[CHAPTER XCVII.]
PAPER MONEY PAYMENTS: ATTEMPTED BY THE FEDERAL GOVERNMENT: RESISTED: MR. BENTON'S SPEECH.
The long continued struggle between paper money and gold was now verging to a crisis. The gold bill, rectifying the erroneous valuation of that metal, had passed in 1834: an influx of gold coin followed. In seven years the specie currency had gone up from twenty millions to one hundred. There was five times as much specie in the country as there was in 1832, when the currency was boasted to be solid under the regulation of the Bank of the United States. There was as much as the current business of the country and of the federal government could use: for these 100 millions, if allowed to circulate and to pass from hand to hand, in every ten hands that they passed through, would do the business of one thousand millions. Still the administration was persistent in its attempts to obtain a paper money currency: and the national bank having failed, and all the efforts to get up paper money machines (under the names of fiscal agent, fiscal corporation, and exchequer board) having proved abortive, recourse was had to treasury notes, with the quality of re-issuability attached to them. Previous issues had been upon the footing of any other promissory note: when once paid at the treasury, it was extinguished and cancelled. Now they were made re-issuable, like common bank notes; and a limited issue of five millions of dollars became unlimited from its faculty of successive emission. The new administration converted these notes into currency, to be offered to the creditors of the government in the proportion of two-thirds paper, and one-third specie; and, from the difficulty of making head against the government, the mass of the creditors were constrained to take their dues in this compound of paper and specie. Mr. Benton determined to resist it, and to make a case for the consideration and judgment of Congress and the country, with the view of exposing a forced unconstitutional tender, and inciting the country to a general resistance. For this purpose he had a check drawn for a few days' compensation as senator, and placed it in the hands of a messenger for collection, inscribed, "the hard, or a protest." The hard was not delivered: the protest followed: and Mr. Benton then brought the case before the Senate, and the people, in a way which appears thus in the register of the Congress debates (and which were sufficient for their objects as the forced tender of the paper money was immediately stopped):
Mr. Benton rose to offer a resolution, and to precede it with some remarks, bottomed upon a paper which he held in his hand, and which he would read. He then read as follows:
[COMPENSATION NO. 149.]
Office of Secretary of the Senate of the U. S. A.Washington, 31st January, 1842.
Cashier of the Bank of Washington,
Pay to Hon. Thomas H. Benton, or order one hundred and forty-two dollars.
$142 (Signed)Asbury Dickens,
Secretary of the Senate.(Endorsed). ☞ "The hard, or a protest.
"Thomas H. Benton."
District of Columbia,
Washington County, Set:Be it known, That on the thirty-first day of January, 1842, I, George Sweeny, Notary Public, by lawful authority duly commissioned and sworn, dwelling in the County and District aforesaid, at the request of the honorable Thomas H. Benton, presented at the bank of Washington, the original check whereof the above is a true copy, and demanded there payment of the sum of money in the said check specified, whereunto the cashier of said bank answered: "The whole amount cannot be paid in specie, as treasury notes alone have been deposited here to meet the Secretary of the Senate's checks; but I am ready to pay this check in one treasury note for one hundred dollars, bearing six per cent. interest, and the residue in specie."
Therefore I, the said notary, at the request aforesaid, have protested, and by these presents do solemnly protest, against the drawer and endorser of this said check, and all others whom it doth or may concern, for all costs, exchange, or re-exchange, charges, damages, and interests, suffered and to be suffered for want of payment thereof.
[SEAL]
In testimony whereof, I have hereunto set my hand and affixed my Seal Notarial, this first day of February, 1842.
George Sweeny,
Notary Public.Protesting, $1 75.
Recorded in Protest Book, G. S. No. 4, page 315.
Mr. B. said this paper explained itself. It was a check and a protest. The check was headed "compensation," and was drawn by the Secretary of the Senate for so much pay due to him (Mr. B.) for his per diem attendance in Congress. It had been presented at the proper place for payment, and it would be seen by the protest that payment was refused, unless he (Mr. B.) would consent to receive two-thirds paper and about one-third specie. He objected to this, and endorsed upon the check, as an instruction to the messenger who carried it, these words: "The hard, or a protest." Under instructions the protest came, and with it notarial fees to the amount of $1,75, which were paid in the hard. Mr. B. said this was what had happened to himself, here at the seat of government; and he presumed the same thing was happening to others, and all over the Union. He presumed the time had arrived when paper money payments, and forced tenders of treasury notes, were to be universal, and when every citizen would have to decide for himself whether he would submit to the imposition upon his rights, and to the outrage upon the Constitution, which such a state of things involved. Some might not be in a situation to submit. Necessity, stronger than any law, might compel many to submit; but there were others who were in a situation to resist; and, though attended with some loss and inconvenience, it was their duty to do so. Tyranny must be resisted; oppression must be resisted; violation of the Constitution must be resisted; folly or wickedness must be resisted; otherwise there is an end of law, of liberty, and of right. The government becomes omnipotent, and rides and rules over a prostrate country, as it pleases. Resistance to the tyranny or folly of a government becomes a sacred duty, which somebody must perform, and the performance of which is always disagreeable, and sometimes expensive and hazardous. Mr. Hampden resisted the payment of ship money in England: and his resistance cost him money, time, labor, losses of every kind, and eventually the loss of his life. His share of the ship money was only twenty shillings, and a suggestion of self-interest would have required him to submit to the imposition, and put up with the injury. But a feeling of patriotism prompted him to resist for others, not for himself—to resist for the benefit of those who could not resist for themselves; and, above all, to resist for the sake of the Constitution of the country, trampled under foot by a weak king and a profligate minister. Mr. Hampden resisted the payment of ship money to save the people of England from oppression, and the constitution from violation. Some person must resist the payment of paper money here, to save the people from oppression, and the Constitution from violation; and if persons in station, and at the seat of government will not do it, who shall? Sir, resistance must be made; the safety of the country, and of the Constitution demands it. It must be made here: for here is the source and presence of the tyranny. It must be made by some one in station: for the voice of those in private life could not be heard. Some one must resist, and for want of a more suitable person, I find myself under the necessity of doing it—and I do it with the less reluctance because it is in my line, as a hard-money man; and because I do not deem it quite as dangerous to resist our paper money administration as Hampden found it to resist Charles the First and the Duke of Buckingham.
There is no dispute about the fact, and the case which I present is neither a first one, nor a solitary one. The whig administration, in the first year of its existence, is without money, and without credit, and with no other means of keeping up but by forced payments of paper money, which it strikes from day to day to force into the hands, and to stop the mouths of its importunate creditors. This is its condition; and it is the natural result of the folly which threw away the land revenue—which repealed the hard money clause of the independent treasury—which repealed the prohibition against the use of small notes by the federal government—which has made war upon gold, and protected paper—and which now demands the establishment of a national manufactory of paper money for the general and permanent use of the federal government. Its present condition is the natural result of these measures; and bad as it is, it must be far worse if the people do not soon compel a return to the hard money and economy of the democratic administrations. This administration came into power upon a promise to carry on the government upon thirteen millions per annum; the first year is not yet out; it has already had a revenue of twenty odd millions, a loan bill for twelve millions, a tax bill for eight or ten millions, a treasury note bill for five millions: and with all this, it declares a deficit, and shows its insolvency, by denying money to its creditors, and forcing them to receive paper, or to go without pay. In a season of profound peace, and in the first year of the whig administration, this is the condition of the country! a condition which must fill the bosom of every friend to our form of government with grief and shame.
Sir, a war upon the currency of the constitution has been going on for many years; and the heroes of that war are now in power. They have ridiculed gold, and persecuted it in every way, and exhausted their wits in sarcasms upon it and its friends. The humbug gold bill was their favorite phrase; and among other exhibitions in contempt of this bill and its authors, were a couple of public displays—one in May, 1837, the other in the autumn of 1840—at Wheeling, in Virginia, by two gentlemen (Mr. Tyler and Mr. Webster), now high functionaries in this government, in which empty purses were held up to the contemplation of the crowd, in derision of the gold bill and its authors. Sir, that bill was passed in June, 1834; and from that day down to a few weeks ago, we were paid in gold. Every one of us had gold that chose it. Now the scene is reversed. Gold is gone; paper has come. Forced payments, and forced tenders of paper, is the law of the whig administration! and empty purses may now be held up with truth, and with sorrow, as the emblem both of the administration and its creditors.
The cause of this disgraceful state of things, Mr. B. said, he would not further investigate at present. The remedy was the point now to be attended to. The government creditor was suffering; the constitution was bleeding; the character of the country was sinking into disgrace; and it was the duty of Congress to apply a remedy to so many disasters. He, Mr. B. saw the remedy; but he had not the power to apply it. The power was in other hands; and to them he would wish to commit the inquiry which the present condition of things imperiously required of Congress to make.
Mr. B. said here was a forced payment of paper money—a forced tender of paper money—and forced loans from the citizens. The loan to be forced out of him was $100, at 6 per cent.; but he had not the money to lend, and should resist the loan. Those who have money will not lend it, and wisely refuse to lend it to an administration which throws away its rich pearl—the land revenue. The senator from North Carolina [Mr. Mangum] proposes a reduction of the pay of the members by way of relief to the Treasury, but Mr. B. had no notion of submitting to it: he had no notion of submitting to a deduction of his pay to enable an administration to riot in extravagance, and to expend in a single illegal commission in New York (the Poindexter custom house inquisition), more than the whole proposed saving from the members' pay would amount to. He had no notion of submitting to such curtailments, and would prefer the true remedy, that of restoring the land revenue to its proper destination; and also restoring economy, democracy, and hard money to power.