The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-27
COMMUNICATIONS.
..ss ron THE MADlsoNIAN.
THE NEW SCHEME OF TREASURY
AGENCIES. f.
No. TX.

The purpose which forms tie substraum of the
Sub Treasury scheme is the total exclusion of State
bank paper in collecting the national revenues,
from whatever source accruing though it be
convertible into coin, and issued by State banks
of unquestionable solidity. That this purpose
shall be condemned by the people it needs only
to be examined and understood. Let it be conceded
that the notes of State banks denying specie for
them to the holder, ought to be rejected in collecting
the revenues and we come at once, and fairly TO
the proposed permanent establishment of the New
Scheme. Did the advocates Of the scheme proceed
on the assumption that the banks will never resume
specie payments, the purpose of always rejecting
their notes would be wise one-their course of
Legislation would be impregnable in the assumption
But the truth is they do not proceed on that assump-
ton. II is then unnecessary to show, as by refe-
renee TO the recent and continuing conduct of the
banks it might easily be shown, that they are pre-
pairing and may be expected soon to resume specie
payments, Then the question is, when the banks
shall have resumed specie payments will il be wise
proper to reject their notes in the collecting of the
national revenue2 ~r. r."
No one can deny that this is the real question.
The scheme does not merely propose the rejection
of State bank notes in collecting the revenues, as
temporary measure 1t looks beyond the present ex-
traordinary state of things il contempates the re-
lection of State bank notes. and the cxacon of specie
in all collections of the revenue, after the banks
shall have resumed payments OF specie for their
notes on demand and without loss or delay on the
part of the holder Such is the scheme called
che divorce of Bank and S,ate'-not temporary
measure TO be superseded by stable resumption of
specie payments but intended to be the prominent
policy ordered by express and positive provisions of
law. | am at loss how more clearly to expose its
want of wisdom, or more 'forcibly to demonstrate
total want of any necessity for this measure of
divorce"
But let us trace the practical operations of this
measure, enforced in the receipts of postage on
letters or newspapers. citizen of Richmond
applies at the Post Office of that city.-He is
told by the Post Master there therein five letters
for him, the postage on which is one dollar and
twenty five cents He offers five ,llar note not
having any silver change in his pocket The note
is issued BY specie paying bank in the city-The
Postmaster is required by law TO decline receiving
and changing it. The citizen is, put to the trouble
OF going to the bank to get the change. This he
does, however, and pays the postage in silver Thus
ii is mere question settled by the practical opera
tons of the measure of" divorce" IN this connection,
whether the paid federal officer the citizen Of the
State shall take the trouble to exchange the note for
coin when too 1t might be trouble, at the mo-
mcnt TO the Postmaster having the change by him
or if Otherwise the citizen would voluntarily get
the change at bank elsewhere, as might Be most
convenient. ... ID. r. ..'. @.. .t..a
But" say the advocates of the measure, "a
larger amount will frequently be accumulated, than,
in pursuance of appropriations by law is to be dis
bursed in the State in which il is collected Though
subsisng, they say, in the notes Of specie paying
banks, which are current in the State in which
issued the overpus will not answer the uses of the
Government in meeting the demands upon it else
where, because these same notes convertible into
coin at home are not current in distant parts Then
the plain answer is, whenever the ovcrpus be used
where wanted, by means of transfer drafts on some
specie paying banks, let the overpus be exchanged
on demand, for coin where it was collected, and the
coin itself be transmitted TO the place at which it
is wanted; for if the revenue BE- collected exclusive
ly in coin, the supply will likewise frequently ex-
coed the demands for disbursements where collected,
and the oyerplus must in like manner be physical
" transmitted or transferred BY drafts drawn by the
Secretary Of the Treasury, on the personal fiscal
agents in the distant parts in which il is wanted to
supply the deficiency Oherc) 10 make the disbnrse-
mentS pursu1n, to appropriations by law Thus,
under either system of collecting, sate-keeping
and distressing the revenue there must be an actual