Part 21

What, then, has excited the whole land, from Maine to Georgia, and gives us assurance, that, while we are meeting here in New York in such vast numbers, other like meetings are holding throughout all the States? That this cause must be general is certain, for it agitates the whole country, and not parts only.

When that fluid in the human system indispensable to life becomes disordered, corrupted, or obstructed in its circulation, not the head or the heart alone suffers; but the whole body--head, heart, and hand, all the members, and all the extremities--is affected with debility, paralysis, numbness, and death. The analogy between the human system and the social and political system is complete; and what the lifeblood is to the former, circulation, money, currency, is to the latter; and if that be disordered or corrupted, paralysis must fall on the system.

The original, leading, main cause, then, of all our difficulties and disasters, is the disordered state of the circulation. This is, perhaps, not a perfectly obvious truth; and yet it is one susceptible of easy demonstration. In order to explain this the more readily, I wish to bring your minds to the consideration of the internal condition, and the vast domestic trade, of the United States. Our country is not a small province or canton, but an empire, extending over a large and diversified surface, with a population of various conditions and pursuits. It is in this variety that consists its prosperity; for the different parts become useful one to the other, not by identity, but by difference, of production, and thus each by interchange contributes to the interest of the other. Hence, our internal trade, that which carries on this exchange of the products and industry of the different portions of the United States, is one of our most important interests, I had almost said the most important. Its operations are easy and silent, not always perceptible, but diffusing health and life throughout the system by the intercourse thus promoted, from neighborhood to neighborhood, and from State to State.

This circuit of trade, in a country of such great extent as ours, demands, more than in any country under heaven, a uniform currency for the whole people; that what is money in Carolina shall be so elsewhere; that what the Kentucky drover receives, what the planter of Alabama sells for, what the laborer in New York gets in pay for his work, and carries home to support his family, shall be of ascertained and uniform value.

This is not the time nor the occasion for an essay or dissertation on money; but I mean distinctly to express the opinion, that until the general government shall take in hand the currency of the country, until that government shall devise some means, I say not what, of raising the whole currency to the level of gold and silver, there can be no prosperity.

Let us retrace briefly the history of the currency question in this country, a most important branch of the commercial question. I appeal to all who have studied the history of the times, and of the Constitution, whether our fathers, in framing the Constitution which should unite us in common rights and a common glory, had not also among their chief objects to provide a uniform system of commerce, including a uniform system of currency for the whole country. I especially invite the ingenuous youth of the country to go back to the history of those times, and particularly to the Virginia resolutions of 1786, and to the proceedings of the convention at Annapolis, and they will there find that the prevailing motive for forming a general government was, to secure a uniform system of commerce, of customhouse duties, and a general regulation of the trade, external and internal, of the whole country. It was no longer to be the commerce of New York, or of Massachusetts, but of the United States, to be carried on under that star-spangled banner, which was to bear to every shore, and over every sea, the glorious motto, E Pluribus Unum.

At the second session, of the first Congress, the United States Bank was established. From the incorporation of the bank to the expiration of its charter, embracing a period of great commercial and political vicissitudes, the currency furnished by that bank was never objected to: it, indeed, surpassed the hopes and equalled the desires of everybody.

Of the hundreds here, possibly, who supported General Jackson, not one dreamed that he was elected to put down established institutions and overthrow the currency of the country. Who, among all those that, in the honest convictions of their hearts, cried, Hurrah for Jackson! believed or expected or desired that he would interfere with the Bank of the United States, or destroy the circulating medium of the country? [Here there arose a cry from the crowd, "None! None!"] I stand here upon the fact, and defy contradiction from any quarter, that there was no complaint then, anywhere, of the bank. There never before was a country, of equal extent, where exchanges and circulation were carried on so cheaply, so conveniently, and so securely. General Jackson was inaugurated in March, 1829, and pronounced an address upon that occasion, which I heard, as I did the oath which he took to support the Constitution. In that address were enumerated various objects, requiring, as he said, reform; but among them was not the Bank of the United States, nor the currency. This was in March, 1829. In December, 1829, General Jackson came out with the declaration (than which none I have ever heard surprised me more), that "the constitutionality of the Bank of the United States might be well questioned," and that it had failed to furnish a sound and uniform currency to the country.

What produced this change of views? Down to March of the same year, nothing of this sort was indicated or threatened. What, then, induced the change? [A voice from the crowd said, "Martin Van Buren."] If that be so, it was the production of mighty consequences by a cause not at all proportioned. I will state, in connection with, and in elucidation of, this subject, certain transactions, which constitute one of those contingencies in human affairs, in which casual circumstances, acting upon the peculiar temper and character of a man of very decided temper and character, affect the fate of nations. A movement was made in the summer of 1829, for the purpose of effecting a change of certain officers of the branch of the Bank of the United States in Portsmouth, New Hampshire. Mr. Woodbury, then a Senator from New Hampshire, transmitted to the president of the bank at Philadelphia a request; purporting to proceed from merchants and men of business of all parties, asking the removal of the president of that branch, not on political grounds, but as acceptable and advantageous to the business community. At the same time, Mr. Woodbury addressed a letter to the then Secretary of the Treasury, Mr. Ingham, suggesting that his department should, on political grounds, obtain from the mother bank the removal of the branch president. This letter was transmitted to the president of the mother bank, and reached him about the same time with the other, so that, looking upon this picture and upon that, upon one letter, which urged the removal on political grounds, and upon the other, which denied that political considerations entered into the matter at all, he concluded to let things remain as they were. Appeals were then artfully made to the President of the United States. His feelings were enlisted, and it is well known that, when he had an object in view, his character was to go ahead. I mean to speak no evil nor disrespect of General Jackson. He has passed off the stage to his retirement at the Hermitage, which it would be as well, perhaps, that friends should not disturb, and where I sincerely wish he may, in tranquillity, pass the residue of his days. But General Jackson's character was imperious; he took the back track never; and however his friends might differ, or whether they concurred or dissented, they were fain always to submit. General Jackson put forth the pretension, that appointments by the bank should have regard to the wishes of the treasury; the matter was formally submitted to the directors of the bank, and they as formally determined that the treasury could not rightly or properly have any thing to say in the matter. A long and somewhat angry correspondence ensued; for General Jackson found in the president of the bank a man who had something of his own quality. The result was that the bank resisted, and refused the required acquiescence in the dictation of the treasury.

This happened in the summer and autumn of 1829, and in December we had the message in which, for the first time, the bank was arraigned and denounced. Then came the application of the bank for re-incorporation, the passage of a bill for that purpose through both houses, and the Presidential veto. The Bank of the United States being thus put down, a multitude of new State banks sprang up; and next came a law, adopting some of these as deposit banks. Now, what I have to say in regard to General Jackson in this matter is this: he said he could establish a better currency; and, whether successful or not in this, it is at least to be said in his favor and praise, that he never did renounce the obligation of the federal government to take care of the currency, paper as well as metallic, of the people. It was in furtherance of this duty, which he felt called on to discharge, of "providing a better currency," that he recommended the prohibition of small bills. Why? Because, as it was argued, it would improve the general mixed currency of the country; and although he did not as distinctly as Mr. Madison admit and urge the duty of the federal government to provide a currency for the people, he never renounced it, but, on the contrary, in his message of December, 1835, held this explicit language:--

"By the use of the State banks, which do not derive their charters from the general government, and are not controlled by its authority, it is ascertained that the moneys of the United States can be collected and distributed without loss or inconvenience, and that all the wants of the community, in relation to exchange and currency, are supplied as well as they have ever been before."

It is not here a question whether these banks did, or did not, effect the purpose which General Jackson takes so much praise to himself for accomplishing through their agency, that of supplying the country with as good a currency as it ever enjoyed. But why, if this was not a duty of the federal government, is it mentioned at all?

Two months only after General Jackson had retired, and when his vigorous hand was no longer there to uphold it, the league of State banks fell, and crumbled into atoms; and when Mr. Van Buren had been only three months President, he convoked a special session of Congress for the ensuing September. The country was in wide-spread confusion, paralyzed in its commerce, its currency utterly deranged. What was to be done? What would Mr. Van Buren recommend? He could not go back to the Bank of the United States, for he had committed himself against its constitutionality; nor could he, with any great prospect of success, undertake to reconstruct the league of deposit banks; for it had recently failed, and the country had lost confidence in it. What, then, was to be done? He could go neither backward nor forward. What did he do? I mean not to speak disrespectfully, but I say he--escaped! Afraid to touch the fragments of the broken banks, unable to touch the United States Bank, he folded up his arms, and said, The government has nothing to do with providing a currency for the people. That I may do him no wrong, I will read his own language. His predecessors had all said, We will not turn our backs upon this duty of government to provide a uniform currency; his language is, We will turn our backs on this duty. He proposes nothing for the country, nothing for the relief of commerce, or the regulation of exchanges, but simply the means of getting money into the treasury without loss. In his first message to Congress, he thus expresses himself:--

"It is not the province of our government to aid individuals in the transfer of their funds, otherwise than through the facilities of the Post-Office Department. As justly might it be called on to provide for the transportation of their merchandise.

"If, therefore, I refrain from suggesting to Congress any specific plan for regulating the exchanges or the currency, relieving mercantile embarrassments, or interfering with the ordinary operations of foreign or domestic commerce, it is from a conviction that such are not within the constitutional province of the general government, and that their adoption would not promote the real and permanent welfare of those they might be designed to aid."

I put it to you, my friends, if this is a statesman's argument. You can transport your merchandise yourselves; you can build ships, and make your own wagons; but can you make a currency? Can you say what shall be money, and what shall not be money, and determine its value here and elsewhere? Why, it would be as reasonable to say, that the people make war for themselves, and peace for themselves, as to say that they may exercise this other not less exclusive attribute of sovereignty, of making a currency for themselves. He insists that Congress has no power to regulate currency or exchanges, none to mitigate the embarrassments of the country, none to relieve its prostrate industry, and even if the power did exist, it would be unwise, in his opinion, to exercise it!

Let us compare this declaration with that of one now numbered with the mighty dead; of one who has left behind a reputation excelled by that of no other man, as understanding thoroughly the Constitution; of one taking a leading part in its inception, and closing his public career by administering its highest office; I need not name JAMES MADISON.

In his message to Congress, in December, 1815, when the war had closed, and the country was laboring under the disordered currency of that period, the President thus spoke:--

"It is essential to every modification 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, be a temporary evil; but until they can again be rendered the general medium of exchange, it devolves on the wisdom of Congress to provide a substitute, which shall equally engage the confidence and accommodate the wants of the citizens throughout the Union."

The new doctrine which the administration had set up is one vitally affecting the business and pursuits of the people at large, extending its efforts to the interests of every family, and of every individual; and you must determine for yourselves if it shall be the doctrine of the country. But, before determining, look well at the Constitution, weigh all the precedents, and if names and authority are to be appealed to, contrast those of President Van Buren with those of the dead patriarch whose words I have just read to you, and decide accordingly.

But Mr. Van Buren's message contains a principle,--one altogether erroneous as a doctrine, and fatal in its operations,--the principle that the government has nothing to do with providing a currency for the country; in other words, proposing a separation between the money of the government and the money of the people. This is the great error, which cannot be compromised with, which is susceptible of no amelioration or modification, like a disease which admits no remedy and no palliative but the caustic which shall totally eradicate it.

Do we not know that there must always be bank paper? Is there a man here who expects that he, or his children, or his children's children, shall see the day when only gold coin, glittering through silk purses, will be the currency of the country, to the entire exclusion of bank notes? Not one. But we are told that the value of these notes is questionable. It is the neglect of government to perform its duties that makes them so. You here, in New York, have sound bank paper, redeemable in coin; and if you were surrounded by a Chinese wall, it might be indifferent to you whether government looked after the currency elsewhere or not. But you have daily business relations with Pennsylvania, and with the West, and East, and South, and you have a direct interest that their currency too shall be sound; for otherwise the very superiority of yours is, to a certain degree, an injury and loss to you, since you pay in the equivalent of specie for what you buy, and you sell for such money as may circulate in the States with which you deal. But New York cannot affect the general restoration of the currency, nor any one State, nor any number of States short of the whole, and hence the duty of the general government to superintend this interest.

But what does the sub-treasury propose? Its basis is a separation of the concerns of the treasury from those of the people. It directs that there shall be certain vaults, and safes, and rooms for deposit of the money of the government. But it has not been for want of adequate vaults and rooms that we have lost our money, but owing to the hands to which we have intrusted the keys. It is in the character of the officers, and not in the strength of bars and vaults, that we must look for the security of the public treasure. There are no securities under this new system of keeping the public moneys that we had not before; while many that did exist, in the personal character, high trusts, and diversified duties of the officers and directors of banks are removed. Moreover, the number of receiving and disbursing officers is increased, and the danger to the public treasure is increased in proportion. The next provision is, that money once received into the treasury is not to be lent out. Yet the practice of this government hitherto has always been opposed to this policy of locking up the money of the people, when and while it is not required for the public service. Until this time the public deposits, like private deposits, were used by the banks in which they were placed, as some compensation for the trouble of safe-keeping, and in furtherance of the general convenience. The next provision is that requiring, after 1843, all dues to the government to be paid in gold and silver. But what are we promised as the equivalent for all this inconvenience and oppression? Why, that the government in its turn will pay its debts in specie, and that thus what it receives with one hand it will pay out with the other, and a metallic circulation will be established. I undertake to say, that no greater fallacy than this was ever uttered; the thing is impossible, and for this plain reason. The dues which the government collects come from individuals; each pays for himself. But it is far otherwise with the disbursements of government. They do not go down to individuals, and, seeking out the workmen and the laborers, pay to each his dues. Government pays in large sums, to large contractors, and to these it may pay gold and silver. But do the gold and silver reach those whom the contractor employs? On the contrary, the contractors deal as they see fit, with those whom they employ, or of whom they purchase. I speak of what is in proof. A contractor came to Washington last winter, and received a draft of $180,000 on a specie-paying bank in New York. This he sold at ten per cent premium, and with the avails purchased funds in the West, with which he paid the producer, the farmer, the laborer. This is the operation of specie payments. It gives to the government hard money, to the rich contractor hard money; but to the producer and the laborer it gives paper, and bad paper only. And yet this system is recommended as specially favoring the poor man, rather than the rich, and credit is claimed for this administration as the poor man's friend.

Let us look a little more nearly at this matter, and see whom, in truth, it does favor. Who are the rich in this country? There is very little hereditary wealth among us; and large capitalists are not numerous. But some there are, nevertheless, who live upon the interest of their money; and these, certainly, do not suffer by this new doctrine; for their revenues are increased in amount, while the means of living are reduced in value. There is the money-lender, too, who suffers not by the reduction of prices all around him. Who else are the rich in this country? Why, the holders of office. He who has a fixed salary of from $2,500 to $5,000 finds prices falling; but does his salary fall? On the contrary, three fourths of that salary will now purchase more than the whole of it would purchase before; and he, therefore, is not dissatisfied with this new state of things.

I live on the sea-coast of New England, and one of my nearest neighbors is the largest ship-owner, probably, in the United States. During the past year, he has made what might suffice for two or three fortunes of moderate size; and how has he made it? He sends his ships to Alabama, Louisiana, Mississippi, to take freights of cotton. This staple, whatever may be the price abroad, cannot be suffered to rot at home; and therefore it is shipped. My friend tells his captain to provision his ship at Natchez, for instance, where he buys flour and stores in the currency of that region, which is so depreciated that he is able to sell his bills on Boston at forty-eight per cent premium! Here, at once, it will be seen, he gets his provisions for half price, because prices do not always rise suddenly, as money depreciates. He delivers his freight in Europe, and gets paid for it in good money. The disordered currency of the country to which he belongs does not follow and afflict him abroad. He gets his freight in good money, places it in the hands of his owner's banker, who again draws at a premium for it. The ship-owner, then, makes money, when all others are suffering, because he can escape from the influence of the bad laws and bad currency of his own country.

Now, I will contrast the story of this neighbor with that of another of my neighbors, not rich. He is a New England mechanic, hard-working, sober, and intelligent, a tool-maker by trade, who wields his own sledge-hammer. His particular business is the making of augers for the South and Southwest. He has for years employed many hands, and been the support thereby of many families around him, himself, meanwhile, moderately prosperous until these evil times came on. Annually, however, for some years, he has been going backwards. Not less industrious, not less frugal, he has yet found, that, however good nominally the prices he might receive at the South and Southwest for his tools, the cost of converting his Southern or Western funds into money current in New England was ruinous. He has persevered, however, always hoping for some change for the better, and contracting gradually the circle of his work and the number of his workmen, until at length, the little earnings of the past wasted, and the condition of the currency becoming worse and worse, he is reduced to bankruptcy; and he, and the twenty families that he supported, are beggared by no fault of their own. What was his difficulty? He could not escape from the evils of bad laws and bad currency at home; and while his rich neighbor, who could and did, is made richer by these very causes, he, the honest and industrious mechanic, is crushed to the earth; and yet we are told that this is a system for promoting the interests of the poor!

This leads me naturally to the great subject of American labor, which has hardly been considered or discussed as carefully as it deserves. What is American labor? It is best described by saying, it is not European labor. Nine tenths of the whole labor of this country is performed by those who cultivate the land they or their fathers own, or who, in their workshops, employ some little capital of their own, and mix it up with their manual toil. No such thing exists in other countries. Look at the different departments of industry, whether agricultural, manufacturing, or mechanical, and you will find that, in almost all, the laborers mix up some little capital with the work of their hands. The laborer of the United States is the United States. Strike out the laborers of the United States, including therein all who in some way or other belong to the industrious and working classes, and you reduce the population of the United States from sixteen millions to one million. The American laborer is expected to have a comfortable home, decent though frugal living, and to be able to clothe and educate his children, to qualify them to take part, as all are called to do, in the political affairs and government of their country. Can this be said of any European laborer? Does he take any share in the government of his country, or feel it an obligation to educate his children? In most parts of Europe, nine tenths of the laborers have no interest in the soil they cultivate, nor in the fabrics they produce; no hope, under any circumstances, of rising themselves, or of raising their children, above the condition of a day-laborer at wages; and only know the government under which they live by the sense of its burdens, which they have no voice in mitigating.

To compare such a state of labor with the labor of this country, or to reason from that to ours, is preposterous. And yet the doctrine now is, not of individuals only, but of the administration, that the wages of American labor must be brought down to the level of those of Europe.