e highest object of legislation. Mr. Madison said in his
message:

"It is, however, 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."

I said that when coin, the best of currency, was driven out of
circulation, by the existence of war or extraneous circumstances,
it was the duty of Congress to provide a substitute. In 1816
Congress did this by establishing the Bank of the United States.
Most of the state banks shortly afterward exploded, and almost
their entire issue outstanding at the time fell as a loss to the
people of the United States. The Bank of the United States did
furnish for a while a stable currency. After its charter expired
in 1836, the controversy was between gold and silver, and paper
money as a currency. Nearly all the statesmen of that time believed
it was necessary to have a national currency in some form, but
there was a part in the country that believed the only true national
currency was gold and silver coin. After a controversy that I
would not review, the sub-treasury system was finally adopted.
The government had then no occasion to borrow money. Its debt was
paid off and there was a large surplus in the treasury, which was
distributed among the states. The agency of a United States bank
was no longer necessary to sustain the public credit. The object
then was to secure a safe deposit and custody of the public revenues.
The state banks failed to furnish a safe redeemable currency. In
1837 their notes were in the hands of the people, depreciated and
dishonored, if not entirely worthless. Therefore, I thought wisely,
the sub-treasury system was adopted, by which gold and silver coin
was the only money received or paid out by the government. I
believed that such was a true policy in the absence of national
banks. I also stated that if peace were restored to our country,
we ought, as soon as possible, to go back to the basis of gold and
silver coin, but, in the meantime, we must meet the exigencies of
the hour. Paper money was then a necessity. Gold and silver were
hoarded. War always h