The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-16

formed all the important duties of collecting, keep
ing, and transferring the public money, as well as
making large disbursements. The remainder were
employed chiefly as repositories Of the agents of
the War and Navy Departments.
Il was foreiold by competent judges, that the act
Of Congress Of June 1885, even before Il passed into
a law, would embarrass the deposite system, IL 1t
were not overthrow under II. There cannot be a
doubt but that the unfortunate and embarrassing pro-
visions of that act together with the ill-judged man
ner In which was executed by the Secretary OF the
Treasury were the sole causes Of defeating the sys
tenn
In the execution of that act millions of dollars
were put under orders for transportation from one
section of the country to another Finy or more
new banks were selected. In many cases the newly
selected banks were represented rs making war on
the old ones; thus presenting the singular spectacle
of a system at war with itself
With what sense Of justice or propriety can the
Secretary Of the Treasury and Others who the sd
vocaes and supporters Of the system, under al these
circumstances, now wheel round and say the Opposite
System has failed and impute such failure the faul,
Of the Deposte Banks, and unite in charging them with
per6dy and treacheryi It is foul Islander those
institutions which originally, well as on Of
from all that have heard and read, that with the
difficulties which the execution Of the act Of June,
1885, carried with it. had there been the head Of the
Treasury Department, anecedently and subsequently,
qualified, ready and willing, perform the duties
appcrtainng to it. and ready to all proper
responsibility, they could have been surmounied, the
catastrophe which has beaen the country avered, and
the State Bank Deposte System have been in
full operation at this day
Those under whose supervision the system has been,
may maintain that il has failed from its inherent defects
for the purpose Of covering their lack Of Judgment
and ndiscreton in the management Of it, Practical
men, when made acquainted with the facts, will dis
puts it,
1t appears to me, that it is quite easy matter to
arrange all the differences which lead to separation Of
the advocates Of the Sub Treasury and Special Opposite
Schemes, and those who oppose them; and for both to
unite and settle down in recognizing SYSTEM which,
until recently, obtained their general support.
Let them agree to reorganize the State Bank Depo-
site System. Avail of the experience Of the pas. to
perfect it. Limit the number to be employed by the
Treasury Department proper, to twenty five aud less
than that ifthe convenience Of the department will ad
init. These banks must be employed with the sole view to
should be as to the safety and probable fidelity with
which they will perform their duties. No selection
ought ever to be made to CRAFTY friends or to aid in
building up banke Such banks, in their corporate
pacitics, should be required to stand aoof from
political affairs. So far relates to the receipt and
disbursement Of the public money, they should be used
by the Government the they are by indivi-
duals. In any banks are wanted, in addition TO
those employed by the Treasury, for the convenience Of
the discussing officers Of the War and Navy Depart
ments, let the heads Of those departments appoint
them; the banks employed by the Treasury De-
part to be among the most respectable in the places
where they are selected Those banks to become OBJ
gaed to receive, keep, transfer and dsburse the pub
lie revenue formerly. Let it be made the duty Of
those banks by legislative act to make frequent settle
with other banks and often they may deem
necessary under the supervision and with the consent
Of the Secretary Of the Treasury, call for payment of
balances in specie to an extent sufficient to check
excessive issues and preserve sound circulating me-
dunn It is in this manner the collection and keeping
Of the public may be made auxiliary securing
sound currency. II furnishes lever Of irresistible
power for that purpose 1t was that which gave the
United States Bank its great power the currency
and State institutions, which it exercised, while it pos
sessed it. can hardly suppose that any will con-
tend, that this power cannot be employed quite eff
GENTLY through the agency of twenty State banks ad
vsed by the head Of the Treasury Department, by
twenty branches Of National Bank, directed by the
President Of the whole In the latter case, this power
would be controlled and directed entirely by foreign
to their interests and feelings while in the former case
would, in great degree, be kept under the control,
advise and management Of those located among them,
and feeling a interest and partakng Of common
sympalhes with themselves. In the latter case, the
final control would be in the hands Of one who could
have none other than the public interest to influence
him. while in the former, private corporate interest
alone might predominant.
Let restrictions be imposed on the banks employed
as fiscal agents Of the treasury in relation to sra
dual suppression of small notes. both in receipts Of
the public revenues, and in their own dealings as
TO supply metallic medium for small transactions.
1t is within the knowledge Of the writer that GER
tain banks stand ready, should the deposite system
be recognized, and they be appointed under it as
fiscal agents, to make an arrangement with each
other, whereby the notes Of any and EACH shall be
received in payment Of all public dues wherever Of
fered. This would afford all the conveniences to
the public which were ever derived from the United
States Bank and branches while in existence.
When the banks shall have resumed specie pay
ments, which, with kind spirit manifested towards
them by the Government will not be long deferred,
the foregoing principles established by legislation,
and with talented head of the Treasury Depart
ment there can be no doubt that the revenues can be
collected formerly, always at the command of the
Government, paid in specie when required, sound
currency be maintained, harmony and good will be
restored between those who now at variance, and
a currency of equal and like value be secured for
the uses of the people as for those of the Govorn-
ment.
AT my leisure may supply another communica-