Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1831-10-03
LETTER FROM Mo MONROE.
U. S. BANK

NEW oRK,s Jan. 9th, 1881
Dear Sir: The confidence havo in your rccti
tnIc and patriotism, will induce me to give an er
i''t answer to the general intcrrugatories coutan
rd "a Your letter of tho eth, though fear that nv
A''nilnucd weak state of hoatl will make il les, sa
ac'ory than it otherwise might be- especially as
have mono of tho official documents with me
"hi:h are calculated to illustrate the subject
/ on ask me what is my opinion of tho effect
hich tho u. States Bank has on the national Gil =.
r"icy, and As to the policy of renewing its cLortcr7
what the situation Of the Government without III
ID during tho last warl-what its general advan-
t'ges IN regulating cxchau &c, i'll faciltatnr remit
''nccs to Individuals and its general impor,,nc.,
When the old U. s. Bank was first instituted I
one OF those who voted against it in the Senate
""ubted the power of the government under the
institution to make such an establishment and
ms fearful that the influence which il would rive
' lhc '5ovcrnmsnt over the moneycd concerns of
''.e Union would have a very improper effect on
On ''cr system The Bank was instituted soon
't'cT the government adopted and al period
"nen The question of the relative powers of Tho
i'" h"YcFnincnts excited great feeling, and divided
ne congress and the Union into very Jealous and
Violent parties. was OF that party which constru
ed tue powers of tho National Government strictly
a"d sought TO impose it correspondent res
ffiinis SO far any change has since taken
liice III my opinion, it has been the result Of cyne
renee, and prompted by beefthat such change
would give strength to the system, and not weaken
cndanCer il.
Between such bank, and any arrangement
Nhich the Government mako, the alternative
must be between bank of the government itso1f
and under its exclusive control, a reliance on it's
own resources and surplus funds deposited in
manner TO produce the best effect, and dependence
on The banks the several States. have no hes
hation IN declaring il as~my decided opinon that
nctbcr OF these could accomplish the great obic CT
contemplated, and that each of them is liabIe in
"ih"r respects to the most serious objections To
bank OF the Government, this remark is applica-
i'ie IN both views, and with peculiar force in the
iaucr' III confined to the metropolis, it could not
'H'cnd MS discounts beyond very limited circle
hnpo for 81,
ed IN the several Statesmen for rcmittances tn
Indvlduals-and for other objects it would be
'qnaIy limited. Such instrument requires an
'rtiyc supervision by those for whose benefit il il
intended The regular official duties of all the ne
ortnents in the Executive render it impossible for
that Branch to perform that service without nm in
reference with those duties to the injury of the
rubtc. 1t branches should be established, their
position might enable them to remedy some of tho
&c cc's stated, but they would accumulate others of
much greater force. The interference with the con-
situtional and regular duties of the exocutiv.
would, III the same degree, be increased But that
80 comparatively slight evil A Bank thus insti
~ Cd helng under the control of tho Executive by
.r appointment OF IT. Directors and in all it's one
'luonsl might. IN the hands of n bad adm;ni.fr,
ton, re welded rs nm instrument to san tho foun
cation OF the Government itself AppoaIs would
mado to tho Government rom every part of the
',nion, fox its influence in obtaining discounts
aud thus seduction might be practised to a great
'F'eDt for the worst purposes aThe influence
would C reciprocal. Those connected bv sucb
tic with the Government would be looked TO for
support at elections, who would not fail to render
4. Thus tho revenue of the nation raised bv
foxes on the proper objects TO support their free
Government, might be made an instrument To ;;s
overthrow.
The second alternative surgnstcd reliance on
tho surplus funds, for tho ACCOMPLISHMENT nf The
ohects contemplated, it must he chvious must fail
w every instance. The revenue of government
is generally limited TO certain specified objects ac-
cofdiDg 10 an estimate for each, and TO which II
is appropriated The fund raised sometimes ia Ills
short of the object. l. seldom exceeds IL IN onv
considerable amount. For the want Of 4 ,nrn,,is
tt must lie idle in tho Treasury, until appropria
led "A provision for an emergency for war
for example, it must still lie idle in the
Treasury, until that event occurs or be Ioor
e OUT. IT could not lie idlc.-Thc = hole
r,atsOn would revolt against it, and If loan
cs ,Jgt, II might be impossible TO obtain IT when
,.ahcd for, and might even be lost. In this mode
tTe regslation of the value Of the currency of TX
Ssssgc- h@d Of rendering service, by faciitatinr
-eI45shFsccs would I've aboftigc. The third aIternn
zee Gtsesa has been suggested, a reliance on tho
State $sTios, woEid he equally unproductiyc The
<tovcszrTDa would require aid except i'm time Of
waf, f&ez stnzoeRse aims would he necessary,
rs hIch e5r1ha he TUoeuFcd onfy ty loans and when
7pplico1z1n s5Sr85 la made TO them. there is rood
cause ~ epPIehend dat each would cndeayor TO
nltaiH &Ss 3e@st terms it could There IL no parti.
cvlar boE& between f}efs aBd the National Govern
ncnt, and, 5npecd ny their interests and that of
the StockAsssse-s7 81 Is saturat that they should
7ursvs tbS ~osSse- Sbauld such an emergency
9fTse ;fsstDsG i've ,sEcrt,oyy of the Government
f'e inteTes thereby excited Biiglr he paramount
md force tie Srhkss Ebder The direction Of the |
'ockhoide0s. b lude IN common effort to gave |
lie country. Eut Inc Srscat tblcct is to prevent
oh 4 erisis by confna1sd II funds which would
radio tie government te arrest n. IBAvery other
''.oet the Sfate BRuks world Sp5l There being ~ /
'atsase 20 Nhy<f MI mug sdfero. connection !
zen tlose Of tbs diffssf1 ssatcs. and u@ny m