The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-21
coMMuNIcATIoNs.
rurAsURY--sP DEPosirE
sn,,rmp--srATED DEPOSITS RANKS
AND TREASURY NOTES.

rs., The ouestion which will ultimately be placed
,.s,s ,nrst be- between recognizing the stale
rank Deposite system, and establishing Nalionai
pank do not for a moment, entertain aoooL
The Sub. Treasury scheme, as well as the spteiai
nonosie scheme which is the same thing, disguised
,ndsr another name, must be both Abandoned " WIN
\, f,r those who have advocated and supported inc
,.usr 10 choose one OF the two former alternatives
The more speedily that election Is made the earlier
viii the question be settled quiencss be restored 70
a. agi,ated and suffering community, and the none
of,rs of the country b. placed again In their
wonted regularity, order and stability
Inow devote some space to portion Of the Report
or,be Secretary Of the Treasury, which relates to
Banks, his new project, &c, &c,
In regard to the resumption of specie payments by
the Banks, the Secretary says:
.Whatever obstacles may still exist to general
resumption of specie payments, lew can douol tnat
az early an one as can be sustained is urgently de-
mand.d by the strongest obligations OF morals and
Inv b. isics TO the public creditors, consisting Of me-
usrous contractors sehaaies tdoorers and pensioners
az rsH as officers and by all the true interests OF the
neone whether in private affairs or in the concerns
pftbeir Government, In both are their Interests in
mis- respect nseparably connected; and in both, do
they severely suffer by deprecated paper"
In This there is clear admission, that The Govern
mani i dependent on the banks resuming, TO obtain
specie to pay the public creditors, Buff jusicet to
he nubc creditors as well as obligations of mo-
ralsa demand resumption at the earliest day prac-
ticabe is not the Government bound by all these OBJ
locations to extend the whole of its influence toward
causing the consummation of that event? Are not
rho interests Of the Government the Banks, and the
People 'inseparably connected in the result of the
measure There can b, no doubt of the fact Then,
why has not the Government through the head ofthe
Treasury Department, signhed its willingness to
extend every aid and facility within lis power, and
thereby encourage the banks on to the undertaking?
The dependence Of the Banks on the Government
for such conntenance TO enable them to resume, is
not lighter than that OF the latter the former for
specie means, to pay the public creditors. The de-
pendence between them is a mutual one.
In place Of any such kind feeling having been ma
infested at any time on the part of the Government
toward the Banks, the same report Of the Secretary
from which the above extract is taken, contains a
proposition for the Government to disconnect itself
from Banks entirely II is in the words following:
On the practicability fkeeping the public money
under new legislative provisions, cith0H asAg banks
at al fseat agents, the views of this department
have been SO recently explained as to render repe-
ttion Of them unnecessary. 1t was the endeavor of
the undersigned TO present with impariaity the
advana ges and disadvantages of both system to ho
III. srpcdicaey not the necessity Of The one,
The criding uafortuaat attitude of most Of the banks
and 10 leave The result, where it is now left, to the
superior wisdom of Congress"
Although the interests of the Government and the
banks are "inseparaby connected "by all the true
interests of the people" as is fully admitted BY the
Secretary, yet he proposes an entire separation from
the banks by the Government, and leave them to get
out of their existing unfortunate attitude" in the
best way they can; because, says he,
It must be manifest TO all who examine the sub,
ject dsSionatey that either the possession by few
blnkS of the usual small amount of public deposiles
liable at any time to be recalled or the receipt of
their bills for public dues when redeemed in specie
on demand, and frequently presented for that pur.
pose, must often be check rather than an ad-and
prove of doubtful advantage in promoting resump-
ton among the whole number"
Such an argument as this will pass for what it is
worth Has il not been thrown out 10 carry the mind
Of the public from the true question, TO another
Whether the public moneys are large or small in
amount whether they could remain long time in
the banks, or whether liable TO be Withdrawn at any
time, is matter of no consequence whatever, and
need not be connected with the question Of the re-
resumption Of specie payments. All the banks ask
of the Government is, its Friendship INSTEAD of its
hostility. to inspire, thereby, public confidence to
their aid in the undertaking. They neither ask nor
wish any Of the Governments money to aid them
The contemplated measure of an entire separation,
on the part Of the Government, is calculated to
weaken the confidence, at present reposed in the
banks, on the part Of the people and thereby throw
additional impedimentS in the way of their resum-
ing.
The Secretary having in view only the separation
from the banks thus addresses himself 10 Congress:
The ensuing session will, by its length, probably
afford ample time to place oar aohoic financial system
nEr hneJ NnthI xtn he.
except such measures as are rendered necessary TO
IFS efficacy by the changes which have arisen from
the final discharge of the national debt and by the
more f1uctuating character of the receipts and ex-
pendures as re dsby the recent suspension of specie
payments, on Tie part of most ofkac deposite banks"
In this il will be seen that the Secretary of the
Treasury calls on Congress to place our whole
financial system on a new basis" and one Of the
reasons urged for such change, (Which is change
OF that system which has existed from the period of
the formation of the Government down to this day1
the recent suspension of specie payments on the
part OF most of the depose banks" Here il will
be seen, the Secretary contemplates TO leave the
banks to work out their salvation alone Wherein
The circumstance has arisen from the " final dis
charge of the national debt" as well as wherever
there exists now more fluctuating character of
me receipts and expenditures than has existed for
me last twenty years TO call for the proposed change
IN the whole financial system" of the country, is
past my finding ont.
The Secretary proceeds,
The undersigned, feeling deep conviction that
The hScal afLirS of the Government cannot hereafter
eaaer any system, be managed rH such facility and
rgor as he public scrriee requires ,rithont odopting
rcrat legal provisions heretofore recommended homes
% b. excused for briefly inviting the attention of
Congress once more TO few of them"
1t is not a little remarkable, in my opinion, that
during period of fifty years, within which there
was a, the head of the national finances among
others equally distinguished for sagaciy and expe-
rence, Gallatn, Dallas Crawford, a McLane