The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-14
COMMUNICATIONS.
UB-TREASURY-AND SPECIAL DEP OSITE
SCHEME.
..ta ". NO III -s"@.s..

| To The publisher of The MadisoniaR.
proceed now upon the examination of the Spe-
eial Opposite Scheme The President in his late
Message, after making reference 10 the plans sug-
gested at the extra session, says =
am not aware that any one has been suggested,
except that of keeping the public money in the State
banks in special deposie. This plan is, to some ex
ten, in accordance with the practice of the Govern
ment, and with the present arrangement Of the
| Treasury Department; which, except perhaps dur
ing the operation Of the late deposte act has always
been allowed, even during the existence of a Ma
| tiona Bank to make temporary use of the State
blnks in particular places, for the safe keeping of
portions of the revenue. This discretionary power
| might BE- continued If Congress deem il desirable,
whatever general system be adopted So long as the
connection is voluntary we need perhaps anticipate
few Of those difficulties and little of that dependence,
on the banks, which must attend every such connec
ton when compulsory in its nature, and when so
arranged as 10 make the banks fixed part OF the
machinery Of Government. 1t is undoubtedly in the
power of Congress to regulate and guard as TO
prevent the public money from being applied to the
use, interminged with the affairs, of individuals.
1 Thus arranged, although il would not give TO the
Government that entire control over its own funds
which desire to secure TO by the plan have pro-
posed, it would it must be admitted, in great de-
| gree accomplish one of the objects which has re-
commended that plan to my judgment-the separa-
ton of the fiscal concerns of the Government from
those of individuals and corporations.
To examine and explain inteigbly the views
contained in this extract conformably with the pre-
sent and part practices, and what it processes to
cede TO; as we'll as to illustrate the various plans
which have been suggested of establishing system
of special dep0stes by entering into all the practical
details, find no tri1ing task. a..>
Deposies made in bank, must assume either
| Speeiot General character. special deposite,
of whatever it may be constituted is that which is
lodged in bank for safe keeping-for the safety of
which the bank does not hold itself liable. 1t re-
mains there at the risk of the proprietor subject to
all casualties of whatsoever nature kind, while
continued there. Whether it be composed of bull
| lion, CON- bank notes, or plate il is placed away in
the same state it was when it was carried to the
blnk, until called for by the owner. Under no cir
cumstances whatever can any such deposite enter
into the business of the bank, or become mingled
with its affairs.
A General deposite whether composed of bullion,
con paper, received by the bank, is placed at the
credit of the person making the same; the bank OBJ
lgates itself to become answerable to him for the
amount, payable on demand, and for the safe keep
| ing of which it makes itself liable; subject, how
ever, to special agreement under peculiar circum-
Stances Gas is the in the city of New York;
that the amount deposited and passed 10 the credit of
the depositor, shall be payable in currency of like
character TO that in which the deposite made;
though not in the identical money.
These constitute the difference between special
and general deposite ..
The Special Opposite Scheme seems to have been
urged principally by such as opposed TO the Sub
Treasury plan, on account of that plan making
both the collection and disbursement in specie impe-
rave; as well also, because, by making the collect
ing officers the keepers of the moneys collected and
1;
the hands of the Executive. As progress, it will
be shown how far under any suggestions which have
been can b, made Of practicable character, the
special deposite scheme can be Invested of the OBJ
jecions which weigh against the Sub-Treasnry
scheme.
The plan, in accordance with the present ar
rangement of the Treasury Department" referred
to by the President, of keeping the public money
in the State banks on special depositc as far
have been able to ascertain, is this The collectors
and receivers are authorised or directed place ALL
or the excess, over specified amount which they
may have in their possession spsciaideposiLe, in
bank; which identical money is leflthere at the risk
Of him who makes the deposite, and subject at all
times to his CONTROL order and direction. This plan
of special Opposite would seem TO combine all the OBJ
jections which are united in the Sub Treasury
! scheme .. s".
When the President said, seven during the ex-
istence of a National Bank, ii was in accordance
with the practice of the Government to make
temporary use ofhe State banks in particular places
for the safe keeping of portions of the revenue" if
he intended to carry the idea that those banks
employed as special dcpositaries, and did keep these
portions Of the revenue alluded 10 special positc
| apprehend it will be found on examination, that
there is some error in relation to such fact have
searched through all the documents within my reach,
and cannot find tina, hasboen in accordance with
the practice Of the Government, at any tins, to make