Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-09-20

The use by the banks, for their own
benefit of the money deposited with them,
has received the sanction of the govern
ment from the commencement Of this con-
nection. The money received from the
people, instead Of being kept until It is need
ed for their use, is, in consequence Of this
authority, fund, on which discounts are
made for the benefit Of those who may hap
pen to be owners of stock in the banks Sc
lected as repositories. The supposed and
often exaggerated advantages Of such a
boon will always cause it to be sought for
with avidty. ! will not stop to consider on
whom the patronage incident to it is to be
conferred whether the selection and con.
troll be trusted to Congress or the Execu-
tive, either will be subjected to appeals made
in every form which the sagacity of interest
can suggest. The banks, under such a
system, are stimulated to nuke the most OF
their fortunate acquisition the deposits arr
treated as an increase of capital; loans
and circulation are rashy augmented and
when the public exigences require return,
it is attended with embarrassments not pro-
vided for, nor forescen. Thus banks that
thought themselves most fortunate when the
public funds were received, find themselves
most embarrassed when the season of pay.
ment arrives.
Unfortunately, too, the evils Of the sys-
tenn are NOT limited to the banks. II stimu-
lates a general rashness of enterprise and
aggravates the fluctuations Of commerce
and the currency. This result was strl-
kingly exhibited during the operation Of the
late deposit system, and especially in the
purchases of public lands. The order
which ultimately directed the payment Of
gold and silver in such purchases greatly
checked, but could not altogether prevent,
the evil. Specie was indeed more difficult
TO be procured than the notes which tie
banks could themselves create at pleasure;
but still, being obtained from them as 1,
loan, and returned as degosii, which they
were again at liberty 10 use, il only passed
round the circle with diminished speed
This operation could rot have been per.
formed, had the funds of the Government
gone into the Treasury. TO be regularly dis
bursed, and not into banks, 10 be loaned
out for their own profit, while they were
permitted to substitute for it credit in ac-
count.
In expressing these sentiments, desire
not to undervalue the benefits of salutary
credit to any branch of enterprise. The
credit bestowed on probity and industry is
the just reward of merit, and an honorable
incentive to further acquisition. None OPP
pose it who love their country and under.
stand its welfare. But when it is unduly
encouraged-when it is made to inhame
the public mind with the temptations of sud-
den and unsubstantal weath-when il
turns industry into paths that lead sooner or
later to disappointment and distress--it be-
comes liable to censure, and needs correc-
ton. Far from helping probiiy and indus
try, the ruin to which it leads falls most Sc
verely on the great labonng classes, who
are thrown suddenly out of employment,
and, by the failure Of magnificent schemes
never intended to enrich them, are deprived
in moment of their only resources. A.
buses of credit and excuses in speculation
will happen in despite of the mos; salutary
laws; no Government perhaps can alto.
gether prevent them; but surely every
Government can refrain from contributing
the stimulus that calls them into life.
Since, therefore, experience has shown,
that to lend the public money TO the local
banks is hazardous to the operations of the
Government, at least of doubtful benefit to
the institutions themselves, and productive
of disastrous arrangement in the business
and currency of the country, is it the part
Of wisdom again to renew the connection
1t is true that such an agency is in many
respects convenient to the Treasury, but il
is not indispensable. A limitation of the
expenses Of the Government TO its actual
wants, and of the revenue to those expen-
SEES, with convenient means for its prompt
Application to the purposes for which it was
raised, 49,. >i>> .hia.,- .-.l-;.i -. -h.~id
seek to accomplish. The collection safe
keeping, transfer, and disbursement of the
public money, can, it is believed, be well
managed by officers Of the Government
Its collection. and to great extent, its dis
bursement also, have indeed been hitherto
conducted solely by them neither nation
;al nor state banks, when employed, being
required to do more than keep it safely
while in their custody, and transfer and pay
1T in such portions and at such times as the
Treasury shall direct.
Surely banks are not more able than the
Government to secure the money in Their
possession against accident, violence or
fraud. The assertion that they are so,
must assume that a vault in bank is
stronger than vault in the Treasury; and
that directors, cashiers, and clerks, not Sc
lected by the Government, nor under its
control. are more worthy of confidence
than officers selected from the people and
responsible to the Government officers
bound by official oaths and bonds, for n
faithful performance of their duties, and
constantly subject TO the supervision ofCon.
gress.
The difficulties Of transfer, and the aid
heretofore rendered by banks, have been
less than is usually supposed. The actual
accounts show that by far the larger por.
ton of payments is made within short or
convenient distances from the places Of col.
lection and the whole number of warrants
issued at the Treasury in the year 1874
year the results Of which It is believed af-
ford safe test for the future-fel short OF
FIVE thousand, or an average of less than
one daily for each State in the city Of
New York they did not average more than
two dav. and at the CITY of Washington