Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-08-16
From the Hartford Times.

has been thrown out Of gear by the failure
of tho banks.-The management of finan-
cial interests, in all countries, and under
ak forms of civil policy, is the most difficult
concern of government. In most coun-
tries the difficulty consists in raising the
necessary revenues from the people, Cor
which purpose ministers have ''studied ma
ny Devices" The minister who could
levy the most..money from the people, with
out exciting clamor; who could devise
the most artful and insidious means OF ex-
tracing money, SO that whilst the people
were oppressed and impoverished by taxa
ton, they could no, discover the hand that
imposed tho heavy burdens upon them,
was regarded as tho most able fnan-
cier, and often the most popular minister.
Our situation at least, for some years,
has been the reverse OF this the diff
Guilty experienced has been, to reduce
and keep down the revenue, and TO take
care of it when collected. The difficult
ty is not in the collection, bot in the depo-
site and safe keeping, of the public reve-
nue.. Muchis said, about the financial sys-
tenn of the government, and in general, !
think, with very vague notions of what that
system consists. 1t might naturally be
supposed, that the financial system Of the
country meant, primarily, the various laws
of taxation whether direct or indirect, and
the manner Of executing those laws.--But
this is not the case in the United States |;
our financial system, has no connection
with the collection Of the revenue, whether
from the customs or public lands, but re-
lates merely TO the deposite, safe keeping
Transmission and disbursement of the pub
lie funds, and to the currency in which the
collection and disbursements shall be made.
The act incorporating the Bank of the u
nitcd States in 1916, established financial
system, which consisted virtually, in con-
shutting that bank, the Treasury Of the u
nited States, and the agent for conduct
ing all The monetary concerns Of The Gor-
ernmem. All public funds were required
to be deposited in that bank, Except
|. those collected where it had no branch) it
was lis duty to transmit funds where they
. might be wanted, and its notes were made
lawful tender Gin violation Of the spirit of
the constitution for all taxes and dues to
the government. The duties of the Com
missioner of loans, were transferred to the
bank, which also had discharged those of
Pension agent. Nearly all the money
transactions Of the government, except the
collection of the revenue, were performed
by monied corporation. These duties,
constituted an important and highly res
ponsible part of tho public service. The
bank became an agent or an officer OF the
federal government, charged with some of
highest and most responsible functions of
the government. Was not this whole pro-
ccedlng manilestly in violation of the con-
stitution ?-What security had the public
that these trusts would not be abused. The
usual guarantees which the Constitution has
provided, did not apply TO a corporation.
1t could not be impeachcd it had no char
acter, personal or political, to maintain the
acts of a corporation are not the acts OF
any Individual who may be held accounta-
bic. They are not the acts of the stockhold-
ers,nor ofthe directors, individually or coec-
lively, nor are they the acts Of the Presi-
dent, or other officers Of the bank but
they arc the acts If the corporation, mere
legal abstraction. 1t is clear that such q
fictitious, ideal person must be entirely ex-
empt, not only from impeachment and all
moral restraint, but it is entirely removed
from those restraining and salutary innuen-
ces, that bclong to an Independent press,
which is one Of the most essential parts OF
every free government: In theory, there
fore, this financial system was bad, and in.
volved double violation Of the constitution
first, in creating corporation, and second
ly in deyolving upon it some Of the highest
duties Of the government, which should
have been discharged by officers, who
would be held TO all the checks and respon-
sibilities, personal or political, which the
constitution and the laws have provided.
How did this system work in its practical
operation? So far as regards the mere
discharge of the services required, it may
be admitted that for time it went on well
enough; the bank received the public funds
Transmitted them TO points where they were
wanted, and paid them ont on the drafts
of the Treasurer. Receiving and using
the public funds, without any compensation
the bank was deriving large profits from
its co-partnership with the government, and
every thing went on like clock.work. Blu
the moment the bank found it had interests
adverse to those of the government, were
Witnessed the consequences Of employing Q
totally irresponsible and powerful agent, land
entrusiing to it, the entire funds of the gov.
eminent. Money is power; indeed, al
power according to Henry Clay, may be
resolved into that Of the purse. With {
capital Of thirty five millions, len or fiftccr
in private dcposites, and reinforced by tho
entire revenue of the government, it Weld
cd the entire monied power Of the country
Mr.. Biddle stated, under oath, to a com.
mittee of Congress, that it could at any
time, break any of the state banks.
When tho Executive, in conformity tc
an express provision of its charter, direct.
cd the Withholding of the deposites from the
United States Bank, in 1893, SO confident
was the institution Of its strength tina: il
undertook to resist the measure, and ar.
ray itself against the Government, TO which
it owed its existence. This brought on the
panic Bank war of 1884, the most memo
rabe struggle in the history Of this OF any
other country. 1t is perhaps, the first ex
ample on record Of the entire moneycC
power OF q great nation, directed by ont
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