Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1837-09-14


every form which the sagacity Of interest can
Suggest. The banks, under such system,
are stimulated to make the most Of their for
tunate acquisition; the deposltes are treated
as an increase Of capital; loans and circuar
ton aie rash'y augmented, and, when the
public exigencies require return, itis at
tended with cmbarrussments. not provided
for, nor foreseen. Thus, banks that thought
themselves most fortunate when the public
funds were received, find themselves most
embarrassed when the season Of payment
suddenly arrives.
\ Unfortunately, too, the evils OF tbe system
are not limited to the banks. 1t stfnsulates
general rashness of enterprise, and aggra-
Yates the fluctuations of commerce and the
currency. This result was strikmgly cxhi-
bited during the operations of the late dePos-
ite system, ard especially in the purchases Of
public lands. The order which ultimately
directed the payment Of gold and silver in
such purchases, greatly checked, but could
not altogether prevent, the evil Specie was
indeed more difficult to be procured than the
notes which the banks could themselves cre-
ate at pleasures; but STILL being obtained from
them as loan, and returned as a depOslte,
which they were again a! liberty to use, It
only passed round the circle with diminished
speed. This operation could not have been
performed had the funds Of the Government
gone in,o the Treasury, TO be regularly dis.
bnrsed, and not into the banks. u be loaned
ont for their own profit, while they were per-
United to substitute for it a credit in ac-
count
In expressing these sentiments, I desire
not to undervalue the benefits of a sslutary
credit TO any branch Of enterprise. The
or avpI, md ot is
the just reward of merit, and an honorable in.
centivc to further acquisition. None oppose
it who love their country and understand its
welfare. But when it is unduly encouraged
when il is made to infame the public mind
with temptations Of sudden and unsubstan-
tial weath-when it turns industry into paths
that lead sooner or later to disappointment
and distress-it becomes liable to censure,
and needs correction. Far from helping pro-
| bty and industry, the ruin to which it leads
| falls most severely on the great laboring
classes, who are thrown suddenly out Of en-
/ Iploymcnt, and by the failure Of magnificent
schemes never intended TO enrich them, are
deprived in moment Of their only resource.
Abuses Of credit and excesses in speculation
will happen in despite of the most salutary
laws; no Government perhaps can altogether
prevent them; but surely every Government
can refrain from contributing the stimulus
that calls them into life.
! Since, therefore, experience has shown,
that to lend the public money to the local
banks, is hazardous to the operations of the
Government, at least Of doubtful benefit to
the institutions themselves, and productive Of
disastrous arrangement in the business and
currency of the country. is it the part Of wis
dom again to renew the conncxion?
II is true that such an agency is in many
respects convenient to the Treasury; but It is
not indispensable. A limitation of the ex
pcnses of the Government to its actual wants,
and Of the revenue tn th"se expenses, with
convenient means for its prompt application
to the purposes for which it was raised, are
the objects which we should seek to accom-.
plish. The collection, safe keeping, transfer
and disbursement of the public money, can.
it is believed, be well managed by officers of
the Government. Its collection, and, to a
greut extent, its di, burscmcnt also, have in.
deed hitherto been conducted solely by them:
neither National nor State Banks when en-
ployed, being required to do more than keep
It safely while in their custody, and transfer
and pay it in such portions and at such times
as the Treasury shall direct.
Surely Banks are not more able than the
Government to secure the money in their
possession against accident, violence or fraud
The assertion that they are so, must assume
that vault in bank is stronger than vault
in the Treasury; and that Directors, Cashiers
and Clerks, not selected by the Government,
nor under its control, are more worthy Of con-
fdence than officers selected from the people
and responsible TO the Government; officers
bound by official oaths and bonds for faith
al e Al
y subject to the supervision of Congress.
The difficulties of transfer, and the aid
heretofore rendered by banks. have been less
than is usually supposed. The actual ac-
counts show that by far the larger portion Of
payment is made within short or convenient
distances from the places Of collection and
the whole number Of warrants issued at the
Treasury in the year lS34-a year, the result
of which will, it is believed. afford a safe test
for the finturc-tel short Of five thousand, or
an average Of less than one daily for each
State; in the city Of New York they did not
average more than two day, and at the city
of Washington only four.
The difficulties heretofore existing are,
moreover, daily lessened by an increase Of
the cheapness and facility Of communication
and it may be asserted with confidence, that
the necessary transfers, as well as the safe
keeping and disbursement Of the public
moneys, can be with safety and convenien nee
accomplished thro' the agencies of Treasury
officers. The opinion has been, in some de-
gree, confirmed by actual experience since
the discontinuancs Of the banks as fiscal
agents, in May last; period which, from the
embarrassments in commercial intercourse,
presented obstacles as great as any that may
be hereafter apprehended.
The manner Of keeping The public money
since that period. is fully stated in the report