Abridgment of the Debates of Congress, from 1789 to 1856.

DEBATES OF CONGRESS. 625 FEBRUARY, 1835.] Public Deposits. [SENATE. Government, if the States persisted in their sense. He took it to be an axiom in political present banking system, and when there was economy, that the two currencies could not such an increase in banking capital in so many exist together, because the one was cheap and of the States. In order to restore such a cur- the other dear, and therefore the one would rency, he thought it indispensable that the State necessarily expel the other. The gentleman banking system should be diminished. In Vir- from Missouri depends upon the action and ginia, where there is as much hostility to the wisdom of the States to correct the evil; but Bank of the United States, and where the bank- he does not depend upon the action of any one ing system generally is as unpopular as it is in State to effect it. If there were no banks in any State of the Union, an effort has recently Missouri now, Mr. L. ventured to say that if been made to supply the void to be occasioned her neighbors, Illinois, Indiana, and Kentucky, by the withdrawal of the United States Bank did not restrain and regulate their paper system, bills, though he was glad to say it had not been she would be driven to establish her own banks adopted. He believed there was no power on in self defence. tie wished to impress it on earth which could prevent this paper system, those who heard him, and, if possible, on the if the State banking system continued to pre- whole nation, that there must be a combined vail. IHe voted last year for the bill reducing effort of all the State Governments to produce the standard of gold, but not in reference to its a restoration to a hard-money system. preventing excessive issues of paper; for, if Mr. TALLMADGE remarked, with respect to you have a twenty dollar bill, you would have the amendment, that if the holder of a warrant a right to claim gold for it to the amount of requires his money in gold or silver, he has a the nominal value of the gold, whether the right to it, and therefore there is no necessity standard had been one in sixteen, or one in for making a formal enactment of what is now thirty-two. The truth was, that paper, being the law. the cheaper currency, would always expel the The amendment was agreed to. dearer currency, do what you will. Mr. WERBSTER moved to amend the bill by Mr. BENTON said that, with regard to the adding a section, requiring that each of the inquiry which had been made of him by the deposit banks shall retain within its vaults honorable gentleman from Virginia, it addressed gold and silver, which, with the balances due itself to a subject upon which he could not be to them from specie-paying banks, shall amount, supposed to have been indifferent. For some in the whole, to one-fifth of the whole amount years he had turned his attention to the subject of its notes and responsibilities. of currency, and he had looked at the difficulty Mr. BENTON wished one-fourth to be substisuggested, as the gentleman did. He looked tuted for one-fifth, to which Mr. WEBSTER asto the co-operation of the State Governments sented. as highly necessary to the attainment of the Mr. EwING, Mr. SHEPLEY, Mr. BUCHANAN, and great object, but not as the only means. He Mr. KNIGHT, made some remarks on the bill; looked to the action of the State Governments and, on motion of Mr. WEBSTER, the yeas and as the most ready means of checking this most nays were ordered on the motion to insert (in inordinate paper system. But if a man would the blank) one-fourth. The question was decast his eye over the United States, and look cided as follows: at the great advances which had been made in YEAS.-Messrs. Benton, Bibb, Brown, Calhoun, public sentiment in this particular, he would Clayton, Ewing, Goldsborough, Hendricks, McKean, see that there was hardly a State in which Poindexter, Porter, Robbins, Smith, Southard, Tipmovements had not been made against the ton, Tomlinson, White-17. paper system: and, Mr. B. said, in his State NAYs.-Messrs. Black, Buchanan, Cuthbert, Frethere was not now a single bank; the Legis- linghuysen, Hill, Kane, Kent, King of Alabama, lature of the State had lately refused to charter Knight, Leigh, Linn, Prentiss, Preston, Robinson, one; and the Governor said, if one were char- Ruggles, Shepley, Tallmadge, Waggaman, Webster tered, he would use his veto power upon it. 19. So wholesome a state of things in the public The blank was then filled with one-fifth. mind would tend to get rid of the paper system. Mr. TALLMADGE moved an amendment, so as But this was not the only mode of getting a to have it read that the banks should have this metallic currency for common purposes. There amount of specie on hand when the monthly was one measure to restore a specie currency, returns were made. for the origin of which he would have to go The amendment was negatived. back to the Congress of 1789, when the reve- The amendment, as amended, was then agreed nues of the Government were required to be to. collected in gold and silver; he placed great Mr. TALLMADGE moved to amend, by introreliance on the action of the States, and upon ducing a provision into the bill to enable the returning to the system of'89. But there was Secretary of the Treasury to select an addianother remedy in the hands of Congress, tional bank of deposit in any place where such which could and would be effectual. As to additional bank or banks shall be necessary. the cheap currency, it was cheap to those who Negatived. issued it, but dear to those who used it. The bill was reported to the Senate as amendMr. LEIGH said he used the expression in that ed, and the amendments (with the exception Vol. XII.-40

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Title: Abridgment of the Debates of Congress, from 1789 to 1856.
Author: United States. Congress.
Canvas: Page 625
Publication: New York, [etc.]: D. Appleton and company [etc.]; 1857-61.
Subject terms: United States -- Politics and government

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Abridgment of the Debates of Congress, from 1789 to 1856.

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