The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-17

to the Committee Of Ways and Means dated April is,
1884, and embodied in tho report Of that committee
dated April ~, 1884, we have the worth Of public con-
fdencs to banking institutions thus ucdly expressed
"When every one believes that the notes of the
/ banks WILL demand, be paid in coin, they readily
circulate and answer all the purposes OF money But
the that confidence is impaired they lose their
value part Of the circulating medium, and re-
turned upon the banks for redemption in specie and
the dsproporon between the paper circulation and the
coin prepared TO redeem it, is so great that 1t is
sanily liable to have its chief suPport-pubLic conf
deaee-withdrawn from it,"
Mr. Cambreleng, in his speech, January l4tb 1894,
on the removal OF the deposites, thus explicit
this same point
" But the credit Of the bank does not depend upon
The amount Of their specie if it did, every bank in
England, Ireland, Scotland, and the United States,
would have long since permanently suspended their
payments. Bank credit depends upon PUBLIC CONF
DEHtE destroy that, and the institution must suspend
its payments The soundest banks in the world ssu-
ing notes, the Banks Of Scollandhaye the smallest
proportion OF specie"
Such being, therefore, fully understood by the admin
istation and its friends to be the a and delicate
tire these institutions at the time OF their adoption
how could avoid the conviction that OF period Of
pressure and calamity upon them such as recently
Cured, 1t was the most imperious obligation Of the adj
mnsration, II 1t could do nothing strengthen pubic
confidence in local banks, refrain siudiousy from
such policy would either tend to destroy weaken
1t! And yet in what other light, could any man view
the Sub Treasury scheme, which utterly repudiates all
banks and dscreds their paper, and exposes them 10
constant runs for specie TO lquidate the governments
demands against importers and others, in any other
light than declaration Of an exterminating upon
Them and at the most perous period OF their existence,
also! II could at any time commend the adoption OF
the SubTreasury bill, should regard the period when
it was brought forward the most impo,c one that
hnya baap fpr N raUa riln ha pnb
welfare and the importance OF those institutions to the
people.
Even If the government had not stood in the relation
OF aputave parent to portion at least, Of the embar
easements Of the local banks, from having enoined
upon them increased loans upon The strength of lie pub
hc depos,ies, would have been only consistent with
what has been the practice and policy Of many past adj
mnisrations if not ALL towards the local banks, for
to have extended to their embarrassments the utmost
relief in it's power-and this relief, as we have seen in
the shape of public confidence would have been eec
tual specie itself. This than these
banks have right expect, and demand of the
administration from the doctrines laid down by the adj
mnisation ITSELF being the true political theory for
such an emergency And that there may be no msap-
prehenson that am in this point let carry
the reader back to what said by President Jacksons
Secretary (Mr Taney) Congress. on the removal of
the dcposites local banks In his report Of Dec. 80
1888, he cited Mr. Crawford, while Secretary Of the
Treasury to the following effect -
I'm postscript his (Mr Craword's) letter to the
President Of the Mechanics Bank Of New York, dated
February 18th, 1917, he says" The Secretary Of the
Treasury will always be disposed to support the credit
of the State Banks and will invariably direct transfers
from the deposites Of the public moRey in aid Of their
legitimate exertions TO maintain their credit"
Mr. fancy adds to this as follows" Other passages
in the correspondence Of Mr. Crawford with the banks,
about the period above mentioned, might be referred to,
equally indicating the opinion aud at that day
doubt to have been entertained Of the power or
Of the OF the Secretary in relation to this subject
> In the passage quoted the superior safety
Of the State banks by means regarded as necessa-
ry to give him he Secretary this right to make the
transfer to them for he declares that he will give the
deposites the State banks account Of their i1eak
| ness" -> :E .-
In the same report Mr.. fancy cites Mr.. Crawford in
where he gave local banks the keeping Of the pub
lie money in 1917. 40 induce the State Banks TO re-
sumo specie payments How opposite TO the policy Of
the Sub Treasury bill towards them at this day!
might 90 OH and cite MIR fancy to the same point for
many pages-but have only space here to refer the
reader to the report have mentioned for all he
qurc If he will TO Mr. Folks speech in the House,
made on the 3Oth December 1888, he will find the
policy, principle and practice Of the government eabo
rately maintained by appeals 10 numerous instances in
the history Of the government President Jackson him.
self in his before named Cabinet paper Of Sept. 18th,
1888, asserted with appreciation. as pant OF his own
policy that the Secretary Of the Treasury did in
raj instances transfer the public .deposes to State
Banks in the immediate vicinity Of branches Of the U.
S Bank, for connected only Nth the safely 81
those banks the public convenience, and the interests Of
the Treasury" and quoted Mr. Crawford precedent,
that the Treasury ALWAYS WILL" do this. But,
the policy attempted to be fastened upon the
try by the SubTreasury bill is abandon entirely to It's
fate the paper currency OF the country and to set the
whole mighty influence Of the national government
against its use. was not prepared for such sudden
turn in the policy Of the national administration, and
am yet to be convinced that is udlcous for the wei
fare Of any class or order Of our countrymen
1t was part Of the policy of the local bank system
when adopted, to reform, BY the incidental influence OF
national legislation, the paper currency OF the country,
increase the specie basis Our doctrine was that the
people of the States through their respective Leglsa
lures will aid in it. In his message Of Dec. 1888,
President Jackson said The attainment Of such
result will form era In the history OF our country
which will be dwet upon with delight by every true
friend of its liberty and independence" Mr. Van Blu
rem in bis letter Sherrod Williams, exults in this fea-
ture OF the national administration and tells how much
benefit it has done and is doing. He says, "nor have
the States Jagged behind in their efforts to improve the
currency by inusng into II greater proportion OF the
precious metals" He then enumerates thirteen Of the
States that had already embarked IN this reform, under
the lead Of the national administration But who does
not see that the SubTreasuIy bill is total abandon
ment Of this wise and boastcd policy of reform in our
paper currency, and Of the States that have thus been
induced to enter upon il in good faithl have not
space to quote how much importance was attached to
this reform by the republican party every where, and in
the messages and speeches Of the administration But
let any man turn to what said by all Of us who pro-
fessed be republicans and aborng for the benefit OF
the PEOPLE under Jackson, and then withhold his asto
nishmen If he can, that be brought suddenly
by any earthly influence, 10 abandon the hole effort TO
| The ioinds. ....
When we adopted the local bank system, another
position that we took that it would diminish the
L oE, ha af thp Inv
rendering concentration Of its moneyed influence next
TO mpracticablean end for which all true republicans
rule to establish every government Severed from
the government political engines" said President
Jackson in his message Of Dec 1885, and not suscept
BILE Of dangerous extension and combination the State
L. hauo