The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-17
PHlLO- FISCUS.
FOR THE aADIsoNIAS.
No. XII.
THE SPECIAL DEPOsfTE PLAN

No XII
THE SPECIAL DEPosITE PLAN.
This is certainly admirable and excellent pIa,
for the safe keeping Of the national revenue durip,
The suspension of specie payments by the banks
The revenues accruing from customs and the o,be,
sources being collected in gold and silver 10 the er
clusion of the notes of the suspended State Banks
is evidently and eminently proper that the gold and
silver, thus collected, should not be placed on dcp
site with those banks with liberty TO hold on to the
whole amount, great or small and TO pay out their
own notes instead for which, ON their return upon
them, and in the face of the just demand The specie
is denied. That the gold and silver, thus collected
should be placed with those banks on special depo>
Is evdenlly andeminenty proper and p2Elic in rhh,
that, while the revenue, thus collected and will
be kept by the banks as safely as il col kept in
the strong box of the personal agent, Il nry will
be saved the expense Of The untn bedientn
and the increase of Executive parona ihseparabe
from ii. Buthe question is, whetherihe plan of syc
eiat dposes will be expedient and proper when the
State Banks shall have resumed specie payments.
and their notes convertible into coin and practically
equivalent TO CON- shall again become receivable in
all collections Of the revenue E
II will be perceived that the question embraces the
assumption that the notes of specie-payins State
banks will again continue TO be received in pay
ments of public dues shall take for granted that
enough has already been urged to show that they
ought to be thus received when the banks shall have
resumed specie payments. Then the question is
narrowed down to the inquiry, whether it be expcd-
en and proper that the of State banks thus re-
ceived should only be placed on deposite with the
State banks for safekeeping, with the express un-
derstandng and special agreement that the identical
notes deposited shall be refunded or paid out BY the
banks when called on for the amount
In the further solution of the question: it is neccs-
sary ascertain what's meant by the terms Especial
deposite,"
When moneys or funds ofany kind are put on d.
posite with bank for safe-keeping, without any
express agreement an implied contract results from
the nature of the transaction that the bank will re-
fund the amount to the depositor in its notes or
in such other kind of money as the depositor mayb
willing and consent to receive When moneys or
funds of any kind are put on deposite with
bank for keeping, with the express agreement
that the identical funds are to be refunded to the de-
positor, or to his order, application, the bank has
right in any wise to use the funds while dcpo-
sc nor when applied for, to offer other funds,
though Of the same Species and require the deposi-
tor or his assigns to receive them. This, | under
stand, to be special dcposite Or, In other words
special deposite may be defined to consist in this
that the selfsame thing deposited, and not another
thing in lieu Of it, though Of the same kind of
equal value, is to be refunded to the deposition or
his order, given in the mode prescribed.
Now, let us see, testing it by this definition, whe
ther the proposed plan Of specially depositng the
revenues of the nation with speciepaying State
banks collected and subssting in their notes, will be
expedent and proper. And in what will the exped-
ency, the propriety. the utility OF such special depo-
site consist 7 What the advantage that can result
from it When the revenue is collected and subsistS
in the notes of speciepaying State banks and put
on deposite with them for safe keeping why may
the Government, thus being the deposition, as well
receive from such banks any other of their notes or
the notes of any other peciepaying bank, those
| identical ones which were deposited 1t would, in
fact just BE- to contend for sound black-eyed pea,
in preference to another ofthe same sort and size
But lei ii be taken to be true that the plan Of spe-
cia deposiie proposes, as in fact it may, when the
revenue is collected in the notes of specie paying
State banks and is deposited with them, for safe
keeping till it is wanted for disbursement that the
amount is to be refunded in gold and silver, instead
of the identical notes deposited in the banks
suspend specie payments during the time they hold
the amount on special deposite. Giving the meaning
of special depositen this comprehension, and the
plan is obviously Objectionable in this, that the
banks by entering into such special agreement or
contract with the Government, would confer on il a
privilege which, ina suspension specie-payments,
would be denied to the holders of their notes and
their other deposors. And is there reason, or right,
or justice, that the General Government, being de-
position shall stand better footing, than the State
Government, also being adepositor-shall stand on
a better footing in case OF suspension OF specie
payments than the holders of the notes of the depo-
site banks than their other depositors? If there
is reason, right, justice or sound policy, or pro-
prety in it, let the people be informed in what and
wherein it consists. Besides; is it TO be expected
that the Safe banks, having resumed specie pay
menS, will consent to take the national revenue on
deposte on such terms, extending such contingent
advantagesto The General Government over the hold
ers of their notes and over their other depositors
PUBLlUS.
u " L.