MR. WEBSTERKS SPEECH

ON THE CURRENC Y, 

AND ON TI-I)’-1 Nfiw PLAN FOR
\COLLECTHN1ANDIUMHHNG“THEPUBLHjMQNEy&
,)E;.rm
TN T%H"I3I .‘3I*7IY‘4TA'17E OF‘ THE UNITED f‘3TATES,“

§;§1::1*'171.«:nIu-'xm 5728, 1837.

WAS[~H'NGTON:
% Imm'rmx> BY cums AND saEA.'r~rsm

1337;

season.

Mr. P‘aEstnnN'r2 I am opposed to the doctrines of the message, to the
bill, and to the amendment of the member from South Carolina, [Mn
Cannootxn] In all these, I see nothing -for the relief ofthe country; but I do
see, as I think, a question involved, the importance of which transcends
all the interest of the present occasion. t 1

It is my purpose to state that question; to present it, as well to the coon»-
try as to the ‘Senaterto show the length and breadth of it, as a question of
practical politics, and in its bearing on the powers of the Government; to ex-
hibit its importance, and to express my own opinions in regard to it.

A short recital ofevents and occurrences will show how this question has
arisen. i t

,The Government of the United States completed the forty-eighth year of
its existence, under the present constitution, on the third day of March last.

During this whole period, it has felt itself‘ bound to take proper care of the

currency of the country; and no administration has admitted this obligation,
more clearly or more freqpently, than the l-apt. For the fulfilment of this
acknowledged duty, as well as to accomplish other useful purposes,a national

w‘ bank has been maintained for forty, out of these f'orty-«eight years, Two
institutions of this kind have been created by law: one, commencing in 1791,

andlimited to twenty years, and expiring, therefore, in 1811; the ‘other,
commencing in 1816, with a like term of duration, and ending, therefore, in
1836. Both these institutions, each in its time, accomplished their purposes,

it so far as currency was concerned, to the general satisfaction of the country.

But before the last bank expired, it had the misfortune to become obnoxious
toitllfget late administration. I need not, atipresent, speak of the causes of
this hostility. My purpose only ireqiiuires astatement of that fact,tas an im-
poitant one in the chain of occurrences. The late President’s rlissatisfacu

tion of the bank was intimated in his first annual message, that is to say, in t

1829. But the bank stood very well with the country, the President’s known
and growing hostl*lity1notwithstanding; and in 1832, four years before its

charter was toexpire, ‘both Houses of Congress passed a bill for its contin-4. ~

trance; there being in its favor aylargg majority of the Senate, and ad

iargerimajoritylofitlie House of Representatives. ‘ The bill, hovrever,

was negatived by the President. In 1833, by an order of the»President,
the public moneys were removed fromi,theiicustody»of' the bank, and were de--.
posited with certain selected State" banks. This removal was accompaniedi
with the most confident declarations and assurances, put forth every form,
by the President andthe Secretary of T the Treasury,7th.at' these State banks

would not, only prove‘ safe depositoriest of the-lpublic money, but that they r
p would also furnish the countrywith asgood a currency as it ever had en-t

4

joyed, and probably a better; and would also accomplish all that could he
wished, in regard to domestic exchanges. The substitution of State banks
for a national institution, for the discharge of these duties, was that operation,
which has become known, and is likely to‘ be long remembered, as the
“Experiment.” ‘ l l i

For some years, all was said to go on extremely well, although it seemed
plain enoughwto a great part of the community that the system was radically
vicious; tltatits operations were all inconvenient, clumsy, and wholly inade-'
quate to the proposed ends; and that, sooner or later, there must be an ex-
plosion. The administration, however, adhered to its experiment. The
more it was complained of, the louder it was praised. Its commendation was
one of the standing topics of all ofiicial communications; and in his last mes-
sage, in December, 1836, the late President was more than usually emphatic
upon the great success of7...hisr"attempts to improve the currency, and the
happy results of the experiment upon the important business of exchange.
But areverse was at hand. The ripening glories of the experiment were

A u soon to meet a dreadful blighting. In the early part of May last, these banks

all stopped payment. This event, of course, produced great distress in the
country, and it produced also singular embarrassment to the administration.

The present administration was then only two months old; but it had
already become formally pledged to maintain the policy of that which had
gone before it. t The President had avowed his purpose of treading in the
footsteps of his predecessor. Here, then, was difliculty. Here was a politi-
cal knot,’ to be either untied or cut. The experiment had failed, and failed,
as it was thought, so utterly and hopelessly, that it could not be tried again.

‘What, then, was to be done? Committed against a Bank of the United
States in the strongest manner, and the substitute, from which so much was
expected, having disappointed all hopes, what was the administration to do?
Two distinct classes of duties had been performed, in times past, by the

in Bank of the United States; one more immediately to the Government, the

other to thecornmunity. The first, was the safe-lteeping and the transfer,
when required, of the public rnoneys; the other, the supplying ofa sound
and convenientqpaper currency, of equal credit all over the country, and

' everywhere equivalent to specie, and the giving of mostimportant facilities

to the operations of exchange. ~~These objects were highly important, and
their most perfect accomplishment by the experiment had been promised,
from the first- The State banks, it was declared, could perform all these
duties, and shon,ld_pe_rforrn them. But the “experiment” came to a dishonored

end in the  part‘il5f’l\’Iay:-cw-~iT,he deposite banks, with the others, stopped

payment. They could not render back the deposites; and so far from being
able tofurnish may general currency, or to assist exchanges (purposes, indeed,
which they never had fulfilled, with any success) their paper became imme-

diately depreciated, even in itslocal circulation..._What course, then, was the ads...

ministration new to adopt? Why, sir, it is plain, that it had but one alternative.
It must either return to tlteiformer practice of the Government, takelthe cur-

rency into its own l1ands,and maintain it, as wellas provide for the safe-keep-t

iinglof the public..mo«n_ey by tsorne institution of itsown; or else, adopting some
new mode of merely keeping the .publi..c money, it must abandon all further
care over currency and exchange. One of , these courses became inevitable.
The administration had no other choice. The Stateibanks could be tried no

' more, with the bpinl0l1,,.whlChv-,bhe administration now entertained of them; and

how else could any thing be done, to maintain the currency? ‘In no way,
but by. the establishment of a national institution.~ t t " l T l

5

There was no escape from this dilemma. One course was, to go back to
that which the party had so much condemned; the other, to give up the
whole duty, and leave the currency to its fate. Between these two, the
administration found itself absolutely obliged to decide; and it has decided,
and decided boldly. I It was decided to surrender the duty, and abandon the
constitution... That decision is before us, in the message, and in the meas-
ures now-A under consideration. The choice has been made; and that choice,
in my opinion, raises a question of the utmost importance to the people
of this country, both for the present and all future time. That question is,
WHETHER Cortoanss Has,‘ on OUGHT TO ‘HAVE, ANY DUTY TO PERFORM IN
nnLA'rroN TO ’I‘IiE CURRENCY or '1‘:-111*. COUNTRY, BEYOND THE Mann REGULA-
TION on 'rnn GOLD AND SILVER com. ‘ ~ M I

Mr. President, the honorable nieniber from South Carolina remarlted, the
other day,rwith great frankness and good-humor, that in the political classi—-
fications of the times, he desired to be considered as nothiingrbutan hon—-
est nullilier. That, he said, was his . character. I believe, sir, thecountry
will readily concede that character to the honorable gentleman. .Fer one,
certainly, I am willing tosay, that I believe him a veryhonest and a
very sincere nullifier, using the term in the same sense in whichhe used it
himself, and in which he meant,to apply it to himself. And I am very
much afraid, sir, that (wliatever he may think ofrit himself) it has been under
the influence of those sentiments, which belong to his ‘character as a pulli-—
tier, that he has so readily and so zealously embraced the doctrines of the
President’s message. In my opinion, the message, the bill before us, and

the honorable member’s amendment, form, together, a. system, a code of prac-

tical politics, the direct tendency of which is to nullify and expunge, or,

‘perhaps, more correctly speaking, by a united and mixed process ofnullifi—

cation -and expunging, to abolish, a highly important and useful power of the
Gocernment. It strikes down the principle upon which the Government
has been administered, in regard to the subject of the currency, through its
whole history; and it? seeks to obliterate, or to draw black lines around, that
part of the constitution on whichthis principleiof adrninistrationp has rested.
The system proposed, in my opinion, is not only anti-commercial, but anti-
constitutional also, and anti-union, in a high degree.  I I
You will say, sir, that this is a strong way of stating" an opinion. I It is so
I mean toistate the opinion in the strongest manner. I I do not wish, indeed,
at every turn, to say, of measures which I oppose, that they either violateior
surrender the constitution. I But when, in all soberness and candor, I do so

think, in all sobernessyand cand..0t:.-,I must sospeak; and whether’ the opinion

which I have now expressed be true, let the sequel decide. . I

Now, srr,‘7 Congress has been called together in a moment of great clitiiculty. i

The characteristic of the “crisis is commercial distress.~ We are not suffering
from war, or pestilence,‘ or famine; and it~is*“*alrleged, by the President and
Secretary, that there is‘ no want of revenue. I Our means, it is averred,a1~.e
“abundant. r And yet the Government is in "distress, and the country.iis§'in
distress; and Congress is assembled, by a" call of the President,:to,.?.provide
relief. The immediaite and ’clirect“cause oftall, is, deratigemetttiifiiofthe‘ cur»
rency and the exchanges; vcommercial credit »is gone, and property no longer

answers the common ends an"dA’r»pu.’*,)osesof property. Governnient cannot-

use itsown means, and individuals are alike ‘unable to command their ro.wTn,re--
sources. The operations,bioth of Government and ipeople, -are obstructed;
and they are obstructed,bec'ause the Inoneycof it-he ireosuintry, the great7~«in-
strument of commerce and exchaingeyhiaisi bec.otne.idtiso‘rde1*ed iandgaseless.

6

The Government has funds; that is to say, it has credits in the banks, but it
cannot turn these credits into cash; and individual citizens are as bad of as
Government. The Government is a great creditor and a great debtor. It
collects and itdisburses large sums. In the loss, therefore, of at proper medium
of payment and receipt, Government is a sufferer. But the people are suffer-

ers from the same causes; and inasmuch as the whole amount of payments and

receipts by the people, in their individual transactions, is many times greater
than the amount of payments and receipts by Government, the aggregate of
evil suti"ered"“bythe people is also many times greater than that suffered
by Government. Individuals have means as ample, in proportion to; their
wants, as Government; but they share with Government the common
calamity arising from the overthrow of the currency. The honorable
member from Mississippi [ML WALKER] has stated, or has quoted the
statement from others, that while the payments and receipts of Government
are twenty millionsa year, the payments and receipts of individuals are two
or three hundred millions. He has, I think, underrated the amount of
individual payments and receipts. But even if he hastnot, the statement
shows how little a part of the whole evil falls on Government. The great
mass of suffering is on the people. i .

Now, sir, when we look at the message, the hill, and the proposed amend-
ment, their single, exclusive, and undivided object is found to be, relief to the
Guzgernmeizt. Not one single provision is adopted or recommended, with
direct reference to the relief of the people. They all speak. of revenue, of
finance, of duties and customs, of taxes and collections; and the evils which
the people, suffer, by the derangement of the currency and the exchanges, and
the breaking up of commercial credit, instead ofbeing put forth as prominent
and leading objects of regard, are dismissed with a slight intimation, here
and there, that, in ‘providing for the “superior and paramount interests of
Government, some ‘incidental or icollateralbenefits may, perhaps, accrue to
the community. But is Government, I ask,to care for nothing but itself’!
Isiself-preservation the great end of Government? Has it no trust powers?
Does it owe no duties, but to itself’! If it keeps itself in being, does it
fulfil all theobjects of its creation-‘lg I think not. Ipthink. Government
exists, not for its own ends, but for the public utility. It is an agency,

established tolpromote the common good, by common counsels; its chief
duties are to the people; and it seems to me strange and preposterous, in a ’
moment of great and general distress, that Government shouldycottfine all

its deliberations to the single object‘ of its own revenues, its own convenience,
its otvn..,u_ndi,stMurb_ed___pV‘maMdpninistration. '

I cannot say, sir, ’tltdi""Iilivarfisurprised to see this general character im-
pressed, on the face of the message. ‘ I confess it appeared to ‘me,
tvhenthe banks stopped pafyment, that theadministration had come to a
pass, in Whiclrit was unavoidable that it should take some such course. Bjut
that necessity waszimposed, not by the nature of the crisis, but by its ovvn
commitmentp,,toT the line» of tipoliticslwhich its predecessor had adopted, and
vvhich it had; pledged itself to pursue. l t i  t
t t ‘It withdraws ‘itsicare from thecurrency, because it has left itself no means

of ;performing itsioiwntduties, (:otnnec‘ted with that subject. {It has, volunta- 
rilyvandton calculation, «discarded and nenounced the policy which has been p

approved for half a century, because it could not return to that policy, with-

‘ out admitting its own inconsistency, and vtiolating its party pledges. Thisis

the truth of thetwholel matter. p t t \ , p
i-Now, sir,‘  present purpose chiefly, is, totmaintain two propositions: 

7

y I. That it is the constitutional duty of this Government to see that auproperr
currency, suitable tothe circumstances of the times, and to the wants. of trade
and business, as well as to the payment of deb_ts due to Government, be main-3
mined and preserved; acurrency of general credit, and capable of aiding
the operations of exchange, so far as those operations maybe conducted by
means of the circulating medium; and that there are duties, therefor,e,_devo1v¢-
ing on Congress, in ‘relation to currency, beyond the mere, regulation of the
gold and silver coins. , i r   V‘ n i _, r  t ,
III‘. That the message, the bill, and the proposedamendment, “all, in ieffect,
deny any such duty, disclaim all suchpower, and confine the constitutional

obligation of Government to the mere regulation of the,coins,ajn,d, the. care

of its own revenues. _ V  ,
Ihave well weighed, Mr... President, and fully considered, the first of
these propositions; to wit, that which respects the duty of, this Government,
in regard -to the currency. I mean to stand by it. i It ex,press,§,s),,_l,,in,_, my
judgment, a principle, fully sustained. ‘by the constitution, and by the usage
of the Government, and which is of ‘ the highest practical importance. _With
this proposition, or this principle, am willing to stand connected, and to
share in the judgment which the community shall ultimately pronounce upon
it. If the country shall sustainit,,and be ready, in duertime, to carry it into
effect, by such means and instruments as the general opinion ,;sha.l1 thiinkbest
to adopt, I shall co-operate, cheerfully, in any such undertaking;andshall
look again, with confidence, to prosperity in this branch of our national con-
cerns. On the other hand,if the country shall reject. this ,proposit_io_n,and
act onthat rejection; if it shalldecide that Congress has no powetywnolriis
under any dutyi, in relation to, the currency, beyond the mere riegulation of
the coins; then, upon that construction of l the powers and d,ut_ies of Congress,
I am willing to acknowledge,t,hat I do not feel myself lootnpetentto relnder
any substantial service to the ‘public councils,,on, these great interests, I
admit, at once, that if the currency isnot to be preserved by the Govern-i
mentof the United ‘States, I know nothotv it is to be guarded against icon-
stantly occurring disorders andiderangements. , , _ n l I l .  no “
Before entering. intoithe discussion of the grounds of this ,proposition,
however, allow me,_sir, few words by way of preliminary ,explan_ation., In
the first place, I wish it to be observed, that I am now contending only for the
general principle, and not insisting either. on the ,constitutio_nagli,ty,_,orA e,xpe~
diency, of any pa;—;icu1ar:meat1s, or any_particular agent. lam not, saying
by what instrumeintflor agent Congress, ought to perform thislduty ; ,I_on1y
say, it i;s_aclu,ty,,_wlticl"1, in some ,mode,_an,d by some rniea11s,,_[C,ongress is;
bound to perform.  In the n'etxt‘*p1arce,. let iftitiibe ren,teml;>ered,,tl1at I carry the
absolute duty of _Governme_nt, in regard to ex,ci1,an_ge,'1;1o fartlter, than the
operaitions I of ex,cha11se?imar,be r¢r1'0rffied. bywrrellcye N0 doiubtssiir; a
proper institution, established by Governrnent,_rnight,. as‘l1eret,olbro,,gi,ve,,

otherrrfacil,iti~es, to .exch,ange, of greatiin1pot'tan_Le,, andtoarveryfgreatextenn it

But I intend, «0,l1,_«lI].;l$; occasion, to keep clearly within the constitutior_i,anr,l to

assign no dutyto Congress, not I p1ain,ly:_”enj.oined by theilprovisionhs. iofithht. ,

instrument, as fairly interpreted, and as heretofore understood. , n M   
The, ,President says,it iS.; t1pt,.th,e.,p,r,ovince I O_fT.,Gove1't1m,e11t‘,,,to,,,aid,__ind_i¢g
viduals in the .transfer‘nf ,their,funds,, oiithierwiset than by the. I,1$,e,,9f‘i;.the,,,p0ste;
ojffice; and that it mi_,ght,as:,ju_s:tly be called onto provide for‘ Irsflmipolrtal-7,
tion of itheirimerchatldise-it V‘ I  i I , A  ‘ ,    A  , 2
Now. I. beg leaveto saygfsir, withf all respect and’,deferen¢ei. thatiiifundsiam

transferred from individual  indi,vid_ua1,l,.usually for_,,,the,_dir,ect i

s a

payment and receipt of debts; ‘that payment and receipt are duties of cure
rency; that, in my opinion, currency is‘ a thing which Government is bound
to provide for and superintend; that the case, therefore, has not the slightest
resemblance to‘ the transportation of merchandise, because the transportation
of merchandise is carried on by ships and boats, by carts and wagons, and

not by the use of currency, or of any thing else over which Government has "

usually exclusivecontrol. “These things individuals can provide for thet:n--
selves. But the transfer of funds is done by credit, and must be so done; and
some proper medium for thistransfer it is the duty of Government to provide,
because it belongs to ‘currency, to money, and is therefore beyond the
power of individuals. ~ ‘ t _ l

The nature of exchange, sir, is well understood by persons engaged in
commerce;' but as its operations are a little out of the sight of other classes
of the? comrnutiity, although they have all a deep and permanent interest in
the subject, 1 maybe pardoned for a word or two of general explanation.
Ilspeak *of..domestic exchanges only. ‘We pmean, then, by exchange, this
same transfer of‘fu‘nds.- i ‘We mean the making of payment in a distant place,
or the receiving of ‘payment from a distant place, by some mode of paper
credits. Ifdone‘ by draft, order, or bill ofexchange, that is one form; if done
by the transmission ofbank notes, through the post-offi‘ce,,or otherwise, that
is another form.‘ In ‘each, credit is used; in the first, the credit of the parties
whosenames are on the bill or draft; in the last, the credit of the bank.
Every man, sir, who looks over this ‘vast country, and contemplates the com-
mercial connexion of its various parts,must see the great importance that this
exchange should be cheap and easy. To the producer and to the consumer,
to the manufacturer and the planter, to the merchant, to all, in all classes,
this becomes matter of moment. We may see an instance in the common
articles of manufacture produced in the north, and sent to the south and west
liar sale and consumption. Hats, shoes, furniture, carriages, domestic hard-
ware, and various other articles, the produce of those manufactories, and of

those employments which are carried on without the aid of large ‘capital, conw '

stitute a large part of this’ trade, as well as the fabrics of cotton and wool.
Nowa statepof exchange, which shall enablethe producers to receive pay»-
ment regularly, and without loss, is indispensable to any useful prosecution
of this intercourse. Derangement of currency and exchange is ruinous. The
notes of local banks will not answer the purpose of rem*ittance; and if‘ hills of
exchange cannotbe had, or can -be ‘had only at a highrate, how is payment“ to
be i?received‘,lor to be received‘ without great loss? This ‘evil was “severely

felt, e‘ven"‘before the suspension of specie payment by the banks; and it will

always be *f'e‘l”t““,"“‘tnot“e"‘"'o1“‘"l*e'ss=;4it-il—l«~-tlie1*e is a currency of generalcredit and cir-
culation through the country.” But when the banks suspended, it became
overwhelrningr All gentlemen having‘ northern acquaintance, must know the
eJi:is_tence’of“this evil. I have heard‘ it said, that the hithertoqprosperous and
flou‘rishintg"'tolwnlof Newark hasralreadyilost a considerable part of its popula-
tion by the breaking uproflr its business, in consequence of thesetcommercial
embarrassmeuts.lt~ ‘ And in cases‘ in which business is not wholly broken up, if
five or six per 7ce‘n‘t.‘, or ‘more, is ‘to be paid for exchange, it by so much en-
hances the cost‘ to the .,consumer,t orltaltes away his profit from the producer.
I ‘havenzientionedl these articles of common product of lnorthernlabor; but the

same" erilprexists din allrthesalesf of imtportedi goods; and it must exist, also, in"-

the south, in the operations connected with its great staples. , ‘All the south
must ha.ve‘,f;an_d has, lconstant occasionffor‘ remittance byieritchangeg and no
partof the co"untry‘is likely to suffer’ more severely by itsderangenient. "In

p 9

short, there can beno satisfactory state of internal trade, when there is neither
cheapness,'nor prornptness, nor regularity, nor security, in the domestic ex»
changes. ' ‘ 

I say again, sir, that I do not hold Government bound to provide bills of

exchange, forpurchase and sale; Nobody thinks of such a tliing. If any
institution established "by Government can do this, as might be the case,
and has been the case, so much the better. But the positive obligation of
Government, I am content to limit to currency, and, so fares exchange is
concerned, to the aid which may be afforded to exchange by currency. i ' I
have been informed that, aifew years ago, before the charter of the late
bank expired, at those seasons of the year when southern and western mer-
chants usually visit the northern cities to make purchases, or niake"payniet'tt
for existing liabilities, that bank redeemed its notes to the amount of fifty or
even a hundred thousand dollars a day. These notes, having beenissued in the
west, were brought ‘over the mountains,ias funds to be used in the eastern
cities. This was exchange; and it waslexchango through the medium of

- currency; it was perfectly safe, and it» cost nothing. i This fact illustrates
the importance ofa currency of universal credit, to the business of exchange.

Having made these remarlts, for the purpose of explaining excltange,‘and
showing its connexion with currency,x1 proceed to discuss the general pro-
positions. ‘ r . . - t t -

Is, it the duty, then, of this Government, to see that a currency be main-
tained, suited to the circumstances of the times, and to the uses of trade
and commerce? . t i

I need not, sir, “on this occasion, enter historic.t-tlly into the well known
causes whichled to the adoption of the present constitution. Thosecauscs
are familiar to all public men; and among them, certainly, was this very
matter ofgiving creditand uniformity to the money system ofthe country. The
States possessedtno system of rnoneyand circulation; and that was among the

causes of the St€1gH'ritilOl],0l‘ conmierce. ‘Indeed, all commercial aft'airs were i
.111 a disjointed, deranged, and miserablestate. The restoration ofcornrnerce,

the object of givingit ttniforniity, credit, and national character, were among‘
the first incentives to a more perfect union ofthe States. We all know that

the meeting at Annapolis,in 1786, sprang frotn adesire to.atternpt something

which should give uniformity to the commercial operations of the se-ver‘a‘l
States; and that in and with this meeting, arose the propositiontfor a general
conventiotn, to‘ consider ofa new constitution of government. Everywhere,
State currencieswore depreciated, and continental money was depreciated

¢a1s_o, Debtsf could not be paid, and tiliere,was»no ,value to property-;- mm

the close of the~n*a'r, to the time of the‘a'do“*ption of this constitution, as I verilv

In

believe, the people sudered as much, except in the loss ofirlife, l‘rom.the dis»

titordered state of the currency and the iprostratiotn of commerce and business,

as they suffered, during the war.  All our history shows the disasters and
afl'li,ctions which siptraing from these-tsources; andit would be waste of time

i to go into as detailed recital” of. them.; to Forthe remedy of these.,evils,,ia,s one

of its greattohjects,and.tas greatest any one, the ‘constitution was formed and
adopted. ' r ,4  .e  sp . ‘l   ., A; ; 1 Q
. Now, sir, by thistconstitution,;Congress is authorized to “ coin money, to

regulate the value thereof, and or fot'eign_coins;",’ and all the States are -pro--
‘hihited from coining ‘money, and from »ma.l4ingany thing but gold and silver
coins avtender in’.payrnenttof debts-.2 Suppiosethe cons,t:i_tution had stopped

he~re,<~it would still haveV~=established, the all-important»point of as uniform

Amoney S.YSt€_IiIti.‘t By this provision Congress is , toi“l'urnish' = ctoin, 0rltl‘Etgt‘til.§tle

10

coin, for allthe States. There is to be but one money standard for the
country. And the standard of value to be established by Congress, is to be
a currency, and not bullion merely; because we find it is to be coir-2.; that is,
it is to be one or the other of the precious metals, bearing an authentic stamp
of value, and passing thereforetby tale. That is to be the standard of value. .A
standard of value, therefore, and a money for circulation, were thus express-

ly provided for. And iflnothing else had been done, would it not have been

a reasonable and necessary inference from this power, that Congress had author-
ityrto regulate, and rnustregulate and control, any and all paper, which either
States or individuals might desire to put into circulation, purporting to repre-
sent this coin, and to take its place, in the uses of trade and commerce? It is
very evident that the constitution intended something more than to provide a
medium for the payment of debts to Government. The object was a uniform
currency for theluse of the whole people, in all the transactions of life; and it
was manifestly the intent of the constitution, that the power to maintain such
a currency should be given to Congress. But it wouldirnalte the system in-
congruous and incomplete, \t it would be denying to Congress the means
necessary to accomplish ends which were manifestly intended, it would ren-
der the whole provision in a great measure nugatory, if, when Congress had
established a coin for currency and l circulation,it should have no power to
maintain it as an actual circulation, nor to regulate or control paper emissions
designed to occupy its place, and perform the same functions that it would
on the coinage power alone; and on a fair, and just, and reasonable inference
from it, therefore, I should be of opinion. that Congress was authorized, and
was bound, to protect the community against all evils which might threaten
from a‘ deluge __of currency of another kind, filling up, in_ point of fact,
all the channels of circulation. And this opinion is not new. It has often
been expressed before, and was cogently urged by Mr. Dallas, the Secretary
ofthe Treasury, in his report in 1816. He says, “ whenever the emergency
occurs, that demands a change of system, it seems necessarily to follow, that
the authority, which was alonetcotnpetent to establish the national coin, is
alone competent to create a national substitute.” , t _.

But the constitution does not stop, with this grant of the coinage power to
Congress. It expressly prohibits the States from issuing‘ bills of credit.
What a bill of credit is, there can be no dilficulty. in understanding, by any
one acquainted withthe history of the country. They had been issued, at
different times, and in various forms, by the State Governments. The object

of them was to create a paper circulation; and any paper, issued on the

credit ofthe State, and intended for circulation from hand :to hand,’ is a bill

,of.cre.dit,. whether tna‘de“a-re-ndetr for debts or not, or whether carrying in.

terest‘ or not. Is it issued with intent that it shall circulate from hand to
hand,.as money, and with intent that it shall so circulate on thercredit of the
State’! i If it is, it is a bill -of credit. The. States, therefore, are proltibited
from issuing: paperfor circulation, on their own credit; and this provision-
furnishes addéitional and strong proof, that all circulation, Whethertofrcoin or

2 paper, was intended to be subject to the regulation and control of Congress.
, Indeed, thevery object of establishing one commerce for all the States, and

one, money for all the States, .woruld= toftherwise be liable tcie becomp-letely
defeated. It has been- supposed,»nevertheless,.that this prohibition on the
States has not restr.ainedlthet_n from granting to indivi"duals, or- to private
corporations, the power of issuingtnotesi for) circulation, on their own. credit.

. This powerfhas long been :exercised, and is admittedrtore-xist. But couldit
ll;-el...reasonably‘ maintained, looking only to these two provisions, (that is to say,

it

to the coinage power, which is vested exclhsively in Congress, and tothe
prohibition on the States against issuing their own paper for circulation,) that
Congress could not protect its own power, and secure to the people the full
benefits intended by and for them against evils and mischiefs, ifthey should
arise, or threaten to arise, not from paper issued by States, but from paper
issued by individuals or private corporations? If? this be so, then the
coinage power evidently fails of a great part of its intended effect; and the
evils, intended to be prevented by the prohibitions on the States,,rnay all
arise, and become irresistible and overwhelming in another form. t
But the message intimates a doubt whetherthis power over the coin was
given to Congress to preserve the people from the evils of paper money, or
only given to protect the Government itself. I cannot but think this very
remarkable and very strange. The language of the President is, “there can
be no doubt that those who framed and adopted the constitution,,havin'g in im—-
mediate view the depreciated paper of the Confederacy, ofrwhich five thun-
dred dollars in paper were at times equal; to only one dollar in coin, in-g
tended to prevent the recurrence of similar evils, so far at least as related to
the transactions of the new Government.” 7Where is the foundation for the
gualvfifcation here expressed? On what clause, or cottstruction of any clause,
is it founded’! VVill any gentleman tell me what there is in the constitution
which led the President, or which could lead, any man, to doubt whether it
was the purpose of that instrument to protect the people, aswell as the Gov»
ernment, against the overwhelming evils of paper money? Isthere a word
or particle in the coinage power, or any other power, which countenances the
notion that the constitution intended that there should be one money for the
Government, and another for the people; that Government should have the
means of protecting its own revenues against depreciated paper, but should be
still at liberty to suffer all the evils -of such paper to fall with full weight upon
the people? This is altogether a new doubt. It intimates an opinion, which, so
far as it shall find those who are ready to adopt and follow it, will sap
and undermine onetof the most indispensable powers of the Government.
The coinage, power is given to Congress in general terms; it is altogether
denied to the States; and the States are prohibited from issuing bills of credit
for any purpose whatever, or of any character whatever. Can any. man

‘hesitate one moment to say that these, provisions are all intended for the gen-

eral good of p the people? I am therefore surprised at the language of the
message in this particular, and utterly at a loss to know what should have

led to it, except the apparent andforegone conclusion and purpose, of at-

temptingto, justify Congress in the course which was aboutto beracom-
mended to it, of ab,staining.‘alt‘og‘ethert from every endeavorto improve or
maintain the currency, except so far as the receipts and payments of the
Governmentlitself were concerned. I repeat, sir, that I should be obliged
to any friend of the administration, who would suggest to me onvwhat ground

this doubt, never expressed before, and now sosolemnly and gravely intimatta t

ed, issupposedrto istatnd, Is it, indeed, uncertain, is it matter of grave and
solemn doubt, whether the coinage power itself,so,fully“gra.nted to Congress,
andso carefully guarded by restraints uponthe States, had any further object
than to enable Congress to furnish a medium in which taxes miglttirtlrbe col-
lected? , I I g t ‘ it it ‘ “ ~ g t t , ~  ‘  
, Butthis poweryoverthe coinage, is not the. strongest, nor the broadest,
ground on whichto place, the duty of Congress. A There_,_is., another power
granted to Congress, which rseerns to me to apply tovthis case, directlyrand
irresistiblty,and;that is the commercial power.» «The } canstittttion declasres

122

that Congress shall have power to regulate commerce, not only with foreign
nations, but betwccrt the States. This is a full and complete grant, and
must includetauthority over every thing which is part of commerce, or essen..
tial to commerce. And is not money essential to commerce? No man, in
his senses,rcan deny that; and it is equally clear, that whatever paper is put
forth, with intent to circulate as currency, or to be used as money, im-
mediately aliects commerce. Bank notes, in a strict and technical sense,
are not, indeed, money; but, in a general sense, and often in a legal sense,
they are money. “They are substantially money, because they perform
the functions of money. Theyare not, like bills of exchange or common,
promissory, notes, mere proofs or evidences of debt, but are treatedias
money, inthe general transactions of society. If receipts be given for
them, they are given as for money. iThey pass under a legacy, or other
form of gift, as money. ‘And this character of banlt ‘notes was as well
known and «understood atthe time of the adoption of the constitution
as it is now. The law, both of Ettglandr and America, regarded them as
money, inrthe sense above expressed. If Congres's,"then, has power to
regulate commerce, it must have as control over that ‘money, whatever it
may be, by which cotnmerce is actually carried on. 'VVll6‘ll‘tt-31‘ that money

p be coin or paper, or however it has acquired the character of money or our»-

rency, il', in fact, it has become an actual agent or instrument in the per-
formance of commercial transactions, it necessarily thereby becomes subject
to the regulation and control of Congress. The regulation of money is not
so much an inference from the commercial power conferred on Congress, as
it is a part of" it. Money is one of the things, without which, in modern times,
we can form no practical idea of commerce. It is embraced, therefore, ne-
cessarily, in the terms 01' the constitution. A t ' ,  it

But, sir, as will_be seen by the proposition which I have stated, I go l'ur'-
ther; I insist that the duty of Congress is conn'nensurate with its power; that
it ltasianthorityinot only to regulate and control that, which others may put
forth as money and currency, but that it has the power, and 7is~bound to per»
form the ‘duty, of seeing that there is established and maintained, at all times,
a currency of general 'credit,‘eqnivalent in value to specie,‘ adapted to
the warns of commerce and the business of the people, and suited to the
existing. ‘c.ir‘cntnstances of the country. Sacha currency is an instrument
of‘ the first necessity it to commerce, according towtlie commercial system. of
the present age; and commercef cannot be conducted, with full advantage,
nrithoutit- It is in the power of Congress to furnish it, audit is in the
power of nobody else. The States cannot supply it. That resource has
otien been tried, and‘"h-ash-rail-ways failed. I‘ am- no ‘enemy to the State

«a banks; they maybe very useful in their spheres; but you can no more

cause tltern to perform the duties of a. national institution,than you can

turn a satellites into a primary orb. They cannot maintain a currency or

equal credrit all over the country. It might be tried, sir, in your State of
K.8t’1l’uCl{y,_ or our State of Massaclmsetts. We may erect banks on 9 all the
securities iWl'l”lcltl.l1€3j with of * man A can devise; we may -have capital, we may
have funds, rveirttnay have bonds and rmortgage_,_s, we may add the faith of the

State, we may pile P-(4:-lion upon Ossa; they will be State institutions. after all, i

and will not be able to support anationail circulation. This is inherent in the

natiureioftliings, and“iuVthe* sen~tinten_ts4of' men. It is invain to argue that it i

rougltttrp notytolll‘ be so, or to contend that one bank may be as safe as another.
Experience proves that '-ituis so, ?and.:we- rosy“ beassuredr it will remain so. .
. Sir, miner is notthe ruthless hand that shall strike‘ at the State .l'.h’:1l'll{S, nor

13

mine the tongue that shall causelessly upbraid them with treachery or perfidy. i

I admit their.lawfnl existence; I admit their utility in the circle to which they
properly belong. Ijonly say, they cannot perform arnational part in the ope-
rations of commerce. A general and universally accredited currency, tlte1"é~
fore, is an instrument of commerce, which is necessary to the enjoyment of
its just advantages, or, in other words, which is essential to its beneficial regu-
lation.‘ Congress has power to establish it, and no other power can establish
it; and therefore Congress is bound to exercise its own power. It isan ab-
surdity, on the very face of the proposition, to allege that Congress shall regu-
late commerce, but shall, nevertheless,‘ abandon to others the duty of main-
taining and‘ regulating its essential means and instruments. We have in
actual use a mixed currency: the coin circulating u1'l(l€%d""tl)€' authority of Con-
gress, the paper under the authority of the States.. But this paper, though it
fills so great atportion of all the channels of circulation, is not of general and
universal credit; it is made up of various local currencies,.none of which has
the same credit, or the same value, in all parts of the country; and therefore

these local currencies answer, but very loosely and deficiently, the purposes of o

general currency, and. of remittance. ‘ Now, is it to be contended that there
is no remedy for this? Are we to agree, that the constitution, with all its
care, circumspection, and wisdom, has, nevertheless, left this great interest
unprovided for’! Is our commercial system so lame and impotent’! Are our
constitutional provisions and our political institutions so radically defective’!
I tltinkp. not, sir. They do not deserve this reproach; and Ithink it may now
be easily shown that, under all adrninistratiuns, from General \Vashington’s
time down to the 3d of Marchlast, the Government has felt and _.acltnow-
ledged its obligation, in regard to the currency, to the full extent in which I
have stated it, and has constantly endeavored to fulfil that obligation. ~ Allow
me to go back to the beginning, and trace this matter down tolour times,
a little in detail. . i ; . r . ~ 1
In his firstspeech to Congress, in 1789, having just then assumed his new
office, General pwashington recommended no particular subjects to the con»

sideration of Congress; but in his speech, at the opening of the second see» --

sion, he suggested the importance ofa uniform ~currency,vv‘itl1out distinguish-
ing coinage from paper; and this body, in“ its answer, assured him that it was

a’ subject which should receive its attention. Recollect,sir, at that time, that.

there werefitate banks having notes in circulation, though they ttheretivery
few. The first Bank of the United States was established at the third ses-
sionoorfthe, Congress; in 1791. The "bill for its creation originated in the
Sen*ate ;;;the ‘debates in w.h_ich_wcre_at that tirne‘ not public- We have, how-
ever,;the debates in the House, we have the reports of the Secretaries, and
we. have the law itself. Let us endeavor to -learn,,tfr~orn— these sources, for

what objects tl]I.’lllS.’l‘:7?tS1ii'..i'lLt’l'05II. was createcl,» and lw7g.et/.z.cr at ttational czrrrmzcy

was one qfltltoseinbjects. . it , t t t i  - .-
‘Certainly, rsir,,it must be admitted that currency was not the only object.

-in incorporating the bank of 1791. The rGoverntne.nt; was ne.w,.itisfiscal

affairs were not w.elliarra.nged,»it was greatly in debt, and the political state
of thingsat, the time rendered -it highly probable that sudden:ioccasions
for making loans would arise. That it;jlmigh7t‘ assist the operations of the
Treasury, therefore, andgjothat it imightmalce those loans to 'G?overnment,~if
pressingioccasions shouldarise, were two of the ‘purposes, -had -in View in es-
tablishing the bank- ,,But"7it is equally clear that there wasta third ‘prurp-ose‘,

andtltat respected commerce.and_currency.  To furm'.sIi..~a;~cz1rréncyfoir{gen- C

eral circu.lation,{’and , to aid exchange, .was,_ diemonsltralfwy, it at clear,r..d'is-ltintct,
and avowed object, in the creation of the first btmlc,

14:

A02’: the 13th of December, 1790, the Secretary of the Treasury made a
‘report to the House of Representatives, recommending a national bank.
-In this report, he set forth the advantages of such an institution; one ofthese
advantages, he says, consists “in increasing the quantity of circulating
rnediurn, and qnickening the circulation.” And he then proceeds‘ to observe:
“' This last may require some illustration. VVhen payments are to be made
between difi'erent.places, having an intercourse of business witheach other, it"
there happen to be no private bills at market, and there are no bank notes
which have a currency in both, the consequence is, that coin must be re-
mitted. This is attended with trouble, delay, expense, and risk. If, on

‘thecontrary, there are bank notes current in both places, the transmission

of these, by the post, or any other speedy or “convenient conveyance, anw
swers the purpose; and these again, in the alternations ofdemand, are ire»-
qnentlyireturnecl, very soon after, to the place whence ltheywere first

sent: whence the transportation and retransportatiou of the metals are obvia-

ated, and a, more‘ convenient and a more expeditious medium of payment is
substituted.” A . _ l “ l l A

Is not this clear ‘proof, that one object, in establishing the l bank, in the
opinion of the Secretary, was the creation of a currency which should have
general credit throughout the country, and, by means of such credit, should
become a convenient and expeditious medium— of exchange’! "Currency,
sir, currency. and exchange were then, beyond all doubt, important objects,
in the opinion of’ the proposer ofthe measure, to be accomplished by the in-
stitution. The debates which took place in the House of Representatives,
confirm the same idea. Mr. Madison, who objected to the bill on constitun
tional grounds, admitted,nevertheless, that one of the ‘advantages of a bani;
consists “ in facilitating occasional remittances, from different places where
notes happen to circulate ;” and Mr. Ames, who was one of the most distin-
guisl-ted friends of the measure, and who represented a commercial district,
enlarglcdlon thegreatlbenetit of the proposed institution to cdmmerce. He
insisted that the_ intercourse between the States could never be on a good
footing, without an institution whose paper would circulate more extensively
than that ofany State ‘bank; and what he saw, in the future, we have seen in
the past, and feel in the present. Other gentlemen, also, contended that
some such institution was necessary, in order to enable ‘Congress to regulate
the comm"'erce of the country, and, for that reason, that it‘w,ould he constitu-
tional, as being proper means for a lawful end. ‘ ‘ ~

‘When the bill had passed the two Houses, the President, as we all know,
asked the opinion of his cabinet upon its constitutionality. The Secretary

of State and the“ Attorney General were against it; the Secretary of‘ the

Treasury was in favorof it; and among the grounds on which he placed

the-ri ht of Con ress‘ to ass the law, was its ladaldtation to the exercise of"
E . E P I .

the commercial power, conferred by the constitutionton Congress. His Ian»
guage is: ‘-~‘l’gI‘ho:l*institutionr of a bank has, also,'a ‘natural relationito the
regulation of trade between the States, in so far as it is condu[‘r:ive;to the cre-

‘ ation of a ciotivenient medium of exchange between them, and to the keep-

ingiup. afull ‘circulations, by _preventing, the frequentrdisplacementp poflthle
metals in reciprocal 7ren'nittanceis.ll l Moneyiis the very hinge on which com-
merce turns. And this does not mean nterelygoldp and silver; many other
things have served the purpose, with different degrees of utility. ; Paper has
been extelnsively employed. ‘ It ‘cannot, therefore, be adrnitted,with the Attor_-
ney General, that the riegulation of trade betweenlthe States, as it concerns?
thewsmedinm ofrcirculationtandexchange, ought‘ torbeilconsidered as confined

15

to coin.“ “ And itiitis” he adds, ‘‘ in reference to these general relations of
commerce, that anestablishment which furnishes facilities to circulation, and

a convenient medium of exchange and alienation, is to he regardedas a

regulation of trade.” ‘ »  
Nothingcan be plainer, sir, than this .language;iand therefore nothing is
more certain than that those whorecommended and supperted the first bank,
regarded it as a fit’ and necessary measure, in order to enable Congress
to exercise its important duty of regulating commerce, and to fulfil, espe-
cially, that part of the duty which en_joined?upon it the provision ofn proper
and suitable currency for circulation and exchange. ‘ r «
But it is not necessary to relyon these opinions of individual friends of
the measure. Let the act speak for itself. Let us look into it, and search

its reasons on its own face. What are the grounds and objects of the‘ law,

as set forth in the law itself? The preamble tells us. It declares:

“ That the establisliing of a bank will be very conducive to the sliccessfhl
“ conducting oflthe national finances; and will tend to give facility to the
“ obtaining of loans, for the use of Governnietit, in sudden emergencies; and
“ will be prodmtinc "of crm.st'dcmblc arlvczrztage to trade and irzdzzstry in gen-
“ oral.” ‘ ‘ ‘ at

Trade -and industry in general, therefore, constituted one distinct and
definite object of the incorporation, if the law truly expounds its own pnr-
poses. It was not revenue alone, it was not the facility of making loans,
merely, it was not mere utility to Government; but, in addition to these,
it was commerce, it was the interest of the people, it was trade and business
in general, which, among other considerations, formed an important part of
the objects of the incorporation. ‘And indeed, sir, events proved that it
was vastly the most important part of all. What else did the first bank do,
for the Glovernment or the country, at all to be compared, in the amount of
benefit, to its influence on the currency and the exchanges? , ,

It is as clear as demonstration, therefore, that the Government, in Gweneral
‘Washington’s time, did feel itself authorized by the constitution, and bound
in duty, to provide a safe currency, of general credit, for circulation and
for exchange. It did provide such a currency. .It is remarltable‘enough,
so comparatively small was the mere objpectofylteeping the public money,
that no provision for that purpose was inserted in the“ charter; nor was
there any law on the subject, so far as I rernember,“till the year 1800.

The bank went into operation,and its successwas great and instantaneousgr
and during the whole period of its ~exist“ence,‘, there was no complaint of the
state, oftlie cuirelncylior the~exchangtes..rl ‘  T .. ~ " p . ti =  T p i r

And now, sir, let "me ask, what was it that gavethis success to the new
institution’! Its capital was small, and Government had no participation in
its direction; it» was committed entirely to individual nianagementand‘ control.

Its notes it isvtrue, were ‘made receivable in a ments to Government:
_ 5

that was one advantage. It had a solid ‘capital, and its paper was at all
times convertible into gold and silver, atjthe will and pleasure of the ll]0.ldi.’t':
that was another and a most irnptortant ground of its prosperity. But, sir,
there was something more than all this. There was something wliitclrtouched

rnen’s sentiments, as well as their understandings. .There was a =cause which

carried the credit of the new-born bank, as on the wings of theiwind, to
every quarter and every extremity of the country. There was atcharm,
wliich created‘ trust, and faith, and t reliance, not only in the great mart-spof
commerce, but in everycorner into which money, iniany form, could .pene-
trate. , That cause was its nationalitytof character. had the broadseal

16

of the Union to its charter. It was the institution of the nation, established
by that new Government, which the people already loved; and it wasvknown
who designed to revive and foster that commerce, which had so lottgbeen
prostrate and lifeless. V , .

Mr. President, let it be bornein mind that I am not now arguing the
constitutionality, or present expediency, of 3. Bank of the United States. Mvr
sentiments are already well known on that subject; and, ifthey were not, the
snbject-is not now before us. .

But Ihave adverted to the history of the first bank, and e.",amined.the
grounds on which, and the purposes for which, it was established, in order to
show the fact, that this Government, from the first, has acknowledged the
important duty and obligation of providing for currency and exchange, as
part of the necessary regulation of commerce. I do not mean, at present.
to say that a bank is the only, or the indispensable, means by which this
duty can and must be performed; although I certainly think it the best.
Yet I will not set limits to the wisdom and sagacity of gentlemen, in the ine-
vention and adaptation of means. If they do not like a bank, let them try
whatever they do like. If they know a better instrument, or agent, let them
use it. But I maintain that the_ performance of the duty, by some means, or
some instrument, or some agent, is indispensable; and that so long as it shall
be neglected, so long the commerce and business of the country must stiffer".

The history of the la.te Bank of the United States manifests, as clearly as
that of the first, that the Government, in creating it, was acting, avowedly,
in execution ofits duty, in regard to the currency. Fiscal aid, except: so far
as the titrnishing of a currency was concet-n.°.d, was hardly thought of‘. its
bills were made receivable for revenue, indeed; but that provision, as far as
it went, was obviously a. provision iiorcurrency. Currency for the revenue,
however, was not the leading object. _ The leading object was currency for
the country. . t V

The condition of things, at that time, was very much like that which now
exists. The revenue ofthe Government was entirely adequate to all its wants;
but its operationswere all obstructed. by the derangement of the currency,
and the people were as bad of? as the Government. The banks, or most of
them, had suspended payments. Their paper was depreciated, in various
degrees; the exchanges were all disordered, and the comnierce of the coon-
try thrown into confusion. Governntent and people were all rich; but, with

 all their riches, they had no money. Both might apply to themselves what

Mr. Addison, beinga much readier writer than speaker, said of ltitnself, when

he observed, that although he could draw for a thousand pounds, he had not

aguinea in his pocket.

M'r..Madison, at that time, was President of the United States. i He had?
been one.of- the opposers of the first bank, on constitutional grounds, but he *

had yielded his own opinions to the generalsentimentr of the country, and to

the consi,deratiot1 that the power-had beenestablished and exercised. He.

was not a man who carried his respect for hi..ms_elf', and his own opini~ons,rso
far as to overcome his respect; for all other rne.n’s judgments. .Wise.-men,
sir,-_,:=tre sometimeswise enough i to surrender their own opinions, or at least
to seerthat there isa time when questions must be consideredias settled.
Mr. Madison was one of these. In his annual message,in December, 1815,
ltesaysttp ‘ ~ i l  -

‘S The arr‘ang;ements of t the finances, with a viewto the receipts and expenditures of

a permanent peace establishment, will necessarily enter into the deliberations of Con- .

‘ grass during the present, session... It is true, that theimproved 'c:onrli.t.iron of the public “

17 ’ r l

revenue will not only all"ord the means of" maintaining the Faith of the Government with
its creditors inviolate, and of prosecuting; successfully the measures ofthe most liberal"
policy, but will also justify an immediate alleviation of the burdens imposed by the
necessities of the war. ~ It is, however, essential to every modilicatiori of the finances,
that the benefits of a uniform national currency should be restored to the community.
The absence of the precious metals will, it is believed, he a temporary evil; but, until

r they can again be renderecl the general medium of excliange, it devolves on the wis-

dom of Congress to provide a substitute, which shall equally engage the confidence,
mitcl accommodate the wants of the citizens throughout the Union. Ifthe operation of’
“the State banks cannot produce this result, the probable operation of a national bank:
will merit consicleration; and if neither of these expedients be deemed effectual, it
may become necessary to ascertain the terms upon which the notes of the Government
(no longer required as an instrument of credit) shall be issued, upon motives of general

policy, as a common medium of circulation.”

Here, sir, is the express recommendation to CorJgi*ess to provide a “ NA-—
TIUNAL Courtenay,” a paper currency, a uniform currency, for the uses of
the community, as 21 substitute for the precious metals, and as a medium of
eztchange. lt devolves on Congress, says Mr. Madison, to provide sucha
substitute as shall engage the confidence and accornmodale the wants of the
t.'.lll3:S€3ll.*5 thoughout the Union; and if the State banks cannot produce this re»
sult, a national bank will merit consideration; t Canlanguage be more ex-
plicitl Currency, national currency, currency for eitcliange, currency which

shall ucconnnotlate all the people, is the great and leading, and, Inney add, ’

the sole and single-object of the roconnnendation.

Contrast now,sir, this latng-_'uage,tat‘id these sentiments, with those ol'the rues-
sage before us. Did Mr. Madison conlincliis recommendation to such nieasut‘es
of relief as miglit be useful to Government merely '9 ‘ Did he look exclusively
to the Treastiry? Did he content himself with suggesting a proper merlium
for the receipt of revenue, or a proper depositelb1' its safe-keeping’! Far
otlierwise. t His view was general, stutesrnanlike, and fitted to the exigency of
the times. The existing evil was one which afflicted the whole country; and
the remedy proposed by him was, asit should have been, ccirnmensurate vvith
the whole evil. And, sir, what at shock it would linve produced at that time,
if Mr. Madison, seeing the prostrate state of coznrnerce and business all

around him, lied reconnnendetl to Congress to do nothing in the world but to .

take care that the taxes were collected, and those in the employinent of Gov«-
crnment well paid. 5
iWell, . sir, what was done with this message? Why, sir, the House

of Representatives resolved, “that so much of the President’s message

as related to El. unil'orrn‘ national currency, should be referredto a select
cor'utnittee.” Such a committee‘, was raised, andtthe honorable nuember

iiirom South Carolina was placed at its head, as he well clescrvecl to be, from

his standing in the House, and his Well ltnotvnt opinions onthis subject. The

honorable xztemher was thus tit” the head of E1 committee, appointed, not on V
the subject of a. revenue currency, or n currency for tiovernrnent, buta

U:~t1rott:\-t NATION.-tL CUItFtE‘.NCY;;aI1d,ftO effect the great object of this appoint-
ment, he brotiglit in it bill for the establishrnent of 8. Bank ofthe United States.
   As had been ”l.'ll¢3 casefornierly, so on this occasion,ttl'ie Secretary.-of’. the
Treasury rnacle, a reportojuiithe subject. ‘ And how hear, sir,wl1at"l‘tet-tsays of

, ptlze cluty of Congress; to provide a mttionnl currency, and of the objects which

he,“p1'oposes by the establisl-nnent ofa national bank. , p j

'‘‘i‘‘ The ‘constitutional anrlflegnl foundation of the monetary system,of' the United States
is thus, distinctly seen; antlithe power of tlttetlfederal Governmentrtoinstitute andregm
late it, whether the circulating medium consist of coin, or of bills of credit, must, in. its
general policy,las‘ tvellas in the terms of itsinvestment, be deiterned an exclusive power.
it is trueythztttsubsystem dlepcndin-g upon“ the ‘agency of the precious metals, will be

18

al'l'ected by the various circumstances which diminish their quantity, or cleteriorate their
quality. The coin ofa State sometimes vanishes unrler the influence of political alarms.-,
sometimes in consequence of‘ the explosion of mercantile speculations; and ‘sometimes
by the drain of an unfavorable course oftrade. But, whenever the emergency occurs
that demands a change of system, it seems necessarily to follow, that the authority which
was alone competent to establish the national coin, is alone. competent to create a na-
tional substitute. It has happened, however, that the coin of the United States has
ceased to be the circulating medium of exchange, and that no substitute has hitherto,

been provided by the national authority. During‘ the last year, the principal baiiltii‘

established south and west of New England resolved, that they would no longer issue
coin in payment of their notes, or of the drafts of their ‘ customers for money received
upon deposite. In this act the Government of the United States liar! no pa!'tlClpt~1l2l0n:,
and yet the immediate efliect of the act was to supersede the only legal currency ofthe
nation. By this act, although no State can constitutionally emit bills of credit, corpo-
rations, erected by the several States, have been enabled to circulate a paper medium,
subject to many of the practical inconveniences of the prohibited bills of'credit.” 

“OF the services rendered to the Government by some of the -State banks, during
the late war, and of the liberality by which some of‘ them are actuated in their inter»
course with the Treasury, justice requires an explicit acknotvleclginent. It is a fact,
however, incontestably proved, that those institutions cannot, at this time, be success-
fully employed to furnish a uniform national currency. The failure of one attempt to-
associate them, with that view, has already been stated. Another attempt, by their
agency in circulating Treasury notes, to overcome the inequalities of‘ the exchanges, has
only been partially successful. And a plan recently proposed, with the design to cur-
tail the issues of banlt notes, to fir»: the public confidence in the administration of the
af‘l'-airs of the banks, and to give to each bank a legitimate share in the circulation, is
not likely to receive the general sanction of the banks. The truth is, that the charter
I‘€SlZ1‘lCl,ir)ll8 of some of the banlts, the mutual relation and depenclance of the banks of
the same State, and even of the banks of the different States, and the duty which the
directors of. each bank conceive they owe to their immediate constituents, upon points
of security or emolument, interpose an insuperable obstacle to any voluntary arrange-
ment, upon national considerat-ions alone, for the establishment of a national medium
through the agency of‘ the Stttte‘ba.nl{s.” _

“The establishment of a national bankqis regarded as the best, and perhaps the only
adequate resource, to relieve the country and the Government from thepresent em-
l>n1-rassment. Authorizeld to issue notes, which will be received in all payments to the

nited States, the circulation of its issues will“ be co-extensive withlthe Union; and there
will exist a constant demand, hearing; a just proportion, to the annual amount of the
duties and taztes to be collected, inclepcndent oflthe general circulation for commercial
and social purposes. A national bank will, therefore, possess the means and the op-

portunity of supplying a circulating medium, of equal use ‘and value in every State, v

and in every district of every State.
“The power of the Government to supply and maintain avpaper medium of’ ex»

change, will not be questioned; but, for the introduction of that medium, there must
be an adequate motive.” ‘i r

“Upon the whole, the state of the national currency, and other important consider»

ations connected with the operations of the Treasury, render it“ a duty respectlblly to

propose;--~ _
5‘ That a national bank be _established."

Thislanguaige, it must be admitted, is explicit enough, both in regard to i

thepowerl and the duty; and the whole report bears very little resemblance,

most certainly, to the oliiciel paper from the Treasury Departnient ziotvgbeh.

{hrs us. i q ' l l A‘ l V‘ \ W l . ll’
When the bill was called‘ up, the honorable member from Soluth Carolina

l exjplaitied its objects in an‘ able speech. i He showed the absolute necessity
ofqa national currency; the ipower of Congressover such ctirren'c'y, qwhetlier ,j
metallic or paper; and the propriety and ‘expediency of establishing a bank, 
as the best means of exercising these powers and fulfilling these duties. In t
agreed then, and I agreeAuow,_tothe general sentiments, expressed in that
speech, heartily and entirely. A I would referto it, on ithiis occasion, both as i

an able argument and a high authority; and liieg toladopti_t,‘as setting t’orth,l V

in a strong‘ light, the sentiments which I aim {low endeavoring to enforce.

O

19‘

[Mr. CALHOUN here rose to make an explanation. He said that henever

saw the reporter’s notes of his speech on that occasion, and, therefore, what
he did say, may not have been what he would have said. There were points
of omission in ‘that speech, which occupied a column and a half of the Na-
tional Intelligencer. Mr. C. said, that he took care then, as now, to fortify
himself, and leave a road open to oppose, at any coming time, a national
banlt. He then said that he was opposed toa bank, but that he submitted to
the necessity of the case. There was then a connexion between the Govern»-
ment and the banks; and if the Government had a right to regulate the
currency, there was no means of doing it but by a national bank. He had,
both then, and since then, contended that Government had no right to have
any connexion with any banlts. In his opinion, the United States Bank
(which he then advocated, and assisted to establish) was not established ac-.
cording to the constitution. Congress had no right to establish such a bank.
He acted contrary to liis own impressions of right. Many people may do
things which they do not believe to be lawful, from necessity. He acted from
necessity.] , s y i V .
Mr. Wansren, resuming his remarks, said, he thought the gentleman had
said, formerly, that in consequence of the decision of the question, he felt,

a thenceforward precluded from opposing the bank as being unconstitutional.

[Mix CALHOUN again explained : He (Mr. C.) thought the connexion
between Government and banks was now broken, and that set him at liberty;
so that now he could oppose what he had then, and since, earnestly advocated]

It is not my desire, sir, to hold the gentleman to a report of his speech,

which he may choose, even now, to disclaim. I have never heard of his di.s-..,

claiming it before; and even now, sir, I do not understand him as being
desirous of retracting or denying any thing contained in the printed report of
his speech, respecting the importance of a uniform national currency. That
topic makes up the sum and substance of his whole speech. It was the
topic of the occasion; it was the express purpose for which his committee

had been raised, and for the accomplishment of which ‘the whole ‘proceed-

ing was gone into. It was all currency, currency, currency; and whether
the gentleman now thinks the law constitutional or unconstitutional, he can—-
not deny that his own object, and the object of Congress, was to furnish a
circulating medium for the country.. And here again, so unimportant, rela-
tively, was the mere custody, or deposite of the public moneys in the bank,
that the bill, as originally introduced, contained no provision for that object.
A section was afterwards introduced, inC,ornmitte,e of the Whole, on my
motion, providing for the‘deposit‘e of the public" moneyspwiththe bank, un-
less the Secretary of the Treasury should, at any time, otherwise order and
direct; a reservation of power to the Secretary, which, as I think, and al-
ways have thoug*ht,'was greatly abused, by the removal of the deposites,
in 1833. r r y A y y r V
By reference to the debates, sir, itywill be found that other friends of the
measure followedfup the generalideas of the honorable gentleman from
South Carolina, and supported the bank, as .a necessary agent or instru-
ment for establishing, anew, a national currency, for the uses of commerce
and exchange. j, W,‘ C, i ,l r_
The operation of the joint resolut_ion~ of April, 1816, aided, no doubt, in
a proper degree, by the institution of the bank, and the currency which it
furnished, accomiplishedthe great end of the resumption of specie payments;
and, for a long period, we had no further trouble with the currency. ,
by And I now proceed to say, sir, that the late_Prlesidentofthe United States

so

has acknowledged this duty, as often, and as fully and clearly, as any of his pre-
decessors. His various admissions, or recognitions, of this obligation, are too
recent and too fresh in every one’s recollection, to require, or to justify, par-
ticular citation. All the evils we now feel, indeed,.we have encountered
in the search after a better currency. It has been in the avowed attempt to dis-
charge the duty of Government, connected with the circulation, that the late
administration has led us to wherevwe new are. The very first. charge that
the late President ever brought against the bank, was, that it /tad not main.-

t‘az'ned a sound and mzyform currency. Most persons, probably, will think

the charge quite unfounded; yet this was the charge. Its dereliction of duty,
or its want of ability to perform what had been expected from it-l--its failure,

in some way, to maintain a good. currency, was the original professed cause

of dissatisfaction. And when the bill for rechartering thehanlt was nega--

tived, it was not on the ground. that Government had, nothing to do with the-

national currency, but thata better ‘provision for it might be made, than we

had in the bank. The duty was not to be disclaimed,or thrown ofi",or neg- t

lected; new agents, only, were to be employed, that it might be better per-
formed. The State banks would do better than the national bank had done;
the President was confident of this, and therefore he rejected the national’
banltpas an agent, and adopted the State banks. And what he so constantly
promised us would happen,he as resolutely maintained, afterwards,had
happened. a Down to his last message, down to the last hour of his adminis-
t7ra_tion, he insisted upon it that the State banks had fulfilled all his expecta-
tions, and all their own duties; and had enable-ti the Government to accom-
plish, in the very ‘best manner, the great and important objects of currency
and exchange. ‘We have the same head of the Treasury, sir, who has re-

peated andechoed all these statements, whether ofuprophecy or fulfilrnent,‘

in successi.ve‘reports, someof them not iesstersely and intelligibly written
than that now before. us; and we have heads of other departments, who con-
curred, I presume, from time to time, in the original statements,and in the
faitl1ful‘ecltoes of them, from the Treasury. All these functionaries have
heenilaboring with the utmost zeal, as they _professed, to perform their con-
stitutional obligation of furnishing the country with a good currency, with a
better currency, with the best currency; and they have dragged Congress,

dragged the country, ‘and’ dragged themselves, into difiiculty, perplexity,‘

anddistress, in this long and f hot pursuit. And now, behold, they draw up
all atonce, and declare that the object of all this toiland struggle,’ is one
with which they ‘have nothingrat: all to do! ‘ t ‘ l

“But, as the‘ last message of the late Presidents wasiloud and warm in its

praises of the “State banks, for thellgood services which they rendered to
currelnc-y and es.change,*so, no dotibt, wonldthe "first message ofthe present
President have commended, with equal earnestness, the success with which
Government had, been able, by means of the State banks,_to rlistclrarlgei this
important part of its duties, if"t.h‘e eventsof May last had not left that subject
no longer a toppic of felicitation. By the suspension of specie lpayments,lall
was" cl1angedI“‘The”duty of” Government was changed, and thebconstitu-
tionl was changedlalsoi. Governmentwas now tloigivie” up, and abandon for-

t ever, that verything which had been the professeyd object, ofpits gmostr assidn-

ous ca1r'e,"and most earnest pursuit, for eightlong and arduous" years!‘

, jlMr;7Prpe‘sicie‘nt, whenlf liearrd of the. suspension of theibanlgs,‘ Iwas by the’
side of the_0hio, on at j‘our}n.ey,‘ in jthef course of whyicltIfhad‘_occasi_ou, fre-

T qne.n~tly, ltoltexptress my opinion on this rlewil.‘stalte of? tltingsglanid those who-

may haveheard me, or .1-mused it my t'erna'rks'l,.wil1 bear’ wtmess that It con»

21

stantly expressed the opinion that a new era had commenced; that a question
of principle, and a question of the highest importance, had arisen, or would
immediately arise; that, hereafter, the dispute would not be so much about
means as ends; that the extent of the constitutional obligation of the Govern-
merit would be controverted; in short, that the question, whether it was the
duty of Congress to concern itself with the national currency, must, inevita-
hly,‘beconne the leading topic. of the times. So Ithought, whenever I had the
pleasure of addressing my fellow-—,citizens,'and so I fee-land think now. I said
often on these occasions, and I say now, that it is a question which the peo-
ple, by the regular exercise of their elective francltise, must decide. The
subject is one of so much permanent importance, and public men have be-
come so committed, on the one side or the other, that the decision must, as I
thinlt, be made by the country. We see an entirely new state of things. We
behold new and untried, principles of administration advanced and adopted.

We witness an avowed and bold reaction of the yolic hitherto alwa 5 )re-- .
J I Y Y. I

veiling. The Government has come, not to a pause, but to a revulsion. It
not only stops, but it starts back; it abandons the course which it has been
pursuing for near fifty years, and it reproaches itself with having been acting,
all that time, beyond the limits of its constitutional power. , I

It was my second proposition, sir, that the message, the bill, and the amend-
ment, talten together, deny, in substance, that this Government has any

power or duty connected with the currency, or the excltlaztges, beyond the

mere regulation of the coins. V

And, sir, is this not true? lVe are to judge of the message. by what it omits,
as well as by what it proposes. Congress is called together in a great com-
mercial crisis. The whole business of the country is arrestedby a sudden
disorder of the currency. And what is proposed’! Any thing to restore this
currency? Any thing, with a direct view of producing the resumption of
payment by the banks’! Is a single measure ofi"ered, or suggested, the main
purpose of which is general relief to the country? Not one. No, sir, not one.
The administration confines its measures to the Government itself. It pro»-
poses a loan, by the means of Treasury notes, to make good the deficiency
in the revenue; and it proposes secure vaults, and strong boxes, for the safe-
lteeping of the public moneys; and here its paternal care ends. Does the mes»
sage propose to grapple, in any way, with the main evil of the times? Seeing
that that evil is one affecting the currency, does the message, like that of Mr.
Madison, in 1815, address itselfdirectly to that point, and’ rec-omrnend mea-
sures of adequate relief’! No such thing. It abstains from all general relief.
It looks out for the interest oflthe Government, as at Government; and it looks
no -further. Sir, let me turn to the message itself, to show that all its re-com-
mendations, and,~indeed, all the objects in calling Congress ‘together, are con-
fined to the narrow and exclusive purpose of relieving the wants of"G-overnment.

if The President. says, that the regulations establishe‘d~by Congress, for
the deposite and safe-dteeping of the rpublic» moneys, having become, ino-t-s
perative bythe suspension of payrnent by the banks; and appreiheitdingl-tltat
the same cause would so diminish the revenue, that thereceipts into t;hetTrea-
sury would not be sufficient to defray the expenses of Government; and as
questions were also expected to arise, respecting the Octoberginstalment of

"the deposite to the States, and’ doubting whether Government would be able

to pay its creditors inspecie, or its equivalent, accordingftotlaw, he felt it to_
belhis duty lib call Congress together. These are the reasons for calling

, Cortgress. ‘They are allwthe reasons; and“ they all thavetmtclusive regard to

the Governtnent itself. T r

£22

In the next place, let us see what measures the message recommends to
Congress. In its own language, the objects demanding its attention are—-

“To regulate, bylaw, the safe-keeping, transfer-,'anc1 disbursement of the public
moneys; to designate the funds to be received and paid by the Government-;ito enable
the Treasury to meet promptly every demand upon it; to prescribe the terms of'indul-
gence, and the mode of settlement to be adopted, as well in collecting from individuals
the revenue that has accrued, as in witlidraxving; it from former depositories.”

These are all the objects. recommended particularly to the care of Con-
gress; and theenumeration of theni is followed by a general suggestion, that
Cottigress will adopt such further measures as may promote the prosperity of

the country. This whole enumeration, it is obvious, is confined to the wants

and convenience of the Government itself.
And now, sir, let us see on what grounds it is, that the message refrains
from recommending measures of general relief. The President says--

“It was not designed by the constitution that the Government should assume the
management-of domestic or foreign exchange. lttis, indeed, authorized to regulate,
by law, the commerce between the States, and to provide a general standard of value
or. medium of excliange in gold and silver; butitis not its province to aid individuals in
the transfer of their funds, otherwise than through the facilities afforded by the Post
Office Depmtment. As justly might it be called on to provide for the transportation
of their merchandise.” . ,

And again : y _

i‘ It‘, therefore, I refrain from suggesting to Congress any specific plan for reg-ula.

ting the exchanges of the country, relieving mercantile emharrassments, or interfering
with the ordinary operations of foreign or domestic commerce, it is from a conviction
that such measures are not within the constitutional province of the General Govern.
ment, and that their adoption would not promote the real and permanent welfare of
those they might be designed to aid.” “ , ,

rThe. President, then, sir, declines to recommend any measure forthe
relief of commerce, for the restoration of the currency, or for the benefit of
exchanges, on the avowed ground, that, in his opinion, such measures, are
not within the constitutional power of Congress. He is distinct and ex-,

\

i plicit, andso farentitledtocredit. , He denies, broadly and flatly,.that there,

is any authority in this Government to regulate the currency, and the ex-
changes, beyond its care ofyythe com. The question, then, is fairly. stated.

Itcannot be misunderstood; and we are now to see how Congress, and, What.

is much more important, how the country will settle it. t a

Mr. President, if, in May last, when specie payments were suspended,
the president of one of the banks had called his council of directors together,
informed them that their affairs were tltreatened with danger,-that they could
not collect their debts inspecie, and might not be able to pay their creditors

inrspeoie, and Vrecontmended such ineasures as he thought their interest: re_- ‘ ‘

quired; his policy, in all this,,vvould have been no xnoretexclusively con-
finedto the interests of his corporation, than the policy of the inessage is
confined to the interests of this great corporation. of Government. ,Both”in
practice, therefore, and on principle, in reality, and avovvedly, the adminis-

i tration aha.ndons the currency to its fate. Itsurrenders all care oyiverit,

‘declines all concern about it, and denies thatiit has any dutyconnected

Sir, the question, then, comes to he thiszi Shall one of the great powers
of the constitution, a power essential to it, on any just plan or theory of

i government, a power which has been exercised fromtthe beginning, a power
absolutely necessary and indispensable toythe proper rergulyationfiof the com»-t

merce of the country, be nowsurrendered and abandoned «forever? To

this point We have come, sir, after pursuing the“yexperiment” of theft

23

late administration for five years. And from this point, I am persuaded, the
country will move, and move strongly, in one direction or another. We
shall either go over to the gentleman from Missouri, and suffer him to em-
brace us in his gold and silver arms, and hug us to’his hard-money breast;
or we shall return to the long-tried, well-approved, and constitutions-l practice
of the Government. ' r_ 1

As to the employment of the State banks, for the purpose of maiintaining
the currency, and carrying on the operations of exchange, I certainly never
had any confidence in that system, and have none now.

I think the State banks can never furnish a medium for circulation, which
shall have universal credit, and be of equal value everywhere.

I think they have no powers, or faculties, which can enable them to re«-
strain excessive issues of paper. ' T

I think their respective spheres of action are so limited, and their ctirren—-

cies so local that the can never accom.;~lish what is desired in relation to
1 Y _

exchanges. V p _
‘Still, I prefer the employment of State banks to the project before us; be-
cause it is less ofa prqjectf; because it is less dan,9;et'ou,s; and, chiefly, because it

does not surrender, effectually and in terms, a great power of the constitution. .

In every respect, this project is objectionable. It is but another “e:tperi-
ment;’i and those who recommend it so zealously, were the authors of’ the
last, and were equally full of confidence and assurance in regard to that.

Who invite us to try this experiment? What voices do we hear raised
in its recommendation? Are they not thewell-known voices which we heard
so often when the late “ experiment” was begun? We know of but one ac-
cession. The voice ofthe honorable: member from .‘South Carolina is heard,
it is true, now mingling with the general strain;- and that is all. Where,
then, is the grourid for confidence in this experiment, more than there was for
it in the last? A t t ' p

This scheme, too, is against all our usages, and all our habits. It lO('.l*'..S
up the revenue, under bolts and bars, from the time of collection to the time
of disbursement. Our practice has been otherwise, and it has been a useful
practice.‘ In l8é“33, the Secretary of the Treasury admonished the deposite
banks, since they had obtained the custody of the publicfiihnds, to accommo-
date the public, to loan freely, especially to importing merchants. Andrnow,
a system is proposed to us, according to which, tiny use of the pultilicitthnds,
‘by tvny of loan or accommodation to the public, is made a criminal oliience,
and to belt-prosecuted by indictment l Admirable, admirable consistency!

But the ‘great objection to the measure, that which so much diminishes
the importance of all other objections, “is its abandonment of the duty of’
‘Government.. The character of this project is, severance_ot' the Govern-

meet from the people. This, like the marl; of Cain, is branded on its fore-_
head. G»overnment~separates itself’, not front the banks n1ei‘ely,l>uti'rom.

the community. ‘ ‘It withdraws its care, it deniesitsprotection, it rtenounces
its own high duties. I am against the project,"’theirefore,i in principle andfin
detail ;'I am for no new experiments; but I arnfor a sound currency for the

country. ‘And I mean by this, a convertible currency, so far as it-clon‘sis'ts of T

paper. I difler, altogether, in“ this respect,‘ from the gentle‘nrat1 front
S‘outhCarolina. Mere Government paper, not payable tortltrerwise than by
being received for taxes, has no pretence to be called a clurrenicy. After all
that can be said about it,’such paper is mere paper rn,o,njey.' It is notlting
b'utbills‘0f credit. It always has been,iand alW_aySh‘.Wlll be, depreciated.
Sir, we want specie, and we want paper, of universal credit, and whiclt

24

is couv’ertihle into specie at the will of the holder. That sy stem of currency,
the experience ofthe world_,and our own experience, have both fully approved.

I maintain, sir, that the people ofthis country are entitled, at the hand
of this Government, to a sound, saf'e,.an,d uniform currency. If“ they agree
with me, they will themselves say so. They will say, “it is our right;
we have enjoyed it forty years; it is practicable, it is necessary toyiour
prosperity, it is the duty oi‘ Government to furnish it; we ought to have
it, we can have it, and we will have it.”

The language of the administration, on the other hand, is, ‘‘Good masters,
you are mistaken. You have no such right. You are entitled tono such
thing from us. The constitution has been tnisunderstood. Vi/e have sud-
denly found out its true meaning. A new light has flashed upon us. A It is
no business ofours to furnish a national currency. You cannot have it, and
you will not get it.” . V '  . V

Mr. President, 1 have thus stated what I thiult to be the real question now

before the country. I trust myself, cheerfully, to the result. .1 am wiiling

to abide the testuf titne,_and the ultitn_ate judlgnient of the people; for it is
a sentiment deeply infused intome, it is a conviction which pervades every‘
faculty I possess, that there can he no settled and permanent prosperit.y_.to
the commerce and business of the country, until the constitutional duty of
Guvernnicut, in regard to the currency, be honestly and faithfully fulfilled.

I, shall detain the Senate, sir, with a few remarks only in reply to the
gentleman from Pennsylvania, [Mia BUt;31IAN.-tN.:l

The gentleman has met the question fairly. He denies that there is any
power or duty l)el0Itgl11g to this Government, such as [have attempted to
maintain. He denies that it is incumbent on Congress to maintain a sound
and uniform currency, or to have any tlting to do with currency or ex»
change, beyond the regulation of coin. I "am glad to see the honorable
member talte this distinct ground. All see now what the question is.

The gentleman remarked, that I had ahandotied that part of the constitu.
tion which is usually relied on as giving Congress power to establish at bank;
that is to say, the power to lay and collect taxes. But you will remember,
sir, that I was not discussing the power to create 2‘). Thank, although, certainly,

I have no doubt of the power. I was not contending merely for something

that should aid in the collection of taxes; 1 was speaking of the power and
duty of providing a sound currency for the whole country; a power and a
duty which would both belottg" to tltis,Govc1-nment, if another dollar of taxes
was never to be collected. Yes, sir, ifpwe knew,»this day,»that the proceeds

of the sales of the public landswould yield revenues equal to all the wants of

the Gov_crmneut for a hundred years to come, our want of a currency would
be tltesamei, and the duty of Government to provide it the same, as it now is.

The gentleman argues, too, that a power to provide acurrency cannot be _

drawn tiromutlte contrnercial power, granted to Congress; because, he_ says,
that power T is ,i.onl_v to regulate commerce, and to regulate is not to create.
This is not quitetcorrectt; there are many forms ‘of. expression, in our lan-
rg,ua.ge,, especially those in which_,con1plex.*operationsare descyribedyt, in which
to regulate, means to_gca,u_se,lor  produce. But, s_uppose I concedeylto the
gentleman that to "regulate, never. means to create. _What then it W'ould

that prove that Congress could not create a currency, in order thereby to regular

late tcomrnercei May itnot benecessary tomake one thing,i‘n order to; regulat‘e

another’! Lfetus take the gentle,rnan’s own illustration.  says Congress

25

has ‘power to regulate the value of foreign coin; but that this cannot mean

that it has the power to create such coin. Very true; but then, it may
malsze the steelyards, or the scales, (may it not?) as necessary instruments, to
ascertain that value which is to be regulated. It may establish an assay, on
any scale it chooses. i '

We have just passed a bill authorizing the Treasury Department to make
and issue Treasury notes; and we have done this, under the power to borrow
money ; and certainly the honorable member himself did not doubt, in that
case, that, in exercising a clear constitutional power, we had‘ a right to make
any thing, which became necessary, as an instrument, to its convenient exe-
cuuon. ' T i is “‘ l

The power of Congress, therefore, over the currency“; its power to regu-
late all currency, metallicaor paper; and its power, and its duty, to provide
and maintain a sound and universal currency, belongs to it as an indispensa~
ble and inseparable part of its general authority to regulate commerce.

But, sir, I might safely go much further than this. It could be shown,
from a hundred instances, that the power toiregulate commerce has been

held to be broad enough to include an authority to do things, to make things, .

to create things, which are useful" and beneficial tocommerce 3 things which
are not so itiucliiregulations of commerce, in a strict sense, as they are aids
and assistances tocommerce. The gentleman himself, I will undertake to
say,,has voted for laws, for such purposes, very often.

' Mr. President, we have appropriated, I know not how much more, or how
much less, than a million of dollars, for a breakwater in the mouth of the
Delaware. The gentleman has concurred in these appropriations. Now,
sir, wedid not propose to regulate a breakwater; we proposed to make
it, to create it. In order to regulate commerce, and to regulate it bene-

ficially, Congress resolved to create a breakwater; and the honorable member”

never found any constitutional difficulty in the way, so far as I remember.
And yet, sir, a breakwateris not essential and indispensable to commerce;
it is only useful and beneficial. ‘But, a sound currency, of universal and equal
credit, is essential tothe enjoyment of the just advantages of the intercourse
between the States. ' r i , T

The light-houses on the seacoast, and on the lakes, and all the piers,
buoys, and harbors, have been created, in like manner, simply by the power
of Congress to regulate commerce. , T t

Mr. President, the honorable member from Pennsylvania, growing warm
in the progress of his speech, at length burst out into an exclamation:
“What,” said he, “would the framers of the constitution say, could they be

now present, and hear the doctrines for which the member from Massa-

chusetts con_tends!"’ ‘ ,
Sir, I have already quoted the language of several of these good and great

- men; I rely on their opinions, fully and clearly expressed. I have quoted

a Mr. Madison, almong others; but, sir, to use the languageof the foruin, I am

willing to call the witness again intocourt, and to examine him further. Mr.
Madison, all will admit, is a.connpetent“‘witn.ess. He had as much to do as any
man in framing the constitution, and as much to do as any man in adminis-
tering it. Nobody, among the living or the dea‘d,,is more fit to be consulted,
on a question growing out of it; and he is far from being considered as a
‘latitudinarian, in his mode of construction. I will then, sir, question him
further. , , t ; t j T 
Be itlremembered, sir, that my proposition simplyis, that itlis a partof
the power and duty of Congress to maintain a general currency, suitableto
the state of things existing' among us, for the use of commerce and the peeps.

~ * so

Notv, sir, win-"at sny's.l’vli‘. l‘vla.nliso:1'? i read lioin his message, of Decemho‘r,
1816:

“ Upon this general view of the subject, it is obvious that there is only xvantins‘, to

the fiscal prosperity ofthe Government, the restoration of a uniform medium of ex- , a

change. The resources and the faith of the nation, displayed in the system which
Congress has established, ensure respect and confidence both at home and abroad.
The local accumulations of the revenue have already enabled the Treasury to meet the
public engagements in the local currency of most of the States; and it is expected
that the same cause will produce the some eflect throughout the Union. But, for the

. interests of the community at large, as we‘) as for the purposes of the Ti'easury, it is

essential that the nation should possess a currency of equal value, credit, and use,
wherever it may circul:3.te. The constitution has intrusted Congress, exclusively, with
the power of creating and regulating a currency of that description; and the measures
which were taken durin_s; the last session, in execution of the power, give every
promise of success. The Bsnls ofthe United States has been organized under auspices
the most favorable, and cannot fail to be on important auxiliary to those measures.”

And now, sir, I hand the witness over to the gentlemen for cross-exanii-i

nation.

But,,sir, if the honorable member from Pennsylvania could overthrow my
proposition, he would equally overthrow his friend from South Carolimi; he»
cuuse that gentleman admits, that there must be a paper currency of some
l-illld, and that, a paper currency issued by the authority of Government.
And if we both fall, we shall pull down along with us (which mercy forefend!)

the Secretary of the Treasury, report and all; for it is one of the leading ..

objects of'thatluminous paper to show how for Government issues might
usefully become the medium of payment and the means of circulation. And,

indeed, every vote given in Congress for the Treasury note bill-‘—-the gentle»

mun°s own vote, ifgiven, or so far as given, on theground that Treasury notes
shall pass from lhandlto hand as currency--—is a refutation of his argument.

Mr. President, this power over the currency, for which Iain contending,-

isrin the constitution; tltio authority of Congress overicommerce would be
radically deficient without it; the power has been admitted, acknowledged, and
exercised. To deny thatthis power is in the constitution, is to rewrite the
constitution, to reconstruct it, to take it away, and give us asubstitutpe. To
deny that the power has been acltnowledged, and exercised, is to contradict
histor ', and to reverse facts. ' ' '

 

l\l()".l‘l*.‘..---~illL is proper to inlbrni the reader, that neither of these printed

speeches contains all that Mr. VVebstet' said, on the several occasions. In the

. lirst, he spoke at large on the specie circular, on the necessity of convertible

paperifotr currency, and other topics. In‘ the last, he replied, at some length,

to Mr. Calhoun, on the general history’, tendency, and eflbct of the banking it

system. i But,in this publication, those parts ofhis speeches onlygro printed,
whichhear directly on the two rproposiltlions, which it was his principal object}
to establish. l - l l i 1 i A i

Q.

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