The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-12
sPnEcII OF sfIl. GAnLAND,
OF yInGINlA,


Ia hc House Of Representatives. ofths U. s.
Sepf. 25, ls37--a opposition 10 The bat
reported By HE Committee 81 Ways and
Moons, entitled, /" A bin impasiag additional
duties as deposifories IN certma cases on
public ulcers, and FIR ether purposes:
(Coafiaued.)
Notwithstanding the fact that the States
from the foundation OF the Government, have
chartered, and continue to charter banking
institutions, and this government has been in
the uniform practice Of employing them as
fiscal agents. il is now grasely contended by
some that these institutions are uneonstitu-
tionai This argument is derived from the
constitutional prohibition upon the States 10
emit "biHs If credit" II the States had
made the notes OF the banks which they have
Incorporated, a legal tcaier, then the argument
would have been good but SO long as they
are not made legal tender, and every man
is at liberty 10 receive them or not, at his
pleasure, then the prohibition Of the consti-
tuition does moi apply. Inecd not detain the
committee by any argument of mine. This
question was determined directly by the SUI
preme Court ofthe United States, at its last ses-
sion--a democratic Supreme Court of which
Roger b. fancy is Chief Justice. | will
simply refer to the able, lucid, and unanswer-
able arguments Of the Judge, the opinion Of
the court, in the case OF Briscoe VS.. The
Commonwealth If Kentucky. But it is con
tended by some that it is equally unconsti-
tntional to employ State Banks as fiscal
agents, as 10 charter a National Bank.
cannot see the force Of this very recent OBJ
lection; there is material difference between
creating an institution which is not authorised
by the constitution, and entering into com
pacts with corporations which are created by
governments, having the constitutional power
to create them, and imparting to them the ex-
press power Of contracting ! do not per-
ceive that, because the Government OF the
United States cannot, by authority of the
constitution incorporate National Bank, that
il therefore cannot enter into n contract with
individuals, which it is daily in the habit of
doing. The State Banks, being constitutions
ally incorporated and having the power to
contract, stand to the Government precisely
in the same relation as individuals, who have
the power, and may contract with the Go
vcrnment Sir, have been much surprised
TO hear an argument so lallacious, SO gravely,
and so earnestly urged.
will now, Mr. Chairman, call the attention
of the Committee to the scheme presented to
the consideration Of Congress- by the Execu.
tive, and offer to its consideration as briefly
as can, my objections to it.
The frst objection is, that it will be trying
an experiment to say the. least Of il, of very
doubtful results. My friend from Virginia,
(Mr Jones, in very able speech few days
past, seems to justify enibarking on this erpe-
rtn,enf, as he admits it to be, on the ground
that the Government itself is but an expert
ment. II is true that our system Of Govern
ment when it was entered upon, was but aa
experiment. yet it was a Necessary one, and in
its progress has developed the wisdom of its
adoption But surely my friend would not
argue that because the system was originally
an experiment, that it would be prudent to
abandon that part Of the system which has
worked well, and adopt one which has no
practical result to recommend it. | regard It
as the part Of wisdom to adhere to every sys-
TEN which experience has taught to be wise
and salutary. am sure my honorable friend
would not be willing to surrender our admira-
bic system Of government and adopt another
which had nothing more to recommend IT than
that it was an experiment. The system OF
bank depositcs has been tried, and although
there have occasionally been some disorder
and arrangement, as there has been in all hui
man affairs, has generally worked well-so
far as the experiment now proposed has had
any practice, it has been unsuccessful, and
proved its utter insufficicncy.
-. -, x,,h,rh I
that the public money will be unsafe and its
effects dcmoralizing. The safety of the pub
lie funds is an important matter, and should
enter deeply into the consideration Of Con-
gress in the adoption Of any system which
may be proposed. We all know that there is
no system which human ingenuity and saga
city can devise, that would be entirely safe.
Yet reason and experience teach us that there
are some more safe than others, and that
which reason and experience teaches to be
the most safe, should be adopted In view of
this question of greater safety, let the present
and the system proposed be contrasted. Place,
if you please. the estate Of any individual who
might be selected as the deposition and keeper
of the public money, by the side of the capi-
tai of any bank which would in the exercise
of sound discretion, be selected, and how
vast the difference in favor of the bank-com-
pare the inducemcnt which the bank has to
preserve its good faith and credit, in mere
pecuniary point of view, with that of an indi-
yidual, and how great the disparity in favor
of the bank--comparc the force of the moral
obligation on the part of the bank with that Of
the individual, all the officers of the bank, the
directors and the stockholders are deeply in
torested in preserving its faith with the Co
vernment and all other dcposilors. Under the
proposed system single individual is inter-
'ested-contrast, if you please, the means of
detecting fraud, pecula,ion, and defalcation.
In the banks the officers arc in daily watch
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