The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-14

their capacity and fitness for all the purposes of the Go
vernment, and excupatiDg them from all blame for
| suspending specie payments under the embarrass-
menis Of commerce that existed in 1916. will make
few extracts from the report of this able effort of
the Missouri Senator.
/ "Mr. Benton said he deprecated the spirit which
seemed to have broken out against State Banks and
that augured badly for the rights Of ihe States The
strongest current Of consolidation that obserya
BILE in the Union, that which sat in favor Of the
Federal Bank and against fhe State Banks, and threat
| cned TO consolidate all moneyed power and with il all
political power, in favor Of great central institution
independent of the States and able, by its avowa
TO crush the State institutions al its pleasure He said
this spirit against The State Banks impulsion
| OF modern orign-unknown to tho fathers OF the Re
public, and to the early history Of the country-and
strongest now where The spirit Of CONSOLIDATION
strongest and where the defence Of STATE RroHrs
weakest At the commencement Of the Federal Co
yernment said Mr. BESroN, there Federal Bank,
and all the public moneys kept in State Banks or
drawn direct and fast they received, Of
the hands Of receivers aud collectors General Hamil-
ton when Secretary Of the Treasury kept the public
moneys for the first year Of his administration in these
banks, and kept them safely there. When the Federal
| Bank was proposed in 1871, and the keeping Of the
public moneys of the services attributed TO it,
/ MIR. Jefferson then member Of President Washing
tons cabinet, denied the necessity Of Federal Bank
for any such purposes, and openly declared himself in
| favor Of the State Banks He said these banks had
| already done this business for the Government, and
done il WE'LL and would doubt enter into arrangements
with the Treasury for doing permanently and better
terms than it could be done by the Federal Bank Mr.
BENTON read from Mr. Jefersons cabinet OPT
MON delivered to General Washington, at the creation
OF the Federal Bank to sustain what he had said Of his
opinions "Mr. Benton said, that what
Mr. Jefferson affirmed in 1871, was afterwards proved
under his administration, and that Of Mr. Madison Dur
ing the whole Of their administrations large portion
OF the public moneys was kept IN State Banks, and
safely kept there" ss "Mr Benton said
it was thus proved by experience Of twenty years
experience running through the whole Of the admit
nistralions Of Mr. Jefferson and Mr. Madison and part
OF their predecessorsthat the public moneys may be
safely kept IN The STATE Banks; and that Mr. jefferson
right in his cabinet opinion Of 1891 when he gave
as his solemn opinion to President Washington that
there necessity for chauering Federal Bank to
the fiscal agent of the Federal Treasury and that
The STATE Banks ,ooud enter into arrangements for thai
| purpose, AND DO THE BUSINESS WELL J"
- "Mr. BENTON said, that having shown
! that he stood upon JEFFERSONIAN GROUND, and
/ SAFE GROUND in recommending Stale Banks for
places Of dsposite Of the public moneys he would make
| few remarks, particularly applicable to the amend
| ment which he had offered"
Inthe House Of Representatives thel0th of June
1884 Mr. Polk made his speech upon the same bill,
| and embodyng his usual talent and argument.
He cited with appreciation parts of report Of Mr..
,
containing the following opinions:
"S.ae Banks may be used without any insuperable
difficulty"
THAT the public moneys SAFER by being weekly
deposited in banks, instead Of aecumuiahng The hands
Of collectors, Is SELF EVIDENT And their transmission
whenever this may be wanted for the purpose of making
payments IN other places than those OF collection, CAM
NOT. io any convenience, be affected urge scale
in ericnhoc country EXCEPT through the medium OF
banks, Of persons acting as bankers. The question
therefore is whether bank incorporated by the United
States number OF banks incorporated by the several
States be most convenient for those purposes State
Banks may be used and must, in Of non-rencwal
| of the charter, be used by the Treasury"
Estate Banks then, said Mr. Polk, not regard
ed by Mr. Gaatin incapable OF doing the public bust
ness and undertake to affirm, and TO prove, that they
no, regarded by the Congress Of 1916 by
which the charter of the present bank was granted"
| - "The argument then, so much relied upon to
prove the inconpetency Of the State Banks and the
cessily Of National institution, Governmentagen
and regulator Of currency to be not only without
Just foundation but to be wholly dsproved both by the
authorities cited, and The practice Of The Government
! from the date Of its organisation"
| On the Oath of June, 1884, the bill adopting the
| depose bank system passed the House by vote of
Il2 to 90 The delegates of this State voted as fol-
lows: Ayes, Hall, Jarvis, Kavanaugh. Mason, Nc
| Inire, Parks, Smith. Nay, Evans. But the bill
was lost in the Senate.
In the annual message of Dec. 1884, the President
said Happily it is already illustrated that the agen-
cy of such institution, (U. s. Bank is not neces-
The Statc banks are found fully adequate 10 the per-
Torrance of all services trhich required OF the
Bank of the United STATES quite as promptly and with
the same cheapness. They have maintained them
selves and discharged these duties, while the Bank
of the United States was still more powerful, and
in the field open enemy; and IL IS not possible
TO coneeire that they aciA find greater difficulties an
their Operations lchen that enemy shall cease TO eria
arr a. IL fha
Treasury made the deposite bank system the subject
of special report and recommendation to Congress.
And in il he embodied most elaborate and un-
qualified eulogy of the safety, disposition, capacity
and efficiency of local deposite banks as fiscal agents
of the Government and declared that unitedy they
possessed specie in proportion to their notes in cir
culation greater than did the Bank of the United
States on the first of July" preceding, cor the Bank
of England on the LIST of January preceding " He
cherishes" said the report, "great confidence that
| the system of fiscal agency now recommended for
the Treasury, far as regards the safe preserva-
ton and convenient disbursement of public money,
will continue to prove successful and If not in ev
cry respect equally with the system preceding il,
or with any other that could be substituted in the
form of National Bank, yet that in some material
respects il is superior, and in others so little inferior
as not to Justify an abandonment of 1t for any other
beset with such grave questions of general expedi-
| ency and constitutional power. Public confidence
in the correctness of this conclusion may Justly be
strengthened by experience during the past year,
when the newly selected State banks, though in the
infancy Of the trial, with many novel difficulties to
encounter, and assailed by panic unexamped in
this country surrounded by extraordinary distress,
real or imaginary, without the aid of the power
full means of the Bank Of the United States, if not
with those means in places in direct hostility,
have yet passed through the fiery ordeal in perfect
safety without the failure of of them, and with
out the loss Off single dollar to the Government
Besides this the operations of the Treasury, chiefly
conducted through these banks have proceeded, ge-
morally, with ease, promptitude and fidelity even
in the remoteSt sections Of the Union; and the ge-
neral currency of the country, has in the mean time
| greatly improved, instead Of deerorated Over
twenty millions Of dollars have probably been added
to the specie portion Of it."
He concluded his report in this most pointed Ian