The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-07


OF others. IL was hardly to be hoped that changes
important on subject SO Interesting, could be made
without producing serious diversity CT opinion;
but so long as those conflicting views are kept above
the influence OF individual or local interests long
as they pursue only the general good and are dis
cassed with moderation and candor, such diversity
is benefit, not an injury II majority Of Con-
gress the public welfare In different light and
especially il they should be satisfied Thai the
measure proposed would not be acceptable 10 the
people; shall look 70 their wisdom to substitute
such as may be more conducive 10 the one, and more
satisfactory 10 the other In any event, they may
confidently rely my hearty cooperation TO The
fullest extent which my views Of the Constitution
and my sense Of duty will permit.
IL is obviously important to this branch OF the
public service and to the business and quiet of the
country, that the whole subject should in some way
be settled and regulated by law; and if possible, at
your present session. Besides the plans above re-
ferred TO, am not aware thai any has been sug
gested, except that Of keeping the public money In
the State banks in special deposile This plan is,
10 some extent, in accordance with the practice of
the Government and with the present arrangement
OF the Treasury Department; which, except, per-
haps during the operation of the laie deposite act
has always been allowed even during the existence
OF National Bank, 10 make temporary use OF the
State banks in particular places, for the safe keep
ing Of portions of the revenue. This discretionary
power might be continued, if Congress deem il de-
sirable whatever general system may be Adopted
So long as the connection is voluntary we need per-
haps anticipate few of those difficulties and little of
that dependence, on the banks, which must attend
every such connection when compulsory in its nature,
and when so arranged as TO make the banks fixed
part of the machinery of Government. II Is I'M
doubedly in the power OF Congress so TO regulate
and guard il as to prevent the public money from
being applied to the use, or iniermingled with the
affairs of individuals. Thus arranged, although it
would not give 10 the Government that entire con-
troll over its own funds which desire TO secure 10 1t
by the plan have proposed, il would, II must be adj
mted, in great degree, accomplish one of the OBJ
jects which has recommended that plan to my ludg-
ment--ihe separation Of the fiscal concerns Of the
Government from those individuals or corporations.
With these observations, recommend the whole
matter to your diSpassonate reflection; confidently
hoping that some conclusion may be reached by
your deliberations, which, on the one hand, shall
give safety and stability TO the fiscal operations the
Government, and be consistent, on the other, with
the genius OF our institutions, and with the Interests
and wishes ofthe great mass of our constituents.
Ii was my hope that nothing would occur 10 make
necessary this OCCASION any allusion to the late
National Bank. There are circumstances, howev-
err, connected with the present state of its affairs that
bear directly on the character OF the ment
and the welfare of the citizen, that should not feel
myself excused in neglecting TO notice them. The
charter which terminated its banking privileges on
the 4h of March. 1885, continued its corporate pow
ers two years more, for the sole purpose OF closing
lis affairs, with authority, ito use the corporate
name style and capacity for the purpose Of suits for
a final settlement and liquidation Of the affairs and
of the corporation, and for the sale and DISPOSE
ton of their estate real personal and mixed, but for
no other purpose or in any other manner whatsoev-
err" Just before the banking privileges ceased its
effects transferred BY the Bank to new Stale
institution then recently Incorporated, in trust for
the discharge Gifts debs and the settlement of its at
fairs. With this trustee by authority of Congress,
adjustment was subsequently made OF the large
interest which the Government had in the stock Of
the institution. The manner in which trust I'M
expecedly created upon the act granting the charter
and involving such great public Interests, has been
executed, would, under any circumstances, be ht
dog
your attention. when it embraces the redemption of
obligations to which the authority and credit of the
United States have given value. The two years al
lowed are now nearly at an end IL is well under
stood that the trustee has not redeemed and cancelled
the outstanding notes of the bank, but has ressued
and is actually reissuing, since the Sd Of March,
1886 the notes which have been received by 1t to
vast amount. According TO its own oflcial state
ment so late as the first of October last, nineteen
months after the banking privileges given by the
charter had expired, it had under its control uncan-
celed notes Of The late Bank Of the United States to
the amount of twenty-seven millions five hundred
and sixty-one thousand eight hundred and sxty-six
dollars of which six millions one hundred and Sc
venty five thousand eight hundred and sixty one dol
lars were in actual circulation one million four
hundred and sixy-eight thousand six hundred and
twenty-seven dollars at State hank agencies, and
three millions two thousand three hundred and nine
~ dollars in Gonsita thus showing that upwards Of
ten millions and half Of the notes OF the old bank
were then still kept outstanding. The Improperly
of this procedure is obvious it being the duty Of
the trustee cancel and not to put forth the otes Of
institution, whose concerns II had undertaken TO
wind up. II the trustee has right to reissue these
notes now, i can no reason why II may not con-
tinue do after the expiration OF the two years
As no one could have anticipated course so extra
ordinary, the prohibiiory clause of the charter above
quoted was not accompanied BY any penalty or other
special provision for enforcing il; nor have we any
general law for the prevention OF similar acts in fu-
ture.
But it is not in this view Of the subject alone that
your lnterpos,on is required The United States, IN
settling with the trustee for their stock, have Withdrawn
their funds from their former direct liability 10 the credi-
tors OF the old bank, yet notes of the institution con-
time to be sent forth in its name, and apparently upon
the authority of the United States The transactions
connected with the employment OF the bills OF the old
bank are Of extent and should they result unor
tuately the interests Of individuals may be deeply
compromised Without undertaking to decide how
far or in what FORM if any, the trustee could be made
liable for which contain no obligation on is part
or the old bank for such put IN circulation alter
the expiration Of its charter, and without it's authority
or the Government for indemnity, in case OF loss the
question still presses itself upon your consideration,
whether it is CONSTANT with duty and good faith on tho
part of the Government, TO witness this proceeding
without single effort to arrest it.
The report Of the Commissioner OF the General
Land Office which will be laid before you by the Secre-
tary Of the Treasury will show how the affairs OF that
office have been conducted for the past year The dis
position Of the public lands is one OF the most mpor-
tant trusts conncea 10 Sohgiess A"e Piae'.ao'hy VI
retaining the title and control OF such extensive do
mains in the General Government, and at the same
time admitting the Territories embracing them into the
Federal Union as coequsls with the original States,
seriously doubted by many Of our wisest statesmen.
All feared that they would become source OF dlscord,
and many carried their appehensions so far as to see in
them the seeds Of future dissolution OF the Confed-
eracy. But happily experience has already been
sufficient quiet, great degree all such apprchen-
sions. The position, at one time assumed--hat the
admission Of new States into the Union the same
footing with the original States was Incompatible with
right Of soil in the United States, and operated as
surrender thereof Notwithstanding the terms OF the com
,..,. ,,b;cb tber desuned be