The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-10

secure, and moro complex, 4 NOT more expensive"
!. "Unless the States aud IN,
limited States should both deem Il proper gradually
and ia the eud entirely. dispense with the paper sys
tenn aud which result Is not anticipated. the Govern
men, cannot escape occasional losses from that quarter
and can never hope escape oil losses from banks as
fiscal agents. except by the employment IN their place.
OF other and individual agents. who viii probably DO
found less responsible SALE convenient economical"
He concedes that ii would be practicable to employ
such agents but does recommend IT. for the reasons
stated IN the paragraphs OF the report which have read
and because i would not sin the present condition Of
things, be so eligible system as the present one"
corporation may be safer than any individual agent
however responsible he may be, because consists oil
an association OF individuals who have thrown together
their aggregated wealth, and who bound ia their
corporate character the extent Of their whole capital
stock for the depose. In addition to this, the Secrea
ny Of the Treasury may require as heavy collateral Sc
curiiy in addition to their capital paid in from such
corporation, as he could from an individual collector
receiver, which makes the Government deposes safer
in the hands Of bank than il could be with indi-
vidual.
II may be well questioned whether the heaviest Sc
curity which the most wealthy individual could give,
could make the public depose safe at the point OF large
collection In the city Of New York half the revenue
is collected Several millions Of public money may be
in the hands Of the receiver at time and If he he
corrupt, or shall engage in speculation or trade, and
meet with reverse OF fortune, the loss sustained by
rs it was supposed the Government lost million or
more in the tea cases, few years ago The losses IN
three cases alone us already stated in 1927 and 1875
when il supposed ample had been taken 70 Sc
cure the debt, amounted to near two millions. Asihen
between the responsibility OF public receiver and bank
corporation, as banks do exist, and likely to exist
under State authority, the latter, upon the ground OF
safety to the public, are to be- prcfened.
Banks when they arc safe, recommend themselves
to the service Of the Treasury for other reasons
r. lind taI
collectors receivers, in making transfers OF public
money to distant points for disbursement, without
charge to the public Indeed, this is service which
individuals the extent OF large revenues, could
not perform.
q i NAV happen, in the actua,on Of the amount Of
revenue aud expenditures, that there will be at some
times considerable surplus in the Treasury; which,
though it may be temporary, if il be Withdrawn from
cIculaon and placed in the strong box Of receiver
the amount Of circulation will be irynrously disturbed
by boarding the deposite by which the value Of every
article Of merchandise and property would be affected
So that nasmuch as we cannot anticipate or estimate
what the exact amount Of revenue expenditure may
be from year TO year. there may occur an Of re-
in the Treasury, not Immediately called for to be
disbursed which it would be very inconvenent TO alb
sract from trade and circulation Whilst the deposite
is in bank the bank may use it. keeping itself at the
same time ready to pay when demanded, and 1t IS not
withdrawn from the general circulation as SO much
money boarded and Withdrawn from the use Of the
community
II in the hands Of receivers they must either hoard it,
by keeping it locked up in strong box, or use It at
their risk III private speculation or trade, or they
must for their own security, aud on their own respo-
sibiy, place it at last deposite in banks for safe
keeping until they called on by the Government
for it.
This temporary use Of the money on deposite in
bank constitutes the only compensation which the bank
receives for the risk OF keeping it, aud for the services
performs II receivers be employed, they perform
other service than to keep the money and must be
paid compensation from the Treasury.
The other provision Of the amendment proposed to be
offered by the gentlemen from Virginia which requires
that the public shall be paid 81 the current
coin of the United States is unnecessary. No public
creditor be paid in any thing but current coin
by any Of the deposite banks, il he demand COIN
Nothing but coin, the paper Of specie paying banks
readily convertible into specie, is now received in the
payment Of the public revenue"
Mr.. Patton, of Va, another decided friend of the
administration in most able and conclusive speech
in support of the depose bank BILL thus exposed the
Sub Treasury scheme of his colleague: +.
The Bank Of the United States, it is conceded to
be dispensed WITH and il is believed that there in-
superable objections attending the only other scheme
which has been brought into competition with the en-
ployment Of the State banks The very decisive vote
by which that scheme (Mr. Gordon's amendmeni) has
been rejected by the House, shows conclusvey that it
is likely receive the sanction Of the House Of
the people However plausible it may be on its face
however captivating to the fancy Of those who have
prcudices against all banks, and who think any
ton between the Treasury and banks dangerous in
political point Of view, it is easily TO be perceived that
these objects are not to be accomplished by the plan
proposed II is in these respects wholly delusive Ad
hitting the existence Of the deprecated evils under the
bank SYSTEM The scheme proposed, for dsconnectng
the Government and banks does not 90 one ioa to-
wards the accomplishment Of the object. The whole
effect Of it would be transfer the power Of selecting
the depose banks from the Secretary Of the Trea-
sury, and confer it upon the subordinate officers Of
the Treasury. The money will still be deposited
in the banks for it is not proposed to compel the col
lec0rs and receivers keep the public money specie
render the scheme more indefensble; and the whole
matter therefore, ends in changing the person in whom
you will repose confdcnce-whether high officer of
the Government the elevation of whose position, psc
ing the eyes Of the whole country upon him. furnishes
guarantee against any improper Of his discretion or
whether you will deyolye this discretion on mere
subordinate, or upon army Of subordinates, whose
livelihood depends upon their retaining their Offices
who are less exposed to the public gaze, and perhaps
less under the restraint Of high moral considerations
who may be stimulated by desire to propitiate the
powers that be, to abuse their dscretion and whose
situation is such that they may give the effect
this kind OF influence when they choose to exert and
all this is to be accomplished at increase OF ex-
pepse considerable multiplication Of officers, and
great addition 10 the patronage Of the Executive This
scheme, then, in the present state of things be
approved And in TRUTH in whatever aspect this matter
can be regarded, whether as political question or
financial one, it end in choice between the
Bank Of the United States and the State banks"
Let the reader ponder well the above extract from
Mr.. Folks speech the party leader of the admins
tration on the occasion, representing the principles
and policy upon which the whole republican party,
in and out OF Congress, had planted themselves
also the extract from Mr.. Pattons speech, and then
say il consistency, integrity, and good faith do not
alike demand that they should continue to repudiae
the experiment of dispensing with all bank agencies
and bank paper in the operations of the Government
Let him al least hesitate to nculpac my motives and
political integrity for continuing to stand firm and
upright against ii.
The reader cannot fail to mark we'll the fact that
the position Of the Secretary OF the Treasury quoted
and adopted, and SO ably defended by Mr. Polk and