The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-06


that, with Us, there has also occurred extensive de-
rangement in the fiscal affairs of the Federal and State
Governments, occasoned by the suspension OF specie
payments by the banks.
The history Of these causes and effects IN Great
Britain and the United States is substantially the his
tory OF the reyulsion IN ell other commercial countries
The present and visible effects Of these eircumstsn-
ces the operations Of the Government and the in
dusty Of people, point out the objects which call for
your immediate attention
They are regulate BY law the safe keeping rans-
fer and disbursement Of the public moneys 10 desg-
the funds to be received and paid by the Govern
ment to enable the Treasury to meet promptly every
demand upon il 10 prescribe the terms OF indulgence
and the mode Of settlement to be adopted, well in
collecting from individuals the that has accrued
in Withdrawing il from former repositories; and to
devise and adopt such further measures, within the con-
sttutional competency Of Congress- will be best cal
culaed TO revive the enterprise, and to promote the
prosperity Of the country
For the deposite transfer, and disbursement Of the
revenue National and State Banks have always, with
temporary and limited exceptions been heretofore EN-
ployed: but, although advocates Of each system
still To be found 1t is apparent that the events OF tho
last few months have greatly augmented tho desire long
existing among the people Of the United States, to
parate the fiscal operations OF the Government from
those Of individuals corporations.
Again TO create National Bank, fiscal agent,
would be to disregard the popular will twice solennly
and unequivocally expressed On no question OF do
nestle policy Is there stronger evidence that the senti
ments Of large majority deliberately fixed and
cannot with those who think they see, recent
events proof that these sentiments are or sreason
that they should be, changed,
Events similar in their origin and character have
heretofore frequently occurred, without producing any
such change: and the lessons Of experience must be
forgotten II we suppose that the present overthrow Of
credit would have been prevented by the existence Of
National Bank Proneness excessive issues has ever
been the vice Of the banking system-a vice proni
nent in National as in State institutions. This propen-
sity is subseryient TO the advancement Of private
interests in the in the other aud those who d.
rect them both, beng principally guided by the same
views, and influenced by the same motives, will be
equally ready stimulate extravaganza OF enterprise, by
ppro,idence of credit How strikingly is this concur
sion sustained by experience The Bank OF the United
States, with the vast powers conferred II by Con-
gress did not or could not prevent former and similar
endorsements has the still greater strength 1t
has been said to possess under its present charter,
bled it, in the existing emergency, TO check other IN
situations, or even to save itself In Great Britain,
where It has been seen, the same causes have been
attended with the effects National Bank, pos
sessing powers far greater than asked for by the
wamest advocates Of such institution here, has also
proved unable to prevent undue expansion Of credit,
and the evils that flow from it.
Nor find any tenable ground for the re-esa-
blishment of National Bank in the arrangement al
legged at present to exist in the domestic exchanges OF
the country, or the facilities it may be capable Of
aiIordng them Although advantages Of this sort
anticipated when the first Bank OF the United States
was created they were regarded as an incidental ac-
commodaton; not one which the Federal Government
was bound, could be called upon, to furnish. This
accommodation is now, indeed, after the lapse Of not
many years, demanded from it, among its first duties
and an omission 10 aid and regulate commercial ex-
change is treated ground of loud and serious COM
plant Such results only to exempy the constant
desire, among of citizens to enlarge the pow
prs nj The nd he utro tn h
jects with which il should not interfere. They can
Justify the creation Of Institution to promote
such objects On the contrary, they justly excite among
the community more dligent inquiry into the charac-
ter of those operations Of trade towards which II is de-
sired to extend such peculiar favors.
The various transactions which bear the name Of
domestic exchanges, differ essentially in their nature,
operation, and utility. One class Of them consists of
bills Of exchange drawn for the purpose of transferring
actual capital from part of the country another,
or to anticipate the proceeds of property actually trans
mltted Bills Of this description highly useful in the
movements Of trade, and well deserve all the encou-
ragement which can rightfuly be given to them
Another class made up OF bills of exchange not drawn
to transfer actual capital the credit of property
transmitted, but to create fictitious capital partakng
OF the character of notes discounted in bank. and
OF bank notes in circulation and swelling the Of
paper credits TO vast extent in the most Objectionable
manner These bills have formed for the last few years,
large proportion Of what termed the domestic
profit and constituting the most unsafe and precarous
paper in circulation This species Of traffic. instead OF
being upheld, ought to be discountenanced by the Go
vernment and the people
In transferring its funds from place to place, the
Government is on the same footing with the private
citizen and may resort to the legal means 1t
may do through the medium OF bills drawn by itself
purchased from others and in these operations, 1t
may. manner, undoubtedly constitutional and legl
innate, facilitate and assist exchanges Of individuals
II IF han m
which this may be done and the best means Of efectng
it, arc entitled to the fullest consideration. This has
been bestowed by the Secretary Of the Treasury and
his views will be submitted to you in his report
But it not designed by the Constitution that the
Government should the management Of domestic
foreign exchange, 1t indeed authorized to regulate
by law the between the States, and to pro-
vide general standard of value medium Of exchange
gold and silver but it is not its province to aid indl-
vduals in the transfer Of their funds, otherwise than
through the facilities afforded by the Post Office De-
parlment As Justly might it be called on to provide for
the transportation Of their merchandise These ope-
ratons Of trade They ought to be conducted by those
who interested in them, in the same manner that
the Incidental difficulties Of other pursuits are encoun-
tered by other classes Of citizens Such aid has not
been deemed necessary IN other countries Throughout
Europe the domestic as well as the foreign exchanges
carried by private houses often II not generally,
without the assistance of banks. Yet they extend
throughout distinct sovereignes, and far exceed in
the real exchanges OF the United States. There
is no reason why our may not be conducted in the
same manner, with equal cheapness and safety Ger
tainy this might be accomplished, if it favored
by those most deeply interested; and few can doubt
that their interest, well the general welfare Of
the country, would be promoted by leaving such sub
ec in the hands Of those to whom it properly belongs
A system founded private interest, enterprise, and
competition without the aid Of legislative grants
regulations by law would rapidly prosper 1t would be
free from the influence Of political agitation, and extend
the same exemption 10 trade itself and it would put
end TO those complaints of neglect partalty injustice,
and oppression, which the unavoidable results Of
interference by the Government in the proper
Of individuals All former attempts the part Of the
Government to carry its legislation, this respect fur