The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1838-12-21 00:00:00

fused to redeem them with specie; by these measures, aided
by the favourable actidn of some of the banks, and by the
support and co-operation of a large portion of the commu-
nity, we have witnessed an early resumption of specie pay-
ments in our great commercial capital, promptly followed in
almost every part of the United States. This result has been
alike salutary to the true interests of agriculture, commerce,
and manufactures; to public morals, respect for the laws,
and that confidence between man and man which is so essen-
tial in all our social relations.

The contrast between the suspensions of 1814 and that of
1837 is most striking. The short duration of the latter ; the
prompt restoration of business, the evident benefits resulting
from an adherence by the government to the constitutional
standard of value, instead of sanctioning the suspension by
the receipt of irreedeemable paper; and the advantages de-
riied from the large amount of specie introduced into the
country previous to 1837, afford a valuable illustration of the
true policy of the government in such a crisis. Nor can the
-eonaparisort_fail to remove_tLe impressinn_ that. a national_
bank is necessary in such emergencies. Not only were spe-
cie payments resumed without its aid, but exchanges have
also been more rapidly restored that when it existed; thereby
showing that private capital, enterprise, and prudence are
fully adequate to these ends. On all these points experience
seems to have confirmed the views heretofore submitted to
Congress. We have been saved the mortification of seeing
the distresses of the community for the third time seized on
to fasten upon the country so dangerous an institutton •' and
we may also hope that the business of individuals will here-
after be relieved from the injurious effects of a continued
agitation of that disturbing subject.
The limited influence of a national bank in averting the
derangement in the exchanges of the country, or in compel-
ling the resumption of specie payments, is now not less ap-
parent than its tendency to increase inordinate speculation
by sudden expansion and contractions; its disposition to
create panic and embarrassment for the promotion of its own
designs; its interference with politics; and its far greater
power for evil than for good, either in regard to the local in-
stitutions of the operations of government itself. What was
in these respects but apprehension or opinion when a na-
tional bank was first established, now stands confirmed by
humiliating experience. The scenes through which we have
passed conclusively prove how little our commerce, agricul-
ture, manufactures, or finances, require such an institution,
and what dangers are attendant on its power—a power,
trust, never to be conferred by the American people. upon
their government, and still less upon individuals not respon-
Rmble to them for its unavoidable abuses.
My conviction of the necessity of further legislative pro-
visions for the safe keeping and disbursement of the public
moneys, and my opinion in regard to the measures best
adapted to the accomplishment of those objects, have been
already submitted to you. These have been strengthened
by recent events; and, in the full conviction that time and
experience must still further demonstrate their propriety, I
feel it my duty, with respectful deference to the conflicting
views of others, again to invite your attention to them.
With the exception of limited sums deposited in the few
banks still employed under the act of 1836, the amounts re-
ceived for duties, and, with very inconsiderable exceptions,
those accruing from lands also, have since the general sus-
pension of specie payments by the deposit banks, been kept
and disbursed by the Treasurer, under his general legal
powers, subject to the superinstendence of the Secretary of
the Treasury. The propriety of defining more specifically,
and of regulating by law, the exercise of this wide scope of
Executive discretion, has been already submitted to Con.
gress.

(Here follows a statement of a serious defalcation of one
of the collectors who had been discovered to be purloining
the public money with perfect secresy tor the space of seven
years; and his conduct was only discovered on the stoppage
of specie payments at the Bank. The President recom-
mends very stringent measures to be adopted for the preven-
tion of any such an occurrence in future, and that the private
application of the public moneys by any officer of the State,
should be made FELONY.]
The Secretary' of the Treasury will lay before you addi
tional information containing new details on this interesting
subject. To these I ask your eerly attention. That it should
have given rise to great diversity of opinion cannot be a sub-
ject of surprise. After the collection and custody of the pub-
lic moneys had been for so many years connected with, and
made subsidiary to the advancement of private interests, a
return to the simple and self-denying ordinances of the con-
stitution could not but be difficult. But time and free dis-
cussion eliciting the sentiments of the people, and aided by
that conciliatory spirit which has ever char, cterized their
course on great emergencies, were relied upon for a satisfac-
tory settlement of the question. Already- has this anticipation
on one important point at least—the impropriety of diverting
public money to private purposes—been fully realized There
is no reason to suppose that legislation upon that branch of
the subject would now be embarrassed by a difference of
opinion, or fail to receive the cordial support of a large ma-
jority of our constituents. The connection which formerly
extsted between the government and banks was in reality in-
jurious to both, as well as to the general interests of the com-
munity at large. It aggravated the disasters of trade and the
derangements of commercial intercourse, and administered
new excitement and additional means to wild and reckless
speculations, the disappointments of which threw the country
into convulsions of panic, and all but produced violence and
bloodshed. The imprudent expansion of bank credits, which
was the natural result of the command of the revenues of the
State, furnished the resources for unbounded license in every
species of adventure, seduced industry from its regular and
salutary occupations by the hope of abundance without la-
bour, and deranged the social state by tempting all trades and
professions inio the vortex of speculations on remote contin-
gencies.
The same wide spreading influence impeded also the re-
sources of the government, curtailed its useful operations,
embarrassed the fulfilment of its obligations, and seriously
interfered with the execution of the laws. Large appropria-
tions and oppressive taxes are the natural consequences of
such a connection, since they increase the profits of those
who are allowed to use the public funds, and make it their
interest that money should be accumulated and expenditures
multiplied. It is thus that a conecentrated money power is
tempted to become an active agent in political affairs, and all
past experience has shown on which side that influence will
be arrayed. We deceive ourselves if we suppose that it will
ever be found assisting and supporting the rights of the com-
munity at large, in opposition to the claims of the few.
In a government whose distinguishing characteristic should
be a diffusion and equalization of its benefits and burdens,
the advantage of individuals will be augmented at the ex-
pense of the mass of the people. Nor is it the nature of
combinations for the acquisition of legislative influence to
confine their interference to the single object for which they
"ii"..llY formed. The temptation to extend it to
other matters is, on the contrary, nut uufrequently too strong
to be resisted. The influence, in the. direction of public
affairs, of the community at large, is, therefore, in no slight
danger of being sensibly and injuriously affected giving to
a comparatively small, but very efficient class, a direct and
exclusive personal interest in so important a portion of the
legislation of Congress as that which relates to the custody of
the public moneys. If laws acting upon private interests
cannot always -be avoided, they should be confined within
the narrowest limits, and left, wherever possible, to the
Legislatures of the States. When not thus restricted, they
lead to combinations of powerful associations, foster an influ-
ence necessarily selfish, and turn the fair course of legislation
to sinister ends, rather than to objects that advance public
liberty, and promote the general good.
The whole subject now rests with you, and I cannot but
express a hope that some definite measure will be adopted at
the present session.
It will not, I ant sure, be deemed out of place for me here
to remark, that the declaration of my views in opposition to
the policy of employing banks as depositories of the Govern-
ment funds, eannot be justly construed as indicative to hos-
tility, official or personal, to those institutions; or to repeat,
in this form, and iu connection with this subject, opinions
which I have uniformly entertained, and on all proper occa-
sions expressed. Though always opposed to their creation
in the form of exclusive privileges, and, as a State magis-
trate, aiming by appropriate legislation to secure the com-
munity against the consequences Ortheir occasional misman
agement, I have vet ever wished to see them. protected in the
exercise of rights conferred by law, and. have never doubted
their utility, when properly managed, in promoting the inte-
rests of trade, and, through the channel, the other interests of
the community. To the General Government they present
themselves merely as State institutions, having no necessary
connexion with its legislation or its administration. Like
other State establishments, they may be used or not in con-
ducting the affairs of the Government, as public policy and
the general interests of the Union may seem to require.
The only safe or proper principle upon which the intercourse
with the Government can be regulated, is that which regu-
lates their intercourse with the private citizen—the confer-
ring of mutual benefits. When the Government can accom-
plish a financial operation better with the aid of the banks
than without, it should be at liberty to seek that aid as it
would ebe services of a private honker, or other capitalists
or agents, giving the preference to those who will serve it on
the best terms. Nor can there ever exist an interest in the
officers of the General Government, as such, inducing them
to embarrass or annoy the State banks any more than to in-
cur the hostility of any other class of State institutions,
or of private citizens. It is not in, the nature of things that
hostility to these institutions can spring from this source, or
any opposition to their course of husiness, except when theyi
themselves depart front the objects of their creation, and
attempt to usurp powers not conferred upon them, or to sub-
vert the standara of value established by the constitution.
While opposition to their regular operations cannot exist in
this quarter, resistance to any attempt to make the-Govern-
ment dependant upon them for the successful administration
of public affairs, is a matter of duty, as I trust it ever will be
of inclination, no matter from what motive or conisderation
the aitempt may originate.
It is no more than just to the banks to say, that, in the
late emergency, most of them firmly resisted the strongest
temptations to extend their paper issues, when apparently
sustained in a suspension of specie payments by public opi-
nion, even though in some cases invited by legislative enact-
ments. To this honourable course, aided by the resistance
of the General Government. acting in obedience to the con-
stitution and laws of the United States, to the introduction
of an irredeemable paper itiedim, may be attributed, in a
great degree, the speedy restoration of our currency to a
sound state, and the business of the country to its wonted
prosperity- The banks have but to continue in the same
safe course, and be content in their appropriate sphere, to
avoid all interference front the General Government, and to
derive from it all the protection and benefits which it bestows
on their state establishments, on the people of the states,
and on the states themselves. In this, their true position,
they cannot but secure the confidence and good will of the
people and the government, which they can only lose when,
leaping from their legitimate sphere, the:( attempt to control
the legislation of the country, and pervert the operations of
the Government to their own purposes.
Our experience under the act passed last session, to grant
pre-emption rights to settlers on the public lands, has as yet
been too limited to enable us to pronounce with safety upon
the efficacy of its provisions to carry out the wise and liberal
policy of the Government in that respect. There is, how-
ever, the best reason to anticipate favourable results from its
operation. The recommendations formerly submitted to you,
in respect to a graduation of the price of the public lands,
remain to be finally acted upon. Having found no reason
to change the views then expressed, your attention to them
is again respectfully requested.
Every proper exertion has been made, and will be conti-
nued, to carry out the wishes of Congress in relation to the
tobacco trade, as indicated in the several resolutions n f the
House of Representatives and the legislation of the two
branches. A favourable impression has, I trust, been made
in different foreign countries to which particular attention
hasteen directed, and although we cannot hope for an early
change in their policy, as in many of them a convenient and
large revenue is derived from monopolies in the fabrication
and sale of this article, yet, as these monopolies are really in-
jnrious to the people where they are established, and the re-
venue derived from them may be less injuriously and with
equal facility obtained from another and a liberal system of
administration, we cannot doubt that our efforts will be even-
tually crowned with success, if persisted in with temperate
firmness, and sustained by prudent legislation: •
In recommending to Congress the adoption of the neces-
sae), provisions at this season for taking the next census or
enumeration of the inhabitants of the United States, the sug-
gestion presents itself whether the scope of the measure
might not be usefully extended by causing it to embrace
authentic statistical returns of the great interest specially
intrusted to, or necessarily effected by, the legislation of
Congress.
The accompanying report of the Secretary of War pre-
sents a satisfactory account of the state of the army and of
the several branches of the public service confided to the su-
perintendence of that officer.
The law increasing and organizing the military establish-
ment of the United States has been nearly carried into effect,