The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-21

inisniloa 10 iarnish more full detail OF The plan
and N practical operation and effect upon the r.
naneiai and commercial interests Of the country II
c0ngress shsnld MOI establish system during the
/ special session.
fbciese d h 81 lille consequence TO these inie-
Frs ~ ne propie or 10 the bank wheiher Govern
sn.ai oikces (under The sublreasury scheme) or
Ne hanha receive, ether In special or general de-
rpeir ana dlsb=rse the pabie revenue, prerided ne
Geraa~fat aas aef iasia specie only IN receipts
$50 payasais rsgsrdsa II fss hilarious elects upon
a. tsaass n a. sssatsy sad tAe eeMreHieRes 81 nc
rass ssSalsr rAs wssId rarely risA 10 BE- turfAeHed
I WssA verde The President considers all Interior
ence viii che operations Of The banks Us injurious
% them and Inc pebble. fully agree with him. and
fof tins Fcason s0uid object 10 the adoption Of any
/ sys,sm, whieh rrqnirra collections and payments TO
h. mads sEsirsiray in specie unnecessary, vexa-
toas productive of no beneficial effects whatever,
continually Interfering With the fair and legitimate
business Transactions u The banks and the conmuni
i ~ Mhils should oppose any system compelling
the public creditor snd rccevesPccic when neonven-
/ icni and barIhrnsome, would have the Govern
mens alwsys Teady 10 pay II IL desired; no man
shoald BE- compelled 10 lake his pay IN anything but
I the legal currency.
Mnh0ui any Interference or injurious effects upon
I the business II the country think my plan the
public revenue could BE- safely and economically
| collected aud di,bursed.
| The Offices would be substantially banks Of depo-
site not interfering with the business Of The local
banks making no loans and having no favors TO be-
STOW, would create political hostility. Ifexpcr
encc should prove that the public interest required
srcinsfre sser PayMeais, the system and machinery
would b. ready and adapted 10 that with lite alter
| alton.
The plan eontcmplaes = or 10 Offices, located in
4 various parts Of the Union. ! viii take an Office
al New York as an example. 10 Il should be con-
ccniraied all the moneys collected in the States Of
| New York aud Connecticut
The officers should be a receiver and hoard Of d.
rec,ors, with suiRcicn, number fclerks The d.
rectors say in number TO b. experienced financial
appointed by the President and Senate, 10 hold
meetings once or twice week, and have a super
visiDg power over the business Of the Office similar
directors Of banks advising and instrucing in the
various business which might be done, such as con-
tracts with banks the description Of bank notes TO be
received, amour, Of specie TO be kept on hand, calls
| for balances, mode Of transfers &c DC. They
might also make reports TO the Treasury Depart
ment, recommending such measures rs they may
deem advisable for the collection and safe keeping
ofthe funds &c,
The office to keep accounts with all the city banks,
or such Of them the board should direct, sending
home daily such bank notes as were not wanted for
daily disbursements, receiving Treasury notes Off
issued) and Treasury drafts. There should be in
depose from half million to million of dollars
III specie.
| The moneys collected at all other places in the
two States TO be deposited BY the public officers in
| the local banks, with which arrangements should
be made to remit TO the New York Office at such
times as might be agreed on.
All balances at city or country banks TO be- paid in
| specie il required
Should the moneys temporarily accumulate be-
yond the wants Of the Government, agreements
nigh, be made by the Office with the banks TO receive
on interest till wanted. -
The Government TO draw the receiver for all
disbursements, which should be paid in specie bank
notes or Treasury notes f issued at the option OF the
Payee.
The expenses Of the New York Office are esiimat-
| ed as follows:
Rent and Office expenses, stationery, &c $1,000
Receivers salary, 1000
Clerks salary, 5000
Eight Directors, IS per day, each twice
| week, say 1000
$4,000
| The expenses Of an Office at New York would far
would not cost over $4,000 per annum. An an
nual interest of per cent 49, 10000 surplus re-
venue on hand would amount to Sl50O00, or more
than all the expense.
These Offices would relieve the department Of all
the labor of examining into the responsibility of
banks and board Of local directors would probably
Judge correctly to their standing and safety
and being near, could with more promptiiude with
draw funds from unsound institution and If any
bank did not keep reasonable amount of specie
could advise them thatthe fundswould be Withdrawn
or their bills refused.
The government might, If thought advantageous
for facilitating exchange issue Treasury TO the
public creditor to an amount not exceeding the spe
Gle in hand the use of which in the business Of the
country would not be lost, if thus represented by
Treasury notes
Should the government have reason TO apprehcnd
a general overtrading and excessive issues Of the
banks, it could readily create salutary check by
directing the Offices to call in their balances and
strengthen themselves, and il the banks needed any
aid which the Treasury could properly grant, could
be done by suffering balances 10 remain, temporarily
issuing Treasury notes.
| 1t is believed all the banks having accounts with
the Offices would be induced to keep more specie,
and the public moneys would be more safe BY being
in smaller amounts and more equally divided and
no complaint could be made Of undue favoritism, if
the Office kept, it should, the best account in the
safest and strongest banks. The greatest inconve-
nence in the recent system of deposng in the State
Banks, was probably the overlooking them with
funds, which should have been diffused among a
greater number of banks.
1.-THE Committee Of Congress should call before
them experienced financial commercial manufac.
turing and agricultural gentlemen from city and