Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1811-02-15
LETTER.

Having already, in report to the
Senate Of Cd March, 1909. ex,ressed
my opinion 10 favor OF q renewal Of the
charter OF thu bank of the United
States, an opinion which remains un.
changed, 1 can only add few expla-
natory remarks in answer TO the en-.
quiries of the committee, as stated in
your letter Of yesterday.
Inc banking system is now firmly
established, aud, in its rani6cat;ons
extends to every part of the United
states. Under that system the assis-
lance OF banks appears to me necessa-
ry tor the punctual collection of the
revenue, and for the safe keeping and
transmission of public monies. Thar
the Punctuality OF payments is princi.
paily due to banks, is a fact generally
acknowledged. Ii is to a certain de-
gree, enforced hy the,refusal of credit
al me custom house, so long as for.
n'er revenue bond actually due remains
unpaid. But l think, nevertheless.
that IN order-to epsaresthat precision
IN the collection, on which depends
corresponding discharge Of the public
engagements, j. would, ifno use was
made OF banks, be found necessary to
abollsh altogether the credit now rivsn
en-. the payment of duties measure
which would affect the commercial can.
ital. and fall heavily on the consumers.
ihat the public monies are safer by
being weekly deposited in banks, in
stead OF accumulasing in the hands Of
collectors, is self-evident. And their
transmission, whenever this may be
wanted for the purpose of makinr
payments in othsr places than those
OF collection, cannot with any conve.
nlence be eff ct-d on large scale in
an extensive country, except thro' the
medium OF banks, or of persons acting
as bankers.
The question therefore IL, whether
= back incorporated ny the United
States, or number of banks incorpo.
rased by the several states, be most
convenient for those purposes.
State banks may be used, and must.
In case CT non-renewaI of the char.
ter, be used by the Treasury. Pre-.
.psrstory arrangements have already
oeen made to that effect and it is
peiieved, that the ordinary business
Will be transacted through their med;.
UNI, with less convenience, and in some
respects with perhaps less safety than
at present, but without any insupera.
bic difficulty. The difference with
respect 10 safety results from the or.
gauizetion of the bank of the JJnit.d
States, by which 4 is responsible FOR
the money deposited in any of IL.
branches, whilst each of the state banks
which may be employed will be respon-
slsie only for the sums in its own
hands. Thus the bank of the United
States is now answerable for the mo.
MES collected at New Orleans. and de.
posited' there in its branch, security
which will be lost under different ar.
ran8emsnt. Nor will the II. States
have any other control over the man.
ner IN which the husincss of the banLa
may be conducted, than what nav re.
snis from the power Of Withdrawing
the public deposits; and they VIII lo.s
that which charter or dependence
on the general government for char.
ter now gives over the bank of he
United States. The facility of Obtain.
ing such accom- modations, as may 4
times be wanted, will for The sam.
reason be lessened and the nationa
power will to that extent be impaired.
Ii may be added, that even for the or.
binary business of receiving and trans-
niitiing public monies, the use of a
state ban& may be forbidden by the
state, and that loans to the Uni;ed
:. stes are by many Of the charters for.
bidder, without a special permission
from the STATE.
AS it is nor perceived, on the other
hand, that single advantage will ac-
crue TO the public from the change,
no reason presents itself, on The ground
OF expedieney, why an untried system
should be substituted to one under
which the treasury business has so
long been conducted with perfect sc.
eurity to the United States and great
convenience, not only TO the officers.
bat ESQ to all those who have had
-