The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-07

any KIND ~ We have only ~ look 20 0uT ou,p c,,o
Try Tor illustrations Of the insuflicency and in,
! rity OF the proposed system What for eramnI, =
thought 70 be the best system for the collection of b
4 tolls on the New York canals? Il i he S,s,ar -
deposit with the banks. The money i rapidIv
brought into the banks, and the least noSSble ,dl
4 are len in the power Of the collectors The 1919
mass OF the funds collected are therefore aways an
deposit in the bonks which credit the Govern1,na W.
with The amount Il Is owing 10 this system Of r..
moving responsibility for such large sums az nnne
from individuals and reposng il upon banks IA,
from The very frs period of the formation of tba
canals down TO the present moment the state has no
,ost one single dollar OF the canal funds though mil
lions and millions have been collected II he .ys
TEN proposed in the state legislature ~ tale ;b
personal responsibility Of the officers employed in
The collection together with security such as pro-
posed 70 bedone by the present scheme would not
be able to command single Voel How then can
Il be here maintained by gentlemen that such am Oh
lecuonable plan rejected altogether BY prudent and
experienced Legislators, Is the best plan and ought
10 be adopedl There is law now on the Statute
BOOK thai certain disbuIsng officers shall deposit
whatever public funds come into their hands in the
Dlnk nearest TO them until required TO be paid out
whence comes the necessity Of such law why
does The law exist If penalties and securities make
The money as safe as when deposited in the blnkSl
The truth of my position is illustrated by The inan
cal history Of the Government. In 1920 MI. Craw-
ford, then Secretary Of the Treasury reported that
The amount of revenue from customs, from the com
mencement of the Goternment 10 the end of the
year 1919 exceeded 1851 100000 He also states
that the amount of lost by the Insolvency Of
those who became bound for the payment of duties
together with the amount at that time doubtful was
not quite equal to forty-fve hundredths OF one per
cent. upon the aggregate revenue which had acorn,
ed since the organization OF the present Govern
ment Yes, sir, the whole loss to the government
upon merchants bonds and their sureties in the col
lection of more than 1851 900 600 was less than on.
half OF one per cent? and this enormous amount
principally collected through the agency of the
banks Yet il is these merchants and these bankx
N auad in
discussions well as in the public prints Mr.
Crawford also states in the same report tina, The
amount of loss from the collectors of revenue from
imports and tonnage, from the collectors of the in
ternal revenue and direct tax, and receivers Of pub
| lie moneys, nearly equals that which the Govern
ment sustained on the collection Of more than S35l
100000 from the merchants! He also estimates Thai
the losses Gg tie miSaPplicdtfOH Of The public nonev b
| oNcerS Of Government emp0yed in diIHrMhg Il
greatly ereeed those rhich hare been Incurred IN e
collection! Sir these statements present most ap-
palling forease of what we are TO expect under
this Sub-Treasury scheme. IL collectors and re.
ceiyers, and disbursing officers have swinded the
Government of such enormous amounts whilst the
money was merely passing through their hands
what are we TO expect when they become the perna-
nent depositories2
Every fact goes against the system as proposed BIZ
this bill and at the same time every fact goes in ia
'vor of the system which il is now suddenly proposed
to cast aside! Can it be possible that gentlemen
wish to expose the Treasury il will be exposed BY
officers or those who may be employed under this
system But, l look at human nature as il is |
look at the temptations TO which they are exposed
The confidence OF individuals in their integrity
may be unbounded, and they will never suspect il
till put 10 the test of such temptations will be pre-
| sented under this system | mean no unnecessary
or improper dsparagement when say | have no
faith in the safety of the public money if this scheme
goes into operation There is danger in every stage
/ of it, And no opportunity will pass unmproved
where the temptation is suffcienllypresented There
| is no safety in it,
5" You may as well spread out the unsunnd heaps
or mser's treasure by an outlaw den,
And tell me ii is safe, as bid me hope
Danger will wink on opportunity"
So far from there being no danger in the plan,
there safety in it, But in the other there is the
| absence of danger.
/ Ii has been argued that the public money by being
placed in deposite with the banks goes TO assist
them, and the gentleman who has advanced this
idea thinks that i ought not to he But affirm
on the contrary that II Is right and proper that the
public money should answer so useful purpose
should go 10 promote and assist the objects of the
| commerce of the country. The people are entitled
TO this benefit But if you take away all the specie
from the vaults of the banks, you take away these
means; they will not be able to do any thing; and
not only will they lose the advantage of operating
with the amount deposited, but you take away conf
dence from them, and they can do nothing.
IL is objected against the system of depositing the
public funds with the banks that they operate niur-
ously as means of stimulating TO speculation and
overtradng, There is, however, a bill before You
which will effectually prevent overtrading mean
the warehousing system BILL by which merchants
will pay the duties in cash. not long credits but
on receiving their goods from the public ware
houses. The danger of overaction, in reference 10
importaons, will be by this system removed as the
merchants will have TO pay the duties not as under
the existing system, after the goods have been
thrown into market and disposed of, but at the pc
Of hrin II, *
will not import fresh quantities Of goods before the
duties are paid on former importations.
Why do gentlemen wish, after the experience of
a good system, to adopt new experiment? for let
il be remembered, the Banking deposit system, has
worked well, and the present crisis is truly
ception TO general rule. You might well say
when steamboat had burst its boiler that we ought
in consequence to abandon the use of seam and in
place OF il try the experiment of balloons The
sequences would be we should come down again to
our mother earth with broken bones or with a bro
ken neck. Such indeed will be the result Of the
adoption Of this scheme
There is no other mode 10 enable the banks to re-
sumo specie payments than the mode proposed by
the Senator from Va. Mr.. Rives)
This amendment will create confidence and when
confidence is revived they will be able TO resume
That time is not far distant if the confidence of Go
vernment not Withdrawn from them but if the
measure of this bill is carried into effect il will b.
impossible for them to resume.
With respect to the subject of Executive patron
age it is not my intention TO detan the Senate with
any remarks upon this part of the Scheme. What
the Senator from Virginia has said upon il is forci
lie and conclusive on this point. Let us however;
bear in mind that are not now legiSlating either
for the present for the past but for the future.
| apprehend no danger from the present Executive.
In him have perfect confidence. have known
him from early manhood walkingwithin the bounds
and limits of the Constitution but the day may ar
rive when the chair of the Chief Magistrate may be
filled by an individual ready TO abuse his trust, and
then our action will have furnished him with the
means and the power
Mr. President this is most important crisis in
the affairs of the country. wish other gentlemen
could appreciate il as do We might then avert