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these banks; for it caused their nates to United States in excluding the local banks bu taken oui of circulation, and to be pre- from all connection with the Government, sent-d to them in masses for iin nediate and they support the local banks in resiste payment. Thus the great inass of the banks ing th- Government of the United States were p'remptorily excluded froin all re- in proposing the very same disconnection. ceivabi ity of their notes; and as for the They are now altogether for the local banks, few which were nominally excepted, the and io praise too high for them; three exception was an injury to them, and to years ago they were against them, and no my knowledge was complained of as such. abuse tuo low for them. When these banks Now, what was the conduct of the local resisted the panic, and did well, these pobanks under this forty years' exclusion litici 10s denounced them; now that they from the rise and custody of the public ino have stopped payment, and injured the neys under the provisions of National country, and deprived the Government of Bank charters, and tris forty years' exclu- its revenuen, these same politicians exalt sion of their noles from Feileral receipts them to the skies. This is inconsistency-and -xpenditures, u der the enactalents of inconsistency in the means, notinthe object. National Bank by-laws. What was their The objert i, tu re-establish the National conduct under these lung and double er. Bann; and the means are. to have ano her clusion: ?' Sir, it was the conduct of crme loss of Government revenues, and theretentinent; of satisfaction, of entire acquies- upon, another arguinent to restore their idocence! They inade no complaint; they lized institution. This they declare! for asked for no change. On the contrary, they tell us, with the defiance of over-conthey endeavised to perpetuate it, and have fidence, that they take these local banks always celebrated ihe puriod of their ex• as a half way house as a house half-way elusi n as the finust era of our currency, to the Bank of the United States-where and the safest state of the Federal revenues. "hey will lodge and refresh a night, and This they did in 1832, when our tab'es then gallop into the Chesnut street pilace, graned under memorials from local banks as a breakfast ride, the next morning. And to re-ch ister the Bank of the United States; so it will be. Trusi then again! and the this they did again in 1833, when they Stale banks will fail again, as they did durprayed fr the restora con of the deposites ing the war, as they dil in 1819, as they io ihe Bank of the United States, and ac- did in 1837, and as they are now doing in tually refu:ed 10 receive them; and this 1838. Chey will fail again; the Federal they do now in praying for another Nation- governinent will lose iis revenues again; al Bank,

and inen ihe cry will be redoubled for a A relebrated Franeh satirist has inade us National Bank. acquainted with a inosi worthy cousitry Mr. President, I have opinions upon this gentle nan. who had tilkėd prose all his subjerkopinions not of recent adoprion, life without knowing it; so of these local or hasty formation. Their origin dates far bauks. They have been ruined for forty back-a full quarter of a century; and they years without knowing it. During the have been receiving confirmation ever since. whole period of the existence of the two I was in the public service during the late National Banks they were in a state of in- war; witnessed the failure of the State banks, Lal exclusion-- absolute divorce from all and saw_the calamities of a government, connection with the Federal Treasury. and of a people, c'estitute of specie. The With this div.'rce, thus effected hy corpo. first Bank of the United States had ex ell; ration by-laws, they were contented and ed specie-it had done what Mr. Madison happy, nay, wished it in he eternal! hit said it would do. in the masterly speech the moment the same divorse is proposed of 1791, wh ch rever has been, and never to be effected by an act of Congress, thu can be, answered. In that speech he placed banks are in arms against it, and declare at the head of ihe list of the disadvantages themelves ruined if it is done. This is a of such a bank, these prophetic words: noble instance of consis'ency-of submis. “First: Banishing the precious melule, by sion to a bank of the United States, and of sub-tiluting an'ither medium to perfurm resistence to the Government of the U. S. their office." At the expiration of its chare The sam.of politicians all that class ter, in 1811, it had completely eff-eted this of politicians who advocate a National wok. It had banished the precious ineBank. They go for the divorce of the by- els There was bui ten millinis. f spelaws, and against the divorce by a law of cie left in the country! Two great errors Congress. i bey support a Bank of the were th n coimi ted: first, in pot replen

Bolid money

fate again.

ishing the country with specie, and espe, the distress and suffering was actually cially with gold; secondly, in falling back then, what it is falsely said io be, and wick upon the paper of local banks for a national edly attempted to be made, at present currency. In this condition, desiitate of 'There is no comparison between the state specie, and relying upon the notes of local of things then, and now. banks, we went into the war. The result At this epoch, this second explosion of was inevitable--the explosion of our whole the paper system, I canze into the Senate monetary system the bankruptcy of the of the United States. I came here in the Treasury--the ruinous use of drprrciated autumn of 1820. I travelled from the Mispa per-a resort 10 Treasury notes, on which sissippi to the Potomac amidst the crash ihe creditor often lost 33 per cent.-loans of falling banks, the wrecks of a paper on oppressive terms—and the Government currency. and the lamentations of a suffering forced to make common cause with broken nation, I arrived here to see a Government banks for the mutual support of each others without a dollar, and borrowing money to credit. All this I saw. I saw the cala- pay its daily expenses, which, the year bemities, the humiliation, and the sufferings fore, boasted a revenue of forty-seven mil. of the country; and I heard the lond and in- lions, and tormented itself with schemes solent triumphs of the Federal party-that to get rid of surploses! I commenced my part of it which opposed the war-exult. Senatorial career under these circumstanca ing over an empty Treasury, an impaired -circumstances to make me meditate, and public credit, a depreciatrd paper currency, to make me feel. Happily, my associations and the national degradation for want of were with the fathers of the Republica

I saw all this; and my head, with Macon and Randolph, whose intimaand my heart, both told me that the coun- cy I' enjoyed, and whose friendship 1 pos. try ought never to be subjected to such a sessed. My reading was that of the earis

fistory of tie Government--the Revolu. This was my war experience; and now tion,

the Confederation, the formation of for the experience of peace. After three the Constitution of '89, and the workings of years of war, peace caine, and with it came the machinery of the Federal Governinent the revival of business, and a multitude of under the adminisirations of the rarlier local banks, and at their head, that immense Presidents-Washington, Adams, and Jef. charlatan of the monetary system-a Na- ferson. The result of this association, tional bank! Off went the whole togeth- and of this reading, was a thorongh convicer; sp cie paynients resumed; confidence tion, 1. That the Federal Constitution was restored; the credit system in all its glory, formed by hard money men, and was inand every

branch of business distended to tended to be a hard-mor.ey Government; ile bursting point. To judge of every thing 2. that it had been converted into a paper by a single instance, it is sufficient to name money Government, contrary to the gnias the public lands, of which the amount of and intention of the Constitution; 3. That TWENTY-EIGHT millions of dollars was sold this departure from the Constitution was in a single year! and nearly all on credit, the cause of the moneyed calamities during payable in safe and solid specie paying the war, and again at that time; 4. That bank notes. In two years the whole of the remedy for these calimities was to rethese banks, the charlatin among the rest, turn to the plain meaning of the Constituwere swamped. Then we had a repetition tion, as expressed in the revenue act of of the scenes of seven years before. No 1789, and to confine the receipts and ex. specie; no notes equivalent 10 specie; no penditures of the Federal Government to credit; no revenues; no price for properly! gold and silver coin only. These were my 'Tender laws—property laws replevin convictions; and as soon as circumstances laws-stay laws, the order of the day? An were auspicious for action, I commenced as entire stagnation of business followed, not series of measures, all tending to carry fictitinus, but real; and such was the fall back the fiscal action of the Government in the price of all produce, all property, to the intention of the Constitution ; fully and the wages of all lahor, owing to the believing that of the Federal Government failure of the banks, and the absence of would require gold and silver for its own specie, that all debtors were placed in the Treasury, it would cause enough to be jaws of ruin, and most of them entirely brought into the country, and to remain in ruined. There was no Treasury order ther; the country, to supply the whole body o no removal of deposites; no velo; no Jack- the people with hard money for all their son adrainisiration to ruin the country; yet common and ordinary dealings and transao

tions. It was not until General Jackson's hit the point of correction with such perfect administration, that I was able to take any accuracy, that the two coins, gold and silstrong and direct, measures tuwards the acver, issuing from our Mint, have precisely complishment of the great object which the same value in the money market. Uapresented itself to my view. The saga. der the auspicious operation of that act, cious. Mr. Macon often said to me that it our gold coin has risen, in little more than was in vain to attempt any reform, unless thrre years, from nothing to fifteen millions, the administration is with you. The elec. and will probably rise to twenty-five mil. tion of General Jackson gave such an af. lions before the termination of Mr. Van ministration. From that time there was Buren's present term. The act for repeal. a President, not only to favor, but to take ing the act of 1819, and for restoring for. the lead in the great business of restoring eign coins to circulation, has sent Mexicaa the constitutional currency, and my part dollars into every part of the Union, and became subordinate and easy. I had only has enabled other foreign coins, both gold to explain and defend the greater measures and silver, to make some progress in pene. which his sagacity and patriotism conceiv• trating our country. Silver has increased ed and recommended.

three-fold since 1832, and silver and gold It is not necessary to dwell on these mea- together, four-fold. Our specie was twensures, much less to enter now into any de ty millions then; it is eighty now, with the fence of them. A brief enumeration will prospect of exceeding a hundred millions suffice. 1. No more National Banks. before the present term of Mr. Van Burea They had been found to be the great ex. is out. Our currency in existe:Ire is laore porters of specie; and their chartered right abundant and more solid than it ever was io pay the Federal revenues in their own before; but the specie part of it is suppress noies, was in itself a clear breach of the ed by the power and policy of the Bank of Constitution, and banished gold and silver the United States, combined with the polifrom the Trosory, and, by diminishing the ticians and that part of the banks which demand for it, expelled it from the country. follow its lead. Acts of Congress had 2. To restore the gold currency, by cor. passed to operate upon small notes, recting the erroneous standard of gold. 3. and to exclude those under twenty dollars The repeal of the act of 1819, rendering from revenue payments altogether, and to uncurrent, with a fuw exceptions, the gold exclude all others which were not convertiand silver coins of all loreign countries. 4. ble into gold and silver “ upon the spot," The multiplication of the mints, both for the at the will of the holder, and without loss purpose of coining money in different parts or delay to him. Public opinion had been of the Union, and for becoming places of awakened on the subject of small notes; and deposite and safe-keeping of the public the Republicans every where were moving inoneys. 5. The suppression of all local towards the suppression of all under twen. bank notes under twenty dollars. Having ty dollars. Such was the progress, and no direct power over the banks of the State, such the success, of our measures in May, the only :node of accomplishing this ob- last, when eight hundred banks stopped ject was by the revenue regulations of the payment at once, shut down close upon all Federal Government, and by operating or the specie in their vaults, denying a ninepublic opinion in the different Stales. My pen'e, a picayune, a five cent piece, even, own limit was one hundred dollars, but I to the Government whose thirty millions of did not attempt to establish it because I disposites they held, or to the community knew that I could not succeed. My con- who held a hundred and twenty millions of viction is now clear that there oughi lo be their notes! In the midst of profound no bank note under one hundred dollars. Such were our measures for restoring the ment without taxes and without a public

peace, general prosperity, under a Governcurrency of the Constilution to the coffers debt, with four times as much speoio of the Federal Treasury, and supplying as was in it five years before, came the country with gold and silver for all the this crash of the banks. It came like cominon and ordinary transactions and deal- a clap of thunder in a cluudless sky. In ings. The success, notwithstanding a pow. one moment, as it were, a Government, ortal combined political and moneyed oppowith thirty millions of revenue on hand, sition, was astonishingly great. The re- was left without a shilling; in one momeal, cbarter of a National Bank sunk under the a nation of fifteen millions of souls was doveto, sustained by public opinion. The prived of ninepeuces for the market or the act for the correction of the gold siandard post office. As if to proclaim their design to


The peo

'banish all specie froin the land, it simulta- ministration itself. I find them now where neous and universal deluge of siñall, notes I was many years ago. I believe them to and shin-plasters was poured upon the peo- be right, and shall stand by them, and ple; and the significart cry was set up, abide their fate. If they sink in this conthat specie payments could never be resto- test with the banks and the Federalists, I red until a National bank was established. shall go down with them. This cry explained the main cause of the I stand upon the two principles of the general stoppage, and the sole cause of the bill-1. The United States to use the mo. shin-plaster and small note issue. ney of the Constitution in the receipts and

All this took place in May, 1837. It was disbursements of the Federal Treasury: 2. a repetition, without the be of war, of The United States to receive their own the explosions of the in ; it money, to keep their own money, and pay was the second explosion of the banks out their own money. Istand npon these iwo since the war, and in profound peace. It principles; 'I cannot surrender them, though was expected to astound, terrify, subdue, I could consent to take them one ai a time. distress, and coerce the country into a sub- The details of the bill are cpen to compromission to the re-establishment of the Na- mise. There I am rrady to give and to

ional Bank ! a result that would have been take-to surrender an! concede to do eveinevitable had it not been for the eighty ry thing, consistent with the preservation millions of gold and silver which Jackson's of the principles, to conciliate the support, administration brought into the country, or to purchase the forbearance of friends. and which has so well kept up the value of In some particulars, I would prefer a change bank notes tliat those which are in good of details; I would prefer additional credit are now no more than one or two 'branch minis in place of ihe Receivers Geper cent. below pair. This third explosion neral-mints that would answer the double in twenty-five years—this second explo- purpose of keeping the money of the Gosion in time of peace this loss of national vernment, and coiving money revenues, as if by enchantment—this dis ple. appearance of specie, as if touched by a The prineiples of the bill I hold to be magic wand-roused and electrified the founded in the clearest reasons of procontinent. l'lie public mind came at a priety, and constitutionality, and sustained bound to the conviction that the Federal by the fullest voice of trial and experience. Government ought to be disconnected from Every Government shonld be, at all times, the banks, and from their paper currency, the master of its own property, money and 'The conviction was generai, almost unani- every thing else. A Government should mous, among the Republicans; a few only not be pu: to the delay's anil contingencies among them were for trying the local banks of asking for its own, much less of suing and their paper once more, as if three fai- for it, and above all, of having to sue where Iures in twenty-five years were not suffi- State laws may interpose to delay, or to cient; as if another failure was not inevita- defeat the recovery. The revenue of a Goble, and as if another failure must not end vetnment is its daily support, it is like the in the restoration of a National Bank, with daily support of a family,-it cannot be the restoration of the political party, with stopped or withheld, without affecting the all their principles and measures, who go existence of the Government itself. Evewith that bank. The Federal party, of ry Government upon earth, our own excepto eourse, with some honorable exceptions, ed, puts its money where it can go and take opposed the disconnection. They oppose it. All other Governments put their mowhatever the Republicans propose, no mat- ney where they can command it, where ter what. They were opposed to the junc. they can seize it, if necessary, and punish tion of the Government with the Sjate a delinquent holder. We do the same with Banks three years ago, when those banks all our property, except money. Our were doing well; they are for compelling ships and forts, our military and naval the Government to stick to them now that stores, our public lands, and public edifices, they have done ill. This is the state of par- are all in our own custody. We do not ties; the Republicans almost universally have to beg, or bring suits at law, to reco for the divorce of bank and State; the Fed. ver their possession. We keep them, suberalists, almost universally, for the conjunc- ject to our own order, because the existence, lion of Bank and State. In this division and the operations, of Government, which and subdivision, I find myself with the holds civil society together, and prevente mass of my, and with the ado mankind from relapsing into anarchy and


violence, will not admit of interruptions so; its duty to the country equally requires and delays. If this is true of property, it. By using that money, two great adhow much more true is it of money—that vantages would always result : 1. The daily pabulnm, without which Government Government would always have in its cofcannot exist a day! This fundamental fers real money ; 2. The country would alaxiom, true of every Goveroment, is pre- ways possess an abundant supply of the eminetly so of ours. Our Government is precious metals. Certainly the Federal Gocomplex-State and Federal and each vernment owes great duties to itself and to should have their own Independent Trea- the country, in relation to the currency. It sury. The present Constitution grew out should not abdicate those duties, nor deleof the Independent Treasury question. gate them. It should not expel specie from Other causes helped on to the formation of the country by abandoning the use of it. the Constitution; but a revenue of its own The experience of forty years, shows that a revenue independent of the States, and a cessation of demand for specie, on the of course independent of corporations was part of the Federal Government, banishes the exciting and controlling cause which gold and silver from the country. This led to its adoption. The whole history of was the result both under the first and sethe confederation, from the close of the cond banks of the United States. On the Revolution to the year 1789, proves this. other hand, the experience of five years Yet where is the Independent Treasury, shows

that a demand for specie by the Fewhere is the Federal Treasury, if corpora- deral Government attracts it to the country; tious are to hold our money, may refuse to that we have increased our supply from pay it when they please, and shall be back- twerty to eighty millions in five years, uned by their State Legislatures when they re- der that demand; and that a continuation fuse to pay? To commit our money to of the demand will continue the increase the custody of such corporations, is to forego until the country is adequately and fully the end for which the Federal Government supplied. This is the way to regulate the was formed; to comnit it to such corpora- currency. A hundred and twenty or thirty tions again, after the experience we have millions in gold and silver will regulate had, and during the experience which we the banks and the exchanges; and that now have, is to repeat a solly for which we amount can be attained, and ought to be have been three times punished, and to ex- attained, in six or seven years, by a contihibit a fatuity which announces a doom to nuation of General Jackson's policy, destruction. Upon the clearest principles An adequate supply of specie for the of reason, of constitutional obligation, and country, is one of the highest duties of the of experience, the Federal Government is Federal Government. By the Constitution, bound to take into its own hands the keep- it is made the conservator of specie; by ing of its own money. This is one princi- abdicating its duties, it had banished from ple of the bill; the other is the use of hard the land that which it was bound to premoney in the receipts and disbursements of serve. The States delivered to this Governthe Federal Governinent. This principle ment, in 1789, an adequate currency of gold is the ally of the other. They go together, and silver. The first reverfue law ever and can hardly live separately. To receive passed by Congress, enacted that the revethe promissory notes of the banks, is to re- nue should be paid " in gold and silver coin ceive nothing but their promises to pay mo- only." There was then no coinplaint of ney. If they break that promise, the only scarcity. Gineral Hamilton's order for resource is to take what they choose to evading that law, did not turn upon the give; that is to say, more broken promises ground of scarcity of the precious metals, to pay money or to sie ihem; and, if suit but on the plea of convenience in handling is brought, State laws may interpose to bank paper, and upon the policy of increasproteçt ihe bank, and to compel the Gov. ing the quantity of bank circulation. Thero ernment to take its pay in more broken pro- was no complaint of the inac!equacy of spemises to pay. Far better to take the pro- cie until the first Bank of the United States missory notes of the citizens. They would had banished it from the c-untry, as Mr. not refuse payment, as the banks have done; Madison and others predicted that it would and if they did the State Legislatures do. would not interpose to shield thein.

Large mercantile payınents always have The Federal Government ought to use been, and forever will be, made ip bits of the money of the Federal Constitution. Its paper, representing iasses of property. He duty to ihe Constitution requires it to do is a ninny, or believes others to be nịnnies,

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