Iowa news. [volume] (Dubuque, Upper Mississippi Lead Mines, Wisconsin Territory) 1837-1841, 1837-09-23

such cmbarrassments and to such dangers win tbi
Government he always exposed, whilst Il takes In.
money raised for, and necessary to, the public ser
vice, out of the hands of its own officers and con
verts them into mere right of action against cor
porations entrssted with the possession Of fhcm-
Nor can such results be efectually guarded agai,s
in such ssgtem, without investing the cxecutiv.
with control over the banks themselves whethe,
State or National, that might with reason be oh.
jected to. Ours is, probably, The only Government,
in the world that is liable, in the Engagement
of its fiscal concerns. 10 occurrences like these
But this imminent risk is not the only danger at
tendant ON the surrender of the public money ia
the custody and control of local corporations
I hUugr Utect is 10 reasUTy, its effects
!. may be to introduce into the operations of the
Government influences the most subtle, founded
on interests the most selfish
!. The use by the banks, for their own benefits, Of
the money deposited with them, has received the
sanction of the government fiom she commences
ment of this connection. The money received
from the people, instead of being kept till it is
needed for their use is i'll consequence of this a-
thority, fund, on which discounts are made for
the profit of those who happen to be owners Of
stock in the banks selected as repositories The
supposed and often exaggerated advan ages of such
boon will always cause it to be sought for with a.
vidlty. will uot stop to consider OH whom the
patronage incident it is to be conferred; whether
the selection and control be trusted to Congress or
to the Executive, either will be subjected to ap-
peals made in every form which the sagacity of in
terest can suggest. The banks, under such a sys-
tenn, are stimulated 10 make the of their for
tunate acquisition; the depostes are treated as an
increase of capital; loans and circulation are RASH
ly augmented; and when the public exigencies re-.
quires return, it is attended with embarassmsnts
not provided for, nor forseen. Thus banks that
thought themselves most fortunate when the public
funds were received, find themselves most embar-
rassed when the season of payment suddenly arrives
| Unfortunately, too, the evils of the system are
not limited to the banks 1t stimulates a general
rashness of enterprise, and aggravates the uctua-
lions of commerce and the currency. This result
was strikingly exhibited during the operations of
the late deposite system, and especially in the pur.
chases Of public lands. The order which ultimate.
iy directed the payment of gold and silver in such
purchases greatly cheeked but could altogether
prevent the evil. Specie YVES indeed more difficult
to be procured than the notes which the banks could
themselves create at pleasure; but still, being OBJ
tanned from them as loan, and returned as a de.
poste,w they again tlibery to use, tony
passed rounded the circle with diminished speed
Incorporation could not have been performed, had
the 1unds OF the Government gone into the Treas
ury to be regularly disbursed and not into banks,
to be loaned out for their own profit, while they
were permitted to substte for it credit in account
In expressing these sentiments, desire not 10
undervalue the benefit of salutary credit 10 any
branch of enterprise. The credit bestowed on
probity and industry is the just reward of meris.
and an honorable incentive 10 further acquisition.
None oppose it who love their country and UNDER
stand its welfare. But when il is unduly encoura-
ged-when it is made to inf1ame the public mind
with the temptations of sudden and unsubstantial
wealth-when it turns industry into paths that lead
| sooner or later TO disappointment and distress
Incomes liable to censure, and needs correction.-
Far from helping probity and industry, the ruin
to which it leads falls most severey on the great
laborng classes, who are thrown suddenly out of
employment, and, by the failure of magnificent
| schemes never intended to enrich them. are de.
prived i'll a moment of their only resource. Abu-
ses of credit and excess in speculation wlllhappen
in despite of the most salutary laws; no govern
ment perhaps can altogether prevent them; but
surely every Government can refrain from contrib
uting the stimulus that calls them into life.
Since, therefore, experience has shown. that to
lend the public money to the local banks is hazar-
dous to the operations of the Governments at least
of doubtful benefit to the institutions themselves,
and productive of disastrous arrangement in the
business and currency of the country, is it the part
OF wisdom again to renew the connection?
| 1t is true that such all agency is in MANY res.
poets convenient to the Treasury but it is not in
dispehsable. A Limitation of the expenses of the
Government to its actual wants, and of the reven-
| ue to those expenses, with convenient means for
its prompt application 10 the purposes for which it
was raised, are the objects which wo should seek 10
| accomplish. The collection, safe-keeping, trans
fer, and disbursement of the public money, can, it
is believed, be well managed by officers Of the gov
eminent Its collection, and, great extent, its
disbursement also, have indeed been hitherto con.
ductad solely by them; neither National nor State
banks. when employed, being required to do mole
than keep 1t safely while in their custody, and
transfer and pay it i'll such portions and at such
times as the Treasury shall direct.
Surely banks ara not more able than the gov
eminent TO secure the money in their possession
geinst accident, violence or fraud. The assertion
thatth are so, must assume that a vault in a bank
is stronger than vault in the Treasury, and that
the directors, cashiers and clerks, not selected by
the Government, nor under its control, are more
worthy OF confidence than ufcers selected from the
people and responsible to the Government Officers
bound by official oaths and bonds for faithful per.
formance OF their duties and constantly subject to
the supervision of Congress
| The difficulties of transfer. and the aid here,o-
fore rendered by banks have been less than is usu-
ally supposed. The actual accounts show by far
the larger portion of payment is made within short
or convenient distances from the places of c0llec
non; and the whole number of warrants issued at
the Treasury in the year l634-a year. the results
OF which wills it is believed, afford safe test for the
iuture-iell short of five thousand dollars, an ave-
erage of less than one daily for each States in the
the city of New York they did not average more
than two day, and at the city Of Washington on
ly four.
The difficulties heretofore existing are, moreover,
daily lessened by an increase in the cheapness and
facility OF communication: and it may be asserted
with confidence, that the necessary transfers,
as well as the safe-keeping and disbursement
Of the public moneys, can be with safe
~ and convenience accomplished with safety