Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-09-20
NUMBER 81.


thirdly, during the limited period which has
now SO abruptly closed. The connection
thus repeatedly attempted, proved unsatis-
factory on each successive occasion, not
withstanding the various measures which
were adopted TO facilitate or insure its sue.
cess. On the last occasion, in the year
1888, the employment of the State Banks
was guarded especially in every way which
experience and caution could suggest
Personal security was required for the safe.
keeping and prompt payment of the mon.
eys to be received, and full returns of their
condition were, from time to time, to be
made by the repositories. In the first
stages the measure was eminently success
ful, Notwithstanding the violent opposition
of the bank of the United States, and the
unceasing efforts made to overthrow it,
The select banks performed with fidelity,
and without any embarrassment to them
selves or to the community, their engage.
ments to the government, and the system
promised to be permanently useful. But
when 1t became necessary under the act Of
June 1886, to withdraw from them the pub
lie money for the purpose of placing it in
additional institutions, or of transferring it
TO the States, they found it, in many cases,
inconveniedt to comply with the demands
of the Treasury, and numerous and pres
sing applications were made for indulgence
or relief. AS the instalments under the
deposit law became payable, their own en-
barrassments, and the necessity under
which they lay Of curtaing their discounts
1 N IN IN o. laht
general distress, and contributed with other
causes, to hasten the revulsion in which, at
length, they, in common with the other
banks, were fatally involved.
Under these circumstances, it becomes
our solemn duty 10 inquire whether there
are not, in any connexon between the
Government and Banks of issues, evils of
great magnitude, inherent in its very ma
ture, and against which no precautions
can effectually guard.
Unforeseen in the organization of the
Government, and forced on the Treasury
by early necessities, the practice ofempioy.
ing banks, was in truth, from the beginning
more a measure of emergency than of
sound policy. When we started into ex.
istence as nation, in addition to the bur-
dens Of the new Government, we assumed
all the large but honorable load Of debt
which was the price of our liberties but
we hesitated to way down the infant indus.
try Of the country by resorting to adequate
taxation for the necessary revenue. The
facilities of banks, in return for the priv.
leges acquired were promptly offered, and
perhaps too readily received, by an embar-
raised Treasury. During the long con-
tinuance Of national debt, and the inter-
vening difficulties of foreign war, the
connection was continued from motives of
convenience but these causes have long
since passed away. We have no cmer-
gencies that make banks necessary to aid
the wants of the Treasury; we have no
load of national debt to provide for, and we
have on actual deposit large surplus
No public interest, therefore, now requires
the renewal of connection that circum.
stances have dissolved. The complete or.
ganization of our Government, the abun-
dance of our resources, the general harmo-
NY which prevails between the different
States, and with foreign Powers, all enable
us now to select the system most consistent
with the constitution, and most conducive
to the public welfare. Should we, then,
connect the Treasury for fourth time
with the local banks, it can only be under
a conviction that past failures have arisen
from accidental, not inherent defects.
A danger, difficult, if not impossible, TO
be avoided in such an arrangement, ismade
strikngly evident In the very event by
which it has now been defeated. A sudden
act of the banks intrusted with the funds Of
the people, deprives the Treasury without
fault or agency Of the government, of the
ability to pay its creditors in the currency
which they have right by law to demand.
This circumstance no fuctuation Of COM
merce could have produced, if the public
revenue had been collected in the legal cur
rency, and kept in that form by the officers
of the Treasury. The citizen whose mo-
ney was in the bank receives it back, since
the suspension, at sacrifice in its amount;
whilst he who kept it in the legal currency
of the country, and in his own possession,
pursues, without loss, the current of his
business. The Government, placed in the
| situation Of the former, is involved in en-
barrassments it could not have suffered had
il pursued the course of the latter. These
embarrassments are, moreover, augmented
by those salutary and just laws which for
bid it to use deprecated currency, and,
by so doing, take from the Government
the ability which individuals have of accom-.
modaling their transactions to such catas'
trophe.
A system which can, in time Of profound
peace, when there is large revenue laid
by, thus suddenly prevent the application
and the use of the money of the people, ir
the manner and for the objects they have
directed, cannot be wise; but who can think
without painful reflection, that, under it,the
, same unforeseen events might have beiall'
| en- us in the midst Of war, and taken from
us, at moment when most wanted, the
use Of those very means which were trea
, sured up to promote the national welfare
and guard our national rights 10 such
, embarrassments and to such dangers will
, this Government be always exposed, Will,
. il takes its moneys raised for, and necessa
' nv to, the public service, out OF the hand
Of lis own officers, aud converts them int
/ a mere right of action against corporation
/. entrusted with the possession Of them. No
!. can such results be effectuaIly guarded a
!. gainst in such a system, without investing