The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-16

Gle payments the Government would have no power 10
coerce them.
The scheme commences an indirect upon the
credit system, which just in proportion TO tsinjuy Of
the State Banks, would operate prejudicaly to the
general interests Of the states whose prosperity
TALLY connected with those institutions Il would create
two currescics ono for the Government, and another
! for the people Officers OF Government, who are the
servants Of the people, would be furnished with me-
tallc currency, while the people who the soveregns
would be shirked of with paper, made inconvertible
perhaps by the Governments own acts.
II the government is to adopt for itself exclusive
metallic currency, why not give the to the people,
But the people do not want sreiusipe metallic crcu
lation, and apart from its impraccsbllty, they
could get it if they did want it, What is good curren-
cy for the people equally good for the government,
and surely what is acceptable to the should also
be acceptable to the servant. But two curencies Of
unequal value cannot exist in the community. and
the result would be, either that the State Banks would
sink under the operation, and the country be thrown
upon metallic currency wholly inadequate to the
quirements Of business, or the currency Of the states
would triumph the government currency. and the
runous consequences Of a currency subject to the dis
onted action OF wentysix Independent soycreignties
/
that universal blight and paralysis would ensue IF
the State Banks not destroyed, such species Of
state legislation would least be excited as would dis
order and disgust the country until every body would
be glad to sieze hold OF any kind OF National Institu
ton that would promise them repose and relief
The substitution Of Treasury Agencies would also
involve the trying Of an unnecessary and hazardous
pertinent
/ L.. 1t ~
have State banking Institutions, and that the paper of
the banks will therefore continue to form the general
currency Of the country Mr. Van Buren, considers the
power Of charterng banking institutions settled in
favor Of the continued authority of the States and in
this, he but anticipated the decision of the Supreme
Court Of the United States an abstract Of which will
be found in another column of our paper to-day.
Experience has shown tina, banks may be made safer
and more practicable repositories of the public monies
than individuals We have abundance of authority to
prove this. In Mr. Woodburys Supplemental Report
to Congress- in December, 1884, the deposite system
is advocated, on The ground that the government had
sustained comparatively but a small amount Of loss
when The State Banks employed on a former
casion In illustration, it is stated that the loss by
merchant had been greater than all that had
been lost by the Banks.
| The Secretary also says" it should be constantly
recoected that the and managers Of banks, when
properly regulated by legislative provisions in their char
tcs, are, like other individuals, interested
business securely; are DESTROYS of making and not
losing money and that these circumstances, with the
preference in Of failure belonging to depostors and
holders Of their bills the stockholders united with
the security. not priority, given to the Government,
render them, inpont Of safety, generally MUCH SUPERIOR
TO INDIVIDUAL AGENTS UNITED STATES"
Again, he says-"it is gratifying to reflect, that the
credit given BY the Government whether bank paper
bank agents, has been accompanied by smaller losses
in the experience under the system OF state banks in this
country their period, and under their sererest
caiamIs than any other kind Of credit the Government
has gvenm relation to its pecunary transactions.
Gen. Jackson, in his Message of 1884, says: 1.-The
State Banks found fully adequate the performance
Of all services which required by the Bank of the
United States, quite promptly and with the same
eheapness" In his Message OF Dec. 1885, he says
by the use of the State Banks, which do derive
their charters from the General Government, and
controlled by its authority, asccrtained that The
moneys Of the United States Dc collected and dis
brsed ,ciihou loss inconvenience, and that all the
wants Of the community, in relation to exchange and
currency, supplied well they ever have been
before"
A "total divorce Of the General Government from
all banking institutions" and the substitution Of in
dividuas as repositories will vastly increase the
pense and difficulty Of collecting and disbursing, and
is still further Objectionable, because it enarges the
patronage Of the federal government and increases the
liability of loss to the government, by presenting greater
temptations to peculation and embezzement. In this
we also sustained by General Jackson's official
opinions, which, with perfect respect we prefer to any
recent indications of pripatc character In his
message last quoted, he says.
al need only add to what have former occasions
said this subject generally, that in the regulations
which congress may prescribe respecting the custo y of
the PUBLIC MONEY, ills desirable that as he discretion
as may be deemed consistent ionh their safe keeping
sh0uld be gircn 10 Erccntipc AGENTS. No be
more deeply impressed than am with the soundncss Of
the doctrine which restraints and limits by specific pro-
visions, Erecurc discretion, far as 1t can be done
consistently with the preservation Of its constitutional
character. In respect 10 the control The public
money this doctrine rs peculiarly applicable, and in
harmony with the great principle which felt sus-
ainng in the controversy with the Bank Of the United
States" I
The government will also be liable to incur great df-
cultes i'll collecting specie in payment for debts il the
midst of paper circulation, and be constantly exciting
the jealousy aud ll-will Of the banks The amour, Of
specie equal to the public revenue, would also be almost
wholly lost to the and profits Of the country by be-
ing Invested Of tina, power of answering the double pur
pose which obtains in mixed currency basis OF
paper circulation.
There numerous other objections TO the PROPOSE
ton, which may hereafter discuss We disposed
the subject with all the frankness and sincerity
which its gravity and importance demands and in
ve the reflections Of others in the s1mo freedom and
lhcrnlIir