REMARKS

HOJV. JOUN €. CALHOUN,

U£1,1T£R£S<

IN THE SENATE OF THE UNITED STATES.

MARCH 31, 183i.

MOriON OF MR. WEBSTER,

B»SK LEAVE TO INXnoUUCB X BILL TO CONTINUE THE CUARTEH 07 THE BANK OF THE UNiTfiO

STATEB FOa SIX TEAUS AFT£a TU£ £ZFiaATION OF THE PRESENT CHABTEEU

WASHINGTON.1831.

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REMARKS

THE HON. JOHN C, CALHOUN.

I rise, said Mr. C, in order to avail my-self of an early opportunity to express myopinion oa the measure proposed by the

Senator from Massachusetts, and the ques-tions immediately connected with it, onthe ground that, on a subject so immedi-ately connected with the interests of everyclass in the community, there should be anearly declaration of their sentiments bythe members of this body, so that all mightknow what to expect, and on what to cal-

culate.

1 shall vote for the motion of the Senator,not because I approve of the measure heproposes, but because I consider it due in

courtesy, to grant leave, unless there bestrong reasons to tiie contrary, which is notthe case in this instance; but while I amprepared to vote for his motion, and, let meadd, to do ample justice to his motives for

introducing the bill, I cannot approve ofthe measure he proposes. In every view\yhich I have been able to take, it is objec-tionable. Among the objections, I placethe uncertainty as to its object. It is left

perfectly open to conjecture, whether a re-

newal of the charter is intended, or a merecontinuance with the view of attbrding thebank time to wind ufj its affiiirs; and whatincreases the uncertainty is, if we comparethe provisions of the proposed bill with theone or the other of these objects, it is

equally unsuited to either. If a renewalof the charter be intended, six years is tooshort; if a continuance, too long. I, how-ever, state this as a mere minor objection.There is another of far more decisive char-acter; it settles nothing, it leaves everything unfixed—it perpetuates the presentstruggle which so injuriously agitates thecountry—a struggle of bank against bank

—

one set of opinions against ^another; andprolongs the whole, without even an inter-vening armistice, to the vear 1842—a pe-riod that covers two presid.ential terms, and,by inevitable consequence, running for twosuccessive presidential elections, the poli-tics of the country into the bank question,and the bank question into politics, withtlie mutual conniption which must be en-

gendered; and, during the whole period,keeping the currency of the country, whichthe public interest requires should havethe utmost stability, in a state of uncer-tainty and fluctuation.

But why should I pursue the objections tothe plan proposed by the Senator from Mas-sachusetts, (Mr. Webster.) He himselfacknowledges the measure to be defective,and that he would prefer one of a morepermanent character. He has not proposedthis as the best measure, but has brought it

forward under a supposed necessity—un-der the impression that something must bedone—something prompt and immediate,to relieve the existing distress w;hich over-spreads the land. 1 concur with him inrelation to the distress—that it is deep andextensive; that it fell upon us suddenly,and in the midst of prosperity almost un-exampled; that it is daily consigning hun-dreds to poverty and misery; blasting thehopes of the enterprising; taking employ-ment and bread from the laborer, and work-ing a fearful change in the relative condi-tion of the moneyed man ^nd the moneydealer on one side, and the man of business i

and the man of property on the other—tak- I

ing up the former rapidly to the top of thewheel, whilst it is whirling the latter, withequal rapidity, to the bottom. Vv'hile 1 thusagree with the Senator as to the distress, I i

am also sensible that there are great public '

emergencies in which no permanent relief

can be aUbrded, and when the wisest areobliged to resort to expedients; to palliate

and to temporize in order to gain time withj

a view to apply a more effectual remedy; '

but there are also emergencies of preciselythe opposite character; when the best andmost permanent is the only practical mea-sure; and Vv'hen mere expedients tend but todistract, to divide and confound, and there-by to delay or defeat all relief; and such,viewed in all its relations and bearing, I con-sider the present; and that the Senator fromMassachusetts has not also so considered it,I

j

attribute to the fact that, of the two questionsblended in the subject under consideration,he has given an undue prominence to that

wliich has by far the least relative import-ance; 1 mean the questions of the bank andof the currency. As a mere bank question,as viewed by the Senator, it would be a mat-ter of but little importance, n\ hether the re-ncAval shou Id b',' for six years or for a longerperiod,* and a preference might very pro-perly be given to one or the other as it

might be supposed most likely to succeed;but I must say that, in my opinion, in se-lecting the period of six years, he hastaken that which wdll he much less likelyto succeed than one of a reasonable andproper duration. But had he turned hisview

_to the other and more prominent

question involved; had he regarded thequestion as a question of currency, and thatthe great point was to give it uniformity,permanency, and safety; that in etfectingthese essential objects the bank is a meresubordinate agent, to^be used or not to beused, and to be modified as to its durationand other provisions wholly in reference tothe higiher question of the currency, I can-not think that he w^ould ever have proposedthemeasure v/hich he has brought forward,which leaves, as I have already said, everything connected with the subject in a &tateof uncertainty and fluctuation.

All feel that the currency is a delicatesubject, requiri !g to be touched with theutmost caution; but in order that it ma_fbe seen, as w;e!l as ielt, why it is so deli-

cate; why sligiiL touches, either in de-pressing or elevating it, agitate and con-vulse the whole community, I will pauseto explain the cause. If we take the ag-gregate property of a community^ thatwhich forms the cuiTency, constitutes invalue, a very small proportion of the whole.What this pr^ortion is in our countryand other commercial and trading com-munities, is somewhat uncertain. I speakconjecturally in fixing it as one to twenty-live or thirty, though I presume that is notfar from the truth; and yet this smailproportion ot the property of the commu-nity regulates the value otall the rest, andforms the medium of circulation by whichall its exchanges are effected; bearing in

this respect, a striking similiarity, consi-dering the diversity of the subjects, to theblood in the human or animal system.

If we turn our attention to the lawswhich govern the circulation, we shall find

one ot the most important to be, that,

as the circulation is tlecreased or increas-ed, the re^t of the property will, all othercircumstances remaining the same, be de-creased or inci'eased in value exactly in thesame proportion. To illustrate: If a com-munity should have an aggregate amountof property of thirty-one millions of dol-lars, 01 which one million constitutes its

currency; if that one million be reducedone-tenth part, that is to say, one hun-dred thousand dollars, the value of therest will be reduced in like manner one-tenth part, that is, three million of dol-lars. And here a very important factdiscloses itself, which explains why the cur-rency should be touched with such deli-

cacy, and why stability and uniformityare such essential qualities; I mean, thata small absolute reduction of the currency-makes a great absolute redaction of thevalue of the entire property of the com-munity, as we see in tne case supposed jwhere a reduction of one hundred thou-sand dollars in the currency reduces theaggregate value of property three millionsof dollars, a sum thirty times greater thanthe reduction of the currency. From this

results an important consideration. If wesuppose the entire currency to be in thehands of one portion of the community,and the property in the hands of the otherportion, the former, by having the curren-cy in their possession might control thevalue of all the property of the community,and possess themselves of it at their plea-

sure. Take the case already selected; anil

suppose that those who hold the curren-cy diminish it one half by abstracting it

from circulation; the effect of which wouldbe to reduce the circulation to five hundredthousand dollars; the value of propertywould also be reduced one half; that is, fit-

teen millions of dollars. Let the processbe reversed, and the money abstractedgradually restored to circulation^ and thevalue of the property would agam be in-

creased to thirty millions. It must be ob-vious, that by alternating these processesand purchasing at the point of the greatest

depression, Avlien the circulation is theleast, and selling at the point of the great-

est elevation, when it is the fullest, thesupposed monied class, who could at plea-

sure increase or diminish the circulation,

by abstracting or restoring it, might also at

pleasure control the entire property of thecountry. liet it be ever borne in mind, that

the exchangeable value of the circulating

medium^ compared with the pi'operty andhe business of the community, remainsfixed, and can never be diminished or in-

creased by increasing or diminishing its

quantity; while on the contrary the ex-changeable value of the property, comparedto the currency, must increase or decreasewith every addition or diminution of the

latter. It results from this, that there is adangerous antagonist relation between those

who hold or command the currency and the

rest of the community; but, fortunately for

the country, the holders of property and of

the currency, are so blended as not to con-

5

atitute separate classes. Yet, it is worthyof remark—it deserves strongly to attract

the attention of those who have charge of

the public aff'airs—that under the operation

of the banking system, and that particular

distribution or property existing in the

shape of credit or stocks, public and pri-

vate, which so strikingly distinguishes

modern society from all that preceded it,

there is a strong tendency to create a sepa-

rate monied interest, accompanied with all

the dangers which must necessarily result

from such separation, which deserves to bemost carefully watched and resisted.

I do not stand here the partisan of anyparticular class in society—the rich or the

poor, the property holder, or the moneyholder; and, in making these remarks, I

am not actuated by the slightest feeling of

opposition to the latter. My object is snn-

piy to point out important relations that

exist between them, resulting from the lawswhich govern the currency, in order that

the necessity for a uniform, stable, and safe

currency, to guard against dangerous cou'trol of one class over another, may beclearly seen. I stand in my place simplyas a Senator from South Carolina, to rep-resent her on this floor, and to advance the

common interest of these States, as tar as

we have the constitutional power, and as

far as it can be done consistently with equi-

ty and justice to the parts. I am the par-tisan, as I have said, of no class, nor, let

me add, of any political party. I am nei-

ther of the opposition nor of the adminis-tration. If I act with the former in anyinstance, it is because I approve of their

course on the particular occasion; and I

shall always be happy to act with tiicii

when I do approve. If I oppose the admi-nistration—it I desire to see povv^er changehands, it is because I disapprove of thegeneral course of those in authority; be-cause they have departed from the princi-ples on which they came into ofnce; be-cause, instead of using the immense powerand patronage put in their hands to securethe liberty of the country and advance thepublic good, they have perverted them intoparty instruments for personal objects.—jBut mine has not been, nor will it be, asystematic opposition. Whatever measureof theirs I may deem right, I shall cheer-fully support; and I only desire that theyshall afford me more frequent occasions forsupport, and fewer for opposition, thanthey have heretofore done.With these impressions, and entei-taining

a deep conviction that an unfixed, unstableand fluctuating currency is to be rankedamong tlie most fruitful sources of evil,whether viewed politically or in referenceto the business transactions of the country,I cannot give my consent to any measure

that does not place the currency on a solid

foundation. It I thought this determinationwould delay the relief so necessary to mi-tigate the present calamity, it would be to

me a subject of the deepest regret. I feel

that sympathy, which i trust I ought, for

the suffering of so many of my fellow citi-

zens, who see their hopes daily withered.I, however, console myself with the reflec-

tion that delay will not be the result, but,

on the contrary, relief will be hastened bythe view which I take of the subject. 1

hold it impossible that any thing can be ef-

fected regarding the subject as a mere bankquestion. Viewed in that light, the opinionsof this House, ajid of the other branch of

Congress, is probably definitively made up.In tlie Senate, it is known that we havethree parties, v/hose views, considering it

as a bank question, appear to be irreconci-

lable. AH hope then, of relief, must cen-tre in taking a more elevated view, and in

considering it in its true light, as a subjectof currency. Thus regarded, I shall besurprised it, on full investigation, therewill not appear a remarkable coincidenceof opinion, even between those whoseviews, on a slight inspection, would seemto be contradictory. Let us then proceedto the investigation of the subject, underthe aspect which I have proposed.

AVhat, then, is the currency of the Uni-ted States? What its present state andcondition? These are the questions whichI propose now to consider, with a view ofascertaining what is the disease? what theremedy? and what the means of applyingit, that may be necessary to restore ourcurrency to a sound condition?The legal currency of this country; that

in which alone debts can be discharged ac-cording to law, are certain ^old, silver, andcopper coins, coined at the mint of theUnited States, and issued, by their au-thority, under an express provision of theConstitution. _ Such is tae law. AVhat,now, are the facts? That the currency con-sists almost exclusively of bank notes; goldhaving entirely disappeared, and silver,

in a great measure, expelled by banks in-

stituted by twenty-five distinct and in-

dependent powers, and notes issued underthe authority of the direction of those in

stitutions. They are, in point of fact, themint of the United States. They coin theactual money, (for suchy/e must call banknotes,) and regulate its issue, and consoquently its value. If v/e inquire as to their

numberj the amount of their issue, andother circumstances calculated to showtheir actual condition, we shall find that,so rapid has been theh" increase, and sovarious their changes, that no accurate in-

formation can be had. According to thelatest and best that t have been able to

ascertain, they number at least four hun-dred and fifty, with a capital of not less

than one hundred and forly-five millionsof dollars, with an issue exceeding seventymillions; and the whole of this immensefabric standing upon a metallic currencyof less than fifteen millions of dollars, ofwhich the greater part is held by the Bankof the U. States. If we compare the notesin circulation with the metallic currency in

their vaults, we shall find the proportion

about six to one, and if we compare the lat-

ter with the demands that may be madeupon the banks, we shall find that the pro-

portion is about one to eleven. If we exa-mine the tendency of the system at this

moment, we shall find that it is on the in-

crease—rapidly on the increase. There is

now pending a project of a ten million bankbefore the Legislature of New York; butrecently one of five millions was establish-

ed in Kentucky; within a short period,

one of a large capital was established in

Tennessee, besides others in agitation in

several of the other States. [Here Mr.Porter, of Louisiana, said that one of ele-

ven millions had just been established in

that State.]This increase is not accidental. It may

be laid down as a law, that where two cur-

rencies are permitted to circulate in anycountry, one of a cheap and the other of a

dear material, the former necessarily tends

to grow upon the latter, and will ultmiately

expel it from circulation, unless its tenden-

cy to increase be restrained by a powerful

and efficient check. Experience tests the

truth of this remark, as the history of the

banking system clearly illustrates. TheSenator from Massachusetts truly said that

the Bank of England was derived from that

of Amsterdam, as ours in turn are fromthat of England. Tlu'oughout its progress

the truth oT what I have stated to be a law

of the system is strongly evinced. TheBank of Amsterdam was merely a bank of

deposite—a store-house for the safe-keeping

of the bullion and precious metal brought

into that commercial metropolis, through

all the channels of its widely extendedti-ade. It was placed under the custody of

the city authorities; and, on the deposite, a

certificate was issued as evidence of the

fact, which was transferrable, so as to

entitle the holder to demand the return.

An important fiict was soon disclosed: that

a large portion of the deposites might bewithdrawn, and that the residue would be

' sufficient to meet the returning certificates;

or, what is the same in efiect, that certifi-

cates might be issued without making a de-

posite. This suggested the idea of a bankof discount as well as deposite. The fact

thus disclosed fell too much in with the ge-

nius of the system to be lost, and, accord-ingly, when transplanted to England, it

suggested the idea of a bank of discountand ot] deposite; the very essence ofwhich form of banking, that on which theirprofit depends, consists in issuing a greateramount of notes than it has of specie in its

vaults. But the system is regularly progres-sing under the impulse of the laws that go-vern it, fi^m its present form to a merepaper machine—a machine for fabricatingand issuing notes, not convertible into spe-cie. Already has it once reached this con-dition, both in England and the UnitedStates, and from which it has been forcedback, in both to a redemption of its noteswith great difficulty.

Thfs natural tendency ofthe system is ac-celerated in our country by peculiar causes,which have gieatly increased its progress.There are two powerful causes in operation.The one resulting from that rivaliy whichmust ever take place in States situated asours are, under one general Government,and havinga free and open commercial inter-

course._The introduction of the banking

system in_one State necessarily, on this

principle, introduces it into all the others, ofwhich we have seen a striking illustration onthe part of Virginia and some of the othersoutnern States, which entertained, on prin-ciple, strong aversion to the system; yetthey were compelled, after a long andstubborn resistance^ to yield their objec-

tions, or permit their circulation to be fur-

nished by the surrounding States at the ex-pense of their own capital and commerce.The same cause which thus compels oneState to imitate the example of another, in

introducing the system from self;^defence,

will compel the other States in like man-ner and from the same cause, to enlargeand give increased activity to the bankingoperation, whenever any one of the States

sets the example of so doing on its part;

and thus, by mutual action and reaction,

the whole system is rapidly accelerated to

the final destiny which I have assigned.

This is strikingly exemplified in the ra-

pid progress of the system since its first

nitroduction into our country. At the

adoption of our Constitution, a period of

forty-five years, there Mere but three banksin the United States, the amount of whosecapital I do not now recollect, but it wasvery small. In this short space they haveincreased to four hundred and fifty, with a

capital of one hundred and forty-five mil-

lions, as has already been stated—an in-

crease exceeding nearly a hundred fold

the proportionate increase of our wealth

and population, as great as they have been.

But it is not in numbers only that they

have incre^Bed: there has in the same time

been a rapid advance in the proportion

which their notes in circulation bear to the

specie in their vaults. Some twenty or

thirtv years ag > it was not considered safe

for the issues to exceed the specie by morethan two and a half or three for one; butnow, taking the whole, and including the

Bank of tlie United States with the fetate

banks, the proportion is about six to one;

and, excluding that bank, it would verygreatly exceed that proportion. This in-

crease of paper in proportion to metal, re-

sults from a cause which deserves muchmore notice than it has heretofore attract-

ed. It originates mainly in the number of

the banks I will proceed to illustrate it.

The Senator from New York, (Mr.Wright,) in assigning his reasons for be-

lieving the Bank of tlie United States to

be more dangerous than those of the

States, said that one bank was more dan-gerous than many. That, in some respects,

may be true; but, in one, and that a mostimportant one, it is strikingly the opposite;

I mean in the tendency of me system to in-

crease. Where there is but one bank, the

tendency to increase is not near so strong

as where there are many, as illustrated in

England, where the system has advancedmuch less rapidly, in proportion to the

wealth and population of the kingdom, thanin the United States. But where there is nolimitation as to their number, the increasewill be inevitable, so long as bankingcontinues to be among the most certain,

eligible, and profitable employment ofcapital as is now the case. With theseinducements, there must be constant ap-plication for new banks, whenever there is

the least prospect of profitable employ-ment—banks to be founded mainly on no-minal and fictitious capital, and addingbut little to that already in existence

—

and with our just and natural aversionto monopoly, it is difficult, on principlesof equality and justice, to resist such ap-plication. The admission of a new banktends to diminish the profits of the old, andbetween the aversion of the old to reducetheir income, and the desire of the new toacquire profits, the result is an enlargementof discounts, affected by a mutual spirit offorbearance; an indisposition on the part ofeach to oppress the other; and finally, thecreation ot a community of feeling to stig-

matize and oppose those, whether banks orindividuals, who demand specie in paymentof their notes. This community of feelingwhich ultimately identifies the whole, as apeculiar and distinct- interest in the com-munity, increases and becomes more andmore mtense just in proportion as banksmultiply; as they become, if I may use theexpression, too populous, and from the pres

sure of increasing numbers, in maintaining

their existence, there results a correspond-

ing increase of issues, in proportion to their

means; which explains the present extraor-

dinary disproportion betw een specie andnotes, in those States where banks have

been most multiplied; equal in some to six-

teen to one. There results, from this state

of things, some political considerations

which demand the profound attention of

all who value the liberty and peace of the

country.Whde the banking system rests on a

solid foundation, there will be, on their

part, but little dependence on the Gov-ernment, and but little means by whichthe Government ean influence them, andas little disposition on the part of the

banks to be connected with it; but in the

progress of the system, when their numberIS greatly multiplied, and their issues, in

proportion to their means, are correspond -

ingly increased, the condition of the banks

becomes more and more critical. Everyadverse event in the commercial world, or

political movement that disturbs the pre-

sent state of things, agitates and endan-

gers them. They become timid, and anx-

ious for their safety, and necessarily court

those in power, in order to secure their

protection. Property is, in its nature, ti-

mid, and seeks protection, and nothing is

more grateful to Government than to be-

come a protector. A union is the result;

and when that union takes place—whenthe Government, in fact, becomes the bankdirection, regulating its favors and accom-modation, the dovv-nfall of liberty is at

hand. Are there not indications that we are

not far removed from this state of things?

Do we not behold in those events whichhave so deeply agitated us within the last

few months, and which have interrupted

all the business transactions of this com-munity, a strong tendency to this union onthe part of one department of this Govern-ment, and a portion of the banking sys-

tem? Has not this union been, in fact,

consummated in the largest and most com-mercial of the States? What is the safety

fund system of iSew York but a union be-

tween the banks and the State, and a con-

summation, by law, of that community of

fcelingin the banking system, which I have

attempted to illustrate; the object of whichis to extend their discounts; and to obtain

which, the interior banks of that State haveactually put themselves under the imme-diate protection of the Government. Theetlects have been striking. Already havethey become substantially mere paper machines; several having not more than fromone to two cents in specie to the dollar,

when compared v.ith their circulation; and

taking the aggregate, their average con-dition will be found to be but little bet-ter. I care not (said Mr. C.) whether thepresent commissioners are partisans of thepresent State administration or not; orwhether the assertion of the Senator fromNew York, (Mr. Wright,) that the gov-ernment of the State has not interfered inthe control of these institutions be correct.Whether it has taken place or not, inter-ference is inevitable. In such state ofweakness, a feeling of dependence is una-voidable, and the control of the Govern-ment over the action of the banks, whene-ver that control shall become necessary tosubserve the ambitiort or the avarice ofthose in power, is certain.Such is the strong tendency of our banks

to terminate their career in the paper sys-tem—^in an open suspension of specie pay-ment. Whenever that event occurs, the

Erogress to convulsion and revolution wille rapid. The currency will become lo-

cal, and each State will have a powerfulinterest to depreciate its currency morerapidly than its neighbor, as the means,at the same time, of exempting itself fromthe taxes of the Government and drawingthe commerce of the country to its ports.This was strongly exemplified after thesuspension of specie payment during thelate war, when the depreciation made themost rapid pi'o^ress, till checked by theestablishment of the present Bank of theUnited States^ and when the foreign tradeof the counti-y was as rapidly convergingto the point of the greatest depreciation,with a view of exemption from duties, bypaying in the debased currency of theplace.

What, then, is the disease v/hich afflicts

the system; what the remedy; and what themeans of applying it? These are the ques-tions M'hic I shall next proceed to consider.What I have already stated points out thedisease. It consists in a great and growingdisproportion between the metallic and pa-per circulation of the country, effected

through the instnimentaiity of the banks,a disproportion daily and hourly increasingunder the impulse of most powerful causes,which are rapidly accelerating the countryto that state of convulsion and revolution

which I have indicated. The remedy is to

arrest its future progress, and to diminishtlie existing disproportion—to increase the

metals and to diminish the paper—advanc-ing till the currency shall be restored to asound, safe, and settled condition. Onthese two points all must be agreed.—

•

There is no man of any party capable ofreilecting, and who will take the pains to

inform himself, but must agree that ourcurrency is in a dangerous condition, and

that the danger is increasing; nor is thereany one who can doubt that the only safeand eftectual remedy is to diminish thedisproportion to which I have referred.—Here the extremes unite—the Senatorfrom Missouri, (Mr. Benton,) who is theopen and avowed advocate of a pure me-tallic cun-ency,and the Senator from Mas-sachusetts, (Mr. Webster,) who standshere as the able and strenuous advocate ofthe banking system, are on this point unit-ed, and must move from it in the same di-rection, though it may be the design of theone to go through, and of the other to haltafter a moderate advance.There is another point in which all must

be agreed; that the remedy must be gradu-al—the change, from the present to ano-ther and sounder coundition, slow andcautious. The necessity for this resultsfrom that highly delicate nature of curren-cy which I have already illustrated. Anysudden and great change from our presentto even a sounder condition, would agitateand convulse society to the centre. Onanother point there can be but little disa-gi-eement. Whatever may be the different

theoretical opinions of the members of theSenate, as to the extent to which the re-formation of the currency should be car-ried, even those who think it may be car-ried practically and safely to the restora-

tion of a metallic currency, to the entire

exclusion of paper, must agree that therestoration ought not to be carried furtherthan a cautious and a slow experienceshall prove that it can be done, consistent-ly witli the prosperity of the country, in

trie existing nscal and commercial condi-tion of the world. To go beyond the pointto which experience shall show it is properto go, would be to sacrifice the public in-

terest merely to a favorite conception.

—

There may be ultimately a disagreementof opinion where that point is, but since all

must be agreed to move forward in the

same direction and at the same pace, let

us set out in the spirit of harmony andpeace, though we intend to stop at differ-

ent points. It may be that, enlightened

by experience, those who intended to stop

at the nearest point may be disposed to

advance farther, and that those who in-

tended the farthest, may halt on this side,

so that finally all may agree to terminate

the journey together.

This brings us to the question of howshall so salutary a change be effected?

—

What the means and the mode of applica-

tion? A great and difficult question, onwhich some diversity of opinion may beexpected.No one can be more sensible than I am

of the responsibility that must be incurred

in proposin* measures on questions of so

much magnitude, and which, in so distract-

ed a state of the public mind, must effect

seriously great and influential interests.

—

But this is no time to shun responsibility.

^The danger is great and menacing, and' delay hazardous if not ruinous. While,however- I would not shun, I have notsought ti-ie responsibility. I have waitedfor others, and" had any one proposed anadequate remedy, I would have remainedsilent. And here, (said Mr. Calhoun,)let me express the deep regret which I

feel that the administi-ation, with all that

weight of authority which belongs to its

power and immense patronage, had not,

instead of the deposite question, whichhas caused such agitation and distress,

taken up the great sutyect of the currency:examined itgravely and deliberately in all

its bearings; pointed out its diseased condi

tion; destgnated the remedy, and proposedsome safe, gradual, and effectual means of

applying it. Had that course been pursued,my zealous and hearty co-operation wouldnot have been wanting. Permit me also to

express a similar regret, that the adminis-tration having failed in this great point of

duty, the opposition, with all its weight andtalents, headed on this question by thediB-

tinguished and able Senator from Massa-chusetts, who is so capable of comprehend-ing this subject in all its bearings, had notbrought forward, under its auspices, somepermanent system of measures, based upona deliberate and mature investigation into

the cause of the existing disease, and cal-

culated to remedy the disordered state ofthe currency. What might have beenbrought forward by them with such fair

prospects of success, has been thrown onmore incompetent hands; unaided by pa-tronage or influence, saving only that in-

fluence which truth, clearly developed,and honestly and zealously advanced, maybe supposed to possess^ and on which I

must wholly rely.

But to return to the suhject. Whateverdiversity of sentiment there may be as to

tlie means, on one point all must be agreed;nothing effectual can be done; no checkinterposed to restore or arrest the pro-gress of the system by the action of theStates. The reasons already assigned toprove that banking by one State compelsall others to bank, and that the excess ofbanking in one, in like manner compelsall others to like excess, equally demon-strate that it is impossible; for the States,acting separately, to interpose any meansto prevent the catastrophe which cer-tainly awaits the system and perhapsthe Government itself, unless the greatand growing danger to which I refer betimely and effectually arrested. Tliere

is no power any where, but in this Go-vernment—the joint agent of all theStates, and through which the concertof the action of the whole can be ef-

fected, adequate to this great task. Theresponsibility is upon us, and upon usalone. The means, if means there be,must be applied by our hands, or not ap-plied at all—^a consideration, in so great anemergency, and in the presence of suchimminent danger, calculated, I would suppose, to dispose all to co-operation, and toallay every party feeling in the heart evenof the least patriotic.

What means do we possess, and howcan they be applied?

If the entire banking system was underthe immediate control of the General Go-vernment, there Would be no difliculty indevising a safe and effectual remedy to re-store the equilibrium, so desirable betweenthe specie and the paper which composeour currency. But the fact is otherwise.With the exception of the Bank of the U.States, all the other banks owe theirorigin to the authority of the several States,and are under their immediate control,which presents the great difficulty expe-rienced in devising the proper means of ef-fecting the remedy, which all feel to be sodesirable.

Among the means which have been sug-gested, a Senator from Virginia, not nowa member of this body, (Mr. Rives,) pro-posed to apply the taxing power to sup-press the circulation of small notes, witha view of diminishing the paper and in-creasing the specie circulation. The re-medy would be simple and effective, butis liable to great objection. The taxingpower is odious under any circumstances;it Avould be doubly so when called into ex-ercise with an overflowing treasury; andstill more so, with the necessity of organ-izing an expensive body of officers to col-lect a single tax, and that on an incon-siderable subject. But there is another,and of itself, a decisive objection. It wouldbe unconstitutional—palpably and danger-ously so. All political powers, as I statedon another occasion, are trust powers, andlimited in their exercise to the subject andobject of the grant. The tax power wasgranted to raise revenue for the sole pur-pose of supplying the necessary means ofcarryingon the operations of the Govern-ment. To pervert this power from the ob-ject thus intended by the Constitution, tothat of repressing the circulation of banknotes, would be to convert it from a reve-nue into a penal power—a power in its na^ture and object essentially different fromthat intended to be granted in the Consti'tution; and a power, which in its full ex-tension, if once admitted, would be suffi-

Id

cient of itself to give an entire control tothis Government over the property and thepursuits of the community, and thus con-centrate and consolidate the entire powerof the system in this Government.

Rejecting, then, the taxing power, thereremains two obvious and" direct means inpossession of the Government which maybe brought into action to effect the objectintended, but neither of which, eitherseparately or jointly, are of sufficient effi-

cacy, however indispensable they may beas a part of an efficient system of mea-sures, to correct the present or repress thegrowing disorders of the currency; I meantliat provision in the Constitution whichempowers Congress to com money, regu-late the value tliereof and of foreign coin,and the power of prohibiting any thing butthe legal currency to be received either inwhole or in part, in the dues of the Go-vernment. The mere power of coiningand regulating the value of coins, of itself^

and unsustained by any other measure,can exercise but a lim.ited control over theactual currency of the country, and is in-adequate to check excess or correct disor-der, as is demonstrated by the presentdiseased state of the currency. Congresshas had, from the beginning, laws upon thestatute books to regulate the value of thecoins; and at an early period of the Go-vernment the mint was erected, and hasbeen in active operation ever since; andyet, of the immense amount which hasbeen coined a small residue only remainsin the country; the great body having beenexpelled under the operation of thebank-ing system. To give efficacy to this pow-er, then, some other must be combinedwith it. The most immediate and obviousis that which has been suggested, of ex-cluding all but specie in the receipts of theGovernment. This measure would be ef-

fectual to a certain extent; but with a de-clining income, which must take place un-der the operation of the act of the last ses-

sion, to adjust the tariff, and which mustgreatly reduce the revenue, (a point of tlie

utmost iniportance to the reiormation andregeneration of our institutions,) ihe effica-

cy of the measure must be corresponding-ly diminished. From the nature of things,

it cannot greatly exceed the average of theGovernment deposites, which I hope Mall

before many years be reduced to the smal-lest possible amount, so as to prevent thepossibility of the recurrence of the shamefuland dangerous state of things Avhich nowexists, and which has been caused by thevast amount of the surplus revenue.

—

But there is in my opinion a strong,if not an insuperable objection againstresorting to this measure, i-esulting from

the fact that an exclusive receipt ofspecie in the Treasury would, to give it

efficacy and to prevent extensive specula-tion and fi aud, require an entire disconnec-tion on the part of the Government withthe banking system in all its forms, anda resort to tiie strong box as the means .

of preserving and guarding its funds—

a

means, if practicable at all, in the presentstate of thnigs, liable to tlie objection of be-ing iar less safe, economical, and efficient

than the present.What then, Mr. C. inquired, what other

ineans do we possess of sufficient efficacy,in combination with those to which I havereferred, to arrest the farther progress andcorrect the disordered state oi the curren-cy.^ This is the deeply important question,and here some division of opinion must beexpected, however united we may be, as Itrust we are thus far, on all other points.I intend to meet this question explicitly

and directly, without reservation or con-cealment.

After a full survey of the whole subject,I see none, I can conjecture no means ofextricating the country from its presentdanger and to arrest its farther increase,but a bank—^the agency of which, in someform or under some authority, is indis-

pensable. The country has been broughtinto the present diseased state of the cur-rency by banks, and must be extricated bytheir agency. We must, in a word, use abank to unbank the banks, to the extentthat may be necessary to restore a safe andstable currency—just as we apply snow to

a frozen limb in order to restore vitality

and circulation, or hold up a burn to theflame to extract the inflammation. Allmust see that it is impossible to suppressthe banking system at once. It must con-tinue for a time. Its greatest enemies, andthe advocates of an exclusive specie circu-

lation, must make it a part of tiieir systemto tolerate the banks for a longer or ashorter period. To suppress them at oncewould, if it were possible,^ work a greater

revolution'—a greater change in the relative

condition of the various classes of the c(mi-

munity, than Avould the conquest of the

country by a savage enemy. What, then,

must be done? I answer.^ a new and safe

system must gradually grow up under andreplace the oltl—imitating, in this respect,

the beautiful process wh ch we sometimessee, of a wounded or diseased part in a liv-

ing organic body, gradually superseded bythe healing proc'ess of nature.

How is this to be effected? How is a

bank to be used as the means of correcting

the excess of the banking system? Andwhat bank is to be selected as the agent ot

effecting this salutary change? I know, said

11

Mr. C, that a diversity of opinion will be

found to exist as to the agent to be selected,

among tliose who agree on every other point,

and who, in particular, agree on the neces-sity of using some bank as the means of ef-

fecting the object intended; one preferring

a simple recharter o£ tlie existing bank—another the charter of a new bank of the U.States—a third a new bank engrafted uponthe old, and a fourth the use of the State

banks as the agent. I wish (said Mr. C.)to leave all these as open questions; to becarefully surveyed and compared with eachother; calmly and dispassionately, withoutprejudice to party feeling; and that to beselected which, on the whole, shall appearto be best—the most safe; the n.ost efli

cient; the most prompt in application; andthe least liable to constitutional objection.

It would, however, be wanting in candoron my part, not to declare that my impres-sion is, that a new Bank of the UnitedStates, engrafted upon the old, will befound, under all the circumstances of the

case, to combine the greatest advantages,and to be liable to the fewest objections;

but this impression is not so firmly fixed as

to be inconsistent with a calm review of

the whole ground, or to prevent my vield-

ing to the conviction of reason, should theresult of such review prove that any otheris preferable. Among its peculiar recom-mendations may be ranked the consideration, that while it \vT)uld afford the meansof a prompt and effectual application for

mitigating and finally removing the existingdistress, it would at the same time open to

the whole community a fair opportunity of

participation in the advantages of the in-

stitution, be they what they may.Let us then suppose, (in order to illus-

trate and not to indicate a preference,)that the present bank be selected as theagent to effect the intended object. Whatprov^isions will be necessary.'^ I will sug-gest those that have occurred to me, main-ly, however, with a view of exciting thereflection of those much more familiar withbanking operations than myself, and whoof course, are more competent to form acorrect judgment on their practical effect.

Let, then, the bank charter be renewedfor twelve years after the expiration ofthe present term, with such modificationsand limitations as may be judged proper,and that, after that period, it shall issueno notes under i^n dollars; that Govern-ment shall not receive in its dues any sumless than ten dollars, except in the legalcoins of the United States; that it shall notreceive in its dues the notes of any bankthat issues notes of a denomination lessthan five dollars: and that the UnitedStates Bank shall not receive in payment,

or on deposite,the notes of any bank whosenotes are not receivable in (he dues of theGovernment; nor tlie notes of any bunkwiiich may receive the notes of anv bankwhose notes are not 'receivable by the Go-vernment. At the expiiatiqn of six yearsfrom the commencement of the renewedcharter, let the bank be prohibited from is-

suing any note under twenty dollars, andlet no sum under that amount be receivedin the dues of the Government, except inspecie; and let the value of gold be raisedat least equal to that of silver, to take ef-

fect immediately, so that the country maybe replenished with the coin, the lightest

and the most portable in proportion to its

value, to take the place of the recedingbank notes. It is unnecessary for me tostate, that at present the standard value of

gold is several per cent, less than that ofsilver, the necessary effect of which hasbeen to expel gold entirely from our circu-lation, and thus to deprive us of a coin sowell calculated for the circulation ofa coun-try so great in extent, and having so vastan intercourse, commercial, social, and po-litical, between all its parts, as ours. Asan additional recommendation to raise its

relative value, gold has, of late, become animportant product of three considerableStates of the L^nion—Virginia, North Ca-rolina, and Georgia—to the industry ofwhich, the measure proposed would give astrong impulse, and which in turn wouldgreatly increase the quantity produced.

Sucli are the means whicli have occurredto me. There are members of this bodyfar more competent to judge of their prac-tical operation than myself, and as my ob-ject is simply to suggest them for their re-flection, and for that of others who are morefamiliar with this part of the subject, I

will not at present enter into an inquiry asto their efficiency, with a view of determin-ing whether they are fully adequate to effectthe object in view or not. There are doubt-less others of a similar description, and per-haps more efficacious, that may occur to theexperienced, whichi would freely embrace,as my object is to adopt the best and mostefficient. And it may be hoped that, ii

on experience it should be found that nei-ther these provisions, nor any other in thepower of Congress, are fully adequate toeffect the important reform which I haveproposed, the co-operation of the Statesmay be afforded, at least to the extent ofsuppressing the circulation of notes underfive dollars, where such are permitted tobe issued under their authority.

I omitted in the proper place to state myreason for suggesting tv.elve vears as theterm for the renewal of the charter of thebank. It appears to m.e that it is long

13

enough to permit the agitation and distrac-tion which now disturbs the country to sub-side, while it is sufficientlj^ short to enableus to avail ourselves of the lull benefit of thelight of experience, which may be expectedto be derived from the operation of the sys-tem under its new provisions. But there is

another reason which ajjpears to me to beentitled to great weight. The charter of theBank of England has recently been renew-ed for the term of ten years, with very im-portant changes, calculated to furnish muchexperience upon the nature of banking ope-rations and currency. It is highly desira-ble, if the bank charter should be renewed,or a new bank created, that we should havethe full benefit of that experience beforethe expiration of the term^ which would beeffected by fixing the period for the timeI have designated. But as my object in

selecting the recharter of the Bank of theUnited States was simply to enable me topresent the suggestions I have made, in

tlie clearest form, and not to advocate therecharter, I shall omit to indicate manylimitations and provisions, which seem to

me to be important to be considered, whenthe question of its permanentrenewal is pre-sented, should it ever be. Among others,

I entirely concur in the suggestion of theSenator from Georgia, of fixing the rateot interest at five per cent.; a suggestionof the very highest importance, as having amost important bearing on the value of pro-perty and the prosperity of the country, in

every branch of its industry, and to whichbut one objection can, in my opinion, bepresented; I mean the opposing interest ofexisting State institutions, all of which dis-

count at higher rates, and which may defeatany measure of which it constitutes a part.

In addition, I will simply say, that I, for

one, shall feel disposed to adopt such pro-visions as ai^ l>6st calculated to secure tl>e

Government from any supposed influenceon the part of the bank, or the bank froman improper interference on the part of theGovernment; or which nrny be necessaryto protect the rights or interes.ts of tlie

States.

Having now stated the measure necessa-ry to apply the remedy, I am thus broughtto the question—can the measure succeed.'*

which brings up the inquiry of how far it

may b^ expected to receive the support ofthe several parties which compose the Se-nate, and on which I shall next proceed tomake a few remarks.

First, then, can the State ri§ht party giveit their support—that party ot which I amproud of being a member, and for whichI entertain so strong an attachment—thestronger because we are few among many.Jn proposing this question, I am not igno-

rant of their long standing constitutionalobjection to the bank, on tlie ground thatthis was intended to be, as it is usuallyexpressed, a hard money Government—

a

Government whose circulating medium wasintended to consist of the precious metals^and for which object the power of coiningmoney and regulating the value thereot,was expressly conferred by the constitu-tion. I know hov/ long and how sincerelythis opinion has been entertained, and un*der how many difficulties it has been main-tained. It is not my intention to attemptto change an opinion so firmly fixed, but Imay be permitted to make a few observa-tions, in order to present what appears tome to be the true question in reference tothis constitutional point—in order that wemay fully comprehend the circumstancesunder which we are placed in reference toit. With this view, I do not deem it ne-cessary to inquire whether, in conferringthe power to coin money and to regulatethe value thereof, the constitution intendedto limit the power strictly to coining moneyand regulating its value, or whether it in-

tended to confer a more general power overthe currency; nor do I intend to inquirewhether the word coin is limited simply to

the metals, or may be extended to othersubstances, it through a gradual change theymay become the medium of the generalcirculation of the world. I pass thesepoints. Whatever opinion there may beentertained in reference to them, we all

must agree, as a fixed principle in our sys-tem of thinking on constitutional questions,,

that the power under consideration, like

other political powers,, is a trust power, andthat like all such powers, it must be so ex-ercised as to effect the object of the trust asfar as it may be practicable. Nor can wedisagree, that the object of the powder wasto secure to these States a safe,, uniform^and stable currency. The nature of the

power; the terms used to convey it; the his-

tory of the times; the necessit}>with the

creation of a common Government, ot hav-ing a common and uniform circulating me-dium; and the power conferred to punish,

those who, by counterfeiting, may attemptto debase and degrade the coins ot the coun-try; all proclaim this to be the object.

It is not my purpose to inquire whether^admitting this, to be the object. Congress is

not bound to use all the means in its powerto give this safety, this stability, this uni-

formity to the currency, for which the pow-er was conferred—nor to inquire whetherthe States are not bound to abstain fromacts on their part, inconsistent with these

objects; nor to inquire whether the right of

banking, on the part of a State, does not

directly, and by immediate consequence.

injuriously affect the currency—whetherthe effect of banking is not to expel the

specie currency, which, according to the

assumption, that this is a hard money go-

vernment, it was the object of the Consti-

tution to furnish, in conferring the powerto coin money; or whether the effect of

banking does not necessarily tend to di-

minish the value of a specie currency, as

certainly as clipping or reducing its weightwould; and whether it has not, in fact, since

its introduction, reduced tiie value of the

coins one half. Nor do 1 intend to inquire

whether Congress is not bound to abstain

from all acts on its partj calculated to af-

fect injuriously the specie circulation, andwhether the receiving of any thin§ butspecie, in its dues, must not necessardy so

affect it by diminishing the quantity in cir-

culation, and depreciating the value of whatremains. All these questions I leave open:

I decide none of them. There is one how-ever, that I will decide. If Congress has

a right to receive any thing else than specie

in its dues, they have the right to regulate

its value; and have a right, of course, to

adopt all necessary and proper means, in

the language of the Constitution, to effect

the object. It matters not what they re-

ceive, tobacco or any thing else, this right

must attach to it. I do not affirm the

right of receiving, but I do hold it to beincontrovertible that, if Congress were to

order the dues of the Government to bepaid, for instance, in tobacco, they wouldhave the right—they would be bound to

use all necessary and proper means, to give

it a uniform and stable value; inspections,

appraisement, designation of qualities, anawhatever else would be necessary to thatobject. So, on the same principle, if they

receive bank notes, they are equally boundto use all means necessary and proper, ac-cording to the peculiar nature of the sub-ject, to give them uniformity, stability, andsafety. The very receipt of bank notes onthe part of the Government, in its dues,would, it is conceded, make them money,as far as the Government may be concern-ed, and by a necessary consequence, wouldmake them, to a great extent, the currenc^rof the country. I say nothing of the posi-

tive provisions in the Constitution whichdeclare that, "all duties, imports, andexcises, shall be uniform throughout theUnited States," which cannot be, unlessthatin which they are paid, should also have,as nearly as practicable, a uniform value

^ throughout the country. To effect this,

where bank notes are received, the bank-ing power is necessary and proper withinthe meaning of the Constitution; and con-sequently, if the Government has theright to receive bank note* in its dues, the

power becomes constitutional. Here lies,

said Mr. C, the real constitutional ques-

tion—has the Government a right to re-

ceive bank notes or not ? The question is

not upon the mere power of incorporating;

a bank, as it has been commonly arguedf

,

though, even in that view, there would beas great a constitutional objection to anyact on the part of the Executive, or any-

other branch of the Government, whichshould unite any association of State banksinto one system, as the means ot giving the

uniformity and stability to the currencywhich the Constitution intends to confer.

The very act of so associating or incorpo-

rating them into one, by whatever namecalled, or by whatever department per-

formed, would be in fact an act of incor-

poration.But, said Mr. Calhoun, my object, as 1

have stated, is not to discuss the constitu-

tional questions, nor to determine whetherthe bank be constitutional or not. It is, I

repeat, to show where the difficulty lies—

a difficulty which I have felt from thetime I first came into the public service.

I found thenJas now, the currency of the

country consisting almost entirely of banknotes. I found the Government intimately

connected with the system, receiving banknotes in its dues and paying them awayunder its appropriations as cash. Thefact was beyond my control; it existed

long before my time, and without my agen-

cy; and I was compelled to act on the fact asit existed without deciding on themany ques-

tions which I have suggested, as connectedwith tliis subject, and on many of which, I

have never yet formed a definite opinion.

No one can pay less regard to precedentthan I do, acting here in my representative

and deliberative character, on legal or con-stitutional questions; but I have felt fromthe beginning the full force of the distirx-

tion so sensibly taken by the Senator fromVirginia, [Mr. Leigh,] between doing andundoing an act, and which he so stronglyillustrated in the case of the purchase of

Louisiana. The constitutionality of that

act was doubted by many at the time, andamong others by its author himself; yet hewould be considered a madman who, com-ing into political life, at this late period,

would now seriously take up the ques-tion of the constitutionality of the pur-chase, and, coming to the conclusion that

it was unconstitutional, should propose to

rescind the act, and eject from the Uniontwo flourishing States, and a growingTen-itory; nor would it be an act of muchless madness thus to treat the question ofthe currency, and undertake to suppressthe system of bank circulation, which ha^been growing; up from the beginning ef

14

the Governmenl;, -which has penetratedinto and connected itself with everybranch of business and every departmentof the Government, on the ground thatthe constitution inteniled a specie circu-lationj or who woukl treat the constitu-tional question as one to be taken upde novo, and decided upon elementaryprinciples, without reference to the impe-rious state of facts.

But in raising the question whether myfriends of the ^tate right party can consis-tently vote for the measure which I havesuggested, 1 rest not on the ground thatthen' constitutional opinion, in referenceto the bank, is erroneous. I assume theiropinion to be correct—I place the argu-ment, not on the constitutionality on un--onstitutionality^ but on wholly different

ground. I lay it down as an uncontro-vertible principle, that, admitting an act to

be unconstitutional, but of such a naturethat it cannot be reversed at once, or atleast without involving such gross injustice

to individuals and distress to the commu-nity, that it cannot be justitied; we may,under such circumstances, vote for its tem-ftorary continuance—for undoing gradual-

y, as the only practicable mode of ter-

minating it, consistently with the strictest

constitutional objection. The act of thelast session, adjustingthe tariff, furnishesan apt illustration. All of us believed thatmeasure to be unconstitutional and op-pressive, yet we voted for the act withoutsupposing we violated the constitution in

so doing; although it allowed upward ofeight years for the termination of the sys-

tem, on the ground that to reverse it at

once, would spread desolation and ruin overa large partion of the country. I ask that

the principle in that case be applied to this.

It is equally as impossible to terminate,suddenly, the present system of paper cur-rency, without spreading a desolation still

wider and deeper over the face of the coun-try. If it can be reversed at all—if we canever return to a metallic currency, it mustbe by gradually undoing what w^e havedone, and to tolerate the system while the

process is going on. Thus, the measurewhich I have suggested, proposes for the

Eeriod of twelve years, to be followed upy a similar process, as far as a slow and

cautious experience shall prove we may go,

consistently with the public interest, evento its entire reversal, if experience shall

prove we may go so far, which, however, I

must say, I, for <me, do not anticipate; butthe effort, if it should be honestly com-menced and pursued, would present a caseevery way parallel to the instance of the

tariff, to which I have already referred. I

go farther, and ask the question, can you,

consistenly with your obligation to tK«constitution, refuse to vote lor a measure,if intended, in good faith, to effect the ob-ject already stated.^ Would not a refusal tovote for the only means of terminating it,

consistently with justice, and without in-volving the horror of revolution, amount infact and in all its practical consequences to

a vote to perpetuate a state of things, whichall must acknowledge to be eminently un-constitutional and iughly dangerous to theliberty of the country ?

But I know that it will be objected, thatthe constitution ought to be amended, andthe power conferred in express terms. Ifeel the full force of the objection. I hold theposition to be sound, that when a constitu-tional question has been agitated, involvingthe powers of the Government, which ex-perience shall prove cannot be settled byreason, as is the case of the bank question,those who claim the power ought to abandonit, or obtain an express grant by an amend-ment of the constitution; and yet, even^yith this impression, I would at the presenttime feel much, if not insuperable objection,

to vote for an amendment, till an effort

shall be fairly made, in order to ascertainto what extent the power might be dispen-sed with, as I have proposed. I hold it asound principle, that no more power shouldbe conterred upon the General Governmentthan is indispensable; and if experienceshall prove that the power of bankingis indispensable, as I believe it to be, in theactual condition of the currency of this

country and ofthe world generally, I shouldeven then think that whatever power oughtto be given, should be given with such res-

trictions and limitations as would limit it to

the smallest amount necessary, and guardit with the utmost care against abuse. Asit is, without farther experience, we areat a loss to determine how little or how

|

much will be required to correct a disease

which must, if not corrected, end in con-vulsions and revolution. I consider thewhole subject oi banking and credit as un-dergoing at this time, throughout the civil-

ized world, a progressive change, of whichI think I perceive many indications.

—

Among the changes in progression, it ap-pears to me, there is a strong tendency in ,

the banking system to resolve itself into J

two parts—one becoming a bank of circu-

lation and exchange, for the purpose of

regulating and equalizing the circulating

medium, and the other assuming more the

character of private banking, of whichseparation there are indications in the ten-

dency of the thiglish system, particularly

perceptible in the late modifications of the

charter of the Bank of England. In the

meantime, it would be wise in us te avail

15

t^nrselves of the experience of the next fewyears, before any cliange be made in the

constitution, particularly as the coursewhich, it seems to me, it would be advisa-

ble to pursue, would be the same whetherthe power be expressly conferred or not.

I next address myself to the members of

the opposition, who principally represent

the commercial and manufacturing portions

of the country, where the banking systemhas been the farthest extended, and wherea larger portion of the property exists in

the shape of credit than in any other section;

and to whom a sound and stable currencyis most necessary, and the opiposite mostdangerous. You nave no constitutional ob-jection—to you it is a mere question of ex-

ipediency; viewed in this light can you votelor the proposed measure.^ A measure de-signed to arrest the approach of eventswhich I have demonstrated, must, if notarrested, create convulsions and revolu-tions; and to correct a disease which must,if not corrected, subject the currency to

continued agitations and fluctuations; andin order to give that permanence, stability,

and uniformity, which is so essential to yoursafety and prosperity. To effect this, mayrequire some diminution on the prolits ofbanking; some temporaiy sacrifice of in-

terest; but if such should be the fact, it

will be compensated in more than a hun-dred fold proportion, by increased securi-

ty and durable prosperity'-. If the systemmust advance in the present course withouta check, and if explosion must follow, re-member that where you stand will be thecrater'—should the system quake, underyour feet the chasm will open that will en-gulf your institutions and your prosperity.Can the friends oi the administration vote

for this measure? If I understand their

views, as expressed by the Senator fromMissouri, beliind me, [Mr. Benton,] andthe Senator from N. York, [Mr. Wright,]and other distinguished members of theparty, and the views of the President, as

expressed in leported conversations, I seenot how they can reject the measure. Theyprofess to be the advocates of a metalliccurrency. I propose to restore it by themost effectual measures that can be devi-sed; gradually and slowly, and to the extentthat experience may show that it can bedone consistently with a due regard to thepublic interest. Farther, no one can de-sire to go. If the means I propose, are notthe best and most effectual, let better andmore effectual be devised. If the processwhich I propose be too slow or too last, let

it he accelerated or retarded. Permit meto add to these views, what, it appears to

me, those whom I address ouglit to feelwith deep and solemn obligation of duty.They are the advocates and the supportersof the administration. It is now conceded,almost universally, that a rash and precipi-tate act of the Executive, to speak in themildest tenns, has plunged this countryinto deep and almost universal distress.

You are the supporters of this measure

—

you personally incur the respimsibility bythat support. How are the consequences

I

of this act to terminate.f^ Do you see theend.P Can things remain as they are, withthe currency and the treasury of the coun-try under the exclusive control of the Ex-ecutive.^ And by what scheme, what de-vise, do you propose to extricate the coun-try and the constitution from their presentdangers?

I have now said what I intended. I havepointed out without reserve what I believein my conscience to be for the public in-

terest. May what I have said be receivedas favorably as is the sincerity with which it

has beeen uttered. In conclusion, I havebut to add, that, if what I have saitl. -hall inany degree contribute to the adjustment ofthis question, which I believe cannot beleft open without imminent danger, 1 -hall

rejoice; but if not, I shall at least havethe consolation of having discharged myduty.

C^i^,^^V^f' -