The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-26
From the Richmond Enquirer.

"The more reflect upon the Sub-Treasu-
sy scheme, the more impractcable and the
more dangerous does it appear to be. lnde-
pendent OF the objections which have been SO
forcibly urged against the scheme through the
public press, the influence which it would
exert upon the commerce and agriculture Of
the country, under existing circumstances,
would be blighting and destructive. If this
system be now adopted, it viii prolong the
suspension Of specie payments by the Banks.
on account Of the increased demand which it
would produce; for, independent Of the specie
in the vaults Of the Banks, there is not enough
in the country, in active circulation, for its
ordinary business. The Banks, to prepare
for the demands which such state Of things
must call down upon them, must make rapid
and unprecedented curtailment of its circula-
ton and discounts, as much as the country Is
now exhausted. This would make it neces-
sary for the merchants to press upon the
farmers and mechanics heavy collections, in
their own defence. The effect would be
dreadful-,he sacrifices of property and de-
structon of estates would be enormous and
unparalleled property, which, under existing
circumstances, would bring five hundred dol
lars in market, would not, under the influence
Of this new source Of pressure, produce one
hundred! 1t seems singular, that time OF
difficulty and distress should be seledted for
making this new and untried experiment,
which must greatly add to it; for, the country
is heavily indebted to the banks, and what
ever Expresses the bank Expresses the coun-
try. If this scheme shall ever be practicable
and proper, (Which much doubt, now is not
the time. 1t should not be adopted, until the
country is relieved from its present embar-
easements, and able to bear up under such an
experiment. The officers of the government
do not feel as the people do They thrust
their hands into Uncle Sans strong box every
three months, and arc consequently not af-
tected; but the people, the ,ax-paying, bur-
den-bearing people, are affected with all the
changes in the market. The discredt and
depression Of The currency, Of which they are
in the hourly receipt, affect the value Of their
produce and their estates. | trust, that the
people will take an enlightened view Of this
subject, and that their public servants will be
directed by the councils of unerring wisdom.
II agree that the Banking system needs
radical reform, and their circulation great re-
duction; but this ought to be the gradual work
of time, SO gradual, that in the operation no
mischief shall be done. think bank paper
should be restricted not only in its aggregate
circulation, but in the amount of its notes, and
confined in its employment to commercial
transactions but this ought to be done SO
gradually, that as the bank notes go ont, SO
should the specie come in, and supply its
place. In this way, the people will have the
benefit Of the change without any injury in
the operation"
From another" August IA.
al 20 heartily with you in your preference
of the State Bank Deposite system, and OPP
position to the Sub-Treasury scheme.-I
never knew the popular sentiment more unit
ed in this District, against any proposition.
The discussions Of the Press, TO which Mr..
Leigh's letter Of September, 1894, gave rise,
have produced, through the State generally,
sentiment equally adverse to it. The con-
siderations of increase of the Executive
power, Of the facilities Of abuse, the means of
corruption, &C., &C., then alleged against it,
are, in my mind, conclusive against its adop-
ton-lt may be an untried cxpedicnt, as MIR.
Wright calls it, elsewhere; but it is not so
with us. We have tried it here, and it has
signally and mournfully failed. Under our
former Treasury system, without the checks
which are now established the public monies
were more under the personal custody and
control Of the Treasurer. Two men of as
high character as any in the State were sue
cessively chosen for this delicate trust. You
know the melancholy consequences. The
Legislature then substituted the present sys-
TEN of Banks, with additional checks as the
places Of dcposite and safe-kceping for the
public monies; and that has been our system
ever since.-But the strongest Of all ob]ec-
tons to the Sub-Trcasury system, still re-
mains-its inevitable tendency I'd terminate
in Treasury Bank, or by its total failure TO
relieve the currency Of the county from its
present embarrassments. to lead ceksrrsly and
directly to the establishment of a National
Bank One or the other Of these alternatives,
am firmly convinced, willbro1he result"
From the West-"Juy H.
"What are we to do! Does the exaction
of specie by the Government PIT it in actual
circulation among the people; and are we to
have a hard money Government, and paper
money people and that too "A deprecated
paper money One thing is ccrtain-We
have now a hard money Government, and yet
there is much less specie in actual circulation
among the people, than there was one or eight
years ago. Can we permit the present state
offhings to continue and can we restore
specie circulation even to a moderate extent
until the banks resume specie payments !
Until they do resume specie payments, will
not specie be an article of traffic, and not a
circulating medium Suppose we divorce
the General Government from all banks, and
establish Treasury and fiscal agencies, will
that relieve the country! Will it enable the
banks to resume specie payment will it give
us specie circulation TO any extent? Will
it give us circulating medium that will be
current throughout the Union-and if not,