The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-28

Ms Ssotnsf ~ not, heartily c0acsr Uuh lam a. the
so. .Tt policy az 1psdlsMt % y.rsss p--Goee;
HE country will sustain tho Executive arm Of the
government IN the experiment. making substitute
The Stale Iastfniicns for the Bank Of the United
states"-Mr Wright JAM 1884
The State Banks arc found fully adequate 10 the
performance Of all services which were required by the
nAnk o. The United Sites quite - promptly and with
the same eheapness Sen. Jsckson's Message Of 1884
BY the use Of the State Bamks, which do not de
rive their charters from the general government and are
not controlled by lis authority ascsrisiaed thai The
noasys Of s Unifsd Sates can be collected aad dis
bArsed 'oaho loss on inconvenience and that all the
wants Of the community in relation to exchange and
currency, are supplied u well a. they ever have been
before. Message Of Dec. 1898.
II should be constantly recolected that the owners
and managers Of banks, when properly regulated by
legislative provisions their chssters are like other in
dvIdnals, Interested business securely; are
DESTROYS Of making and not losing money; and thai
these circumstances with the preferences IN case Of
failure belonging TO postors and holders Of their bills
over the stockholders, united with the security. il
priority, given to the government render them point
oil safety, generally MUCH SUPERIOR TO INDIVIDUAL
AGENTS or THE UNITED SrArRs."--Mr. Woodbury's
Report, 1884.
II is gratifying to reflect, that the credit given by
the government wAether TO bank paper bank agents,
has been accompanied by smaller Losses in the expert
ence under the System Of state hanks in this country
their toorst psrio and under their severss caiamies
than any other KIDD Of credit the government has
given in reationto its pecunary transactions "ib.
In the report, ii is stated that the loss by ONE
merchant had been greater in amount than all that had
been lost by To banks
IL is proven in Mr. Crawfords Report that tho losses
70 the govenment by the employment Of corporations
as fiscal agents. have been but 45-l00ths Of one per
cent in collecting three hundred and fifty millions Of
general revenue.
"BAsks CANNOT BE DISPENSED WITH, EXCEPT AT
THE SACRIFICE or JUSTICE REGARD TO THE CON-
TRACTS MADE UNDER MIXED CURRENCY, NOR WITHOUT
a vIoLATIos OF THE FAITH PLEDGED IN THE LEoIsLA-
TON (wuERn HONESTLY oRrAINED) ny WHICH THEY
WERE EsTABLIsHED. The SUBJECT MUST BE LEFT TO
GRADUAL REFORM, TO WHICH THE PEOPLE or THE RE-
srKcrIvE sTArEs ARE FULLY ADEouATE"-Globe.
"The deposites Of the public money win enable you
to afford increased facilities commerce and extend
your Accommodations 10 individuals. AND As THE Du-
TIES WHICH ARE PAYABLE TO THE GoyERNnENr ARISE
FROM THE BUSINESS AND ENTERpRIsE or THE nER-
CHANTS ENGAGED IN YoRKIGs TRADE, IT 10 BUT REA-
soNABLs THAT THEY SHOULD PREFERRED in the adj
dtonal accommodation, which the public depostes will
enable your institution TO give wherever it without
injustice TO the claims Of other classes Of the
nifty.
Mr. Taney's letter 10 the Girard Bank, Sept &C.
1888
EXTRACTS from Mr. CALHous's Speech on the bill
20 recharir The Bank Of the United States, March,
1884.
Any sudden and great change from our present 10
even sounder condition, would agitste and conyuse
society 10 its centre. Whatever may be the different
theoretical opinions Of the members Of the Senate
the extent TO which the reformation Of the currency
should be carried. those wlo think mag be car
ried practically and safely to the entire ercluson Of pa
per- must agree that the restoration ought not to be
red further than cautious, and experience shall
prove hat il can be done consistently with the prosperity
Of the country in the existing fiscal and commercial
condition Of the world to 60 beyond the point which
experience shall show il Is proper 60, would be to
sacrifice the public interest merely to ayorte concep-
ton. 5@
But there is in my opinion strong, if not an insu-
perablc objection, against resorng TO this measure,
sung from the fact that exclusive receipt Of specie
in the Treasury, would, to give it efficacy and TO pre-
extensive speculation and fraud, require entire
discoanection the part Of the government with the
banking system in all its FORMS and to the strong
box the means Of preserving and guarding its funds
a MEMS if practicable at all in the present state Of
hing liable the objection Of being far less safe
nonieal and Efficient, than the preseni. s
To SURPRISES THEx (the banks,) AT ONCE WOULD ~
IT WE'RE POSSIBLE, WORK A GREATER REVOLUTION, A
GREATER CHANGE IN THE RELATIVE CONDITION OF THE
vARIops scLAssEs or THE COMMUNITY, THAN WOULD
THE CONQUEST or THE COUNTRY BY A SAVAGE ENEMy.
II experience shall prove that the power Of banking
indispensable AZ beepe 10 be- in the actual condi
ton Of thccurrency Of this country and Of the world
generally, DC.
Nor can we disagree that the object Of the power,
Chat tie conn., was to TO these States safe,
uniform and stable currency The nature Of the power,
the terms used convey it. the history Of the times,
The neeessS oith the creation of coertensiss govern
msHt Of hsing common and uniform circulating
diam, DC, all proclaim this TO be the object
ExrRAc-s from Mr. BENroN's speech on the same
subject.
aMr B. deprecated the spirit which seemed to
have broker out against State Banks; IL spirit
,chich augwed badly for the rights Of the Slides
Those banks were created by the States and The works
Of the States ought to be respected the stock in those
banks held by Amereaa ctiscns, and ought not to
be nurousy assailed
This Shirt Of hostility to the State Banks was Of
recent origs and seemed to keep pace with the spirit
Of attack up,n the political rights Of the STATES When
the first FEDERAL bank was created in the year l7si
was not evan made, by its charter place Of deposit
for the public moneys Mr.. Jefferson preferred the
State Bank, at that ne and so declared himself in his
cabinet opinion Of President Washington. Mr. Gala
tin deposited part Of the public money in the State
Banks during the whole Of the long period that he was
first Bank Of the United States he turned all the
public moneys which he held in deposte to these banks
"The resolution Of 1916, admitted the notes of all
specie paving State Banks to recevablity in payment
OF Federal dues. II was resolution Of cardinal i'm
portance for the regulation Of local paper currency
Ihc eDect u hdd hdd " TecfyyHg ana puIyyiHg
dsordered currency, had been too much overlooked Its
proessed object to regulate the paper currency Of
the State Banks aud regulate by the power of the
Federal Government through the agency Of the Irca-
sury Department The mode Of accomplishing that
object was obvious and simple in its suggestion, as
il was certain and EFrIcACIoUs IN ITS OPERATION"
Il is estimated that now there is in actual
circulation about 92,oOO,O00 dollars in notes
and 100000 dollars in specie--in all o.
OOO, 900 dollars.