The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-20

underyalue the benefits Of a salutary credit 10 any
branch Of enterprise. The credit bestowed on pro-
Dily ana industry IS The Just reward of merit and an
honorable incentive 10 further acquisition Nome
oppose il who love their country and understand its
welfare"
The Message contains no attack on the local
banks. In recommending the Sub-treasury scheme
(about which there is an honest difference of opi-
mon among many OF the warmeSt friends Of the de-
mocracy and Mr.. Van Buren) one reason assigned
Is, that il will be for the interest of the banks. He
says
, II may, indeed, be questioned whether il is not
for the interest Of the banks themselves that the Go
vernment should not receive their paper. They
would be conducted with more caution and on
sounder principles, BY using specie only in its
| transactions, the Government would create de-
mand for IT, which would, to great extent prevent
its expectation, and, by keeping it in circulation,
maintain broader and safer basis for the paper
| rency. That the banks would thus be rendered
more sound, and the community more safe cannot
admit of doubt"
/ Although il is doubted by many of the republicans
that such will be the consequences 10 the banks
there could be doubt of the sincerity Of the Pres-
dent in the expression OF his belief that such will be
i the result
Mr.. Van Buren is pledged to the American peo-
! pie TO carry out the policy and "lread in the foot
steps of General Jackson, and that he will faithful
/ ly redeem his pledge have no doubt General
Jackson was a friend TO the State banks They en-
joyed his confidence. In his Message recommend
ing them as proper repositories of the public money
he spoke OF them as safe and sound institutions UNI
der the direction OF honest honorable and intelligent
men. Bank directors were not considered by him
as merting the appelations of rag baronS and con
! SpiratorS with merchants 10 defraud the public so
often reiterated in the Globe and other loco foco
\ presses. The public moneys were entrusted to their
care, and after trial. he speaks of them in his Mes
sage in high terms Of encomum, as did the Secreta-
! ny oflhe Treasury in all his reports
| In his Message OF Dec, 1884 he says,
Happily it is already illustrated that the agency
OF such an institution (he U. S. Bank) is neces-
1 sary to the fiscal operations of the Government
The State banks found fully adequate to the per-
formance of all services which were required of the
Bank of the United States, quite as promptly and
with the same cheapness They have maintained
themselves and discharged all their duties while the
Bank of the United States was still powerful and
in the field as an open enemy and it is not possible
to conceive that they will find greater difficulties
when that enemy shall cease to exist"
In his Message of December, 1886, he not only
| pays them just compliment as faithful public
agents. but he speaks of an highly important service
which they had rendered the country the negotia
ton of the foreign and domestic exchanges. He
! says,
Experience continues to realise the expectations
entertained as to the capacity OF the State banks TO
perform the duties OF fiscal agents for the Govern
ment al the time of the removal of the deposites-
1t was alleged by the advocates of the Bank Of the
United States that the State banks, whatever might
be the regulation of the Treasury Department, could
not make the transfers required by the Government
or negotiate the domestic exchanges of the country
Ii is well ascertained that the real domestic ex-
changes performed, through discounts by the United
States Bank and its twenty-five branches, were at
least onethird less than those of the depoSite banks
for an equal period oftime; and if comparison be
instituted between the amounts of service rendered
by these institutions, on the broader basis which has
been used by the advocates OF the United States Bank
| in estimating what they consider the domestic
/ changes transacted ne
favorable 10 the deposite banks"
Thus we have the testimony of General jackson,
continuing for years. and down to his last message, that
| the banks sound, safe, well regulated, and per-
forming all that human angences could perform IN the
receipt, safe keeping and disbursement OF the public
revenue, and the regulation Of the exchanges. His
object to perfect the local bank system, and to
make Of the public funds incidentally, to correct
their defects, to induce them to discontinue the issues
of small notes. and thereby nfuse into common circua-
ton great portion of the precious metals.
The banks thus continued to ENJOY the confidence Of
the government and the people, notwithstanding the
efforts OF the loco foco press to shake 1t, up to the time
of the suspension of specie payments, and would still
have enjoyed it undmnishcd, had 1t not been for the
course taken by the Globe and other kindred papers,
calculated to weaken it, if not to destroy IT,
| Owing to a combination OF circumstances unprece-
dened in times Of peace, in the history of the CONNER
cial world, the banks suspended specie payments
act highly approved OF by nine tenths of the community,
and ratified by the people through their Governor and
Legislature What was the course pointed out bv duty
and patriotism, and which ought to have been pursued
in reference to this crisis OF our monetary affairs Was
it proper to denounce the banks-to cry mad dog,
to increase the panic and pressure to name the popu-
lar feeling, and to raise whlrlwlnd which would not
only PROSTATE the banks but the whole business and
commerce of the STATED And what part did the Globe
act IN this drama! In anticipation Of the stoppage and
the day in which they did stop, May 10, the
Globe says
THE idea that banks stop measure of relief,
resolves the whole matter in the public mind into
an attempt on the part of debtors 10 defraud credit
ors.' That the stoppage was summary mode
which would not be tolerated. Again" The
attempt will prove fatot to every bank, and to the
reputation of all concerned in II.
"By doing this, stopping, they will throw off
their paramount obligation TO the public If they
shake the faith which the public have in them, the
Legislature, 50 far from sanctioning the procedure,
will rather devise summary means to forfch the
charters of such have failed, and To enable the
note holders 10 reach their assets
In obedience to these instruction the loco foco fac
ton in the Legislature of our State, used all their
strength and tact to defeat the suspension law"
was in Albany the time Of its progress through the
two Houses. Gov Marcy in special message, re-
commended the passage Of this law. The message was
worthy Of a democratic Govcrnor-worhy of the man
who CALAMITY flew to the relief of the people, another
OCCASION in panic times, and saved the State from the
ravagos Of the myrmldons OF the United States Bank.
The Marcy Mortgage as it was chrstened by the
Wing press, be fresh in your memory. The occa
sion presented the dwelling and destructive propen
sites OF the loco iocos in the Legislature opportu
nifty for the commission of mischief too tempting to he
resisted. They anciod they had the banks upon the
hip" and with savage delight and keen appc,es, were
ready feed fat the ancient grudge they bore them"
But their resistance in vain The bill passed the
Senate by an almost unanimous vote, two only voting
against in the Senate and the House. by all the votes
some fifteen Agranans. They saw IN its defeat
the death-blow to business and prosperity. The
people were indebted to the banks than seventy
millions Of dollars Had the banks been placed In the
hands Of receiver by order of the chancellor Gas they
must have been had the bill failcd,) and their concerns
speedily closed, what must have been inevitably the