lie adopted, all that inav be laid, however | glowing and fascinating, of the advantages of a metallic circoiati?mw^ti"rpsfrt-e but barren thewv, nnd delusive j and unprofitable generality. You may bring gold and j silver^flto the country, anil pile them mountains high in I your banks; but without the suppression of the small I notes, thev will never circulate in the business of socie 1 tv, and will always be exposed to be drawn off by the I absorbing currents of foreign trade. The object of a | rational policy is, to bring thein into a darty and active use, invigorating and sustaining the pursuits of industry, and not to have them, like the ancient household relics described by the poet, '?wisely kept for show.", The question, then, is, by what means in our power I this great object of the suppression of the small notes I may be promoted or accomplished. It is through the collcctiou and management of the public revenue only, I that the agency'of this Government can, at present, be ; usefully interposed. By refusing to receive, in payment j of the public dues, the notes of all banks which shall issue lulls of the lower denominations, as is proposed by | the resolution I have had tS* honor,to submit, as strong ' inducement of interest will I* held out to the leading I State banks to discontinue their smaller issues. The ! consideration of the credit and more general currency given to their paper, by a receivability in payment of the : revenue, would, doubtless, induce mure or less of them I to conform to tiie standard which shall be established in i this respect by the legislation of Congress. Hut my re I liance is not so much upon ilie operation of the measure per sc, as upon the moral influence it is calculated lo 1 exert upon the policy of the States. They have the i complete power to prohibit, by law, the emission and circulation of the smaller notes ; and I cannot doubt it,. | if this Government shall hold up to them a standard deemed indispensable to the purification and reform j ol the currency,-that that power will, in process of time, , be exerted so as to second and render effectual the |k l. I cy of our legislation here. Have we not every en couragement, in what has already taken place, to hope for such a result ! It is only a few veurs ago that Imt three ol the States, according to Mr. Gallatin, (Pennsyl vania. Maryland, and Virginia.) had prohibited the issue of notes under five.dollars. Hut, sinre that time, it has been the policy of the General Government, in the col lection and management of the public revenues, to dis I countcnance bank notes under that denomination. And ; what has been the result ' We have seen the States, one by one, successively conforming to the example, till ' now a majority of tham have prohibited all bank notes i under tiie denomination of five dollars. The confidence , I feel m the enlightened patriotism of the State Govern ; tnents, and hi tlw popular intelligence and virtue which | control them, gives me every assurance that an appeal to their co-operation in so great and noWe a work will not be iii va n, especially when thev sliall have before the in a sober and practicable exhibition of the probable results of the policy in which their concurrcnce is in 1 vitcd. I.et lis then inquire v. hat is hkelv to lit the tttent of the cflect which will be produced on the currency by i the successive j inhibition ?f all notes under five, ten, ami twenty dollars, respectively Mr Gallatin, whose skill m questions of this n>rt is universally admitted, in j his able pamphlet on the currency, written in lHtJO, es timated the reduction in the amount of the paper circu j atirtn which would arise, ut that tiuie from the suppres : siofi of all notes under live dollars, at mz millions ; and I tintt likely to be produced by a suppression of the notes Under ten dollars, ot about seecn imlltniis ; making an aggregate of thntren miliums of dollars, slid equal to one tilth of the whole paper circulation of the country. Another highly respectable authority on American bank log, (Gouge,) estimates, in 1831, tiie ainouut of notes unijer live dollars then in circulation at sercn millions ; and of notes under ti n dollars, at ten millions ; making on aggregate of srecnteeu millions. Hut let us take Mr. < Gallatin's estimate, and suppose that the suppres sion of the notes under five and ten dollars would, to ( gctlier, opf rate a reduction of one-fifth in the whole amount of l>aiik paper in circulation. Let us then sup pose, (which, I |>resnine, would not lie extravagant,) that the suppression of ull notes under twenty dollars, and above ten, would produce, in amount, a diminution of one-liflh more of the paper circulation. Hy the ulti mate suppression of all notes under twenty dollars, we should then gam an aggregate reduction of two-fifths in J the whole paper circulation of the country. According to the recent report of the Secretary of the Treasury, the whole paper circulation of the country amounts at this time to 1'iO millions, two-fifths of which would be 48 millions of dollars Hut, in order to be within sure limits, we will suppose that the amount of bank paper which would be withdrawn from circulation by the sup pression of all notes under twenty dollars, would be only 40 millions. That, of course, w ould be replaced by an *{ual auiouut of guld and silver. How, tUen, woutt stand the account iu the final reault' Forty milhooa, taken from the 120 luilhon* of paper circulation, would leave 80 milium* of paper; and added to the 38 inU liona of gold and ailver already in circulation, according to the estimate of the Secretary of the Treasury, w?i? give ua 6H million*; or, (for the aake of roundnumber?, and te compensate htieral deductiona uiade above,) 70 nullum* of guld and tthv ?* ?cine circulation?not daunted up and stagnating in the coffera of the banks, but spread ove* tlie land, irrigating, refieahmg, and fci tilizmg the whole country. Such, Mr. Prcaident, would be the aohd and practical rcault of the ultimate eupprcsmmi ?f all bank billa unde* tlie denomination of twenty dollars. It would give to the country nearly one half of it* whole ciiettWij in the precious metala, forming a aolid and unfailing fund for the payment of labor, for the buying and selling of the necissaries of life, for the great mass of daily trans action*, including the wants and interests of tlie farmer, the mechanic, and the tradesmen ; while the other half woujd conaiat of an improved paper currency for the ute and accotinnodhkUon of the merchant, lud foe In? larger operation* af trade and buameaa. I would ask gentlemen if auch a reault ia not " a consummation M* voutly to be wished V9 Would it not, in the glowing and patriotic language of the President, form " an era in the history of the country which would be dwell upon with delight by every true friend of its liberty and in dependence 1" And can we suppose lhat the enlighten ed legislatures of the States, in the view ef such a re ault, pregnant with consequences so important to lbs safety, the prosperity, and the morals of the whole com munity, aiia especially to the interests of those numer ous aiid industrious classes which form the basis and aupport of out republican system, could be so deaf to the united call of patriotism and w isdom, aa not to lend their co-operation in so great and salutary a reform f For myself, Mr. President, 1 feci a cheering c onfidence lhat they will give a helping and efficient hand to this great work The Legislature of my own State is now encaged in revising her Unking *yslem, and I console * myself in ihe belief that she will be among the foremost to vindicate the wisdom and patriotism of the State councils from distrust, by hearttlyjeconding, in her le gislation on the sunject. eur effort* here lo establish ? souud currency for the country But sir, till by ihe suppression of the small notea the circulation of the country has become better filled with the precious petals, I do nol think it would consist wiih a just, wise, and paternal policy "on ihe part of the Go vernment to exact payment of its due* m specie exclu sively . It could not be dene, without great hardship to Ihe public debtor, and exteriaive distress and embar rassment to the whole community. To demonstrate this, nothing more is necessary than to compare the amount of specie in circulation with the amount ol tl? revenue ; for it i* conceded now, that if payment v> ?"? branch of the revenue be required by any pcrmantnt regulation to be made m specie, all ought to be . paid in specie. According to the estimate of the Secretary of the Treasury, (which appears to me a very liberal one,) the whole amount of specie in circulation doe* not ex ceed twenty-eight millions of dollars. The revenue diirm.' the last year amounted to forty-seven millions ; and perhaps, with all our ellbrta to reduce it, it .nay aull not -"full sliari of thirty millions. '1 here would then be thirty millions of dollars to be paid to the Government, out of a circulation of twenty-eight millions ! I? ceo front tlie two sums is lo show the temerity, if not the impossibility, of the attempt. If Hie public debtors should be thrown upon the banks for large amounts ol specie not to be had from the circulation of the coon try, no one can be at a loss to perceive to what a dis astrous extent the business relation* and pecuniary con cern* of the whole community would be embarrassed and deranged. Aikl how much of specic, permit me to auk, would remain for that immense mass of payments in private transactions, which, according to a practical estimate made by Mr. Gallatin, in reference to the reve nue collectcd, and the business done, in the city of Now York, exceeds mure than fifty time* the payments to Ihe Government1 Nothing, therefore, can bo-clear" than that an attempt, with our present limited meMUC circulation, to collect the public revenue ui spccio alone, would bo distressing to the last degree, and could not abide tlie test of that public judgment, without whose approbation no system of [.olicy can or eight jo ?t?nd. The honorable Senator from Missoqri, (Mr. Benton,) in the able speech made by him in the o|tening of th?? discussion-r-a *|>ecch which does him groat credit, not only for the extent and variety of the research displayed by him, but for the force and ability With which he il lustrated his own views, (m some of which it is my mis fortune to differ from hrfn>?brought to the notice of the Senate, from the evidence takwi b?fore the Com mittee of Secrecy of the House of Commons on the Bank of England charter in 1B32, tlie case of a banker at Manchester, who |wud out, in tjie course of ihe year, about six millions of dollars in specie to the operatives of that place. But this was done in. a country which, as I have already shown, possesses an actual circulating metallic currcncy of one hundred and fifty millions of dollars, w hereas our metallic circulation is but twenty eight millions ! The examination of Mr. Samuel Jamee Lloyd (the banker referred to) on this point, is so in structive in itself, and so strikingly illustrative of the arguments I have advanced, that I beg leave to read the whole of that portion of it to tlie Senate, in the form of question and answer in which it is reported : ? Qurslinn. You are aware that a great amount ef spe cie is required every week for tlie payment ol wages at Manchester ? Anttrrr. A very large amount. ? q Can you give tlie committee any idea of the amount^o, ^ r>nnol. lmt KO far as regards the i**ue of our owu house, I should say that upon the average we pay about 25,000 sovereigms a week. ? Q l.s that a fresh supply ol sovereigns in each week, or do you obtain it from the circulation oj the place. A We require a continual fresh supply, but not to that extefit. I think the fresh supply requisite"will ave rage something less tlian 10,l>00 a week. (j Before the abulition of the 1/ note*, were those payments generally made in 1/ notes ? A. Kntirely. , Was the amount then about the same : jl. Quite as large . . (J. You say that about 25,000 a week is wtotyou M* called upon altogether to nay, and that about 15.M0CMM bark mto your hands ' What do you apprehend becomes tlie remaining 10,000 sovereigns i, A< When the 1/notes were-m circulation, we could trace it pretty accurately, and I believe the course to be the same with the sovereigns; they are paid prmc pallr in wages. The work people lay them out in clothing and provisions, and those sovereigns pass to the provi sion dealers ; and thence into the districts from which the provisions are supplied ; the sovereigns then [*? ?? to the hands of country bankers in those districts, wh? rithrr tend up lo London, or return thtm to MancMHtr, aa may tie most convenient to them. . (J. It does not follow, then, because you are obliged to Itnvc 10,000 sovereigns from the branch bank, (that is, brunch of the IWik of England) that the amount of he circulation in M*ncl>estcr is continually increasing at the rale of 10,000 a week ? . . .. ., A. No, I do hot appreliend it is increasmg at all. Now, s.r, let us sec how these large payments in spe cic, in Mancliesfer, are made. Mr. Lloyd snysexpress Iv, Unit, of the 25,000 sovereigns a week paid out by him 15 000 of them are obtained from the circulation ?/ the place, as, ihreugh that channel, they regularly romc bark into h,* hand* : that he requires a fresh sup ply of about 10,000 sovereigns a week, from tlie bank, but these ten thousand sovereigns are also constantly returning to the bank from the circulation of the coun try They are first paid by the work people to the pro vision dealers ; then, by the provision dealers to the farmers, of whom they can procure their supplies ; from the farmers they pass into the hands of the county bankers, who either return thein lo the t-ranch bank at Manchester, or, what is the same thing in effect, send them up to ihe parent bank at Ixindon. Hum. ?? whole amount of these siiec.ie payments is supplied y the actual circulating medium of the country?a thing easy and convenient enough, and ]>erfceily where the amount of gold arid silver in daily and ?ct' circulation .? 160,000,000 of dollars, I o make largo navments in specie, under such circumMances, is at tended with no difficulty, because s,*cic is the common and habitual currency of ihe country. The n.eulhe circulation of England is a prrrH>iusl ^ the streams which How from, ami sre constantly return ing'.nto, n. But to make payments m specie, to the Government alone, of thirty or twenty millions of dol lar- or the half or the fourth of those sums, m a coun trv whose circulation consists of 120,000.000 of paper, and of but 28,000,000 of gold and silver, ui a far dif '^Another^nost important lesson is to be derived from the evidence of Mr IJoyd llow were these P?yme"W for wages made in Manchester previous to the pr"hibi tion of Ihe smell notes t In ?nvrreign* ? In Kotd aiid tilrcr f \*l us turn lo the examination of Mr. Eloyd. (J Hrlote the abolition of ihe 1/ notes, were ihoae peyments generally miule in 1/notes U Was the amount then al?out the same ' A Quite as large." Previous to ihe suppression of the -rnsllnoU.. *** the whole .mount of payment* now ma.le m | " . j, Aiclusivelv in one-pound notes ; and, but lor tnai r,ire"'on! w^ld still be nude m one pounl noH-r W^ule the one-pound notee were in circulstion, l^h Mvments could not l?e made in goM. I-c.uMr gold w notTn circulation. Gold was, doubt ess.m the co.m try, accumulated ui the ?aulta of banks , but no nf