The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-16

the standard OF value which render uncertain the re-
wards Of lin tho Message speaking Of the
remedy he says II has been seen, that without the
agency Of great monied monopoly, the revenue can
be collected, and conveniently and safely applied to all
the purposes OF the public expenditure u ID also as
certaned that instead OF being necessarily made to pro-
the evils Of an unchecked paper SYSTEM the man
agement Of the be made auxiliary to The
reform which the Legislatures OF several oil the States
have already commenced regard TO the suppression OF
small bills and which has only TO be foslered by proper
regulations on the part OF Congress- to secure practi
cal return TO the exteut required for the security OF the
currency 10 the constitutional medium, Severed from
the Government political engines AMI not suscepii-
BILE of dangerous extension and combination, the State
Banks will not he tempted, will they have the pow
or which have exercised, 10 divert the public
funds from the legitimate purposes Of the Government
The collection and custody Of the revenue being, the
contrary, Of credit TO them, will increase the
security which the States provide for faithful eSccn
ton Of their trusts by multiplying the scrutines to
which their operation and accounts will be subjected
Thus disposed as well from interest the obligation
OF their charters il cannot be doubted that such
dtons Congress may sec fit to adopt respecting the
deposites in these institutions with view to the gra-
dual disuse Of the small bills viii be checrfuly comp
ed with and that shall gain, in place Of the
Bank of the u States, practical reform in the whole
paper system Of the country. IT, by this policy
ultimately witness the suppression OF all Bank bills be-
low twenty dollars, it is apparent that gold and silver
will take their place, and become the principal circu
lating medium in the business Of the farmers
and mechanics Of the country The attainment OF such
a result will form in the history Of country
which will be dwelt upon with delight by every true
friend Of its liberty and independence"
Il is impossible that any man can Doubt that when
Gen. jackson penned this paragraph, he looked TO the
employ Of State Banks the permanent deposito
res Of the public revenue and that he sought to effect
such reformation in their construction would secure
the country sound currency aud protect it against the
necessity OF recurring 10 another National Bank 1t Is
impossible to believe having such objects in view, that
he could have entertained the design imputed 10 him
by the Globe-a design much at war with that OBJ
ject.
The Secretary Of the Treasury, in his Annual Report
of December 8, 1885, says :' The department takes
pleasure stating that the public money continues 10
be collected and deposited under the present system ..
selected banks with great aud economy all
and with greater in some than III any former peuod--
The transfers Of il TO every quarter Of the country,
where il is needed for disbursement have never been
effected with more pronpttnde, and have been made
entl ely free OF expense TO the treasury
In all these views of the late President | heartily
concucd and for these and many other of his const-
tutional opinions sustained his administration to the
utmost OF my poor abilities but now am called upon
to abandon these views and member Of that party
with which have sincerely acted, to adopt views to
some extent of directly opposite character, This
not prepared to do, until my judgment shall be con-
vino cd that these opinions of Gen Jackson
Gus, which very far from being the case at this time
cannot perceive in the foregoing quotations single
expression, indicating the part of General Jackson the
propIiety of demanding gold and silver exclusively fol
the public. dues Of separating the Government from,
all connections with the banking institutions OF the coun-
| try The indications directly the reverse.
The Globe to think indeed expressly asserts,
that Mr.. Gs amendment rejected from wish to
try the State Banks first" do not know how the Globe
Al tk,
who voted agans, the amendment. It's opinion may be
correct but am strongly inclined to the opinion, that
many voted against It, because of their belief in It's utter
| mpracticablty. Among those who voted for it, | see
the names Of some gentlemen, who am confident are
decidedly favorable to National Bank; and do not
doubt that when they voted for this scheme, they be-
eved 1t was of the surest aud most speedy
of securing their desired object growing out of their be-
lief that it would utterly fail when reduced to practice
This expression of the Globe proves that it should
be 10th to- believe that the Republican party rejected
sound san,ary scheme, for the purpose of expert
mentng in the State Banks. 1t cannot be so,-lt Is
said by the Globe the system has been tried Mr. Bid
dies boast that this great establishment, with foreign
connections, could destroy the State Banks, is fully
fed, How has the system been tried, and how has i,
failed The system has not been tried for it has not
had time to receive the important remodellng recon-
mcnded by General jackson. The reforms which he
suggested could not be suddenly ntroduced-It is the
work Of time, in which there be the cooperation
! Of &c State Legislatures. The reform gong on
many States had adopted his views and Ind lncorpora-
ted his suggestions into their banking institutions Gen
Jackson himself spoke OF work OF time, not capa
bic OF beng suddenly accomplished. AS far cxpe-
rence had tested until the present Unprecedented
vulsion IN commerce. had the concuIrlng testimony
OF the late President and his Secretary that the system
succeeded admirably, and they congratulated the
try upon its success-nor did either of them, any
public paper which emanated from them, express the
slightest dstrust, previous to the late suspension oil
specie payments. Is there any proof in the suspen-
sion OF specie payments that the system has failed
None whatever. The unexamped revulslon which has
been produced in the trade and commerce of the
try may well have occurred under system exclusively
metallic and the sudden rush upon the banks for specie,
may well have justified the suspension If we look to
the interest of the country The safety Of the banks
| do not now intend to discuss this question: have
neither the time the materials necessary to such
dlscusson- only mean to say that there is proof
III the present unexampled depression, that Mr. Bdde
has Frustrated the State Banks, or that the dcposc
system has failcd-and do not doubt that the deve-
lopmens Of time will dsprovc the asseron--I would
only ask the Globe, whether being the organ of the
administration, its lntmaons Of the present scheme
shortly after the pressure commenced, may not have
exerted very decterious influence upon the credit OF
the banks and aided producing the very result which
has taken place do not mean intimate that such
was the design.
To the scheme sc II there are many objections
L. The fact fht Banking dcsply rooted usio our
system, that ,rH be d6cah 10 gel rid Of IT. for many
gears. 1t will he difficult to harnonilc the action OF
twentysix State governments to reform the bank
ing system and get rid Of It's Objectionable features,
much more to destroy it entirely IT, then, the system
is to prevail in any form, paper will constitute
rial part Of the circulation of the country. | cannot,
therefore, perceive the proprcty OF tho Federal Govern
ment requiring different medium for its tons
from that OF the great body of the people The trans
actions Of the people being much more extensive than
that OF the Government, they much in need Of
sound circulating medium, tho Federal Govern
ment. The Federal Government ought not to act upon
the principle that the State Governments representing
the great domestic interests OF the people will instl
tute or continue unsound unsafe system of bank
ing Its efforts should he aid the States in perecng
sound circulation with the halinf that the Slutes dc.