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

eNcuiat1n lhey might $50 @4w LIE 70 AosahtAgf,
e thai doubt Whether t11f>nsl. dollar will n
shipped from The country in ccnsequenre Of the rjee
ton Of this BILL Certainly they will not TO any great
extent"
Mr.. Clay said, IfB4IbL f9
Upon the point Of responsibility. cannot subscribe
20 the opinion of the Secretary Of tho Treasury, is
meant thai the ability 70 pay the amount Of any deposes
which the Government may make, under any exgency,
Is greater than that Of the State Banks That the
coamiabify Of nm6ed institution. whose affairs
managed by single head responsible for all is mem
bers, simple than that Of number Of indepen-
dent and unconnseted establishments. shall not deny;
but with regard 10 safety strongly inclined TO think
d is the side Of the local banks. The corruption
misconduct Of the parent any Of its branches,
bankrupt destroy the whole system, and the loss
the Government, in that event. will be OF the deposes
made with each; whereas in the failure Of one State
Bank, the loss will be confined to the deposie IN the
vaults Of that bank
All these gentlemen resisted the argument
of necessity for the renewal Of the charter o.
the old bank, on the ground that the State
Banks were equally safe, and equally conve-
nient, as the fiscal agents of the Government
so that the whole force Of the argument, as
applied in favor of National Bank over the
system of individual agency, applies with full
force in favor Of the State Banks. In the de-
opinions were expressed in favor of State
Banks, by many able and distinguished gen.
tlemen. 1t is remarkable that in the
whole range of debate, at the two periods re-
ferred to, no gentlemen, SO far as recollect,
expressed the slightest inclination to resort to
the Sub-Treasury system.
The administration Of General Jackson ex-
hibits still stronger and more conclusive proc,
Of the superiority OF the State Bank Deposite
system over any other which the . rif Of man
could deUise." Indeed, so little was the Sub
treasury system in favor, that when the re-
moval Of the deposites was determined upon,
il did not enter into consideration, as far as we
are informed but the State Banks were re-
commended and selected, as being in every
point Of view equal to the Bank Of the United
States, as fiscal agencies, and, in political
point of view, infinitely safer--the compare
son being instituted between National and
State Bank alone. In General Jackson's ex-
pose to his cabinet on the ---- day of Sep
TENDER, after reviewing the advantages and
disadvantages Of the United States and State
Banks in contrast, says:
The President thinks, these facfs and cir
cunsfances afford as strong guarantee as can
be had in human a6airs, for The saefty Of the
public funds, and the pr0ctibiiity Of aeW sys-
TEN Of collection and disbursement through tie
agency Of State Banks
Language could not be more unequivocal Of
the preference Of the State Bank system over
every other; yet the President seems to be
aware that danger turks in all human sys-
TENS. and that this system might be disorder
ed from those causes which are incident to
human frailty. Ifthere could be lingering
doubt upon the mind of any man that the late
manent system of the Government, it will be
removed by the following extracts from his an
nual message, of December, 1884:
The attention Of Congress is earnestly invited to
hc regulation Of The Deposites in The Stale Banks"
Inthe same message he expresses himself
thus
"Happiiy il is already illustrated that the agency o.
saeh an insifaiion hc D. s. Ban IS not necessary to
The fiscal operations of the Government. The Staf
Banks are found fully adequate 10 The performance o
all services ,shieh required Of The Bank Of ne
Uaisd States, qute a. prompLb aad ssh ne sare
charged all their duiies rhie the Bank Of The United
STATES ras anil powerful, and in he field open
enemy; aud ~ NOT possMe thar thy tciH
find lgreafer difficulties ichem that enemy shaH 10
erisk"
In his annual message to Congress in De-
cember, 1885, Gen. Jackson expresses him
self thus:
by Me use of the STATE Bants, rhieh do no. claim
their charter from The General Government, and are
coNTRoLLEp ny IT'S AUTHORITY IL is AscERrAfSEp thar
The m0Rsys Of the United States be COLLECTED and
DsBuRsED ,riihouf INCONVENIENCE, and that all
the icanis Of the community relation 10 exchange and
currency, supplied pe they hare been be-
fore"
In the annual message OF December, 1896,
which was the last Gen. jackson delivered
after the emanation Of the Treasury circular,
requiring gold and silver for the purchases Of
the public lands, and full knowledge of the
facts upon which that order was deemed ne
cessary in the following strong and emphatic
terms, he expressed his undated confidence
in the State Bank system.
Experience continues to realize the expectations
entertained to the capacity Of the State Banks per-
form the duties of fiscal agents for the at
the time of the removal Of the depostes 1t was alleged
by the advocates Of the Bank Of the United States that
the State Banks whatever might be the regulations of
the Treasury Department could not make the transfers
required by the government, negotiate the domestic
exchanges of the country II well ascertaned
that the real domestic exchanges performed through
discounts by the United States Bank and its twenty
ve branches at least one-thrd less than those Of
the depose banks for equal period Of time and if
comparison be instituted between the amounts of SER
vice rendered by these institutions the broader basis
which has been used by the advocates of the United
States Bank in estimating what they consider the do
nestle exchanges transacted by it, the result will be still
more favorable to the deposite banks"
Thus we have the unequivocal evidence
that the late President of the United States,
preferred the State Bank to any other sys-
tenn as to the Sub-treasury scheme, he did
not in single expression in any Of the mes
sages referred to, or in any other state paper
emanating from him, intimate desire 10 re-
sort to it.