The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-09-12

enos or caution could suggest. Personal security
was req uired for the safe keeping and prompt pay
ment of tho monies to be received, anu ;n, n he
of their conditions were, from time to tne, " ~
made Inv the repositories. In the hrst sluses ~: ~.
the measure was emnently successinl, noI ~ ,ha
standing the violent opposition oil the Damn Vi ~
JTn;ted States, and the unceasing eHor's hiau ~.
ovnrthrow il. The selected banks performed WIN
fdoi;t, and without any embarrassment I'D 'henn
selves or to the community, their engase,1n n oo
the government, and the system PROMISED 10 W GU,
;nonSiIy useful Blu: when it became necessary, uh
der ,ho Act of June 1886, to withdraw from the'
the nublic money for the purpose OF Placing ~ -
additional institutions, or OF Transferring ~
States. they found it, in many cases, ihcohvo",on
N cnmnIv with the demands OF the treasury anu
erous and pressing applications were hlaue ioa
indulgence or relief. AS the instruments unuer lhe
deposte law became payable their own ira %
ments, and the necessity under Which they 10y W
curtnilins their discounts and calling IN their oeps,
Increased the general distress and conrlbued Win
other causes to hasten the Revision IN WHICH, at
length they, in common with the other pahNs' "e'e
fatally involved. .o,or,, ,
dutv TO inquire whether there are not, in any con-
nection between the government ana the puhhS Vi
ISSUE evils of great magnitude, inherent III us H1
nature, and against which no precautioh can eheo-
tually guard. cat, o,,
IJnf1rseen in the organization of The government,
and forced on the Treasury by early necessities me
practice of employing banks, was, In truth, rom me
beginning, more measure OF eneisenoy s,a a no
n nation in addition to the burdens OF new gov
eminent we assumed all the large put honoraple
load of debt which the price OF our iDery,
but we hestated to weigh down the infant industry
Of the country by resorting the adequate taxation
for the necessary revenue. The facilities OF Danks
in return for the privileges they acquired, were
promptly offered, and perhaps too readily receVeu'
by an embarrassed Treasury. During the long con-
tinuance of national debit and the intervening dill
fculties of foreign war, the connection was con-
tinued from motives fconvenence but these causes
have long since passed away. we nave no eihei-
gences that make banks necessary TO ala the wants
of the Treasury we have no load OF national deDt
TO provide for, and we have on actual deposite
large surplus. No public interest, therefore, now
requires the renewal of a connection that clrcum-
stances have dissolved The complete organization
of our government the abundance of our resources,
the general harmony which prevails between the
different States, and with foreign powers, all enpie
us now 10 select the system most consistent with the
Constitutions and most conducive to the pubic wei
fare. Should we, then, connect the treasury Tor
n fourth time with the local banks, 1t can only she
under a conviction that past failures have arisen
from accidental, uot inherent causes.
danger, difficult if not impossible to be avoid
ed in such arrangement, is made strikingly eVi-
dent in tho event by which it has now been defeat
ed. A sudden act of the banks entrusted with the
funds of the people, dcprives the Treasury, without
fault or agency Of the government of the ability to
pay its creditors in the currency they have by law
right to demand. This circumstance no Huctua'
ton of commerce could have produced, If the public
revenue had been collected in the legal currency,
and kept in that form by the officers of tho Treasury
The citizen whose money was in bank, receives
il back, since the suspension, at sacrifice III It's
amount, whilst he who kept it in the legal currency
of the country, and in his own possession, pursuos
without loss, the current of his business. The gov
eminent, placed in the situation of the former, is
involved in embarrassments it could not have sut-
tered, had it pursued the of the latter. These
ombarrassments are, moreover augmented by those
salutary and just laws which forbid it to use de-
preclaed currency, and by so doing, take from the
tIo inHi Of
accommodating their transactions to such catas-
rophe.
A system which can, in time of profound peace,
when there is large revenue laid by, thus suddenly
prevent the application and The of the money of
tho people, i'll the manner and for the objects they
have directed. cannot be wise; but who think,
without painful reflection, that, under it, the
unforeseen events might have befallen us in tho
midst of war, and taken from us, at the moment
when most wanted that use of those very means
which were treasured up to promote the national
welfare, and guard, our national rights To such
and 10 such dangers will this gov
eminent always be exposed, whilst il takes the mo-
MES raised for and necessary to- the public service
out OF the hands Of its own officers, and converts
mem INTO mere right .of action against corpora
tons entrusted with the possession of them. Nor
can such results be effectually guarded against in
such a system, without investing the Executive
with control over the Banks themselves, whether
slate or National that ght with reason be objected
to- Ours is probably the only government in the
world, that is liable, in the management of its fiscal
to occurrences like these. But this i'm
minent risk is not the only danger attendant the
surrender of the public money to the custody and
control of local corporations. Though the object is
aid to the Treasury, its effect may be to introduce
into the operations of the Government influences
the most subtle, founded on interests the most selfish
The use by the banks, for their own benefit, of
the money deposited with them has received the
sanction ot the government from tho commencement
OF this connection. The money received from the
people, instead of being kept till it is needed for
nf
lund on which discounts made for the profit of
those who happen to be owners of stock in the
banks selected as repositories. The supposed and
often exaggerated advantages of such boon will
always cause it to be sought for with avdiy will
not stop to consider OH whom the patronage incident
TO 1t is to be conferred whether the selection and
control be entrusted to Congress or to the Executive
either will be subjected to appeals made in every
,, which the sagaciy of interest can suggest
l ne banks under such system, stimulated to
make the most OF their fortunate acquisition the
are treated as an increase of capital loans
ana circulation are rashly augmented, and, when
the public eXgences require a return il 10 ar