The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-17

A LETTER FROM MR. SMITH,
MEMBER or CONGRESS FROM MAINE, IN vNpIcAroS
or HIS yoTE AGAINST THE sUB-rREAsuRy BILL.
LETTER III.
To he Editor of the Eastern Argus
Sr--As first in importance among the advantages
that the public assured by President jackson and
his supporters OF realizing from local bank agencies,
that OF having the pull lie money continued much
within the reach Of all classes Of enterprsng citizens,
"Jor the benefit Of trade" il had been,
conld be, under national bank system OF agencies.
The principle and policy Of strengthening and extending
the snews Of and enterprise and Of encou-
raging popular industry, by such disposition Of the
moneys drawn from the pockets Of the people, to carry
on the operations Of government would least abstract
It from the daily uses Of the people, were most fully
recognised, adopted approved, and maintained by Pre-
sden Jacksons administration and all its supporters.
This was pointed out and boosted Of by ALL a dis
tnguishlng feature Of benefcent government, under
wise mans administration, and signaly Illustrative OF
its identity with the comfort, convenience and pros
pery OF the people. The idea OF locking up in STRONG
BOXES, placing armed sentinel watch the
millions Of dollars that requisite to the operations OF
the government from the periods OF their collection TO
those Of their dsbuI ard the idea oil both collect
ing and discussing these millions in hard COIN and
therefore paying out OF the Treasury the identical coin
that paid ill., all human integrity between the
citizen and his government had to end, that
one could no longer be credited out Of sight by the
other, as II government officers longer capa-
BILE Of making transfers Of public funds by figures and in
writing, but must in each instance have the hard sub
stances counted out by one, satisfy his compre-
henson that all was right and safe, might be
expected TO have been the in the rude days OF
human association, before letters figures known
such ideas OF conducting the financial affairs Of the
National Government had no place In the policy Of
President Jackson, Of his supporters in any part Of
the Union. On the contrary, it both his and their
policy to make the government Of this great nation
as lightly and felt as little in the nature Of burtben,
upon the enerpnslng citizen the increased lberay
and intelligence OF the age would admit And to this
end their united purpose abstract as little from
the fiscal means OF the people for the purposes OF 60
vernment could possibly be made answer the ends
Of government, and to permit that little be at
the service OF the commerce and enterprise Of the peo-
pie at all times, when positively needed for the uses
of Government Need fortify this well known feature
in the policy Of President Jackson! Then let recall
TO the political readers mind the emphatic assurance
OF President jackson in the document to which have
adverted before mean the memorable paper read to
his cabinet the 18th Of Sept, 1885, relative to his
new disposition Of the public funds among the State
Banks, in preference to the U. s. Bank.
"The funds Of the government" said he, will not
be annihiatcd. They will Immediately be issued FOR
THE BENEFIT TRADE. And if tie Bank Of the United
States curtas its loans the Stale Banks, STRENGTH-
ENED BY THE PUBLIC DEPOSITES, seiR extend
theirs. What comes in through one bank will go out
through others, and the equilibrium will be preserved"
Following up this policy, President Jackson through
his Secretary Of the Treasury in letter addressed
the Girard Bank in Philadelphia, on the 18th Sept,
1885, thus enjoned the duty of local bank deposit
tories
1.-THE deposites of the public money will enable you
to afford INCREASED FACILITIES TO COM
MERGE, AND EXTEND YOUR ACCOMMODA-
TIONS TO INDIVIDUALS. And as the duties
which payable to the government arise from The
business and enterprise 81 the merchants engaged in
foreign trade, is but reasonable that then should be
preferred in the additional accommodation tchch The
public deposites oiA enable your institution to gire"
Similar instructions given to the other deposte
banks, TO lend the money to the people. Thus in
letter to the Planters Bank at Natchez of Oct. 8,
1888, the Secretary, Mr. fancy, said
"The depostes Of the public mouey will enable you
to afford increased facilities to the commercial and
classes Of the community and the Department
anticipates from you the adoption Of such course
respccting your accommodations, will prove accepta
bic to the people and safe to the Government"
In his message Of December. 1888, the President
thus spoke Of the good effects Of this liberal policy
wards the people, in regard to the use Of the public
money;
~ am happy to hear that through the good sense Of
our people, the effort [of the u s. Bank to get up
panic has hitherto failed and that through the increased
accommodations ,ohich The Stare Banks hare been
bed to Afford no distress has followed the exertions OF
the bank"
In speech of Mr. Polk, on the 10Th Feb, 1885, this
policy was thus trumphantly culoglscd
"Thc country, then, has been prosperous but she is
indebted for that prosperity neither to the Bank Of the
United States, to panic but 10 The nc,o impulses
sprnging ont Of The employment of State Banks, as
fiscal agents Of lie Government
The argument of Mr. Polk, on the 30th Of December,
1888 the House Of Representatives, and the business
of which all republicans in the House assented to and
indicated by votes and speeches, was this
h, hanl al lF,.va
done but for the transfer Of The deposites curtaed their
discounts in the proportion with the Bank of the
United States, the whole curalment in the four months
iron Aug to Dec l, 1888, would not have fallen
much short Of nineteen millions Of dollars. The Go
vernment deposes in the State banks however, hare
enabled em pro tento ITO that extent 10 mitigate The
pressure" ......
Again he says:
"What the effect Of the transfer Of the deposites
Why, You do diminish to certain extent, the ability Of
the deposte banks; but at the time that you do
it, you enhance the ability Of bank across The street 10
case the pressure"
In fact, it was made matter Of exultaon and boast
ing well by the President Of the United States, and
by his sustainers by the administration orators in
Congress, and by republicans and republican press
es out of Congress- that the local banks could be made
TO oustrip the National Bank itself in it's business ope
rations and accommodations to the people, by the pow
erful aids extended to them by the government depo-
SITES In the special report of the Secretary OF the
Treasury to Congress- in December, 1884, it is exult
ingly said
"This Department has evidence, in the returns its
files that onu three Of the selected banks in the West
and Southwest were performing business in domestic
exchanges early in September last, Of nearly million
more than all the screen branches Of the U. s. Bank,
situated in that quarter of the country"
In the speech Of the Chairman Of the Ways and Means
on the 10Th Of Feb 1885, this feature in the ope
rations Of the local bank system is most triumphany
urged upon the attention Of Congress and the country
And who is there no,c in the republican ranks who then
called himself republican, does not recolect well what
hearty response he gave to this alleged characteristic
of the then administration policy, by which the public
money was being made as useful TO commerce, enter