The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-21

safely, for short time be left with the collectors and
receivers-but all these put TO the credit OF the
Treasurer 10 be drawn ont only by hm,--and in the
actual condition OF the Treasury we know that no
large sums, for any long time can be left TO accumu
late in the hands OF the collectors and receivers
Moreover, as a means--snd doubt not for the ex-
press purpose Of averting the ntolerabe evils and null
iped expressions Of the exacon Of specie alone in
all payments to the Governmental Congress has issued
ten millions Of Treasury notes. Vable IN payment
Of public dues and not ressuable This is appetizer
elusive proof that the present state OF things viii afford
no trial OF the SubtreasuTy system, unless, indeed, the
annual issue Of Treasury notesoi Government bills
OF crcdto the amount of the annual revenue accord
ing TO Mr.. Calhouns suggestion, to be permanent
part Of the proecan idea which constantly den-
ed by the Administration friends ofihe scheme
! have thus shown, that the Sub-treasury scheme is
not 10 operation either in form substance. II is inn
porant to keep this mind, because tine symptoms OF
/ returning prosperity daily thickenng around us
commerce again is spreading her white wings-our
foreign debt nearly extinguishedthe banks pre-
pairing speedily to resume specie payments-and
fate, the advocates of the Sub-treasury schemc-o
the defeat Of rhose erpcdienf and the
Of phoss DOCTRINES much Of these promises Of returning
prosperity is to be arbutedw claim oil these things
the fruit Of their policy, and all events as dsprov
ing the disastrous effects Of their project
/ 2 The other matter to which wish to draw public
attention, the plan the SPECIAL dcposiic Of the pub
lie money in the banks You, Mr.. Editor have
indicated your disposition TO favor this plan--but
invite discussion, and ask what the objections
to 1t One objection to the in which this idea
is spoken OF by its advocates, is the want Of precision
the scheme of special deposite which intended
to be favored The amendments proposed by Mr. Ro-
. bertson of Virginia, and Mr. Lewis Of Alabama, Mr..
Dawson OF Georgia, and Mr. Palmer Of New York are
spoken Of without discrimination, involving the same
principle, and differing only in details think you have
referred to them in this way. This is great error
The amendments Of Lewis, Palmer, and believe that
of Mr. Robertson may well be acceptable to the Ad-
minstIaton advocates Of the Sub-reasury--but how
either Of them could be agreed to compromise
by any opponent of the Sub-treasury scheme, cannot
well comprehend They all wholly inconsistent
with the principles which you have opposed the Sub
treasures They propose, with some variety in the de-
tails, separate the Government from the Banks as
/ fiscal agents-to make the 1000 Sub-trea-
surers--that all the collectors receivers, postmasers
shall keep and disburse the public money-but to re-
ceve nothing but gold and silver and to place it to their
credit, respectively, special deposite in banks
where banks be had to receive itand provide for
payment to the banks for receiving the money spe
cial deposite This is nothing nor less than the
Government Sub-trcasury expedent in all its extent
| length, breadth and depth-with nothing 10 mitigate
the harshness Of its features but deusirc soo of ad
ditiona security agains: Observation-Disclosures any real
/ security.
/ The objections the of Executive patronage
OF the liability OF the public money to be used and mis-
used by the Treasurers-of losing the facilities furnish
ed by the banks in transferring the public money from
the place of collection TO the place OF dsbursementof
having the better currency for the Government and
inferior and discredited currency for the peope-al
apply with equal force to these amendments to the
Treasury panand the expense under either would be
| greater than under that plan.
II mistake that the incorporation of either Of those
amendments THAT is, if rightly understand that OF Mr.
Robertson would have made the bill acceptable TO the
! House of Representatives The proceedings Of the
i .hn thata IF Tho ria IN La
the bill on the table moved for the purpose Of let
| ting Mr.. Lewis try the of the House on his
amendment and the motion defeated by the Same
majority OF Is. The only one Of the amendments
which opponent Of the principle Of the Snb-treasury
scheme could agree in the spirit Of compromise,
that proposed by Mr. Dawson. That was simply re
enactment Of the act Of 1886, regulating the depose
banks substituting special deposiles in places Of gene
raj depostes and paying the banks for keeping the mo-
ney without using It, instead OF making them pay the
Government interest for the Of it. His amend
did interfere with the existing laws, to the
funds in which the revenues should be received
will not say that some such plan might not be adopt
ed concession by the opponents OF the Subreasury
and with a to put to rest, possible, this harrass
ing and disturbing struggle about the financial system
OF the country, the most unhappy Of all questions OF
public policy be drawn into the vortex of party con-
nics There may be advantages in the special deposl,e
system. But it is not by any certain that more
would not be lost to the best interests OF the country
than gained by it. Having pay the banks, instead of
receiving interest from them, is something And them
if the banks cannot discount at all the faith OF such
deposites, to be supposed, the loss to the
country, from the money deposlte being withdrawn
from the of business, lying as dead and unproduc-
tive capital great deal. II our surpluses accuinu-
late they have heretofore DONE the people will never
agree have millions of money drawn from their pock-
cts to be boarded in the Golfers Of the Treasury-kept
by the Government like the dog in the mangcr-sery
ing purpose direct indirect OF benefit to the tax
paying community
| One Of the advantages from employing the State
banks as repositories contemplated by the statesmen
who have recommended t-and by mono more than
| General Jackson and Mr.. Taney-always was, that
they could and would discount upon the deposltcs, and
thus enable the community TO bear the burden oil taxa
tion almost without feeling it--and confess incline
the more readily yield to this special deposte uncon
ncc:ed however, with the Sub-trcasury compro-
mise, because do not believe it will materially affect
the extent to which the banks may, and will discount
upon the faith Of the public deposes. do not mean
that they will The money placed with them on spe-
cia dcposite have idea that they would do that.
But the extent which any bank can discount on the
faith Of deposites either public private is the amount
Of dcposites which in effect is permanent. This will
soon be asccrtaned under the special depose system,
and to that extent the bank will make its loans aud in
crease its circulation safely when the dcpose spe
cia as when it is general In other words, continued
permanent, dcposte is just the same thing as far as the
ability Of the bank discount is involved no matter
whether the deposte is special or general.
Although, however, a special deposite system
may be presented which might be proper to adopt
compromise apprehend that the Administration will
agree TO none such 1t will probably adhere to its ia
vorte expedent From the Of its most accredlt-
ed organ il seems to be determined inss, upon that,
and stand the hazard Of the die" Your earnest adj
monitons and entrcaties the Administration and its
friends to "bear and forbcar'to tolerate honest
difference Of opinion upon this question Of polcy-seom
to be dsregarded and condemned by the leading organ
/ n /, ,a poGt he mn
inc and eticicn, supporters Of the Administration who
have done and suffered much in sustaining the late and
ecctng the present President, denounced with
more unmitigated harshness than the most un,irlng,