The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-17


thirteen millions and their circulation, instead OF IN
cressine fell from fortyone to thirty seven mil
lions.
"As a ,cAols their specie, compared ioih their eirea-
Latioa continued 10 be almost large "a May as H
Nopsmber. ID Averaged more ltaa one 10 three, or
muck more than has beea customary is,h me banks IN
this eolniry and DOUBLE the relaitre qhaa-
iy held BIZ all the banks Eagand al the same period,
and oas IA proportion QUO oark larger than thar an the
Bank Of Eagiand itself Their immediate means com
pared with their immediate liabilities, were somewhat
stronger in November than in May bot at both
periods nearly TO l-2, greater than The usual ra-
no. IN THE BEST TINES, OF most banks which have a
large amount Of deposites IN possession.
"The policy pursued by most Of them has been ia
vorabe to early discharge Of their engagements to
the treasury, and TO resumption OF specie payments
Many have gradually reduced their discounts and crcu-
laon well paid over much OF their public depo-
sites.
Since the FIRST Of May, their discounts, whole,
have been reduced about 776 their circulation
S4,99l,79 and their public deposites Sl56l73l6;
while their specie has diminished less than S3OOOO0O
or the number Of eighty-six banks employed at the
time of the suspension, eleven supposed 10
have paid all the public money which then in
their possession the credit of the Treasurer In the
custody of Than half the Others aggregate OF
less than S700 900 remains unadjusied Several OF the
rest still possess large sums but many OF them have
continued promptly furnish such payments from time
to time, for meeting the public necessities that accord
ing to the last weekly statement the whole balance to
his credit, which remained unpaid in all OF thein was
only SI2,4ls04l"
BY document communicated to Congress on the
9th Of October il appears that the gross amount IN
banks at the last returns and the balance which remain
ed in them, subject to draft S6,447, 466 3S only
of more than 40 and half millions that the banks had
indeposite the first day .of January last II such
institutions deserving OF abandonment by the uo-
yernment Of an enlightened commercial and enterPrz-
ing people, have yet to learn IT.
The only feasible mode TO my mind Of divorcng The
Government from banks, without disturbing all the re-
ations Of industry commerce and enterprise upon which
the prosperity Of all classes Of people depend. will
now state-beng the one to which ! have adverted
heretofore.
II may be provided by law that all collectors AMI
ceivers Of the public money shall be the keepers and
sbursers Of that bonds satisfactory to the Govern
men shall be given by each for faithful discharge Of
their duties. 70 them and their bonds the Govern
ment look exclusively for It's security official bank
agencies thus far be dispensed with and thus far this
proposition agrees with the Snb-teasury plan Those
officers may be prohibited, under penalty Of fine and i'm
prisonment, from either loanng to individuals using
themselves in any way any portion OF the public money,
except that they may exercise their discretion IN depo-
sitting it, without interest reward in any way, with
any bank within their collection district, upon their otcn
responsibility, collectors and receivers now deposite
public money before passing TO the credit OF the Co
yernment Let the resolution OF 1916 now IN force,
to the Of the republican resolution Of this county
in August ias) be continued in force, with the modh-
cations incorporated in the existing deposite law
Guiding the bills Of banks that issue small notes. The
other necessary guards may be thrown around such
divorce Of Government from bank agencies, TO make 1t
complete assume suggest only the outlines here.
Such divorce of the Government from banks
would be practicable and thorough without disturbing
any interest extensively. Every prudent officer and
his bondsman, would then place his deposites where
ho. hoiy hank
would be his choice, ordnary-he also having power
to require much collateral security as he pleased.
The deposites that would be thus made, the respon
siblty Of collectors and receivers bonds, would not
be distracted from the monetary system OF the country,
under the Sub-treasury bill. They would not be
anDhilated" banshed from All the aids Of the
old deposte act would still, operate in favor Of that re-
form Of the currency, which the late administration
tered upon. State institutions would thus be strength
ened-a national institution be avoded-he currency
would become steady-a multiplication Of executive
officers would be avoided, and the friends Of the Go
vernment be safe they have been can he
made under any system Of indirdud agencies The peo
pie and the Government would have and the
currency in use, and the cooperation Of both
would secure to it all the desired reforms therein The
local banks would longer stand in hostile attitude to
national instuto .sthe dscordant feelings engen-
dered and now consulsng the republican party would be
satisfied and healed Such divorce Of State and
bank and such system Of individual agencies, would
be free from many of the insuperablc objections 10
which the rejected subtreasury bill is obnoxious.
say, nevertheless, hold in dread every
Of individual agency responsibility In our Government
that can be well avoided. S-. ~..>.t T..
In conclusion let me remark, that am now no more
nor less the advocate of banks, than ever have BEEN
stand in that relation the whole body OF them, that
/ can act my own judgment and bid defiance to their
os,racisms, and appreciate with indifference their ia
vors When the question arose for deciding whether
could trust the surplus money Of the Government to
them or to the people, did not hesitate to prefer the
latter Then was denounced as hostile to the depo
site banks. am denounced the advocate of
banks. Much the same men my accusers in both
instances. Yet with the freedom and truth in which
Mr. VAN buren, himself uttered the following sentl-
ment in his letter to Shenod Williams too utter
it. lie says" Although have always been opposed
to the increase of banks, would nevertheless pursue
towards the existing institutions Just and LIBERAL
CoURsE-proecng them in the rlghtful enjoyment of
the privileges which have been granted them and ex-
tending to them the good W Of the community so long
they discharge with fidelity the delicate and mpor
tant public trusts with which they have been invested
When Mr. Secretary fancy, in 1884, in his letter
adopted by the Committee of Ways and Means part
of their report, said" 1t is evident that the CHIEF
PART of the paper currency Of the United States must
always be furnished BY the STATE BANKS" believed
him believed him when he further said F." and If
Congress are to egslate with the view of securing to the
people of the United States sound paper currency the
condition of the Of the State Banks is Of much
more Importance to the community than those Of any
Bank Of the United States The of the different
local banks form the ordinary circulating medium for
the great body Of citizens, and 1T WOULD BE
UNJUST TO THEM TO DISREGARDrTS CON-
DITION. The WHOLE currency Of the country should
be placed IN a sound and healthy far the eg
innate authority Of the Uniicd States will enable them
to accomplish that object" =. 81, is no
part OF the proposed plan to dispense with the State
Banks" The State Banks are now
numerous, and intimately connected with our ha-
bits and pursuits, that is impossible to suppose that
the system ever be entirely abandoned"
" No commercial manufacturing community could
conduct its business to any advantage, WITHOUT