The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-07
NJ. VAN BUREN,.
wAsnIsefos, December 5th, 1887.
MR.. LEGARE--LETTER TO A CoNsTI-
TUENT.
(CoaclHded.)

L. Fl
(Conclnded)
As to the fluctuations to which the currency OF the
country is said 10 be rendered liable by discounts on
government depostes where is the evidence Of the fact
in our past ex perencei speak OF the ordinary depo
SITES Of not Of such preposterons surplus
was allowed TO accumulate until the Distribution Act
OF the session before last Unqneslonably thai surplus,
ought not to have been suffered 10 90 into commerce.
to so great extent without suitable precautionary
! Engagements; and should such thing again,
such arrangements would doubt, be made. But the
evils produced even by those extraordinary deposl,es
besides that they have been prodgiousy oyerraed by
people who did not look or could not beyond what
was passing this country while the operations Of the
4 Bank and the capitalists of England, were, have
shown elsewhere exercising such incscuabe influence
over our afairs--were in degree nay, principally
owing to the financial blunders OF of The very men,
who now cite them to prove that under oil circum-
stances whatever, they would produce the effect
So far know, nobody pretends to dispute this-no
/ body, mean, that has not interest in doing So
Mr. Secretary WooDBuRY's policy, especially in the
execution of the distribution deposte law, il is
called is considered, and think Justly considered. as
| signal piece Of mismanagement What sound infer
cnce ask again. can be drawn from the effects Of such
an cxoIbitant accumulation Of public funds unskil
fully disposed Of against the allowing the Banks 10
in discounts moderate revenue, received with great
regularity stated periods and requiring very uniform
amount Of funds meet current disbursements Who
heard before of the evils attending these discounts
Where there any evidence Of this in past history
/ Did Mr.. GALLATIN--did Mr. DALLAs--did any OF our
really able speak OF them! On the contrary.
did they and all Of them, consider Bank agency
Indispensable in collecting and transferring the pub
lie revenues, and the privilege of dlscountng ave-
rage balances only fair compensation for the
vices thus renderedi. The principle Of this well
Of every other part Of banking is very simple 1t
! is, as great statesman remarks that money being
productive thing, when the usual time Of its demand
be toerably calculated il may, with prudence be safely
laid out TO the profit Of the hoder,t II was certainly
quite natural that in this country Of all Others destitute
il originally Of mercantile capital, this humane
OF the subject of government dcpositcs should be
taken by our earlier nancers That the Of those
dcpostes has since 80, added immensely the aggre
gate wealth Of the nation one can pretend to dis
pute-and again demand the proof that, with the
cepton of the surplus of the last year, this
advantage has been aloyed with any evil whatever.
aware, that in series of well written articles on
this subject in the course fthe last sumner the editor
Of the Patriot exempfed his general position, by the
effects which he attributed TO the payment Of the
onal debt the administration Of the Bank Of the
i United States in 1881. He pointed to a sudden
argement of its issues which he affirmed to be owing
the necessity the Bank under, Of LAYING ou the
capital thus dsengsged from the government securities
/ in discounts OF commercial paper But, submit, that
admitting the allegation for the sake Of the argument
/ there is analogy between the This llustra-
Fton has indeed immensely important bearing upon
the subject Of banking. in another point of view, which
/ ! have not time here to dscuss-but how any harm
done by the unexpected payment to the Bank Of large
amount of its capital, by of its debtors, and
necessity Of changing without loss Of me the form of
its investment proves that the use without interest, Of
the comparatively moderate uniformly received
account Of Others and averaging the whole year round
and even from year to year, pretty nearly the same
amount ought to be nterdctcd cannot perceive es-
pecialy when the Bank takes commission, and gives
fair qntd pro quo, in receiving, keeping and paying
them away, well making remtances from place
place II the public securities held by the Bank Of
England were suddenly paid off, Gas they he,
however, by its charter,) dare say the necessity Of
finding investment, in private discounts &c. for
much capital might lead TO great arrangements in BUSH
and the currency but would that show that it had
not been faithful depository of the public monies,
ought not TO have used them with moderation and pru
dence, in the Of business or that much
! good has not been done by the use Of heml
I Still have no unwillingness to admit that this whole
question Of the use Of the deposes (and it is true Of
private well public oncs,) is strictly practical
matter, affair OF administration which cannot be
rigdly settled prior sklful fnacicr at the head
OF the Treasury would very perceive what checks
and limitations it might be necessary impose upon it,
where there any chance of extraordinary Irregular
ty So long as the public revenues continued uniform,
there could be danger difficulty whatever, and
will here add, what strikes mportan, remark.
As those Except years OF extraordinary
speculation in western lands) levied almost exclusively
upon the of the country they would fuctuae
only that commerce fnctuated. 1t is, therefore,
manifest that every objection to the Of the depositcs
would apply fororI TO discounts Of the paper Of mer
chants representing that commcrce-ust in the proper
ton which the average amount Of the should
happen to be TO the average amount OF the importssay
rs 80 is to 100 1t objection which goes
the whole system Of banking-at least long the
function of banking, lending money and that Of ssu
ing currency continues to be COMPOUNDED And this is
another evidence Of what maintained in Congress, that
the bill the table is really much subversive than
most OF its warmest advocates imagine
| As TO the idea that the Withholding the use Of the
public money from the banks will have tendency
make change in the relative of Charleston
and New York, appears TO perfectly visionary. 1t
is not Government credits that have given the latter
city It's immense ascendant in the Union as mercantile
capital, but the advantages which marked il out
mercantile capital have drawn to it the government
credits The revenue having been almost exclusively
derived from duties imports, not and could not
be the cause but the effect Of commerce Look at the
facts. II is but the other day that the mportations Of
| Boston, Philadelphia, Baltimore. &c nearly as
great as those Of New York. They were once
greater. Philadelphia has had the additional advantage
OF being the seat Of the Bank OF the United States So
far as Government influence and patronage went then,
they were against the progress OF that monopoly which
for twenty years past, New York has been gradually
acquiring She has acquired it, and she is now above
the necessity Of any aid from the Government though
she may Of course suffer from what may do create
discredit and embarrass trade If business be left
take It's usual courscif the merchants and capitalists
Of other cities content themselves with invoking Jupiter,
instead Of putting their shoulders manfuy to the wheel
If it is only on the chursh policy Of letting nobody
make advantage OF the federal hoard, that they build
their hopes, they WILL confidently predict il, be dsap
pointed New York, besides what nature has so bounti
fully done for her. has had another immense advantage
She has been the fayore seat Of New England enter
prise She is, TRUTH the capital Of the East much
as OF the mighty State whose name she bears Let Us
emulate instead Of repinng in unavallng envy. We,
too, have very great natural advantages, rejoice to
see we begin to perceive and to ei Let US turn them
to account.
There is room enough for ALL in the boundcss opera