Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-10-02


pressed him FOR loan, under promise to re.
turn il in a short time, he could not refuse il,
and when Government demanded the money
he became a delaulter 10 large amount. thus
ontailing ruin on himself and family. A aon.
leman whom well knew in Boston. who was
head OF the Excise and who was perfectly
honest man, from persuasion that he could
at any time refund the public money when cal.
led for, had used large amount Of il in his
own affairs, but being Disappointed in some
private money Transactions when the drafts Of
the Treasury appeared, he could moi meet
them, and one ofthe finest real ostaies in Mas
sochusctts, belonging to him, was attached and
sold at public auction the Government was
paid and the individual was ruined. Several
other deialcOtions took place about tho same
time, which compelled the Administration TO
issue Treasury Circular, ordering the money
10 be deposited in The Bank OF the II. s
and its branches as received, subject TO the
drafts Of the Treasurer.
There is another serious objection 10 the
sub-Treasury scheme, or TO that of leaving the
public money in the hands Of the Collectors
and other public officers. The sub.Treasnrv
plan would increase tho patronage of ihc Pres
dent, and add to the public expense and il
the revenue is collected in specie, whilst the
People are obliged TO use bank bills for a cir.
cuaing medium, it is obvious that either
scheme, would throw nearly the whole specie
capital into the hands of the Executive, which
would compel the State Banks to continue the
suspension of specie payments, or if they were
TO resume specie payments, the control over so
large portion Of The specie capital of the
Union, would give the President command
ing influence over them, as it would put il in
his power at any time to break any Of them.
MIR, Van Buren, in his message, acknowledges
that the State Bank scheme has completely
failed, but to follow more closely in The foot.
steps of his predecessor, he suggests as a rem.
edy this new quack experiment Of sub rea.
sury, or the deposit of the public money with
4 public officers. The inencenoy and dam
ger Of this plan | have above noticed. Had
he been an able statesman or a man of sourG
common sense, he would have resortcd 10 the
remedy which the experience Of nearly forty
years has proved to be safe and efficient
The Federal Government has been in oper-
alton forty-eight years, and two National Banks
have been established for forty years out of the
forty-eight. During the active operation Of
those Banks, we have had a uniformly sound
currency, and when commercial embarass-
ments have occurred, they have not only been
local in their character, but Of short continu-
ance. The public monies which have been de-
posted with them to the credit of the United
States, were always promptly discussed in
gold or silver or its equivalent, for the public
service, without The loss of dollar of the
Peoples money. From 1911 TO 1916 the state
Bank system was tried. In 1918 the Banks
south of New England suspended specie pay
ments, and the Government was Obliged to re.
il was at a discount Of from fifteen to twenty
per cent, in addition to the loss of over mil
lion two hundred thousand dollars, by the fail
ure Of somo of them, which loss is now annu-
ally returned in the Treasury report as una
valuable funds.
The new trial Of tho State Banks in 1884,
we all know has eventuatcd in the bankruptcy
of the Government, or what is tantamount to
it, that OF not being able to pay the public du-
ties except in Deposit Bank bills, which are at
discount of eight per cent as compared with
specie, although there is nominally 10 the cred
it of the United States Treasury, now in those
Banks about twenty millions of dollars, which
ought TO be available in specie or its equiva-
lent. But the Banks are not bameable for
this state OF things. The absurd measures of
the Government, as before remarked, having
compelled them to suspend specie payments in
their own defence.
Experience is the mother Of wisdom, ard il
the Administration will profit By her lessons,
it must inevitably come to the conclusion, that
the only able and efficient fiscal agent of the
Government, is Bank of tho United States,
which, while it faithfully keeps and promptly
disburses the public revenues, is the only in.
strument that can be employed to afford to the
People a sound and uniform currency, through
out the Union.
Respectfully,
| iD" We have forwarded this number to sew.