The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1837-12-06

tsuee from 1871 to 1911, had no claim t'
be a depository either of the government OF
its officers, and was NOT required to perform
anv of the duties Of fiscal agent. The of
6cers of the United States received, kept
and disbursed the money of the nation
sometimes employing for these purposes the
agency of one or another bank, sometimes
dispensing with such agency altogether.
In 1916, the late Bank of the United
States was incorporated by Congress. The
smbarrn ssment of the country growing on,
Of an expensive and wasting conflict with
Eogland, and the heavy loans made by the
local banks to the Govcrnme had com
PEELED those Institutions to suspend pay
ments in specie and the country was del
1gcd in consequences with paper money, G.
Qually irredeemabe with that under which
we are now suffering, generally more de-
preciated and probably more worthless.
The credit system had pervaded al! the
transactions of society; even the Govern
ment had been compelled by its necessities
10 accept currency of broken promises as
the only means Of providing for the conf
mon defence, and the state banks had thus
aud repositories of the nation.
BY The charter of the new bnUk, n fiscal
agency was constituted for the first time,
legally independent in some degree Of Gov
ernment officers. II was made the general
depository until the Secretary of the Treas
ury should direct otherwise, its notes were
declared receivable in all payments to the
United Siates--and in return, it was res
quired to transfer the public funds from one
quarter ofihe country To another, and TO acI
ne commissioner of loans, free of charge
The pay pent of its notes and deposites ia
specie was ordained under heavy penalties
and to enable it to comply with this injnnc.
ton, Congress n few days after the charter
passed declaratory resolution, that from
and nfier M early day, before which ibt
bank was not required To hegin lis opera
,ions. no'hing hut specie or its equivaen
should he received IN payments to the Gov
erumeni.
This was the first lrgnlized experiment
Ola direct connexion between the Govern
mcnt nnd IA Ba.k. 1t is foreign to my pur-
pose To consider how fully the evils predic-
ted of it Mt The outset were realized in its
progress, aud how signal has been the pop
ular judgement of its failure. The expert
ment terminated u 1882. The Secretary
Of The Treasury, acting under provision in
its charter, Withdrew fiom the hank it's
functions as q public depository, and con-
ferred them on limited number Of bonks
Incorporated by the States. The act of
Congress ofJnne, 1886, followed, establish
ing system of repositories, all of them
banks, and thus began the second legall-
zea experiment of placing the Government
funds in the hands of money-traders, TO
be loaned out by them for their own profit,
The fifth section of tins net directed thai
no bank should he continued as place o.
dcposi.c of the public money, if it should
cease to redeem its notes in specie on de
mand. In less than eleven months thi
contingency occurred the banks universal
ly suspended payments-ihe deposit system
was broken up-and in the absence of AM
legal provision directly otherwise, the diff
ferent collectors of the revenue became IA
matter ofcourse the repositories of all mon
eys in their hands.
Such was the state ofthings when Con
gress assembled last September, in specia
session. The utter failure Of the system
which had been lahoriously matured tn,
wear before, and the admitted fact that Tia
different receiving offices were imperfectl
fitted by their organization for the duty q
permanent repositories, formed naturally
prominent topic in the Presidents Message
and seemed to coll strongly for the nc,o
of Congress.
There were three projects discussed i
TIM, body. The first, National Bauk
the second, Il modification of the Deposit
Bank system the third, a recurrence wit
additional guardssand securities to the pla
of 1899. OF these, MIR. Seargeant and NJ
Webster were advocates for the first Nj
Rives, OF the Senate, presented the second
and the last was introduced in pursuanC
of recommendation of the Executive.
The idea of n National Bank found
iittie favor in either House as it has e
many years with the people, and resolution
declaring 1t inexpedient TO establish such Q
institution were adopted by large maoritlt
MIR. Rives' project, was rejected; tina, of Il
Executive, commonly called the Dicor
Bill, after passing through the Senate, "
laid on the table of the House of Represe
ta,ives by smnll vote.
For the present the public moneys rema
IN The same custody as, before the late $,
zion of Congress
PLAIN CITIZEN.
Philadelphia, November IL, 1897.