Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1837-10-07


led.
Congress, in the passage of the deposite law,
seemed to have in view to ward off from the
country the injurious effects Of that disposition Of
them.
Toascertain the real effect Of that disposition,
We should inquire, how those deposites found
those State banks and the business OF the coun-
try dependant upon them, and how did they leave
them?
Sir, the deposites found them doing a neat and
profitable business, upon their own actual capital,
and affording the country paper currency, con-
veribe at all times, and almost at all places, in
to hard money. The country was full Of hard
money. The business pursuits were prudent.
safe and economical Few ventured beyond their
means. But when this surplus insnuated itself
into the operations of those State banks, they
grew mad with avarice. Agents were employed
to at the Treasury for favors, and when Oh
tanned, they poured their issues upon the country,
based upon those favors, until they maddcned il
with the spirit of wild and reckless speculation.
Discounts were increased, merchants enlarged
their stocks, and their customers enlarged their
purchases. Farmers enlarged their operations,
and spectators theirs and the spirit of the times,
and the facility Of obtaining accommodations,
duced some of the best men in the country from
the occupation of their whole lives, into hazard
less and profitlcss enterprises, and thus seemed
to be going lid the whole business of life.
Congress seeing this, and correctly apprccia-
ting the cause. passed this deposite law cor
receive. | suppose it was in the contemplation
of Congress, that, by Withdrawing the deposites
from the State banks, it would necessarily de-
crease their issues, and subject them to call IN
those which was based upon the surplus, and that
by parcelling it among the states, at about the
ratio it had been collected of them. it would
in some measure replenish the circulating medl-
UNI, which would be constantly running into those
banks, to enable them to meet their engagements
to the Government.
The western States, or at least Indiana, was
peculiarly situated at this time, and under pccu-
liar .emba rrassments In addition to her State
debt, her citizens owed an immense private bank
debt, based upon this same surplus, and which
contract led in the DAYS of the experiment, and
induced by the action of the Government. by
throwi ing the immense surplus into the State
banks, and stimulating their action, with a view
to supplant the reccdng issues of the U. States
Bank, lest the people might mourn its loss.
Now, sir, this basis of the bank issues is with
drawn, and the notes of people in those
banks to redeem those issues, and large surplus
portion Of the same issues have into the Ma
tional Treasury through the land Offices; and is
there charge against our banks, deposits; it
Is the National Treasury that the banks must
raise funds for, which are told must be paid in
hard money? From whence those banks to
derive this hard money but from the people, whose
notes they hold and they, turn must cOcrce hard
money from their debtors; and SO the process must
go Oh, raking together the whole amount of hard
money in the country, to be placed in the Treas
ury, and from thence issued out to those in the
employment of Gov ernmcnt? Add to this, SIR
the constant drain that is running from our pock-
tets, hard money, through the land offices, to the
same point, and for the same purpose. Both
those drains, sir, are too much for any country to
bear, especially in times Of depressed arkcts-
Sir, it with eye to adjust this state OF
thing that Congress passed this remedial, henefi-
cent and parental dcposite law, and directed tins
surplus, which had done so much harm, TO be de-
lVercd over to the States, the effect of which
to make the banks debtor to the States instead of
the National Treasury, and thus to change the
direction Of the golden current.
But some gentlemen tell that there is
no surplus; that the act is spent, and nothing re-
mains for 1t to operate upon Why sol Where
mas it gone to? Was not the action Of Congress
based upon a visible and tangible fund, to be in
the Treasury on certain day. And was it not
there On that dav? So saws the Sccrctary's
port. And disposed of by the act. II so, then
it is a Congressional disposition Of the public
money; like all other dispositions taIr and per-
mancnt charge upon the Treasury; and if misdi-
rccted by the agents of the Government. or abb
sorbed by other appropriations it is fair demand
of the States upon the Treasury, and SO far re-
mains to be executed.
Sir, it is important to nv State, that it should
be executed. Much Of her legislation is base
upon Its reception; her institutions of learning
look to it; her system Of internal improv emcnts
look to it and her citizens look to it fund
resuscitatc in some degree, the fountain of their
currency in these dark days.
And as il is submitted to us, as the common ar
bitcrs Of the General and State Covenants, let
adjust it in such way the least inconvenience
will result from it; and in doing this, VIC need not
consider for moment the condition Of thcNation-
al Treasury 1t can speak money into existence
with our assent; and in doing so, it will increase
both the quantity and quality of the circulating
medium, now oppressively deficient. In deciding
this question. it Is unimportant to me whether
one the other side is correct in their deduc-
tons from the Sccretarv's finance report The
currency of the State which have the honor in
part to represent is not kept flush by disburse-
ments from the National Treasury as are some of
the Atlantic States. We have no army or navy
to supply or pay off; no breakwaters or buoys to
erect; no light houses, harbors; not any thing,
indeed, but small appropriation from the tive
per cent. fund on the Cumberland road 1t is not
that would impute to Congress or the Execu-
tive partiality in those things; not so: it grows
out Of the nature Of our ositon. But i, is true,
that those States favorably situated in regard to
disbursements from the National Treasury do not