The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-16

-, .a,,,rv demands that all these schemes
.,,eI o,nsd;eney. and destructive tendency should
ss,.donad and one adopted which all, the malo-
~, ,,l mite on Ia pedecng. as lar as praccsoe' so
n nroduce the greatest good TO the greatest NUM-
bers. T. 4.
Oh svs,em presents itself at our hands u Is
M, one Of doubtful expedency Il has been 'ned, ns
,,hereut Qualities are perfect Exraneous cucuns'an
;r,eroosed check to its usefulness SO lar as
hrv tried. i. was found fully competent 10 per-
seeming eyery duty expected or exacted under It. IRE
80, TO THE SrArE BANK pEPosrTE system.
While tina, system was in active operation, 1t existed
,as, every disadvantage fom The commencement to the
na When il was first undertaken in October, 1883,
,bo Ranks at FIRST selected collect thereafter the pub
i. Immediately experienced the hostility Of the
p,,L of The United States. which was then armed with
ten millions Of the public money IN its possession, WIN
,.hcb il. means of future warfare, which was carried on
AGAINST the selected banks, were increased MOI only
Ala the newly selected banks End this mighty power ar
,,ysd auans, them in the attitude Of the most bitter ana
re,.eeutng hostility but they found allied with IT. ~ the
crusade asains, them many Of the State Banks, and
,,,ss norton of tho moneyed Interests and these all
united with the political party Of the day, opposed TO the
Administration and those who supported Il.
i, ,he incpient state OF the undertaking. without any
,r,,z,,ion, and with this enormous force and power
,rr,ved AGAINST hem the selected banks found no diff
.,,,v in sustaining themselves, and in extending
;d and facilities to the community to avert the
;,, i. ore,, curtalments made by the United States
p,Dt during the first year Of the experiment were cal
.n,,,ed 10 produce Another disadvantage which at
.anao1 tho .vstem and threw new and additional bur-
,,s,s on these ne fiscal agents Of the Government
,s from The vast increase Of the public revenue col
Iccted mainly in places where It was not required ior
disbursement, aud consequently was transferred from
these TO other places These services, which at last
e,ceeled rple the services ever before performed OF
similar character for the Government were performed
with the greatest prompt.ude and efficiency by the De-
pos,e Banks
The following extracts from the messages OF General
Jackson to Congress- and from the reports of the Secrc
tay of the Treasury bear ample testimony to the ability
Of the State Banks to perform the duties Of fiscal agents
OF the Government
In his message Of December, 1884, General jackson
said "The State Banks are found fully adequate to the
performance Of all services which were required OF the
Bank Of the United States quito promptly and with
the same cheapness They have maintained themselves
and discharged all these duties, while the Bank Of the
United States was still powariu and in the field as an
open enemy and it is not possible to conceive, that
they will find greater difficulties in their operations when
tina, enemy shall cease to exist"
The Secretary of the Treasury, about the same time,
closed lengthy communication to Congress, devoted
exclusively to the State Bank deposte system with the
following
at is gratifying to reflect, however, that the credit
given by the Government whether TO bank paper or
...l H.. 49,. -
the experience under the system of State Banks in this
country at their periods, and under their severest
calamics than any other kind Of credit the Govern
ment has given in relation to its pccuniary transact
tons Hence, unless the States and the United States,
should both deem it proper, gradually, and in the end
entirely 10 dispense with the paper system and which
anticipated the Government cannot escape
occasional losses from that quarter; and ncrer hope
10 escape all losses from banks fiscal agents except
BY The employment IN their place 81 other and individual
agents. rcho w probably be found less responsible, safe,
eoacsneni, and economical"
The following year, in 1897 the President. in his
message, thus spoke fthe depositc banks 1.-THE ex-
perence Of another year has confirmed the utter ialacy
of the idea that the Bank Of the United States
cessary as fiscal agent Of the Government Without
its aid SUCH in despite Of all the embarrassmens
in its power TO create, the revenue has been paid
with punctuaity by citizens, the business Of ex-
change both foreign and domestic has been conducted
with convenience and the circulating medium has been
greatly improved BY the of State Banks which do
no, derive their charters from the General Government,
and controlled by its auhori,y, is ascerained
that the moneys of the United States be collected
and disbursed without loss Inconvenience, and that
all the wants Of the community, in relation to exchange
and currency, supplied as well as they ever have
been before"
The Secretary Of the Treasury in his report to Con-
gress, the time, gave the following additional
testimony in favor Of the banks -" This Department
takes great pleasure in stating, that the public money
continues to be collected and deposited under the pre-
sent system of selected banks with great and eco
nomy in all cases, and with greater ease, than any
former period The transfer Of it to every quarter Of
the country, where il needed for disbursement has
never been effected with more promptude and have
been made entirely free Of expense to the Treasury"
In December 1886, General Jackson again in his
Message TO Congress bore testimony to the efcien-
cy and ability of the State deposte banks. He said
Experience continues to realize the expectations
entertained as to the capacity of the Stale banks to
perform all the duties of fiscal agents for the Go
vernment at the time of the removal of the depo-
sites"
The Report of the Secretary of the Treasury of
tha, year contains the following The money in the
Treasury has b en- safely kept during the year 1886
Until July last as during Two previous years, was
placed in the State banks, selected according to the
discretion of the Department on account Of the high
Standing and favorable position for fiscal purposes,
and regulated in manner considered most secure, to
the Treasury, and convenient to the community as
well as useful to all concerned. 1t is source of
much qualification to be able to add that while so Sc
leced and employed, not single dollar was lost to
the Government by any of them single failure
occurred to transfer promptly and pay satisacto-
rily the public money entrusted to their custody
Ihe Sncretnrr In e n.