The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-01

funds by the banks is not as perfectly safe moral and
physical agency make any thing In the midst OF
the general distress and Insolvency which press upon the
country not that any thing has been lost by
yoor confidence in the banks but sir, your enormous
revenue had been accumulated in the hands OF 10000
isdviduas during the recent rage for speculation and
the consequent crash, where would your money have
beeni Tho experience Of the government is conclu-
sive Il has trusted banks thousand times than
individual agents. and has lost hundred times much
by individuals as by banks Why sir, in that depart
eni of the Sab treasury which is to be conducted by
the postmssters, there are now, by report from the
Postmaster General, three four thousand do.
fauiers Banks created with complex checks and
responsibilities, for the purpose Of keeping and managing
money-and oil this is done in the first instance and
afterwards superintendent in lis operation, BY those
whose direct interest il is 70 have II well done On what
different principles government Offices hled! lhey
are yielded to the arts of solicitation, given to needy
kinsman supple tool to asow at once the great
principle Of appointments, they are gwen Tor political
purposes This power Of appointment Is the great, the
destructive branch Of patronage which il is now proPos
cd increase TO enormous extent and 10 strengthen
by che whole money power Of the government.
At the moment that the government proposes to de-
clare BY Of Congress that banks unsafe deposto
Of its money all the money holders OF the country
contradcting the asperson The private deposies
in the banks greater than at this moment
dvasty exceed your revenue. Merchants, artisans
agricuitursts keep their money in the banks every IN
dyidua here, who by word or act denies that the 60
vernmcnt money safe with the banks conradcts him
self by keeping his own money there The most eau
tous and willy money holder the country will not trust
his money his custody but carries TO the banks
and yet you would fain dcude with the vain and pre-
sumptuous idea that you will get men more true 10 the
government than men to themselves. Where every
private individual entrnsts his money let the 60
vernmen conde its funds and this will be the result
with yonr Subtreasury scheme; for if your agents
be honest and faithful they will carry the money TO the
banks for safe keeping under the conviction that u Is
hal 49,. 81 hand In n
event. what do YOU gain by these intermediate agencies
between you and the banks Why, SIR, you gam this
new electioneering ofhce-hoder with means ~ his
hands Of influencing the banks. You give TO the Exc
cutive the of the money hand without any tram
mel Of law TO restrain him.
II your Sub-Treasury be robbed, shall your Sub
Treasurer and his securities lose the money Ii your
Sub-Treasury DO burnt and your funds with il, shall the
poor officer and his poorer securities, bear tho loss
You well know, sir, how subject the post office and
Treasury departments to conaagraon--aganst all
this the banks guarantee you.
Then, sir, as TO the expense-Thus far the custody
OF the money by the banks, has cost nohlng has
been source OF income to the Government, for they
have paid for the privilege Of keeping the money Ge
neral deposites in bank would cost you nothing, because
the banks willing to take Of the public money
for certain incidental advantages resulting from 1t and
here lies Mr. President the paramount objection to the
OF the banks Government agents II is said that
these incidental adrdniagss to the banks, are inju
rious the currency and increase the power Of the
Government, by the control gives over the currency
The principle upon which this objection rests Is, that
there should be no intermediate use OF the public
money, between its collection and disbursement. The
principle is one-for the last thirty years, it has
been thought polite, that the large sums Of money al
ways in the hands Of the Government, should not be
entirely dead to country much in want capital
this but that either in the hands Of the United States
Bank the State banks, it nigh, be banked upon
private deposites Thus the country did not suffer
the loss OF the Government revenue. between its receipt
and disbursement but portions perpeuay returned
into the community, to stimulate assist enterprise.
BY this process the Government lost nothing and the
people gained If the Government has regular
OF twelve millions hand, it is twelve millions perma
nenty distracted from the capital Of the country Now
it is said, that the Government has right to permit
intermediate of its money-true but it has right
to keep on hand twelve millions, The theory, to be
sure, that money collected to be paid out again.
and not to be kept hand nsed until be used for
the Legislative objects Of disbursements but, from the
necessity of the case accumulate, and, being
accumulated the policy has heretofore been, to turn that
accumulation to some account for the country.
But, it is said, this intermediate use If entrusted to
the banks, creates political influence and dlsturbs
the currency Of the country. this be true these de-
eterous effects would be hereafter diminished by the
reduced income and economical expenditure Of the Go
vernment, and regulated by the virtue, moderation
and WISDOM" which expected from the Executive.
The evil would undoubtedly be much less than hereto.
fore; and think infinitely less than that which will
the Government, welding immense masses Of money,
for private party purposes General deposite in the
banks, with the obvious dangers which recognize
belonging to it, do not think comparable to the
chanment Of Executive power and danger to the cur
rency resulting from the Sub-trcasury scheme. But
there obvious mode Of securing all the advantages
have attributed TO the custody Of the revenue by the
banks, and Of avoiding all the evils, which said to
be apprehended This mode, sir, is to make special
deposites the State banks BY special deposrte,
understood to be that dcposi,c which the bank receives
to keep, and not to for banking purposes and to
return the identical thing to the depositor when drawn
for. For tins species Of custody, from which the bank
derives benefit and for the trouble of disbursement
some small recompense might be demanded, and given,
not amounting 10 assignahlc fraction Of the cost Of
the Sub-treasury. BY this means, the banks would do
with the public money precisely what the law would
impose upon the Suh-treasurer; and which would be
likely to fulfill the aw-he bank the ndividual
Which would the community trust! which would you,
or /, any body trust The bank by possibility,
mght violate its obligations and commit fraud. Are
you safe in the hands Of underling party inriguer,
VITO receives Office it be under the General CO.
vernment, the reward for his treachery to his
State.
shall Mr. President, as it is in order, move
an amendment to the bill before us, providing for the
special deposites Of the money in the State banks
Sir it is said that this Government should not enrust
its money to institutions which it has control
The proposition amounts to this that the Government
has not power enough the banks to protect its
interest," and yet in the breath contended that
to allow this Government those banks, will en-
dow it with power over them dangerous TO the
try. The propositions neutralze each other But, sir,
am discontinued to this Government using
State agencies far they arc fit for its purposes
am not averse to little control on the part of the
States, over the monled power of this Government 1t
is one OF the recommendations 10 my system that the
Government has much control over the banks
as over its sub-tnasurics. The policy | propose,
MIR. President, is simple, Obvious and dictated by
our actual condition. it is to encourage the banks
to resume specie payments, TO receive in dis
charre Of Government dues. Of specie having