DEC. 21, 1836.] Treasury Circular. [SENATE. backward and forward, becomes the order of the day; and there are those who, the more they hear of specie hauled and transported about from place to place, in masses, the more they flatter themselves with the idea that the country is returning rapidly to a safe and happy specie circulation! money, is filled to a great extent by bills of exchange; and this continues to be the case, so long as the rates of exchange remain low and steady. Nobody, for example, will send bank notes or specie from New York to New Orleans, if he can buy a good bill at par, or near par. But when exchange becomes disturbed, when rates rise and fluctuate, bills cease to be able to perform this There may be other minor causes. They are not function, and then bank notes begin to be sent about worth enumerating. The great and immediate origin of from place to place, in quantities to supply the place of evil is disturbance in the exchange; and, in my opinion bills of exchange, in payment of debts and balances. this disturbance has been caused by the agency of the All such, and all other derangements and distractions Government itself. The fifty millions in the Treasury in the free course of domestic exchanges, necessarily pro- have been agitated by unnecessary transfers. As a duce an unnatural and considerable increase of the cir-large portion of this sum was to be deposited with the culation. So far as our circulation has been or may be States at the beginning of next year, the Secretary seems augmented by this cause, so far both the cause and the to have thought it necessary to cut up, divide, and reeffect are to be deplored. In my opinion, we have move assigned portions of it before the time came. It is certainly reason to fear this excess hereafter. What is this idea of removal that has wrought the mischief. In to prevent it? Is it possible that so many State banks, consequence of this, money has been taken from places so far apart, so unknown to each other, with no common of active commercial business, where it was much needed, objects, no common principles of discount, and no gen- and all used, and carried to places where it was not eral regulation whatever, should act so much in concert, needed, and could not be used. and upon system, as to maintain the currency of the country steady, without either unjust expansion or unnecessary contraction? I believe it is not possible. I believe many of those who insist so much on hard-money circulation believe this also; and that they press their im practicable hard-money notions, from a consciousness that the discontinuance of a national institution has brought the country into a condition in which it is threatened with issues of irredeemable paper. Our present evil, however, is of a different kind. It is, indeed, somewhat novel and anomalous. With high general prosperity, good crops, generally speaking, an abundance of the precious metals, and a favorable state of foreign exchanges, men of business have yet felt for some months an unprecedented scarcity of money. That is the state of things; its cause, in my opinion, is expressed in a few words: it is the derangement of internal intercourse and internal exchange. Our difficulty is not exhaustion, but obstruction. Every body has means enough, but nobody can use his means. All the usual channels of commercial dealing are blocked up. The manufacturers of the North cannot obtain from the South the proceeds of the sales of their articles; the South finds money scarce, too, in the midst of its abundant exports. In a country so extensive and so busy, every merchant's means become more or less dispersed, and exist in various places in the shape of debts. Exchange is the instrument, the wand, by which he reaches forth to these means, wherever they are, and uses them for his immediate and daily purposes. But this instrument is now broken. He can no longer touch with it his distant debt, and make that debt present money. He seeks, therefore, for expedients; borrows money, if he can, till times change; pays enormous rates of interest to maintain credit, thinks things, when at the worst, must soon change; looks for reaction, and sacrifices to capitalists, to brokers, and money-lenders, the hard earnings of years, rather than fail to fulfil his commercial engagements. It is a happy and blessed hour, this, for greedy capital and grasping brokerage; an excruciating one for honest industry. The very rich grow every day richer; the laborious and industrious, every day pourer. Meantime, the highways of commercial dealing and exchanges grow more and more founderous, or are all breaking up. Specie, always most useful as the basis of a circulation, when most in repose, gets upon the move. Any time the last four months it might have happened, and many times doubtless it has happened, that steamboats from New York, carrying specie to Boston, have passed in the Sound steamboats from Boston carrying specie to New York. Boating and carting money, The agricultural State of Indiana, for example, is full of specie; the highly commercial and manufacturing State of Massachusetts is severely drained. In the mean time, the money in Indiana cannot be used. It is waiting for the new year. The moment the Treasury grasp is let loose from it, it will tend again to the great marts of business; that is to say, the restoration of the natural state of things will begin to correct the evil of arbitrary and artificial financial arrangements. The money will go back to the places where it is wanted. It will seek its level, and its place of usefulness. In my opinion, the proper execution of the deposite law did not make it at all necessary for the Treasury to order these previous local changes. The law itself is not answerable for the inconvenience which has resulted. When the time came, the States, all of them, would have been very glad to receive the money where it was. They wanted but an order for it. They desired no carting. Can any thing be more preposterous than to transfer specie from New York to Nashville, when to a man in Nashville specie in New York is two per cent. more valuable than if he had it in his own house? There is always a tendency in specie, not actually in the pockets of the people, towards the great marts and places of exchange. Those who want it, want it there. There the great transactions of commerce are performed, and there the means of those transactions naturally exist, simply because there they are required. Now, what reason was there for disturbing the revenue, thus lying where it had been collected, and thus mingled with the commerce of the country? Why laboriously drag it off, far from its place of useful action, to places where it was not wanted, and could do no good, and there hold it under the key of the Treasury? This anticipation of the operation of the deposite law, this attempt at local distribution, this arbitrary system of transfer, which seems to forget, at once, the necessities of commerce, and the real uses of money, I regard as the direct and prime cause of the pressure felt by the community. But the Treasury order came powerfully in aid of this. This order checked the use of bank notes in the West, and made another loud call for specie. The specie, therefore, is transferred to the West, to pay for lands; being received for lands, it becomes public revenue, is brought to the East for expenditure, and passes, on its way, other quantities going West, to buy lands also, and in the same way to return again to the East. Now, sir, how does all this improve the currency? What fraud does it prevent? what speculation does it arrest? what monopoly does it suppress? I am very much mistaken if all this does not embarrass the small purchaser of land much more than the large one. He who has fifty or a hundred thousand dollars to lay out, may collect his specie, not SENATE.] Texas--Treasury Circular. without some charge, it is true, but without a very heavy charge. But if there be a man, with a hundred or two dollars, waiting to take up a small parcel for actual settlement, and his money be in bank notes, and the bank, perhaps, at a great distance, what has he to do? He must send far to exchange a little money; or else he must submit to any brokerage which he may find established in the neighborhood of the land office. Upon the local operation of this order, however, I say the less, as on that point Western gentlemen are better informed and better judges. I am willing to hope, sir, and, indeed, I do hope and believe, that when the first payment or deposite under the act of last session shall have been made, and the States shall have found some use and employment for the money, and when this unnatural transfer system shall cease, money will seek its natural channels, and commercial business resume, in some measure, its accustomed habits. But this Treasury order will be a disturbing agent, every hour it is suffered to exist. Indeed, it cannot be allowed to exist long. It is not possible that the West can submit to a measure at once so inju. | rious and so partial. Hard money at the land office, and bank notes at the custom-house, must make men open their eyes after a while, whatever degree of political confidence weighs down their lids. I look upon it, therefore, as certain, that the order will not be permit ted long to remain in force. If I am now asked, sir, whether, supposing this order to be rescinded, and the deposite law executed, and the transfers discontinued, affairs will return to their former state, I answer, with all candor, that though I look, in those events, for a great improvement, I do not expect to see the domestic exchanges and the currency return entirely to their former state. I do not believe there is any agency at work, at present, competent to bring about this desirable end. In other words, I do not believe that the deposite banks, however well adminis tered, can fully supply the place of a national institution; and I am very much mistaken if intelligent men connected with those institutions themselves believe any such thing. I find that, in 1828, 1829, 1830, 1831, and 1832, exchange at New York, on the Southern and Southwestern cities, averaged three fourths of one per cent. discount, or thereabouts. Now, I doubt whether the most sanguine of those connected with the deposite banks expect to be able, through their means, to bring back exchanges to that state, or any thing like it. The deposite banks are separate and distinct institutions, many of them strangers to each other, without full confidence in each other, and all acting without uniformity of purpose. Their objects are distinct, their capitals distinc', their interests distinct. If one of them bas connexion with some others, it yet has no unbroken chain of connexion. They have nothing which runs through the whole circle of the exchanges, as that circle is drawn through the great commercial cities of the Union. They can only act in the business of exchange to the extent of funds, or not much beyond it, actually existing. A national institution, with branches or agencies at different points, may deal in exchanges between these points in amounts to meet the convenience of the public, without reference to the fact of the existence of local funds. One institution, therefore, with branches, has facilities which never can be possessed by different institutions, however honorably or ably conducted. For myself, I am of the same opinion as formerly, that for the administration of the finances of the country, for the facility of internal exchanges, and for the due control and regulation of the actual currency, a national institution, under proper guards and limits, is by far the best means within our reach. And I am, as I always have been, of opinion, that Congress, having the power [DEC. 22, 1836. of regulating commerce, and the power over the coin. age, has power, also, which it is bound to exercise, by lawful means, over that currency in which the revenue is to be collected, and which is to carry on that commerce, external and internal, which is thus committed to its regulation and protection. All the duties of this Government are, in my judgment, not fulfilled, while it leaves these great interests, thus confided to its own care, to the discretion of others, or to the results of chance. But I will not go further into these subjects at the present time. Mr. President, I am indifferent to the form in which the Treasury order may be done away. Gentlemen may please themselves in the mode. I shall be satisfied with the substance. Believing it to be both illegal and inju rious, I shall vote to rescind, to revoke, to abolish, to supersede, to do any thing which may have the effect of terminating its existence. Before Mr. WEBSTER concluded his speech, as given entire above, [Mr. BENTON laid the following on the table, in the way of notice: Motion (to be made hereafter) to invest the committee to which the resolution (of Mr. EWING) shall be sent, with authority to inquire into the effect and operation of the Treasury order of July 11th, upon the business of the country, and the banking institutions of the States, and into the conduct of banks in relation to that order, and into their attempts (if any) to withdraw specie from circulation, and to embarrass the exchanges and business of the country. The committee to summon witnesses before them, if any such are near at hand, and to conduct their inquiries at a distance by interrogatories } The Senate then adjourned. THURSDAY, DECEMBER 22. TEXAS. A message was received from the President of the United States relative to the recognition of the independ ence of Texas, and its admission into the Union, and unfavorable to both measures at the present time. On motion of Mr. BUCHANAN, and after an exami nation of the documents by the Committee on Foreign Relations, 1,500 extra copies of the message and docements were ordered to be printed. (Vide Debates H. of R. post.) TREASURY CIRCULAR. The Senate resumed the consideration of Mr. EwING'S resolution to rescind the Treasury order of July 11th, 1836, and to prohibit the Secretary of the Treasury from delegating his power to specify what kind of funds shall be received in payment for the public lands. Mr. WEBSTER concluded his remarks, as given entire above. When Mr. WEBSTER had concluded his speech, Mr. NILES rose and addressed the Chair as follows. Mr. President: I had intended to submit some remarks on the resolution before the Senate, and may as well do it at this time as any other. In the course of the debate there have been several topics drawn into consideration, not necessarily embraced in the question to be decided, yet somewhat connected with the general subject. Some of these I shall have occasion to allude to as I proceed; but will here notice one preliminary observation of the Senator from Massachusetts, [Mr. WEBSTER.] That Senator took occasion to say that the vote on this resolution would form a test question; that those who vote against the resolution will be understood as being favorable to the ultra, and, as he regarded them, extreme opinions of the Senator from Missouri, [Mr. BENTON,] regarding the currency and the public revenue, and ebserved that it might be fortunate the public is to be thus early apprized of what is to be the policy of the majority, and of the coming administration, on those important subjects. He had heard the remark with some surprise, not thinking it called for or justified by the occasion. Without stopping to inquire what are the opinions of the Senator from Missouri, or what they are considered to be by the gentleman from Massachusetts, he must be permitted to say that no such conclusions could justly follow the decision of the question before the Senate. There were reasons, he thought weighty reasons, which would justify Senators in voting against this resolation, without committing themselves in any sense, or in any degree, in regard to the great questions of currency and revenue, to which the Senator had referred. Without reference to what might be his opinion as to the true policy of the Government in the collection of the revenue, whether from the public lands or the customs, he was prepared to vote against this resolution. To pass this resolution, would be to censure and condemn an act of the Executive as being wrong, ab initio, or at the time of its adoption. Whether the rule prescribed in the Treasury order be a wise and just one, for the settled action of the Government, is a question entirely distinct from that, whether it may have been expedient and proper at the time it was adopted. He was satisfied that the Treasury order could be justified, viewed as a temporary measure only, intended to remedy evils of great magnitude, arising from the extraordinary circumstances connected with the sales of the public lands; and he was not sure that this was not the true light in which it ought to be considered. It was the duty of the Executive to watch over the public revenue, and see that it was secure. Was there no hazard from the extensive and gambling speculations in the public lands paid for only in bank bills, which were handed over by the receivers to the deposite banks and placed to the credit of the United States? A large portion of the purchases were paid for in bills of the deposite banks, which, after going into the hands of the receivers, were returned and loaned out again, to go through the same operation. This was virtually reviving the old credit system, as the United States received nothing but credit for the lands. If there was no hazard to the revenue from these practices, and from the magnitude and extent of the sales made upon this kind of credit, then gentlemen over the way had altered their opinions very much within the last six months. During the last session of Congress, we were repeatedly, and almost daily, told by those who now oppose the Treasury order, that the funds of the Government in the Western deposite banks were insecure, and that nothing but credit was received for the public lands. Can gentlemen have forgotten their often-repeated declarations on this subject? If so, they must be blessed with short memories. Again and again did Senators refer to the small amount of specie in those banks, and an impression was attempted to be made, that their specie funds were the only solid security for the large sums due the United States. It The order was calculated to correct, and, to a considerable extent, no doubt, has corrected, this evil. insured something valuable for the lands, and that something valuable was transferred to the deposite banks, and formed a more solid basis for the Government credits. The order was also calculated to check speculation in the public lands, which, in itself, was an evil of no small magnitude, transferring the best part of the national domain into the hands of heartless speculators, to the great injury of actual settlers, and the detriment of the whole country. Public opinion was rising up against it, and required that something should be done to arrest an evil of so extensive and serious a nature. What other or better measure could have been adopted, until Congress [SENATE. should convene, which might adopt such further legislation in regard to the sales of the lands as the public interests may require? Sir, (said Mr. N.,) there is another reason why I cannot vote for the resolution before the Senate. A new rule has been adopted in regard to the sale of the public lands, that has been in operation for a time, and which has a tendency to check speculation. I would not repeal that rule, and open again the floodgates of speculation; certainly not until I know whether Congress will pass any act regulating the sale of the public lands. It is, I think, the duty of Congress to do this; the interest of the country requires it; public sentiment demands it; and it is strongly recommended by the President. If Congress suffer the session to pass off, without attempting to regulate the sale of the public lands so as to check speculation, they will neglect their duty to the country. Believing that there will be additional legislation on the subject, which may supersede the Treasury order, he was not at this time prepared to disturb it. Changes in any extensive business are always attended with some inconvenience, and should be avoided as much as possible. When it shall be settled that Congress will not alter the system, it may become necessary to decide whether the rule prescribed in the order shall be maintained, or the old practice restored; and if we do any thing on this subject, our action should be more comprehensive; it should embrace the whole subject, and be settled by law what currency shall be received for the payment of the revenues, not only from the lands, but from customs and all other dues. The doubt and uncertainty which hangs over this subject ought to be removed. For these reasons, therefore, he should vote against rescinding the Treasury order, even if he was satisfied that the rule it prescribes was not one which it would be expedient and just to establish as a settled policy. In this view of the subject, he had thrown out of the case the legal objection which has been raised against the Treasury order. Mr. President, there are two general grounds of objection that have been urged against the order which the resolution on your table proposes to rescind, which I will proceed to consider. The first objection is, that it is illegal; the second, that its operation is partial, unjust, and injurious to the country, and has been the principal cause of the embarrassments and pressure for money which have been so extensively experienced. It has also been claimed by the Senator from Ohio, [Mr. EwING,] that the order is unconstitutional, that it conflicts with that provision of the constitution which declares that "the citizens of each State shall be entitled to all the rights and immunities of the citizens of the several States." This, however, is a very small point, so small that the Senator seemed to find it difficult to stand upon it; it was quite too small for him to waste the time of the Senate about, and he should therefore pass it over. Is the Treasury order contrary to law? If it is, it ought to be rescinded, without regard to other considerations. Congress is empowered to lay taxes, and to authorize and regulate the sale of the public lands; and, in doing this, it can no doubt direct the kind of money or currency which shall be received in payment. But if it neg. lect to do this, it becomes the duty of the Executive, who is charged with executing the law, to receive payment for taxes and lands in the legal currency of the United States. What that legal currency is, there can be no dispute, so that the only question which can arise is, whether there is any law which authorizes the payment of the revenue and debts due the United States, in any other currency, or in any other way. It is claimed that the joint resolution of 1816 requires the Secretary of the Treasury to collect the taxes and debts due the United States in a currency different from the legal currency of the country. That resolution provides "that the Secretary of the Treasury be required and directed to adopt such measures as he may deem necessary, to cause, as soon as may be, all duties, taxes, debts, or sums of money, accruing or becoming payable to the United States, to be collected and paid in the legal currency of the United States, or Treasury notes, or notes of the Bank of the United States, as by law provided and declared, or in notes of banks which are payable and paid on demand in the said legal currency of the United States; and that, from and after the twentieth day of February next, no such duties, taxes, debts, or sums of money, accruing or becoming payable to the United States, as aforesaid, ought to be collected or received otherwise than in the legal currency of the United States, or Treasury notes, or notes of the Bank of the United States, or in notes of banks which are payable and paid on demand in the said legal currency of the United States." [DEC. 22, 1836. debtors of the Government, it was designed to restrict them, and did restrict them. What was the condition of your Treasury at that period, and how was the revenue collected? There was then in the Treasury more than one million of dollars in the bills of broken banks; and the public revenue had been collected in the notes of banks which did not redeem them in specie; a large portion of the banks in the Union, which had suspended specie payments during the war, had not resumed them. This resolution expressly limited the Secretary so far as not to permit him to receive any bills of banks which did not redeem them with specie. He is expressly prohibited from receiving the notes of non-specie-paying banks; and it was left optional with him to collect the public revenue either in the lawful currency of the United States, or in Treasury notes, or in the notes of specie-paying banks. So far, a discretion was still left with the Secretary; but the discretion he had exercised of taking bills of banks which did not pay their notes in specie, was taken from him. These bills were received by the Bank of the United States only as special depos ites, and the loss was thrown upon the Treasury. the Secretary of the Treasury, as the fiscal agent of the Government, change the rights or obligations of the debtors of the United States? Suppose a creditor should instruct his agent to receive payment for a debt in some other than the legal currency, or to take less than the sum due, or to receive payment in some kind of property, would this confer on the debtor the legal right to pay his debt, and discharge his liability, in either of the ways specified? On a suit by the creditor, could he avail himself of such instructions to vary the nature of his liability? The Senator from Massachusetts, in a labored legal argument, has attempted to prove that this resolution This resolution was only an instruction to the Secre creates a peculiar currency in regard to all branches of tary of the Treasury; it has neither the form nor the the public revenue, and all debts due the United States. language of a public act. The title shows clearly that He not only maintains that the resolution imposes an obli the object of Congress was solely to secure the Treasury, gation on the Secretary to receive the notes of all banks and guard it against a loss from bad money. It is entithat redeem their bills in specie at their counters, but tled "A resolution relative to the more effectual collec also that it enlarges the rights of payers, that it confers❘tion of the public revenue.' Can a mere instruction to on the debtors of the United States the legal right to pay their debts in paper currency; that is, in the notes of specie-paying banks. He went so far as to assert, and stake his reputation as a lawyer on the question, that a receiver, who should refuse to receive the notes of specie-paying banks, and which were known to him to be such, would render himself liable to an action by the party injured. He admits that the fact that the notes are issued by banks which pay their bills in specie, must be made known to the receiver; so that, upon this construction of the resolution, the receivability of paper is to depend on a fact, and that fact is to be decided by a subordinate officer of the Government. The argument of the gentleman, however able, was too elaborate, too refined, to receive his assent. He had never believed that profound legal science was very necessary in construing a plain statute law; nor did he believe that men of eminent professional skill were always the safest expounders of written laws, whether statutes or constitutional provisions. Cicero said, in his day, that the lawyers had spoiled many excellent institutions by their refinements; and we all know that, in our own times, by their forced and strained constructions, they have mystified and perverted many plain and good laws, and bewildered the clearest minds. Whether we look to the language or the manifest object and purpose of the resolution of 1816, he thought there could be no difficulty in understanding it. We are told by legal writers, that, in giving a construction to statutes, it is necessary to ascertain the general object of the law, the evils and mischiefs that existed, and which the act was designed to remove; and more especially is this said to be necessary when the language of an act is doubtful or ambiguous. What was the object of the resolution of 1816, and what were the evils it was intended to remedy? It is said that its object was to enlarge the rights of the debtors of the United States, and to enable them to pay their debts in a more convenient and easy manner. But does this appear on the face of the resolution? Is it inferrible from its title? And if we look to the state of the Treasury and the condition of the revenue at the time the resolution was adopted, we cannot fail to discover the evils which this resolution was intended to remedy. Instead of its object being to enlarge the rights of the The construction bere contended for had always been given to the resolution of 1816; and the Senator from Massachusetts had, on former occasions, regarded it in the same light, as had been shown by the extracts read from his speech and report by the Senator from Missouri, [Mr. BENTON.} It was a very extraordinary position attempted to be maintained, that for twenty years there had been a public law in force in the United States, conferring on paper money, or bank bills, the legal character of gold and silver, so far as regards the payment of the revenue and all debts due the United States, and that the country has been unapprized of the existence of such law. An act to legalize paper money, and make it a lawful tender for all debts to the United States, is one of great importance, and would have been likely to have excited general interest and attention. The sixteenth section of the act chartering the Bank of the United States provides that the deposites of the moneys of the United States shall be made in that bank and its branches. But the bank had refused to receive the bills of certain banks, notwithstanding they were redeemed in specie, and had been justified by Congress in so doing, in a report to that effect, drawn up by the Senator himself. But if the resolution of 1816 gave to the bills of State banks all the character of gold and silver, so far as regards dues to the Government, then such bills were the "money of the United States," and the bank was bound by its charter to receive them on deposite. The Senator from Massachusetts referred to the fact, that the President last session sent a message to Con gress, recommending the repeal of the fourteenth sec. tion of the charter of the Bank of the United States, He which required that the notes of that bank should be [SENATE. such, too, he believed, as were contemplated by the Executive at the time the order was adopted. But as those who supported the resolution before the Senate took the affirmative of the issue, he might, perhaps, with more propriety, call on them to point out the evil consequences of the order. This they have attempted to do, but he thought with no very great success. It has been boldly asserted, that the Treasury order had deranged the currency, and occasioned the existing difficulties and pressure in regard to money, which he admitted to be very severe. This, sir, (said Mr. N.,) is no new complaint against the present administration. It is the old story, which has been so often repeated within the last few years, that its authors on the present occasion can lay no claims to originality. On his way to this city, during a short detention in New York, he had a conversation with a merchant, who complained not only of the times, but of the Government. It was, however, only a repetition of the old story, of tampering with the currency!-war upon the currency! When will the Government cease tampering with the currency? These complaints come with an ill grace from bankers, brokers, and merchants, who are strenuous supporters of that inflated system of paper money and credit, whose inherent defects are the source of the very evils which they deMr. President, if there is any doubt in regard to the nounce. Mr. N. said that when he heard complaints like legal import and effect of the resolution of 1816, still these, he was forcibly reminded of an anecdote of Doctor there can be no question as to the kind of currency Franklin, who, when in Europe, was a member of a which is receivable for the sales of the public lands. learned society, which had a regulation, that on certain The fourth section of the act of 1820, which superseded occasions each member was to suggest some problem in the credit system, and required that sales should be physical science, and each one present was to give an made for cash payments, settles that question. The explanation impromptu. The Doctor, who was fond of proviso to the fourth section is, “that no such lands starting game for philosophers, as he called it, proposed shall be sold at any public sale hereby authorized, for a this question: "How it was to be accounted for, that a less price than one dollar and twenty-five cents, nor on barrel of fish would contain more salt than the barrel any other terms than cash payments." This section, it without the fish?" The explanations given by learned is true, is confined to lands forfeited to the United savans, although extremely ingenious, did not appear to States; but its spirit and language are in perfect accord-be entirely satisfactory. At last all eyes were turned ance with the other sections of the act. The clause "cash payments," must be understood in its ordinary acceptation, in which sense it does not mean Treasury notes, nor the notes of banks, but money, which is a legal tender by the laws of the United States. In the ordinary acceptation, "cash" signifies money, or that currency which is a lawful tender for debts. Any other construction would be to trifle with language, and an insult to common sense. towards the Doctor, who, it was supposed, could give a satisfactory solution of a problem he had suggested. "Gentlemen," said he," in the first place, the fact is not so." So in regard to the complaints of merchants and politicians, so often repeated, of tampering with the currency, it is a sufficient answer to say, the fact is not These charges are without foundation, even if we consider currency in the very comprehensive sense in which it appears to be regarded by the Senator from Mr. N. said that, without consuming more time on that Massachusetts, [Mr. WEBSTER,] who, if he correctly unpoint, he was satisfied that the objection to the Treasury derstood him, appears to consider currency as compreorder, on the ground of its illegality, was entirely un-hending not only bank bills, but bills of exchange, and founded. Mr. N. said he would now proceed to submit a few remarks on the other division of the subject. Has the Treasury order operated unjustly and injuriously to the interest of the country? Has it caused the embarrassments and pressure for money which have prevailed so extensively and disastrously throughout the country, and particularly in the large commercial cities? All these evils have been charged upon it, as the results of the derangement it has occasioned in the business and monetary concerns of the country. In regard to the discrimination or exception from its operation in behalf of actual settlers, and the citizens of the States in which the lands were sold, as that exception had now ceased, he would not spend any time upon it. The Senator from Kentucky [Mr. CRITTENDEN] asked, with an air of triumph, what had been the good effects of the order? Whilst its evils have been so manifest, and of such great magnitude, we have a right, said he, to call on its advocates to point out its benefits. Mr. N. said that, in his preliminary remarks, he referred to what appeared to have been some of the beneficial effects of the order, and he would not repeat them. They were So. every description of paper which was used to facilitate the transactions of commerce. This appeared to him to be altogether too comprehensive a view of the subject of currency, even in a commercial sense. It appeared to be confounding currency and credit, which he had supposed were essentially distinct. In the small book which every Senator has on his table, (containing the constitution of the United States,) is a much better definition: he there found, that "Congress shall have power to coin money, regulate the value thereof, and of foreign coin." Here we find what is the legal and constitutional currency of the United States. Gold and silver, either the coinage of the United States or foreign coin, the value of which has been fixed and regulated by a law of Congress, constitute the only currency known to the constitution. But, in a commercial sense, or in the common acceptation, whatever circulates as money, and is received as such, in the ordinary transactions of society, may be considered as a part of the currency of the country; and in this view of the subject, bank bills form a part of our currency. But if we admit the bills of our banks to be a component part of the currency of the country, still the complaints, of which we have heard so much for |