The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-28

proposed Tor the adoptiono f Ccnsress by apy
preceding administration, or any preceding
treasury department, il il had been viewed in
its present favorable and superior light, il
certainly would have been recommended, but
us ii was not, regret the omission TO do il,
as conclusive evidence that il was not APP
proved. The only difficulty which has ever
prevailed, has been between the selection Of
National and State banks. some preferring
the former. some the latter. There being now
no national bank, the question of preference
is directly presented between he State bank
system aud the Sub Treasury system, recon-
mended by the Executive. The State bank
system stands preferred, not only by the
practice Of the Government, but the express
ed opinions of many Of our most able and
distinguished patriots and sages. In the year
1891, after the passage Of the act incorpora-
ting the first Bank Of the United State, Mr..
jefferson, in his official opinion TO General
Washington, as a member of his cabinet.
upon the constitutionality Of that act, resisted
the argument Of the necessity of that bank as
the fiscal agent of the Government, on the
ground that these facilities would be afforded
by the State institutions, in that opinion he
expressed himself thus:
Perhaps, indeed. bank bills may be q more CONGO
nen vehicle than treasury orders but little difference
In the degree Of convenience cannot constitute the
csssy which the Constitution makcs the ground for
assuming any non-enumerated power sst E ~
Besidcs, the srisiing banks will, without doubt.
enter into arrangements for lending their agency and
tho more favorably. there will be competition
among them for IL; whereas the bill delivers US up
bound 10 the national bank. who free refuse all
arrangement but their own terms and the public not
free, on such refusal. 10 employ any other bank
Mr.. Madison in his able and unanswerable
speech in opposition to the charter Of that
bank said,
But the proposed bank could not even be called
necessary 10 the Government most, could be but
convenient Its to the Government could be sup
Piled by keeping the taxes little in advance by loans
from individuals; by the other banks which the
Government would have equal command nay, greater,
ii may grant refuse tothcse the privilege, made
free and rrevocabe gift to the proposed bank Of using
their notes in the federal revenue"
The arguments urged in favor of the
charter Of this bank were principally those Of
its safety, economy and convenience as
depository and disburser of the public money
This was most propitious period in our
history to have adopted a system Of individual
agency, and withheld all connexion with
Duhho N ~ huu UCCn uCCtucu o8iCy 6COuOflilCdl
and convenient. When the question Of the
renewal of the charter of that bank was
under consideration, a memorial was referred
by the House Of Representatives, praying the
renewal of the charter Of that bank In his
report upon that memorial, in enumerating the
advantages Of the bank to the Government,
he speaks of the safe keeping of the public
moneys thus -" This applies not only to
moneys already in the Treasury, but also to
those in the hands Of the principal collectors,
Of the commissioners Of the loans, and of
several other officers, and affords one of the
best securities against delinquencies."
!. SAFE keeping Of the public moneys This applies
not only to moneys already in the Treasury but also TO
those in the hands Of the principal collectors Of the
commissioners Of the oans and Of several other officers
and affords one Of the best securities against Delinquent
cies"
1t is true that Mr.. Gallatin was speaking Of
national bank, yet the principle is the same
in reference to the plan proposed, for that
strikes at all banks, national or state. But to
prove that while this distinguished inancier
pavforrod National W ctato banks, lao pre-
ferred State bank 10 an individual agency,
here quote from his report to committee of
the Senate Of the 30th. Of January, 1880, up
Oh VIC Sdmc SuuJcCl.-Hc says aIt eN#
The banking system is now firmly established and,
its ramicatons, extends every part Of the United
States. Under that system, the assistance Of banks
appears TO me necessary for the punctua cocc ion Of
the revenue and for the safe keeping and transmission
Of public moneys. That punctuality Of payments is
principally due TO banks. 10 fact generally acknow-
lodged 1t is to certain degree enforced by the re-
fusa Of credit at the house. long as former
revenue bond actually due, remains unpaid. But
think, nevertheless, that in order ensure that preci-
sion in the collection, which depends correspond
ing discharge Of the public engagements, would. no
use was made OF banks be found necessary abolsh
altogether the credit given on the payment Of du-
tles--a measure which would affect the commercial
capital, and fall heavily on the consumers. Tat the
public moneys are safer by being weekly deposited in
banks instead OF accumnatng in the hands Of collect
ors, is selEevident And their transmission, whenever
this may be wanted for the purpose Of making aments
in other places than those Of collection canno with
any convenience, be effected on large scale in an ex-
tensve country, except through the medium Of banks,
or ofpersons acting as bankers.
"The question, therefore, is whether bank incor-
porated by the United States or number Of banks in
corporated by the several States be convenient for
those purposes
State banks may be used and must, in case of
non-renewal OF the charter be used by the Treasury
In this paragraph is. found the expressed
and decided opinions Of Mr.. Gallatin not only
that the banking system is firmly established,
but that if there be no national bank, the GO
vernment MUST resort to State banks, and that
the public moneys are safer in banks than ac-
cumulating in the hands Of individuals, the
opinion is entitled to great weight, as coming
from most able and experienced fnaneier
In addition to these, refer to the opinions
Of several distinguished republican members
Of this House, in the session Of 1910, upon
the same subject. ~
Mr.. Burwell said, .
said sir, il must be shown that the bank is neces-
say to the operations Of the Government without its
aid fiscal concerns be managed So Ear from
subscribing TO the necessity Of the bank believe the
revenue would be equally safe in the State Banks and