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In circulation, there <m n# common and acc?uble tuna
from which U could bo re?lily .nd cooy.ni.nUy obUm od for the busincs of Ufa. It n.ver will bo suppreaaed It m in win for th. Got.rnm.nt U> atumpt lo bring it into circulation by dwnaadmg it m p?ym.nt of lb. pub lic dun By doing so, ihe public debtor m.v be sub ,?cted 10 hardship, th. bank. may b. exposed U> run. udmi thorn for sp~i?, and th. bownoM of th. comrnu niiy may bt crippled and denngtd Bat gold and w* hrer will never eircuUu while bank notes of the ?*m* denomination are permitted to occupy th. channe# of circulation. "You may call spirit. from th. vaaty d..p, but wilt they come V1 Tb. requiaition of apecie in poymonU to th. Gov.rn ment will not only not .veil to bring gold and ailver into ctrcuitUum, but if maieted on, while gold and silver yet form, comparatively, but a email part of the actual cur rency of the country, it will inevitably have the effect of diminiahing their circulation. While bank paper forma the great maae of the currency of the country, if the Government wjfute to receive it in payment of pu lie duee, and demand epecie exclusively, the neceaaary consequence will be to enhance, to a greater or less ex tent, the valu. of gold and ailver in relation to paper That being the case, gold and ailver will no longer eir culate freely. Those who have apccie will be unwilling to part with it, except at a premium; and thus. who have note, will be anxious to convert them into apccie. Hoarding of the precioue metala will then commence, and but little of them bo aeen in circulation No one, I preeume, Mr. Preaident, attache* much importance to the collection of the public revenue in apecie, aa an uUi malt object, if it can be made equally .ale by other mean*. It i. only a* an inatrument of purifying and correcting the currency, that it deserve# the coneidcra tion of a practical atatcaman. I he great object is not to amu. apecie in the public treasury, or m the vault. of banka, but to diffuac ita healthful currenu through the buaineaa of aocioty, and to bring it into active cir culation among the people. This can on y by the previoua suppression of the sinsll notes , ai d any attempt by the Government, before thai it iJu"e'^a. collect ita revenuea in apecie, inatead of promoting and extending th. circulation of gold and ailver, tenda direct lv to narrow anil diminish their circulation. The mdiacnininat. refuaal of bank paper in payment of the public duea might, in the preaent condition of the country, be attended with other serious hazard.. ** have heard a great deal recently, Mr. Preaident, of the pecuniary panic and distress prevailing in England and Ireland, and of extensive commercial embarrassments felt there These embarraaamenta, (in Ireland, espe cially,) aeem to have ariaen mainly from tin* very cir cumstance of a refuaal to receive the paper of solvent banka in collection of the public revenue. It appears that aom. of the collector# of the cu.loma bad nly refused the bill, of the Provincial Bank of Ireland. Thereupon, ? run upon the bank immediately com menced/ which, nevertheless, weathered the storm. The panic spread in regard to other institutions, which, though solvent, were compelled to ston pavment; and a general acene of confuaion, alarm, and embarrassment ensued. But I will give the details in an extract from an English paper, which has been republished extensive ly in all of our principal journala. Here it is : " The pressure was yet severe, not only throughout England, but in Ireland. In the latter country, there had been a.pauic, attended by several severe disaster*. 1 Ins panic was commenced by the collectors ol the customs at Newry, and some other places, refusing the bills ol the Provincial Bank of Ireland. A run upon the bunk was the inevitable and immediate consequence. Iheeolvrncu of the bank, however, hni never bern <puet toned, and *&* fi nally attested by the re.ult. The panic spread in respect to other institutions, and the Dublin Agricultural ? ^topped payment pn the 15th. Strong efforts were made by its friend* to sustain it One gentleman Mr .re aham, sent in 25,000/. The liabi ines of the bank are stated at 240,000/; its assets at 6H0.000/. "This bank was established in 1834, by 2,1 <0 p?rtniis. It now has 5,000 paHners, and twenty ix brmichet scatter ed all over the country, all of which itop of cvurte. But, notwithetanding the eolvency of the institution, Us suspension will operate fearful injury. All this pecuniary suffering and distress, widely ramified as it afterwards became, originated in the re fusal by officers of the Government, to receive the notes of a solvent bank in payment of the public reve nue If, Mr. President, we shall, by a sweeping l??, refuse to receive the paper of all banks, however sound, in discharge of the public dues, will there not be danger of similar consequences? Might it not o|>erate, to s certain extent, ss a discredit of all bank pa|>er, exposing the institutions which issue it to severe runs, and the community at large to consequential pressure and em barrassment 1 At all event.,-there would 1* heavy demands upon the banks for the specie requisite in pay menu to the Government, whi?h the limited metallic circulation of the country would be wholly inadequate to supply. Would it be just or wise in the Government, in the present condition of the currency, with a Shylock severity, to demand its pound of flesh ! NN ould not such a course tend to produce, instead of averting, the catas trophe which appears to lie dreaded by some' I should be as little disused. Mr President, as any member of this body, to hazard the safety of the public revenue by any undue laxity in regard to its collection. The proposition I have had the honor to submit, pro vides studiously for the security of the revenue It not only does not sllow the notes of any banks to be re ceived, but such ss are promptly redeemed in specie? auhicct, too. to important restrictions in regard to their denominstions?but it expressly declare# that no notes whatovcr ahall Iks received which the banks in wlncii they are to be deposited shall not agree to pass at once to the credit of the United Statca as cash. 'I his gua ranty of the deposite banks converts the whole of the public collections, virtually, into specie ; and when it is recollected that the Secretary of the Treasury is undow ered, whenever he thinks it necessary, to obtain from them a special and supplemental security for the public deposites, the solidity of the guaranty may be reposed upon with confidence. * It is objected to this provision, by some gentlemen, that it puts it in the power of the deposite bunks to say what notes shall, and what shall not, be received by the Government in payment of rs revenues 'I lie absolute responsibility of the deposite banks for the notes depo sited with them on public" account is deemed a funda mental principal in the fiscal code of the Government; without it, the practice of ?pecial deputies must be re vived, which formerly subjected the Government to heavy losses, and is the origin of the unavailable funds, still borne on the books of the Treasury. But if the deposite banks are to be absolutely responsible for tho notes deposited with them, as so much cash, they ought certainly to have a reasonable discretion as to the notes they shall receive on deposite. This is no new princi ple in the practice of the Government; it has been a standing instruction from the Treasury Department to the public receivers and collectors, for more than twenty vears, to receive no notes but such as the dejiosite batiks 'would credit to the United Slates as cash To satisfy, however, as far as possible, the jealousy which has been expressed on this subject, and to guard against any ar bitrary or wanton abuse of their discretion by the depo site banks, I have, by a modification of my original re solution, placed them, in this regard, expressly under the supervision and control of the Secretary ol tho i rea While the proposition I have had the honor to submit provides, as I believe, in the amplest manner, for the security of the public revenue, it pays a due regard to the interests of tho great body of the community. An inflexible exaction of gold and silver in payments to the Government, in the present condition of the circulating medium, it seemed to me, would involve a necessary and serious derangement U> the whole business and commerce of the country These interests I believe to be more or less common to all I am not one ol those who ace a natural enmity and inherent incompatibility between the interests of different classes of men ; I do not belong to that school of philosophy which divides society horizontally, the upper portion pressing upon the lower with the weight of its incumbent mass, while the latter is constantly striving to throw off the load by violent and vindictive struggles, This is the helium omnium in omnia which forms no part either of my phi losophy or my feelings. No, sir; my theory assigns a perpendiculsr stratification to society, placing all its component parts, side hy Hide, on the same platform of equality, with common rights, common interests, and common duties, mutually giving and receiving support by the juxtaposition In this aspect, the interests of the merchant, the farmer, the mechanic, the laborer, are the same; what proinotea the prosperity of one, redounds to the advantage of each. In regard to the effect upon the currency, the propo rtion I have had the honor to submit, if adopted, would sprove in eome degree instrumental, 1 trust, in promot ing that great reform which has been so impressively recommended by the patriotic Chief Magistrate of the nation, and which, at the moment when ho is about to cloae a long and glonous career of public service, in a hallowed retirement, " by all a nation's wishes blest," may well form the object of his ardent vows for his country. That reform aceks, by the substitution of cold and silver in place of the lo*er denominations of bank paper, to make the preciou. metals the familiar cur rency of common life. But this object can be fully ac complished only by the ultimate suppression of all notes under twenty dollars ; five dollar notes ant. half eagles will not circulate together ; the ten dollar note must be put down, before the eagle can take its place. I am aware, Mr. Preaident, that our position is not exempt from difficulties and dangers But I see in them nothing to create alarm, far less to excite despondency; but^cvery thing to rouse the devotion and energy of ?h? I patriot With whatever ewbamuamenta w? my be beset, l be re ia ? redeeming power in the virtue end in telligence of the American people, which will conduct ua in safety and triumph through them *11. Some gen tlemen, I find, ?till fondly recur to their favorite preacriu Don of a national hank a* the panacea for all our ilia In my humble judgment, air, the remedy ia far worae than the diaeaae. The protection of a national bank would be " auch protection aa vulturea give to lamba " No, air; let ua rather luvoke the protection of our guardian and victorioua bird, the American eagle, the emblem of our freedom and atrength. An able and ei|?erienced member of the Houae ef Common*, speaking of the inherent tendenciea of the banking ayatem, said, " there ia in it an inevitable tendency to over laauea of paper, without a constant sentinel keeping watch U|ton it, and that sentinel" (for them) " waa the metallic sotereign in constant circulation." The American metallic eagle, in active circulation, will |>erform the aame tutelary office for ua; and with auch other provision* aa the practical and aagacioua apirit of American legislation shall deviae, will finally, I firmly believe, place our cur rency on a footing which, for convenience and aecurity united, will rival any other under the sun. I^et the Stale Legislature* proceed firmly and vigor nualy in the au|tpression of the small notes. I believe they will. They have the highest motives which can address themselves to human action to accomplish this great reform. Let thein subject all banks, both old and new, to efficient regulation ; let tlieia regard with jealousy every proposition for an increase of banks, and yield to none which is not founded on broad considera tions of public utility ; let them impose strict, practical limitations both upon their issuea and their diacounts ; let them provide for frequent periodical scrutinies into their condition ; and, above all, let them retain in their own hands a constant power of correcting abuses, and of protecting, in every emergency, the interests of the community. It is this principle of legislative regulation and con trol over banking institutions, which constitutes the dis tinctive feature of American policy. It is the reault of the practical character of the American nund ; and I ain happy to perceive that the people of older coun tnea?of England especially?are turning to us for les sons and examples in this branch of the public econo my. In that country, l>?yond the 65 miles from Lon don, which define the limits of the Bank of England monopoly, numerous broods of joint stock companies and private hankers have sprung up, without regulation by law, without limitation of number, without restric tion as to their issue*or discounts, and without respon sibility to the public authority. The conseijuunce has been, that this branch of tln-ir system has run into wild disorder and confusion. They now see that the privi lege of issuing money, of whatever kind, is an essen tial branch of the public sovereignty, and, like every other delegated power of that sort, it must he subji-cfod to regulation, to inspection, to responsibility. This is a lesson tliev have learned from us; and it is gratifying to see that, on another fundamental point, the most en lightened minds in that country are coming to the same conclusion that we have attained. They begin to see that the monopoly of the Uank, of England, as that ofi the Hank of the tJmted States here, is a dangerous mo nopoly ; that the dominion of such an institution over the circulation is a power more of evil than good ; and that it must be brought down to the level of competi tion with other solid institutions. The opinions of the two countries, on this great concern of the currency, are mutually approximating, and settling down upon a common system. They are learning from us the neces sary checks and controls of a paper currency ; we from thein, I trust, the value and iui|>ortancc of an enlarged metallic circulation. I rejieat, then, there is nothing in our present situation to excite alarm or despondency, whatever occasion there may be for vigilance and cau tion. Lei us look our dangers steadily in the face, but let us not he dismayed by thein Let us grapple with the difficulties which may oppose us, 111 a spirit of stren uous and determined patriotism, and we shall triumph over and subdue thein. In conclusion, let me sav to the political friends, with whom I have had the honor to act in trying times, that, after having successfully dissi pated so many panics raised under other auspices, we shall not. I trust, at last become the victims of a panic of our own creation. THE MAD ISO NIAN. WASHINGTON CITY. SATURDAY,: AUGUST 19, 1837. " In fht regulation! which Congress may prescribe, respecting the custody of I he PU1ILIC MONEY, it is DKSIKAF1L K THAT AS LITTLK DISCRETION as may be deemed consistent lnth their safe keeping, should kk givrn to Exkci'tivk Aoknts."?General Jackson's Message, Dec. 1835. " Who U-ill probably he found lrss tesrONsmi.C, sake, conveniknt, anh bconomioal" [th,m banks ]? Mr. Woodbury's Report, Dec , 1831 "Hanks cannot he dispensed with, EXCEPT AT t?IK SACRIFICE OF AM, JUSTICE IN K FOARD TO THE CONTRACTS MADE UNDER A MIXED CURRENCY, NOR WITHOUT A VIOLA TION OF THE FAITH PLEDGED IN THE LEG ISLATION (WERE HONESTLY OBTAINED) BY WHICH THEY WERE ESTABLISHED. THE SUB JECT MUST BE LEFT TO GRADUAL REFORM, TO WHICH THE PEOPLE OF THE ' RESPECTIVE STATES ARE FULLY ADEQUATE." iilubc. EIGHTEEN REASONS Against the proposition to " dioOrce the General Go vernment from all Hanking Institutions, and substi tute Sub-Treasuries, 1. It will be trying an unnecessary expe riment. 2. It gives one currency to the. Govern ment, and another to the people, and reflects discredit on tlie latter. 3. It levies a tax of ten to twenty per cent, upon the public debtors, and therefore the consumers, who are the I'eoplw. 4. It yields up the proposed reform of the Hanking System, which was the favorite policy of the whole of Gen. Jackson's ad ministration, and one of the leading principles involved in Mr. Van Buren's election. ' 5. It is hostile to the State Institutions. G. Those Institutions are so thoroughly incorporated with every interest in the coun try, that it would be difficult to get rid of them for many years. 7. The public, money will be unsafe. 8. It virtually surrenders the "purse" to the Executive. 9. It will enlarge the patronage of the Federal Government. 10. It will increase tin; dillicultv, charge and expense of transporting the public funds. 11. It'will subject the public debtors to great inconvenience. 12. It opens temptation to peculation and embezzlement, and is therefore of a demoral izing tendency. 13. It will put off indefinitely, and perhaps render impossible the resumption of specie payment by the State ?Institutions. 14. It will result in the issuing of paper money by the Government, and render it to all intents and purposes, a Brink. 15. It will derange exchanges, confuse business, and causc a universal blight and paralysis. 16. It will contravene the approved doc trine of Gen. Jackson : "that in the regula tions which Confess may prescribe, respect ing the custody of the public money, it is desirablcjhat as little discretion, as may be deemed consistent with their safe; keeping, ?hould be given to Executive Agents." 17. The amount of specie, equal to the public revenue, will be almost wholly lost to the uses anil profits of the country. 18. It will result i? an increased demand fur a National Bank, and secure its establish ment. A CURSORY REVIEW OF THE TIMES " We do but tell you, what you all do know." This country has progressed for hnlf a century, under a system as favorable to its prosperity, as any perhaps that can be devised. It has been borne triumphantly through two wars, involving an expenditure of nearly two hundred millions of dollars?it has establish ed its system of government, embracing in its policy, internal and external, an area and extent surpassing any nation on the globe; sustained an honorable pepce, and preserved its faith and credit; improved itself within, and fortified itself without; delivered itself from the bondage of all debt, and distributed largo surplus revenue among the states; developed the resources and exhibited the pro mise of a great, free, and glorious nation. For these things, we, who enjoy them, are indebted to the virtues of our fathers, the wis dom of the founders of our institutions, and our own conservative conduct, industry, and enterprize. Twentyssix separate and independent states have been formed, many of them differing in pursuits and geographical features. Appa rently insurmountable obstacles have been overcome, and the howling wilderness has been transformed, as if by magic, into popu lous and cultivated communities. Rivers and lakes, hitherto accustomed only to the wild water-fowl, or the Indian bark, have become suddenly alive with commercial vessels and the machinery of steamboats. McAdamized higwaya, rail-roads and canals, have pervaded the country in every direction, giving free circulation to the products of mechanical skill, of art, and of labor, and animating the whole, immense, diversified country, with every sort of active business and intelligent enterprise. The abundant means of wealth every where presented, and within the reach of all, attracted crowds of emigrants from less fa ! vored foreign countries, who have swarmed in our Atlantic cities, and lined the great high ways leading to the rich valleys of the grow ing west. Many of our own citizens -had al ready found their way there, and the rapid settlement of that country was no longer a matter of doubt. The policy of the Govern ment had rendered the terms of purchase easy and convenient, and the ownership of western lands, and the occupancy of valuable sites and eligible localities for cities and towns, hccainc matters of strife. So long as people confined themselves to their actual means, or were sustained by the business and resources of the country around them, those^iperations were for the most part, safeTh^althy, and prac ticable. But the rapid increase of population, and the demands of a rapidly expanding bu siness and trade, could not fail to be observed by people shrewdly alive to their own inte rests. Their cupidity became excited, and an inordinate desire for wealth was generated. The rage for speculation ensued. It seized nil classes, and became an universal mania. The old beaten track of plodding for our gains, was forsaken and contemned by the restless anxiety for change, and all seemed to engage in the alluring game of running hazards.. It involved .the wool-grower, manufacturer, and merchant of the north, the cotton grower and < merchant of the south, the tobacco planters of the middle states, and tli'e traders and adven turers of the west. A long period of peace and unexampled prosperity, had fortified every interest with universal confidence. The long and profound peace of Europe, had accumulated surplus capital which sought investment here. The charter of the Hank of the United States ex pired. The enlargement of the specie circu lation from twenty-eight millions, to about seventy millions, had furnished a basis for an increase of banking corporations, and a con sequent extension of bank facilities. Nothing but some great public calamity could have stopped the course of events. The career was hastened by the most incorrigible and uni versal passions of human nature, The mcr-1 j chants of the south made enormous advances ! to the cotton planters in anticipation of their | crops." The capitalists Of all the large towns engaged all their surplus funds in speculation, i or in loans for the purpose. Lands and pro | dure rapidly advanced, and every thing com? ! mauded unusually high prices. All were sti mulated by the opportunities which these ris ing values presented of making money.? People of small means, and people of no means, were alike infected, and to make tip ' lor the "deficiencies of their own resources, the banks were called .upon for more and ex ! tended accommodations. The operations of j trade and commerce, became also every where . inllatcd. The merchants of the west, invest ing the proceeds of their sales more profitably | in lands and other speculations, would piy up | at the usual periods but a small proportion of ; their old accounts, and run in for new hills tip j on extended credits. Their creditors at the | east, complaining at first, soon found them | selves following their example, and engaged ! in the same process of withdrawing capital i Iroin their ordinary business, and investing it ! in the speculations which were going off with so much eclat at home, and they not only, also, bought their goods on extended credits in Europe, but went in for tintisually large sup plies. The consequence was that the iinjiort ations of 183G, exceeded the exportation s of the same year about sixty millions, and by about the same amount did they exceed the importations of any previous year. Nor was the spirit confined to this country. Many of | the largest houses in Loudon had engaged in j unwieldy speculators in cotton and tobacco, j , and vast amounts of foreign capital was ein- ! ployed in various projects in the United States, j | The speculations were governed by no set- I tied and certain laws of trade. Tliev count " 0 ed the value of their purchases, not upon their intrinsic worth, but upon the probable price which they might accidentally obtain in an excited market. When speculation was at its highest tide, the Treasury Order of the 11th July, 1836 was issued, requiring specie in payment for public lands. This measure was intended to check speculation, to secure the government against losses from deprecia ted paper, and infuse so far as that amount of revenue would go a larger portion of metallic currency into circulation. According to the estimate of the Secretary of the Treasury, the whole amount of specie in circulation did not exceed twenty-eight millions of dollars. It is obvious therefore, that if the Goverment re ceived from the land sales the amount esti mated the last year, twenty-four tnilhons out of tuvnty-eight in circulation, would have pass ed through the Land offices. The cotum crop of the south failed, and the returns of the husbandmen of the north were small, both iu consequence of neglect and bad season. The term of mercantile credit had run out?no seasonable returns were had from their enormous investments. A heavy foreign debt had accumulated, and become due. The only alternative seemed to be a run upon the banks for specie or an ex tension of credit, until other reTnittances could be made. The merchants, commencing with those houses which had mude advances to the cotton growers, failed, and the banks, com mencing also in the south-west, suspended specie payments. It was not the mercantile interest alone, that was involved in specula tion, itnd likely to suffer the consequences of a revulsion. Embarrassments of the coin i.icrcial interests, will always affect every other interest, because every other interest Is more or less connected with them. Dis tress ensued, in sonic of our large cities, which has been unparalleled in the commercial history of this country. Business, in most places, languished, all enterprise was paralyzed, con fidence destroyed, and credit gone. Such a state of things, however, could not long con tinue among a people of such elasticity and* sagacity as those of the United States. With the blessings of Providence, and the exertions of productive industry, a short time to settle balances, and the country would again resume its healthy and prosperous condition. Hutou the one hand, the efforts of a tireless opposition, determined to embarrass and, pros trate the General Government, have highly ex aggerated the pictures of the times,alarmed and excited the imaginations of superficial minds, and doubtless aggravated the disorders we have cursorily attempted to depict; careful ly concealing their own agency in the matter, and the true causes of the prevalent embar rassments, they have endeavored to fasten the whole mischief upon the Government, and turn it to political account. Taking advan tage of public distress and individual suffering, they have endeavored to weaken the confi dence of the friends of the administration; and trying to sow division in their ranks, have presumed to calculate upon the complete over throw of the republican party. Afterpretend ing to abandon the ground, we now find them unmasking their designs, and loudly clamoring for the resuscitation of an Institution,with pow ers co extensive, if not greater than those of the government itself, which the people had dis tinctly and repeatedly voted down. On- the other hand, a party, little satisfied with any thing as it exists, living in a world of impracticable theory and abstraction, have agitated doctrines, which not only tend to in crease the difficulties under which the coun try labors, but threaten the most excellent in stitutions with subversion, and even the social compact with disorganization. The burden of their clamor is, the destruction of the credit I system?a system, truly called, " the distin ! guishing feature between despotism and lib I erty"?the lever of Archimedes, which has de veloped our resources, increased our wealth, established our power?a system with which we commenced our career as a nation, with which we have prospered, upon which we | repose, and to which we owe all we are, and | all we can hope to be. Party spirit, thus kept excited, may continue the disorders of the times, and defer the resto ration of confidcnce. "But it w ill not long be | thus. The abundant harvests of the season, will soon begin to aid in stimulating business ; and the lessons of prudence and economy, that people have been practising, will soon enable the foreign debt to be paid off", and the coun try will resume its usual course, chastened somewhat bv its adversities. In the mean time, all should exert themselves iu propagat ing sound principles, in maintaining good faith, honor and credit, and in promoting harmony and union. B A NK1N G S Y S T KM. lilt TRIE DOl'TR IXL. Crusaders against the Banking System of ! the States, would be wise in providing them j selves w ith text books, furnished by combin ing tin- opinions of the great leaders of the Republican party. They will then wander forth in their Quixotic career with a better understanding of the position ot". their ene mies, and forewarned of those Inns, where, like poor Sancho, they may gfct tossed in a blanket. If they flatter themselves that the seeking of new and untried paths, the adoption of new creeds, or the eutire relinquishment of the old ones, will be countenanced by those to whom they would fain look for direction, they must have a singular confidence in that jeytel of virtues, CoNstSTE.vcv. For our part, v.e will not have the uncharitable ness to be lieve, that these gentlemen whose opinions we quote, and relv upon with confidence as the true doctrine, will "turn their bucks upon th'Mxelres," and repudiate the principles upon which they have always professed to act. To romodv the n^use^ of the Hanking Svs teiu by destroying ail the Banks, would be very much like hanging a sinner for the pur pose of reforming him. We trust the people will be guilty of no such folly. We trust they will be on their guard, and not permit the pre vailing disorders to blind their eyes to the true policy, nor allow themselves to be led astray by the sinister devices of demagogues, or the extravagancies of fanatics. We readily admit that our Banking System ' in defective, and we shall cordially co-operate in any proper measures for a practicable and wholesome reform. But let us avoid rashness and violence. The embarrassments of the country would be wofully involved and in creased, by punishing the State Institutions with destruction, because, involved in the vortex of a widespread commercial and finan cial calamity, they were forced to suspend specie payments. Moderation and lorbear ance will best subserve the purposes of re form, and turn away-the evils, with ? hich the community would be overwhelmed by any other course. Let us remember the great principles for whic h we have been long con tending. Let us remember that Congress, in relation to the currency, has only power, by the letter of the Constitution, to " coin money and regulate the value thereof, and of foreign coin." 'l'he question of a National Bank, therefore, should be considered settled. Let uh rely upon the already declared policy of the Government, lor the best and safest measures to promote the "general welfare." And let us remember, in the language of President Jackson, that, "instead of being necessarily made to promote the evils of an unchecked paper system, the management of the revenue can be made auxiliary to the. reform which the Legislatures of several of the States have al ready 'commenced." In this respect let us see how far we may rely upon the declared opinions of Republican leaders. In his message in December, 1835, Presi dent Jackson says: " It hit* been seen that, without the agency of a great moneyed monopoly, the revenue can Ins collected, and Conveniently and safely applied to ail the purpose* of the public expenditure. It is alao ascertained that, in stead of being necessarily made to promote the evils of an unchecked paper system, the management of ihe-r? venue can be made auxiliary to the reform winch the Legislatures of several of the States have already com menced in regard to the suppression of small bills, and trhich has only to be fostered by proper regulations on the part of Congresn to secure a practical return, to the extent required fur the security of the currency, to the constitutional medium. Severed from the Government as political engines, and not susceptible of dangerous extension and combination, the State lhniks will not be tempted, nor will they have the power which we have seen exercised, to divert the public funds from the le ; gitimate purposes of the Government. The collection and custody of the revenue being, on the contrary, a ? source of credit to them, will increase the security : which the States provide for a faithful execution of | their trusts, bv multiplying the scrutinies to which their ; operations and accounts will be subjected. Thus dis | pused, as well from interest as the obligations of their | charters, it cannot be doubted that such conditions as I Congress may see tit to adopt respecting the depositee ! in these institutions, with a view to the gradual disuse | of the small bills, will be cheerfully complied with ; and that we shall soon gain, in place of the Bank of the U. i States, a practical reform in the w>holc.paper sy?tem of the country. "If, by this policy, we can ultimately wit | ncss the suppression of all bank bills below twenty dol lars, it is apparent that gold and silver will take their place, and become the principal circulating medium in the common business of the farmers and mechanics of the country. Tlie attainment of such a result will form an era in the history of our country, which will be dwelt upon with delight by every true frrend of its liberty and independence. It will lighten the great tax which our ' , itaper system has so long collected troin the earnings of labor, and do more to revive and perpetuate those habits ' of economy and simplicity which are so congenial to the character of Republicans, tluu all the legislation 1 which has yet been attempted." ; Mr. Van Buren expressed himself thus, in relation to this subjcct, in his letter to Mr. 1 Williams: | " The constitution gave to Congress express power to coin money and regulate the value thereof, and of foreign coin, and it expressly prohibits the exercise of a i similar power by the States. ? ? ? ? Whether ! they also designed to divest the states of their antece dent right to iucor|*irate banks, it would now be more curious than useful to enqunc. That matter, so far as ; it relates to the mere question of po*er, must be re garded as settled in favor of the continued authority of thie stoics. Assuming that this was contemplated by the trainers of the federal constitution, it is then most : evident that their liojies of a sound currency must have been based upon the expectation that the resjiective go ' vernmcnls would faithfully discharge their peculiar du ties, and as-faithfully contiue themselves to their re spective spheres; that the federal government would exert all its constitutional powers, not only by creating and diffusing a metallic currency, but by protecting it against a paper circulation of the same nominal value, I whilst the states supplied such emissions oj payee "s might be actually demanded by the necessities uf Com merce, and not at variance cither ill denomination or amount with the existence of an adequate specie cui rency. I lad such a policy been pursued, there is the I lest reason for believing that a just proportion between paper and spccie might have been preset ped, and a sound curiciuy uniformly maintained " Again : "Although I have always been opposed to the in crease of banks, I would nevertheless pursue towards the existing institutions a just and liberal course?pro tecting them in the rightful enjoyment of the principles which have been grunted to them, and extending to them the good will of the community, so long as they discharge with tidelity the delicate and important public trusts with which they have been invested." The lion. William C. Hives, in his excel lent speech upon the subject of the currency, delivered in the Senate List winter, held the following doctrine, which seems to have been heartily responded to throughout the country, and by many, considered " the most reason able sentiments upon this subjec^Tcver put forth." Mr. Rives says : < " My object then would be, not the destruction of the banking system and the total suppression of bank paper, but mi etlicierfl regulation of it, and its restriction to sate and proper limits , not the exclusive use of spe cie as a circulating medium, but such a substantial en largement and general diffusion of It, III actual circula tion, as would make it the practical currency of com mon .life, the universal medium of ordinary transactions ?m shoii, the money el the farmer, the mechanic, the laborer, and the tradesman : while the merchant should be left in the enjoyment of a sound and restricted paper currency for his larger operations Such a reformation in the currency as this, would in my opinion be produc tive of the most bcneticial results It would give se curity to the industrious classes of society for the pro ducts of their labor.' against the casualties incident to the paper system. It would give security to a great ex tent to the whole body of the community, against those disastrous tiuctuatious m the value of property and contracts, which arise from the ebbs and flows of all unrestricted paper currency. It would give security to the (tanks themselves, by providing them m the dally in ternal circulation of the country, an abundant and' ac cesaibic fund for recruiting their resources, whenever they should be ex|>os?d to an extraordinary pressure." Again, in the language of prediction, now proved history, he says: '?The requisition of specie in payments to the Govern ment will not only not avail to bring gold and silver into ??cnh'tw, ''?!*, if in?it>Usl mi, whrle fhl arnl stiver vrt term, comparatively, but ? small pan of u? actual cui wncy of th? country, it will inevitably have the effect ?f diminishing their circulation. While bank paper form. U? great mm of the currency of the country, if the Government refuae lo receive it in payment of the P bbc duea, and demand apecie excluaively, tlie rteces eary conaequence will be to enhance, to ? greater or ^ ?1*M in relation to P?per I hat being the c>w, gold and ailver will no Ionge exrcidais freely. Tho~ who have apecie will be unwilling to part with It, except at a premiu.i7.nd thoM W*"/Wl" *7 ^n,10U? 10 convert th*"? into ?pecie. Hoarding of the precious metal, will then commence, and but little of tU, be aeen emulation. No one, I preaume Mr Pre.,dent, attache, much im portance to the collection of the public revenue in 2T * T U""HaU ?^eCtl '' ? ?? be made equally f ?lhe.r n,e,nr ? ? on'r ?? ?n m.trumeot of purifying and correcting the currency, tint It dcaervea the consideration of a practical .tateaman. The great object 1a not to amaaa at?ec,e in the public treaaury, or in the vault, of bank., but to diffuae lU healihfulcur rency through the buainea. of -aowetrrand to brina it into active circulation among the people Thie can or.lv be effected by the previoua auppres.ton of the .mall note. ; and any attempt by the Government, before that is done, to collect ita revenuea in .pecie, m.tead of pro moting and extending the circulation of gold and ailver tend, dircctly to narrow and diminiah their circulation.'' The Hon. Nathaniel P. Tallmadge, in hi* speech in the United States Senate, upon the Deposits Act, which has been extensively quoted and commended, expressed the follow ing views. It is proper, also, to remark, that these opinions have recently received the " entire approbation" of about " seven hun dred members of the democratic republican party, in the city of New York," whose con nexion with the commercial interests, and knowledge of commercial wants, should en title their views to great weight on subjects of this character. He says : " W hat, then, do Wiey expect and desire * I answer no more, nor no leaa, than every real friend to Ins coun try 1. willing to adopt, namely, a preservation, and at the same time, a regulation of the credit system. In all such measures of reform I will go aa far a. he who goes farthest. Preserve and regulate, bur not deatroy, la mv motto Enlarge your .pecie basis ; introduce, aa far as practicable, a gold currency, by the prohibition of ?mall note. ; provide mean, for coining at the mint; take all proper mea.ures to prevent exceasive issues of bank paper, and the unnecessary increase of bank mcor |>orations; repeal your restraining laws, so as to permit the free employment and investment of foreign capital. W hatover danger there may be. is to be found in the abuse of the system, and not in Us existence Guard against these abuses, and correct them when discovered. An entire abandonment of the credit system, and a return to a We and exclusive metallic currency, if it were practicable, would produce desolation and de struction from one extreme to the Union to the other. Such notions ought not, cannot, must not prevail." Hon. Silas Wright, Jr. in his speech in the United States Senate, in January, 1834, re marked : . "The Senator /rom Massachusetts has asked?If you will not recharter the bank, or establish a new bank what will you do ! He (Mr. Wright) would answer as an individual, expressing his own sentiments, that he would support the Executive Department of the Go vernment, by all the lawful means in his power, in the attempt now making to substitute the Stale Banks for the United States. He believed them perfectly and completeli/ competent to the object, and he was wholly unmoved by the alarms that had been sounded as to their insecurity and the dangers that 'were to be appre hended from the change.. He held that the steps al ready taken to effect the object in view were all war. ranted by the Constitution and laws cf the land. It was his firm opinion that the steps which had been taken would redound to the honor and l>est interest of the country, and ought to be sustained by the People and their Representatives." * In conclusion, Mr. Wright observed : " He would merely pronounce his opinion that the country would sustain the Executive arm of the Go vernment in the Experiment now making to substitute the State Institutions for the Bank of the United States He had the most entire confidence in the full and com plete success of the. Experiment." Mr. Woodbury, in his Report to Congress, in December, 1834, says: " It is the part of sound philosophy and true political wisdom to improve to the utmost, consistency with con stitutional difficulties, our present mixed currency ? hen it is remembered that, after long experience, almost every nation of Europe, and especially the most enlightened and commercial ones, have, though possess in# full power to abolish wholly the paper svstem, deein ed it good economy and a great convenience to retain it to a certain extent, for the larger and more distant ope rat ions in. commerce and finance; when it is considered that the (Kiper system is generally supposed to increaso the activity of the surplus moneyed capital of a country, by collecting it into banks, and' distributing it speedily, as needed, and to make a less quantity of circulating medium, employed in this way, answer' the same pur poses of society with a larger quantity otherwise em ployed ; and when u is computed by msnv, whether justly and wisely, need not here bo discussed, that, through the issues of paper over the amount of specie id the vaults of hanks, the public is enable to obtain a temporary use of so muck more money, as if to that extent, and for that purpose, it were a real addition to the specie capital, and at the same tune to realize a sav ing in the wear and loss of the specie in the vaults, which it would otherwise sustain in actual use, the ques tion becomes very doubtful whether, in this commerc.sl and widely extended country, the anticipation can bo justified, that the States or the people will soon, if ever, consent to the disuse of banks of paper issues. But it is more probable, that the discussion and increased in terest attending this subject will terminate here, as in hugland, not in abolishing all country or local banks, though Parliament, like the States, possess undisputed power to do it; but, for the present at least, is only exercising greater care in the regulation of these bank. the States, and in creating, by both Stale and United Mates legislation, a broader basis of specie in circula tion. for the increased security as well of the banks as of the community, and for the great and desirable improve ment of the currency of the country." C>ov. Campbell, in his sound and sensible Message, recently delivered to the Legisla ture of Virginia, furnishes us the following excellent creed. He says : 1 he time is unpropitious, if it were otherwise desira ble, to aitempt any radical changes in the policy of the commonwealth. I he system of banking has been long since introduced, and we find it fixed upon us The commonwealth is largely interested in the .tocks of our ?anking institutions, through the fund for internal im provement and the literary fund ; and the stock which is thus held, is a part of the sccuriiy which has been pledged to the holders of the public debt. Ba'nk paper has long performed all the purges of currency, and by the holders of it, the poor and the rich, is counted as money The merchants and traders of our towns ha?e been accustomed to look to the banks for facilittes and aid ; and through their instrumentality it waa, thly havi been enabled to make their purchase, of the planter ai.J tanner ft would surely be unwise in a period of diffi culty, and when private credit is in need of unusual fa cilities, to put down institutions which arc so incorpora ted with every public and individual interest, and from which it would result as an immediate conseqence, and the difficulties ol paying would be augmented, whilst the debt to be paid would be increased There are those who would have no banks, either state or federal, and are for enforcing an exclusive metallic circulation. The pro ject, in the actual condition W the country, I believe to be wholly impracticable and the agitation of it at this period, could have no other effect than still further to derange the business and oppress everv interest in the community. And I consider it of the highest importance to maintain the credit of the state banks, as forming un der proper regulations and reforms, the only practical substitute for a United States Bank?and their preserva tion affords the only defence againat the dangerous scheme of a powerful and overwhelming national msti tiition. Ajfain, in a recent tOast he gives us : " Hard money for our common transactions Bank notes, equivalent to specie, for Ihe commerce of ti?e country." . In the Address of the Albany Cieneral Republican Committee we find the following saving doctrine : " We sre not advocates for unlimited and eitrava gsrt* credit's : anJ ??? 'mwt that all r!a?M? t:t 'he ?