Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1837-09-16

cS Ss. he who kept it in the legal currency :,
ia". =. and in his possession, Pur:rss' .'.nou'
% 'oss placed Of b. bushes s. The
volved in embarrassss.s-,. !, could no, have suf
fered had it pursued tho ~-u.e Of the latter
These embarrassments are, mos~,s cr augmented \
by those sau,ary and just laws which Sa<hid il TO
a deprecated currency, and, BY 50 doing take
from the Government the ability which indiv idu-
ais have Of accommodating their transactions to
such a catastrophe.
A system which can, in . time Of profound
peace when there - a large revenue laid by, thus
suddenly prevent the application and the use OF
the money Of the people, in the manner and for
the objects they have directed, Cannot be vase
but who can think, without painful reflection, that,
under it, the same unforeseen events might have
befaen us in the midst Of q val, and taken from
u.s. at the moment when most wanted, the use OF
those very means which were treasured up to
promote the national welfare and guard our ma
tional rights! To such embarrassunen's and to
such dangers will this Government be always ex-
posed, whilst it takes the moneys raised for, and
necessary to- the public service, out Of the hands
of its own officers, and converts them into mere
right Of action against corporations entrusted |
with the possession of them. Nor can such re-
suits be effectually guarded against IN such sys-
tenn, without investing the Executive with a con-
troll over the banks themselves, whether State or
National, that might with reason be objected TO-
Ours is. probably, the only government IN the
world that is liable in the management OF It's MS
cal concerns, to occurrences like these. But TINS
imminent risk is not the only danger attendant on
the surrender Of the public money to the custody
and control Of local corporations, though the OBJ
ect is aid the treasury, its effect may be to IN
troduce into the operations of the Government,
influences the most subtle, founded on interests
the most selfish.
The use BY the banks, for their own benefit, of
1, Hho,x, hoe The,
sanction Of the Government from the commence.
ment Of this connection. The money received
from the people; instead of being kept tall 1t Is
needed for their own use, IS, IN consequence OF
this authority, fund on which discounts are made
for the profit Of those who happen to be owners oil
stock in the banks selected as repositories. The
supposed and often exaggerated advantages OF
such boon will always cause it to be sought tor
with avidity | will not stop to consider on whom
the patronage incident to it IS to be conferred; ;
whether the selection and control be trusted to
Congress to the Executive, either will be sub
iected to appeals made in every form which the
sagacity of interest can suggest The banks I'M
der such system, stimulated to make the
most Of their fortunate acquisltion the dePosites
are treated a. an increase Of capital; loans md
! csscusastUus uxo rashiy augmented, and whcn inc
public exigencies require turn, 1t - attended
with endorsements not provided for, nor fore
seen. Thus banks thought themselves most TOR
tlnate when the public funds were received, tine
themselves most embarrassed when the season o
I Unfortunately, too, the evils Of the system arr
not limited to the banks. It stimulates a genera
rashncss Of enterprise, and aggravates the fuctu
atoms OF commerce and the currency. This re
suit strikingly exhibited during the operation!
Of the late dePosite system, and especially in tn.
purchases Of public lands. The order which al
timately directed the payment Of gold and sill
yer in such purchases, greatly checked, but coule
not altogether prevent the evil. Specie was, IN
deed, difficult to be procured than the note:
which the banks could themselves create at plea
sure, but still, being obtained from them loan
and returned a deposite, which they were a
gain liberty to use, only passed round the cir
Gle with diminished speed. This operation coult
not have been performed, had the funds OF the
: government gone into the treasury to be rcgu
lary disbursed, and not into banks, to be loanet
out for their own profit, while they we're permit
, ted to substitute for it credit in account.
In expressing these sentiments, desire not Z
, undervalue the benefits Of a salutary credit 4
any branch Of enterprise. The credit bestowed
on prob,ty and industry is the just reward OF me
rit and an honorable incentive to further acquisi
: ton. None oppose 1t who love their country am
4 understand its welfare. But when II IL unduI.
encouraged-when it is made to infiame the pub
{ lie mind with the temptations Ut sudden and un
= substantial wealth-when 1t turns industry ant
PATHS that lead sooner or later to disappointment
= and distress-it becomes liable to censure, an
= needs correction. Far rom netpIng PtOOsty au
industry, the ruin to which it leads falls most &c
= vereIy on the great laboring classes, who ar
d thrown suddenly out Of employment, and by tn
= failure Of magnificent schemes never intended
e enrich them, are deprived in moment OF thel
e only resource. Abuses Of credit, and excuses l
speculation will happen in despite ct the most "a
% utary laws; no Government can perhaps altogeel
- er prevent them; but surely every Governmer
= can refrain from contributing the stimulus th'
r calls them into life.
ID Since, therefore, experience has shown that
A. lend the public money to the local banks, 10 ha
ardous to the operations Of the Government,
least of doubtful benefit the institutions ther
70 Selves and productive Of disastrous derangeine
n in the business and currency ofthe country, -
Is the part Of wisdom again to renew the connection
al 1t is true that such agency 10 in many re
o. poets convenient to the Treasury, but ii 10 .
e. INDISPENSABLE. A limitation Of the expenses
IN the Government to its actual wants, and Of d
n revenue to those expenses, with convenient mea
prompt application to the purposes for viii
ch it was raised, are the objects which We sSou
tn seek to accomplish. The collection, safe-keep'n
- transfer and disbursement Of the public uoae
nd can, it is believed, be well managed by officen
We the Government. Its collection, and to . gre
III extent, its disbursement also, have indeed o,
On hitherto conducted solely by them; nei'net 8
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