The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-30
SPEECH OF MIR. GARLAND.
or VIRGINIA,

In the House OF Representatives. 81 fhe Y. ..
Sept 25, lS37--ia opposition 20 the ball
reported By the Commiifss Of Ways and
Moons, entitled, g "A bill imposing additional
duties as repositories IN certain cases on
public ulcers, and for other purposes:
(Coasinusd.)
Mr.. Benton, Senator from Missouri, and
distinguished friend Of the late and present
administration, in speech delivered by him
in the Senate Of the United States on the I'd
Of June, 1884, on the subject Of the restora-
ton Of the deposites to the Bank Of the United
States, ably indicated the State bank system,
and defended the State banks against the
various attacks Of the opposition. here
quote his remarks upon that occasion.
"Mr BENTON proceeded to state several reasons, and
10 urge many considerations in favor Of adopting It, He
deprecated the spirit which seemed to have broken out
against State banks and said that sugured badly FOR the
nights Of the Satcs The strongest current Of consods-
ton which was observable in the Union, was that
which sat in favor Of the Federal bank and against the
State banks and threatened to consolidate all moneyed
power, and with oil political power in favor Of great
central institution, independent Of the Staes and able
by It's own avowsl crush the State Institutions at ts
pleasure He sad this spirit against the State banks was
an mpusion III modern orgin--unknown Tho fathers
Of the republic and TO the early history Of the country
and strongest where the spirit Of consolidation
strongest and where the defence Of State rights was
weakest. At the commencement OF this Federal Gov
ernment said Mr. b., there Federal bank and all
the public moneys kept In State banks, drawn
direct and fast they received Of the hands
Of receivers and collectors. General Hamilton, when
Secretary of the Treasury, kept the public moneys, for
the first year Of his administration, in these banks, and
kept them safely there. When the Federal bank was
proposed in 1884, and the keeping Of the public moneys
r. .L.s.l t.fJas
then member of President Washnglons cabinet, de-
MED the necessity ola Federal bank for any such purpose
and openly declared himself favor of the State banks
He said that these banks had already done this business
for the Government and done WELL and would no doubt
enter into arrangements with the Treasury for doing
permanently and better than it could be done
by the Federal bank Mr. b. read an extract from Mr..
Jefersons cabinet opinion, delivered to General Wash
ington the creation Of the first Federal bank to
tain what he said OF his opinions The extract was In
these words
The existing banks will without doubt, enter into
arrangements for lending their agency and the more Ia
vorably, there will be competition among them for
Whereas the bill delivers us up bound to the national
bank who are free to refuse all arrangement but their
TERMS and the public not free, on such REFUSAL 70
employ any other bank. That OF Philadelphia believe,
now does this business BY their post notes. which, by an
arrangement with the Treasury, are paid by any other
State collector whom they presented This expe
dent alone suces to prevent the existence Of that
cessity which may justify the assumption OF nonenu
meratcd power means for carrying into effect an
enumerated The thing may be done and has been
done, and well done without this assumption there
FORE does not stand in that degree OF necessity which
can honestly Justify it,"
"Mr b. said, that what Mr. Jefferson affirmed in 1871,
afterwards proved under his administration, and
that Of Mr. Madison. During the whole Of their admin
istrations, large portion fhe public moneys was kept
in the State banks and safely kept there Mr. Gallatn
in IN n Inv the
sometime before the expiration Of the charter Of the first
bank showed that the public moneys were then kept in
twenty different banks Of which nine were the United
States Bank and its branches, and eleven were Satd
banks Mr.. B. thought this point so MATERIAL that NJ
would read extract from Mr. Gaatns report to show
that he neither ovcrstatrd mistook the facts Hd
then read the Of the State banks employed by MH
Gallatn, and the amount of public money in each Thej
were the Bank Of Columbia, $ll5,l 90; the Bank q
Alexandria, $6l,9l7; the Bank Of Newport, khod
Island, $35 1888; the Bank Of Pittsburg, $l37 ,462
Roger Willams's Bank, $53, 1882 the Bank of Penn
sylvania, $92, 62S the Bank of Saco S2S, 52S TIL
Manhattan Bank $685. the Bank Of Maine $780,
TAT; the Marietta Bank, $l9,6Ol; and the Bank q
Kentucky, SO, 06l. u
Such, said Mr. B., was the distribution of the dcpo
sites OF the public moneys in the time Of Mr.. Galatn
more State banks employed than the whole number o
branches and the mother Bank Of the United States pu
together In several instances, State bank was em
ployed in the place in which branch Of the Fede
are employed now OF this class, Mr. b. nstanced the
Manhattan Bank Of New York, and stated that the
stock Of this bank was at this day, about twenty dol
lars in the hundred higher than the stock Of the United
States Bank And this after all the efforts which had
been made to shake public confidence in the State banks
and especially those Of New York. The Bank Of Alex
andria which he said had lately stopped, with small
amount of public money in it, and the payment OF which
is secured was also in the list Of Mr. Gaatins deposte
banks, and had double much money in it in his time,
when it lately stopped. That bank had been depo-
site bank for fortyfye years, and the Government had
made to delude the public with belief that had just
been selected by Mr. Taney and had Immediately failed
with an immense loss to the United States.
Mr.. b. said, it thus proved, by an experience Of
twenty yearsan experience running through the whole
Of the administrations of Jefferson and Madison, and
part Of their predecessorstha the public moneys may
be safely kept in the State banks; and that Mr. Jeer
was right, in his cabinet opinion Of 1871, when he
gave his solemn opinion to President Washington,
that there necessity for chartering Federal
bank to act the fiscal agent Of the Federal Treasury,
and that the State banks would enter into arrangements
for that purpose, and do the business well
Mr.. B. said it was true that the Federal Government
had since lost about million and half Of dollars by
State banks but that loss took place in season Of
universal embarrassment growing out OF state OF war
and general stagnaon Of trade and commerce season
which cannot be made the rule for Judging State banks
without extending it to the Federal bank also and
then il would be fatal that bank for the United States
lost about eleven millions OF dollars in sustaining the
present Federal bank in the same season Of embarass
ment and saving that bank from sharing the general fate
Of the State institutions. This statement, Mr. said,
was one Of those facts which it good to prove and
as the proof was in the documents OF the Senate, he
would it, and extinguish at this delusive and
deceptive comparison between State banks and the
Federal banks.
Mr.. Benton was sustained in his preference
for the State banks by Mr.. Wright, of New
York. The present Speaker of the House,
in speech delivered by him on this subject,
on the goth Of June, 1884, ably vindicated
the State bank system, in the course Of which