The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-05

al once, to abandon thai polcy-we are appealed 10
By the Senator from South Carolina, MIR calhoun)
In the name OF State FIGHTS To make war upon State
institutions, and summoned In the name Of Republ-
canism, 20 surrender Republican stronghold! Sir,
for every Republican authority that can be youehed
in favor Of the Sub Treasury scheme, hundred
might BE- addnced IN favor of State institutions, as
the repositories Of the public revenue. The Sena-
tor from Missouri, (Mr. Benton with triumphant
sense of the weight Of thai authority produced 10 the
Senaie few years ago, an extract from the opinion
OF Mr.. Jefferson, ON The consntonaliiy OF the hfst
National Bank, In which that great statesman pointed
10 the State Banks as the practical and efficient sub
siiiuie for National institution We all know that
that TOO, was the ground occupied by Mr.. Madison
and his Republican associates in the debates OF Con-
gress, on the same occasion. When the question OF
the re-charter Of the Bank came up In lSi0ll the
same ground was again taken and adhered 10 by the
organs OF the Republican party in Congress
But let us see what has been said on this subject
by distinguished statesmen Of the Republican party
10 whose opinions actual and large experience In
the administration OF the public finances gives pc
culiar and impressive weight In letter addressed
10 COMMITTEES OF this body in lSI1 by Mr. Gallatin,
then Secretary ofthe Treasury and who had presided
that Department for aterm OF enyears thai able
fnancier after speaking Of the many eonveniences
afforded by the banking system for the collection,
safe keeping, transmission and disbursement OF the
public monies, employs this emphatic language
I" State Banks, may be used, and must be used, in
case q non-renewal Of The charter Sof The Bank Of
ders this testimony of Mr. Gallatin the more impor-
tant is that Mr.. Jefferson in 1903 hen President OF
the u. S,) addressed letter to him Secretary OF
the Treasury suggesting for his consideration the
question whether Ii would not be practicable 10 or
ganise distinct machinery for holding and admi-
nistering the public funds through the officers
charged with their collection and disbursement
With his attention thus specially called TO the subject
of an independent fiscal agency, such as now pro-
posed, and with the advantage OF all the lights which
could be Obtained from free consultation with Mg.
Jefferson MIR. Gallatin reports 10 the Senate OF the
U. s., as the mature result of his experience and
reflection, thai State Banks may, and must be used
by the Treasury in OF non-renewal OF the cha
ter of the Bank of the United States"
Let us consult another great oracle of American
finance, on this subject; and however differed with
him on one Of the leading questions of his time,
canno, mention the name of Mr. Dallas on this floor
without bearing the humble tribute of my admira-
ton to the superior ability the fertile resource the
elevated moral courage and fearless patriotism with
which he conducted the finances of the nation, al
period of the greatest difficulty and emblrrass-
ment they have ever seen. IL is well known that
Mr. Dallas came into the Treasury department,
shortly after the suspension OF specie payments by
the banks in 1914, and continued through the whole
period of his administration TO struggle with all the
formidable impedmenis occasioned by that state OF
things. His embarrassments were much increased
by the wide diversity that had arisen in the value OF
the various local currencies and the consequent re-
fusal of the banks which had been employed as pub
lie repositories to receive and credit the notes Of
each other as cash. In this state of things he
driven the ceSsity of considering the very gues
on which now presented ofdiscontinung the banks
repositories, and, henceforward committing the
custody and safe keeping of the public moneys to the
hands of officers of the Government. The result OF
his deliberations is given in very interesting Re-
port submitted by him to the President in 1916
at the moment of his retirement from Office, in
which he rendered full account of his arduous and
responsible stewardship. In that paper, after refer
ing to the embarrassments have mentioned he
says In this state of things, the Treasury driv
to choice of expedienls; that is either to take
the hazard of accpmulatons of revenue in the hands
Of individual collectors and receivers, TO recog-
Mise places of deposite the banks (being however
banks of unquestionable solidity established in the
districts most affected by the course of exchanges
Many powerful considerations led TO an adoption Of
The latter measure Thus we see that Mr. Dallas,
after full deberations /" for many powerful consde-
rations" gave decided preference to State Banks,
public repositories while they had suspend
ed specie payments over the individual agency that
is now proposed, and actually employed as many as
aaetytor of those banks in that capacity, cumber-
some and nconvenient as so large number neces-
sarily was
These, Mr.. President, are authorities entitled to
no light consideration. II seems however we are
growing far wiser than the great minds that have
gone before l am of those, sir, who believe
in the progress of light and knowledge, But still,
cannot but the lessons of wisdom bequeath
ed to us by ancestors, and when see especially
the question presented again and again for
sideration and men of the highest experience saga
city and patriotism giving under every change of
circumstances, their concurrent testimony in favor
of the utility and advantages of particular system
of administration, confess my mind bows with un-
reluctant Difference to such weight of authority.
Ito be concluded IN the neat paper