The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-28

in the State which gave birth to jefferson
and Madison, as by any other State in the
Union. t.
To the Sub-'rreasury scheme. our respect
ed contemporary Of the Enquirer continues
persevering hostility and gives assurance
that the Republicans Of Virginia are no less
hostile to it than himself. Our friend, how
ever, expresses readiness to compromise the
matter, and settle dopa upon The special depo-
site system NTH the limitation he has so often
specified Was not the door. to all appearances,
closed against such compromise, by the de-
claration TO which we have already adverted,
that the administration UiH persist calmly out
firmly in the measures Il has adopted Are
there no difficulties which viii attend the spe-
cial deposite system, interposing, to forbid lis
being carried into practical operation, which
have not presented themselves TO its adyo.
Gates
We apprehend there are. Some Of those
obstacles we will endeavor to point out, and
respectfully submit to the editor Of the En-
quirer, and the friends Of that system general
ly. In doing this however, we shall be obliged
to enter somewhat into the merits Of the Sub
treasury bill which passed the Senate and was
laid on the table Of the House at the late extra
session, and which we presume the admins
tralion will {" persist calmly but firmly" in their
endeavors to establish as a law Of the land.
That bill had three important and distinct
features, viz First. Making the public re-
ceiving officers, the depositaries Of the public
moneys after they are collected, as well as
thereafter the general dsbursing officers
Second. The bill provided that for certain
number Of years, a specified proportion OF the
public revenue should be collected in specie
and the other portion, in the notes 81 specie
paying banks Third At the expiration Of
the years named in the bill, the whole Of the
public revenue should be collected in specie
only.
We will first inquire, what is this especial
deposite system" which some now advocate,
and which the editor Of the Enquirer is willing
to settle down upon by way of compromise
What are its practical operations! As we
understand it, they are these.-An individual
places in bank, chest of plate; key Of
gold or silver, or a parcel of bank notes, at
his credit; to be held as a special deposite,
placed by the bank to his credit, and subject
to his order; to be returned to him in the
Identical state in which they were when
placed in the bank. This is one description
Of special deposites. There is another that has
been in operation for some time past in New
York with the banks there. 1t is this. In
dividuals keeping accounts with the banks, de-
posite what are called current bank notes,
though inconvertible, which it is specially
stipulated are to be paid out by the bank to
meet the checks drawn by the individual on
such deposite-the bank specially protecting
| ITSELF by the terms on which it received the
deposite from all liability to pay in any thing
| else. .. -". i.
Now, as to the provisions Of the Sub-trea-
sury bill already referred to.
The first feature, making the collecting Of
fcers the depostaries Of the public moneys
until called for, we apprehend has been SO
fully discussed, that its merits and dement's
are so fully comprehended by most of our
readers and the public, as TO render it unne-
cessary for us to dwell upon it, further than to
remark that, IL ,rould be subuerting the entire
policy of the Government from 1889 TO the pre-
sent time, and placing the public treasure IN
situations to be plundered bye hundred hands,
where one cannot now euen touch it.
The second feature in that bill, making
part of the public revenue for specified pc
RODS receivable in the notes Of specie paying
banks, comes now to be considered. Wewill
show, that unless the Government is willing
and intends to become paper money Govern
ment, the proposition is utterly impracticable
both under the Sub-treasnry scheme and the
special dcposite scheme We are aware, that
this will be considered. assuming high ground
and may startle some of the advocates of both
of the schemes. Nevertheless, we will main
tain the position by incontrovertible evil
dence.
It is well known, that the charter eff the
Bank Of the United States made the notes Of
the branches of that bank receivable every
where in payment Of public dues, without re-
gard to the places where issued; and although
they were not convertible at the place where
they were offered in payment. The Bank Of
the United States and its branches were bound
BY its charter to receive all such branch notes
offered in payment to it of public dues, and
place them at the credit Of the Government as
| co,b and 10 hold itself ready to pay specie for