The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-27

the vaults OF the State Banks by the fiat Of
the President. The best currency that the
wit Of man could devise, a currency that was
receivable at par, was about to saw. hyougL-
ant the uorld, was broken up, the Bank of the
United States destroyed, and the attention of
Congress was invited by the President in his
message of 1884, TO the regulation Of the
deposites with the State Banks" The Pre-
sldent gave the country assurance of the sue
cess OF his experiment, and further stated that
"the State Banks are found fully adequate 10
the performance Of all services which tcere re-
quued Of The Bank the United States, quite
as promptly, and NTH The same cheopncSs.
They have maintained themselves and dis
charged all their duties, while the Bank of
the United States was still powerful and III
the field as al open enemy; and it is not
possible 10 conceive that they will find greater
difficulties when that enemy shall cease to
| exist"
The House of Representatives responded
TO the invitation of the President, and the
committee of ways and means reported " that
the State Banks ought to be continued as the
place of deposite of the public moneys y and
the report was spoken OF by the Globe Of the
9th OF March, 1884, III the following remark
able language -remmhabie, as compared with
the present language of that paper.
The committee (of ways and means) gave their
opinions At large upon The subject OF the Safe Bank
! Agency, in the management OF the public finances
I lhey show that reliance on them was part OF the
long sighted policy which induced the trainers Of
the Constitution 10 reject the proposition confer
the power, creating corporations, upon Congress,
and thai il was in fact the resort Of the cuntederacy
before, well after The adoption Of the Federal
! Constitution"
In June, tho idea of separating the Go
vcrnment from all banks, was suggested BY
I Mr.. Gordon, member of the Opposition from
Virginia. In the course of the ensuing all-
tumn, the principle of this divorce BILL"
which IS now presented to the democracy of
the country, was again developed in speech
delivered at Petersburg Va, by Mr. Watkins
! Leigh, Wing Senator of that state, The
pror osltion at that time was considered of so
dangerous a tendency, that it every where re-
Ceircd the sevcrest condemnation of the Adj
mlnlstration, whose sentiments in regard to ii
were thus officially expressed
The PROPOSITION is DiSoRGASlzINc AND REVOLT
roNAiY, srDvERsivE or THE FUNDAMENTAL PRINCIPLES
j or OR GOVERNMENT and of lis entire practice, from
! l1S9, down To this day" GIobc, Nov. 20, 1881
" 1t is palpable the sun that the effect Of the
scheme would be 10 bring the public treasure much
nearer the actual custody and control OF the Presi-
dent, than it is now, and expose il 10 b. pundcred
by an hundred hands where one cannot now reach
it." Bd
" In such case, we should feel that the people had
just cause for alarm, and ought 10 give their
watchiu attention TO such an effort TO enlarge Exc
! cutlve power, and PUT IN IT'S HANDS THE MEANS OF
CoRRuPrON.' btd
7 In the message of the President of the
ensuing December, the Sub-treasury scheme
of Messrs. Gordon and Leigh was not mem
/ toned; but the country, as above, was con-
graduated upon the success of the experiment
with the State Banks, and the Secretary fthc
Treasury, with the same proposition which
! he now recommends, fresh in his mind, came
to the concluson that, "indvidua agents
will probably be found less responsible, safe,
convenient, and economic al" than banks
] conclusion that could leave no doubt as to the
4 position OF the Administration in regard to
/. this very divorce" ~.
Again the doctrine was incorporated into a
bill, and presented to the House of Represent
ativcs by Gen. Gordon, in February, 1885,
in avowed opposition to the policy of the
Administration. 1t was contemptuolsly re-
icctcd Every friend of the Administration
then in the House, excepting one, and by far
the greater portion ofthc Opposition members
voted against the scheme, there being only
33 votes out of 2i0 in its favor. | was among
the number of those who then voted against
the i" divorce y and the reasons which induced
me then, are stronger, il possible, now.
The Secretary Of the Treasury referred to
"somc countries in Europe,' where the pub
lie revenue was collected, kept, and trans
mltcd through private agents and brokers,
and stated that, this kind of personal agency,
however, is to be avoided, in all practicable
ard safe cases, under our present system OF
selected banks, because il would render the
system less convenient, less secure, and more
complex, if not more expensive. Hence 1t
/ has not been rcsortcd to-"
Mr.. Calhoun, the storm god Of nulliica,ion,
who is now embraced by the administration
because he supports the "mricd expcdlcnt,'
said during these discussions. that . any sud
den and great change from our present tocurn
a s0undcr c0ndtti0n, would agtac and con-
vulse society to its centre. lie regarded the
"rcsort to the strong box as means hoblc
10 Tie objcction n br{ag far less Safc, economt-
cal and Efficient linn the present.
7a suppress them, Che bank~) n oncc," he said
"wond i H,r,rr pos>iblc iror1 greater ccrolution
gratr ct0Rgc in th fiatrc roHditi0R If the rari0RS
caya>of ma c0Hmunitp linn r0Uid The conyucA NJ hc
corahY6ya Saragc cacmy,'
The proposition, and the arguments by
which its passage was urged, were regarded
at that time, as direct war upon the state
Banks Mr. Benton, ... t...
"ncprccacd the spirit which seemed to have
broken out against the State Banks il was a Spirit
which augurcd badly for the rights ofthc States
AT the commencement Of this Federal Govern
mcnt there was no Federal Bank and all the public
monies were kept i'll State Banks, or drawn direct
and a> fast they received ou of the hands OF
receiver, and collectors General Hamilton when
Secretary of the Treasury, kept the public monies,
tur the first ycaT Of his administration in these blnkS
and kept them safely there. When the Federal