The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-06

lnsucle Rrounus tnef pcrsevenng opposition 70 such
an institution; or that they can be induced by pee,i-
stances, TO surrender principles they have so long and
so inhexibly maintained
NY own views OF the subject are unchanged. They
have been repeatedly and unreservedy announced TO
my fellow citizens, who, with full knowledge Of them,
conferred upon me the two highest Offices OF the CO.
yernment. On the last Of these occasions, felt due
TO the people spprize hem distinctly, that, in the
event Of my election, would be able TO cooperate
in the establishment OF National Bank To these
sentiments have only add the expression Of an
increased conviction that the re-essbshmen Of such
bank in any FORM whilst il would accomplish the
beneficial purpose promised by its advocates. would inn
pair the rghi supremacy Of the popular will njure
he character and diminish the influence Of political
system and bring into existence concen-
trated moneyed power, hostile the spirit and threat
ening the permanency, Of our republican institutions
Local banks have been employed for the deposiie aud
distribution Of the revenue, at all times partially, and,
three different occasions, exclusively FIRST anterior
the establishment OF the first Bank OF the United
States secondly IN the interval between the ermna-
ton OF that institution and the charter Of its successor
and, thirdly, during the limited period which has
abruptly closed. The connection, thus repeatedly
attempted, and proved unsatisfactory each successive
OCCASION notwithstanding the various measures which
were adopted facilitate or insure its success On the
last OCCASION the year 1889 the employment Of the
State Banks guarded especially in every way which
experience and canton could suggest Personal secu-
rty fequred for the safekeeping and prompt pay
ment Of the moneys to be received and full returns Of
their condition were, from time TO tme TO be made by
the repositories. In the first stages, the
eminenty successful notwithstanding the violent oppo
sition Of the Bank Of the United States, and the
ccasing efforts made to overthrow it, The selected
banks performed with fidelity, and without any embsr-
rsssment to themselves 10 the community, their en-
gsgements to the Government; and the system pro-
missed to be permanently useful Bot. when il became
necessary, under the act of June 1885, TO Withdraw
from them the public money, for the purpose Of placing
II IN additional institutions, Of transferring it TO the
States they found Il, IN many cases, announcement to
comply with the demands Of the Treasury, and nume-
and pressing applications were made for indulgence
or relief As the instalments under the depostc law
became payable their own embarnssments, and the
necessity under which they lay OF curtsing Their dis
and calling in their debts, increased the general
distress, and contributed, with other causes to hasten
the rcvuson in which, at length they. in with
the other banks, were fatally involved.
Under these circumstances, it becomes our solemn
duty inquire whether there not any connection
between the Government and banks Of issue, evils Of
great magnitude inherent in its very nature and against
which no precautions can effectualy guard.
Unforeseen in the organization Of the Government,
and forced on the Treasury by early necessities the
practice Of employing banks was, in truth, from the
beginning more measure Of emergency than Of sound
policy. When started into existence as nation IN
addition to the burdens of the Government, as
sumed all the large but honorable load OF debt which
the price of liberty but hcstated to weigh
down the infant industry Of the country by resorting to
adequate taxation for the necessary revenue. The ia
cies OF banks return for the privileges they acqulr-
ed, promptly offered, and, perhaps, too readily
received by embarrassed Treasury. During the long
continuance Of nations debt and the Intervening diff
fcnties Of foreign war; the connection continued,
from motives of convenience But these causes have
long since passed away We have emergencies that
make banks necessary to aid the Of the Treasury
have load OF national debt to provide for and we
have on actual depose large surplus. No public
interest, therefore, requires the renewal oil con-
nection that circumstances have dissolved. The COM
pete organization Of Government; the abundance
Of resources the general harmony which prevails
between the different States and with foreign powers
all enable select the system most consistent
with the constitution, and most Conducive to the public
welfare, Should we, then, connect the Treasury Tor
fourth time, with the local banks it only be under
conviction that past failures have arisen from accidental
not inherent defects.
DANGER difficult If not impossible to be avoided in
such arrangement, made strkingy evident in the
very event by which it has now been defeated. sud-
den OF the banks intrusted with the funds of the
people, dcprves the Treasury without fault agency
Of the Government, Of the ability to pay its creditors
in the currency they have by law right to demand.
This circumstance, fuctuation Of commerce could
have Produced if the public had been collected
in the legal currency, and kept in that form by the Off
GERS of the Treasury. The citizen whose money was
in bank, receives it back, since the suspension, at
crce its amount; whilst he who kept it in the legal
currency Of the country, aud in his possession pur-
without loss the current of his business The GO
vernment, placed in the situation of the former, in
volved in embaassments it could not have suffered had
pursued the Of the latter These embarrass
ments moreover augmented by those sautary and
just laws which forbid deprecated currency,
and. by so doing take from the Government the ability
which individuals have Of accommodating their transact
tons 10 such catastrophe.
system which can in time OF profound peace,
when there is large revenue laid BY thus suddenly pre-
the application and the Of the money of the
people in the manner and for the objects they have d
rected, cannot be wise but who think, without
painful reflection, that, under it the unforeseen
events might have befallen in the midst Of war,
and taken from US, at the moment when most wanted,
the Of those very which treasured up to
promote the national welfare, and guard our national
rights To such embarrassments and to such dangers
will this government be always exposed whilst 1t takes
the moneys raised for and necessary TO, the public
vice. out OF the hands Of its officers, aud converts
them into right Of action against corporations in
trusted with the possession Of them Nor can such re-
suits be efectualy guarded against in such system,
without investing the Executive with control over the
banks themselves, whether State Natona that might
with be objected to- Ours is, probably, the only
Government the world that is liable, in the manage
ment Of its fiscal concerns, to occurrences like these
But this imminent risk is not the only danger aer-
dant the surrender OF the public money TO the custo-
dy 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 subtitle 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
Of the Government from tho commencement OF this
connection. The money received from the people, in
stead OF being kept till it is needed for their in
consequence Of this authority, fund on which dis
made for the profit Of those who happen to
be owners Of stock in the banks selected repositories
The supposed, and often exaggerated, advantages Of
such boon will always cause It TO be sought for with
ayidty. will not stop TO consider whom the patro
mage incident 10 it is TO he conferred whether the
lection and control be trusted to Congress or to the
Executive. either will be subjected 10 appeals made in