The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-28

some banks in other places which suspended
but have since resumed. The notes Of these
banks would therefore be available for the pay
ment of public dues in the city of New York,
on which place checks drawn in the places
in which the banks enumerated are located,
are at two or three per cent. premium The
consequence would be, that the merchants
having remiitances TO make to New York
would transmit bank notes, and avoid paying
premium; which notes would soon be
paid over to the collector or sub-treasurer in
that city. What is to be done with these
notes by the collector! Can he place them
at once to the credit Of the Government -
Will he be able to meet the warrants Of the
Treasury drawn on these funds in specie or
in notes of banks convertible into specie on
the spot No. He will have no other re-
source but to pay out these identical notes, not
convertible except at the places where issu-
ed. As soon as the banks resume specie
payments, the whole Of the public revenue
viii be paid in the notes Of the most distant
banks from the places where the payments
are made because. they will be the least
valuable at those places.
l This will also be the operation Of the Bill
in case it becomes law, and the Special De-
posite System be adopted in place Of Sub-irea-
suries
The third feature Of the bill provides
that after certain period the whole Of the
public revenue shall be collected and dis
bursed in specie only.
We have examined all the arguments which
we have seen adduced, to find out the benefits
which such a measure can confer on the
country generally, either under the Sub
Treasury or the special deposite system. We
have discovered no benefits, but great evils,
which will follow the adoption Of such
scheme. Will it serve to enlarge the specie
basis Of the circulation of the country! We
are convinced that it will not From the
speech of Mr.. Wright, the alpha and omega
of the scheme, we make the following quota
ton:
IL
dent did not act upon the banks by way of restraint
upon the amount description of their issues. 1t
was true as to the description of their issues. That
left to State Legislation, the source from which
they derived their existences, and to which belonged
the Limitation of their powers, far as they were
to be limited by legislation. The plan of the Presi-
dent sought TO act upon these institutions in differ
ent way, and by more powerful lever. Specie was
their blood; and the creation of demand for it
was the only efficient control over them. Bring the
hon In n
most efcctually limit the amount of issues of the
banks, so far as your operations can IMPOSE such
limit. Make your disbursements in gold and silver
and although the small bank paper will displace IT,
your continued and perpetual action will draw the
same specie again from the banks, and will thus
keep an amount equal to your receipts and disburse
meEts, in constantly active state. In this way
alone in his Judgment, 1t is in the power OF this
Government to expand the specie basis for our inn
mense paper circulation"
This description Of the practical operations
of the plan, gives it as many hues as the rain
bow. We need not repeat the various infu-
ences which the plan is to exert, counter and
conflicting, for which Mr. Wright claims
credit in the above extract. The reader will
appreciate them himself. 1t is sufficientfor our
purpose, that Mr.. Wright admits, that after
the public money has been collected in spe-
Gle, as soon as it is disbursed in specie, it
,ciH be Immediately thereafter displaced by
small bank paper, thrown out Of circulation,
and returned to the vaults of the banks, and
thus keep in constant active circulation an
amount equal to the receipts and disburse.
ments, between the banks, through the hands
of the public debtors, and the receivers Of the
public revenues and between them, through
the hands Of the disbursers Of the public
revenue and the banks again. This is the
only mode, as expressed by Mr.. Wright,
through Which The Government can EXPAND the
specie basis of our immense paper circulation !
The obtuseness Of our intellect is too great to
enable us to discover any expansion of the
specie basis, through the gyratior OF this
golden scheme Of the Government, limited as
they must necessarily be, within the narrow
circle above described.
Mr.. Wright has furnished incontrovertible
proof, in our opinion, that the scheme is not
susceptible of any other operation, but to pro-
vide a specie currency for the Government,
and leave the community to shift for itself.
While it will inevitably tend to cripple the
operation Of the banks in some quarters, it
will exercise no influence or control over
those in other quarters. The collecting of
twelve to fifteen millions Of dollars annually of
public revenue, in the city Of New York, in
specie, will inevitably paralyze the operations
of every bank in the place, while it cannot
lead to the exercise of any salutary influence
over the banks in the States of Ohio, or
Kentucky, &c.
The operations Of such scheme will lead