Martinsburgh gazette. [volume] (Martinsburgh, Va. [W. Va.]) 1810-1825, 1811-02-15
LETTER.

senate OF I'd March, 1909, expressed my
| opinion 10 favor of the renewal ofthe Char
ter of the Bank Of the United States, an
opinion which remaios unchanged, l can
only add a few explanatory remarks in an.
swer to the inquiries OF the committee, as
stated in your letter of yesterday.
The banking system is now firmly estab-
lished, and, in its ramihcations, extends
to every part of the United States. Tn.
der that system, the assistance OF banks
appears to me necessary for the punctual
collection of the revenue, and for the safe
keeping and transmission of public monies.
That the punctuality of payments is princi.
pally due to banks, is fact generally &C
knowledged. 1t is to a certain degree, en-
forced by the refusal of credit at the GUS
tom house so Icing as a former revenue
bond actually due remains unpaid. But |
think, nevertheless, that in order TO en-
sure that precision in the collection, on
which depends a corresponding discharge
OF the public engagements, ii would, ii NO
use was made OF banks, be found necessa.
ry to abolish altogether the credit now CIV
en- on the payment OF duties ; a measure
which would affect the commercial capital,
and fall heavily on the consumers. That
the public monies are safer by being week
ly deposited in banks, instead of accumu-
latjng in the hands of collectors, is self evi.
dent.-And their transmission, whenever
this May be wanted for the purpose of max
ing paw ments in other places, than those of
collection, cannot, with any convenience be
effected on a large scale in an extensive
country, except through the medium of
banks, or of persons acting as bankers.
The question therefore is, whether a
bank incorporated by the United States, or
a number of banks incorporated by the ST.
veral states, be most convenient for those
purposes.
State banks may be used, and must in
case of a non renewal of the charter, be
used by the treasury. Preparatory arrange
ments have already been made to that ef-
feet and it is believed, that the ordinary
business will be transacted through their
medium, with less convenience, and in
some respects with perhaps less safety than
at present, but without any insuperabIe
difficulty. The difference with respect to
safety, results from the organization of the
Bank of the United States, by which it is
responsible for the money deposited in any
Of its branches, whilst each of the state
banks which may be employed, will be res.
ponsible only for the sums in its own hands.
Thus the Bank of the United State. is
now answerable for the monies collected
at New Orleans, and deposited there in
its branch. a security which will be lost
under different arrangement. Nor will
the u. States have any other control over
the manner in which the business Of the
banks may be conducted, than what may
result from the power of Withdrawing the
public deposits: and they will lose that
which a charter or a dependence on the ge-
neral government for a charter now gives
over the Bank of the United States. The
facility of obtaining such accommodations
as may at times be wanted, will for the
same reason be lessened, and the national
power will to that extent be impaired. 1t
may be added, that ever for the ordinary
business of receiving, and transmitting
public monies, the use of a state bank may
be forbidden by the state, and that loans to
the u. States, are by many of the charters
forbidden, without a special permission
from the state.
AS it rs not perceived on the other hand,
that a single advantage will accrue to the
public from the change, no reason presents
itself, on the ground of expediency, why
an un,ried system should be substituted to
one under which the TT easury business has
so long been conducted with perfect securi.
sy to the u. States, and great convenience
not only to the officers, but also to all those
who have had payments of a public nature
to make or to receive.
1t does not seem necessary to advert to
the particular objections made against the
present charter, as these may easily be OBJ,
waited by proper alterations. What has
been called a national bank, or in other
words a new hank of the IInitrd Statea