Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-09-11

MUCH mas Dcen Shlu on DOln SIDES, IN reference 10
the proposed separation Of the Government from
tho banking institutions and surely can OBJ
lect 10 any appeals or animadversons on the sub
oc which are consistent with facts, and cvnce
proper respect for the interests Of the people. If
tho Chief Magistrate may be allowed TO speak for
hmsci on such point, could truly say that to
me nothing would be more acceptable than the
withdrawal from the executive, 10 the greatest prac-
ucable extent, Of all concerned in the custody and
disbursement Of the public revenue; not that |
would shrink from any responsibility cast upon me
by the duties of my Office but because is my firm
belief, that It's capacity for usefulness is in no de-
gree prOmtod by The possession Of any patronage not
actually necessary TO the performance Of these dti-
ties. But under our present form Of Government,
the intervention Of the Executive officers in the cIs-
tody and disbursement ofthc public money seems to
be unavoidable and before it can be admitted that
the influence and power of the Executive would |
be increased by dispensing with the agency Of banks
the nature OF that Intervention in such an agency |
must be carefully regarded, and a comparison must
be instituted between its extent in the two
The revenue can only be collected by officers APP
pointed by the President, with the advice x consent
Of the Senate. The public moneys in the first in |
stance, must therefore, in all cases pass tho hands
selected by the Executive. Other officers, appoin- |
ted in the same way or, as in some cases, by the |
President alone, must also be entrusted with them
when drawn for the purpose of disbursement. 1t is
thus seen that, even when banks are employed the
public funds must twice pass hro the hands of Elk
ecutvc officers. Besides this the head Of the treas
ury department, who also holds his office at the
pleasure Of the President, and some other officers of
inc same department, must necessarily be invested
win more or less power in the selection, supervis-
ION and continuance of the banks that may be
poycd The question is then narrowed TO the sin
gle point whether in the Intermediate stage between
the collection & disbursement Of the public money,
the agency Of banks is necessary to avoid danger
ons extension of the patronage and influence Of the
Executive But is 1t clear tina the connection of
the Executive with powerful moneyed institutions,
capable Of minlsterng TO the interests of men in
points where they are most accessible TO corruption
is less liable to abuse, than his constitutional agency
in the appointment and control of the few public Of
hcers required by the proposed plan? Will the
public money, when in their hands be necessarily
exposed to any improper interference on the part Of
the Executive? May 1t not be hoped that prudent
fear Of public Jealousy disapprobation, IN matter
so peculiarly exposed to them, will deter him from
any such interference, even fhigher motives be found
imperative? May not Congress so regulate by law,
the duty Of those officers, and subject It to such SUI
pervslon and publicity, to prevent the possibility
OF any serious abuse on the part of the Executive
And is there equal room for such supervision pub
llcity in connection with banks, acting under the
shield Of corporate immunities & conducted by per-
sons irresponsible to the Government & the people?
1t is believed that considerable and candid invest-
CATION OF these questions will result in the conviction
that the proposed plan is far less liable to objc con,
/ on the score of Executive patronage aud control,
IMAM any bank agency that has been or can be de-
| vised.
| With these views, leave to Congress the meas
ures necessary to regulate in the present emergency
| the safe keeping and transfer of the public MONEYS
! In the performance Of constitutional duty, have
stated 10 them, without reserve the result Of nv own
rehecllons The subject Is Of great importance, &
one ON which we can scarcely expect TO be united
IN sentiment as we are in interest. 1t deserves full
and Tree discussion, and cannot fail to be benefited
! by dlspasslonate comparison. Well aware myself
OF The duty OF reciprocal concession among the CO.
ordinate branches of the government can pt omlse
reasonaOle spltt oil corporations far as 1t cal
! nd in iIloDft lar, Il
objections, which believe TO be well founded ANY
system that may be adopted should be subjected TO
the fullest legal provision as to leave nothing to
the Executive but what is necessary the discharge
oil the duties imposed on them and Whatever plan
may be ultimately established my own part shall be
SO discharged as to give to- fair trial. and the best
prospect of SUCCESS.
The character of the funds to be received and
discussed IN the transactions of the Goyernmen,
likewise demands your most careful considera-
| ton.
Thorc can be no doubt that those who framed
! and adopted the Constitution, having in Immediate
| view the deprecated paper of the Confederacv-
Of which five hundred dollars in paper were at
tines only equal to one dollar in coin-ine ended TO
prevent the recurrence of similar evils, SO far at
least as related TO the transactions Of the new Gov
eminent: They gave to Congress express powers
to coin money, and TO regulate the value thereof
and OF foreign coin; they refused to give il power
10 establish corporations-the agents then as now,
chiefly employed to create paper currency thew
prohibited the States from making anv THING hut
gold and silver legal tender in payment of debts /;
and the first Congress directed, by positive law
that the revenue should be received in no,b;no h ,
gold and silver.
Public exgency at the outset of the Govern
men, without direct legislative authority led TO the
use OF banks as fiscal aids TO the Treasury In
admitted deviation from the law, at the same period,
and under the same exigencv the Secretary of the
Treasury received their notes in payment Of duties
The sole ground on which the practise, thus COM
menced was then, or has since, been justified is the
certain, immediate, and convenient exchange of such
notes for specie. The Government did indeed re-
ceve the nconvertible notes Of State banks DURING
me diihculties OF war; and the community submit
, ted without murmur TO the unequal taxation and
, multiplied evils OF which such course was produce
I'VE. Win the war this indulgence ceased and
The banks were obliged again to redeem their notes
, IN gold and silver. The Treasury, in accordance
with previous practice, continued to dispense with
. the currency required by the act of 1885, and took
the notes Of banks in full confidence of their heinz
i paid IN specie ON demand and Congress- TO guard
against the slightest violation of this principle have
declared by law, that if notes paid in the trans
actions OF the Government, it must be under such
S circumstances as to enable the holder TO convert
!, them into specie without depreciation or delay.
i my own duties under the existing laws, when
n Inc banks suspended specie payments | could moi
doubt. Directions were Immediately given to pre-
e vent the reception into the Treasury of any thing
but gold and silver or lis equivalent; and every
practicable arrangement was made to preserve the
public faith, by similar or equivalent payments to
4 the public creditors. The revenue from lands had
i been Ion some time substantially so collected under
the order issued by the directions Of my predecessor
The effects Of that order had been SO salutary and
ITS forecast in regard to the increasing insecurity
= bank paper had become so apparent that, even be-
fore the catastrophe had resolved not TO interfere
If WIN lis operation. Congress is now to decide
whether the revenue shall continue 10 be SO collect
:, cd or not.
!, The receipts into the Treasury, of bank notes
not redeemed in specie on demand, i'll not pre-
sumo, be sanctioned. 1t would DESTROY without The
excuse Of war or public distress, that equality of i'm
norris and identitv If