Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1837-09-15

and guard our national rights To such
embarrassmeuis and osuch dangers will this
government be always exposed, whilst i
takes the moneys raised for, and necessary
10. The public service, out of the hands Of its
own officers. and converts them into a mere
right Of action against corporations intrusied
with the possession Of them Nor can such
results be ef1cctualy guarded against in
such a system, without investing the Execu-
live with control over the banks them
selves. whether State or national. that might
with reason be objected 10. Ours is, proba-
bly, the only Government in the world that
is liable, in the management Of its fiscal con-
Germs, 10 occurrences like these.
But this imminent risk is not the only
danger attendant on the surrender Of the
public money to the custody and control Of
aid to the Treasury, its effect may be TO in
troduce into the operations Of The Govern
ment influences the most subtle founded on
interests the most selfish
The use by The banks, for their own bene-
fit, Of the money deposited with them, has
receyedthe sanction OF the Government from
the commencement OF this connection. The
money received from the people instead Of
being KEEP. till il is needed for their USE is.
in consequence Of this authority fund on
which discounts are made for the profit Of
those who happen 10 be owners OF stock in
banks selected as repositories. The suppo-
sed, and often exaggerated, advantages Of
| sought for with avidity l will not stop 10
consider on whom the patronage incident to
| il is to be conferred; whether the selection
L. a. ~
Executive either will be subjected TO the APP
peals made in every form which the sagaci-
lty of interest can suggest. The banks, I'M
der such a system, are stimulated 10. make
the most Of their fortunate acquisition the
deposites are treated as an increase Of cap
ilal loans and calculations are rashly aug
mented; and when the public exigencies re-
quire return, it is attended with embaIrass-
ments not provided for nor foreseen Thus.
banks that thought themselves most fortu-
nate when the public funds were received.
find themselves most embarrassed when the
season Of payment arrives.
Unfortunately, too, the evils Of the system
are not limited to the banks Ii stimulates
general rashness Of enterprise, and aggra-
Yates the fluctuations Of commerce and the
Icurrency. The result was slrikingly exhib
tied during the operations OF the late depos-
lie system. and especially in the purchase Of
public lands. The order which ultimately
directed the payment Of gold and silver in
such purchases. greatly checked, but could
not altogether prevent, the evil. Specie was
indeed more difficult TO be procured than the
notes which the banks could themselves Gre
ate at pleasure; but still, being obtained from
them as loan. and returned as a dcposite.
which they were again at liberty TO use, it
l.only passed round the circle with diminished
speed. This operation could not have been
performed, had the forms OF the Government
gone into the Treasury 10 be regularly dis
bursed, and not into banks 10 be loaned out
for their own profit, while they were per-
n mitted to substitute for il credit in account.
1 In expressing these sentiments, desire
not to undervalue the benefits of salutary
credit to any branch of enterprise The
credit bestowed on probity and industry is the
, Just reward of merit. and an honorable incen-
tive to further acquisition None oppose il.
who love their country and understand its
welfare. But, when it is unduly encour-
: aged; when it is made to infame the public
mind with temptations OF sudden and I'M
substantial wealth; when it turns industry
| into paths that lead, sooner or later, to dsap-
: pointment and distress, it becomes liable 10
: censure, and needs correction. Far from
helping probity and industry, the ruin to
:. which it leads falls most severely on the
i, great laboring classes. who are thrown sud
, denly out Of employment. and, by the failure
a of magnificent schemes never intended TO en-
D rich them, are deprived, in moment, of their
only resource Abuses of credit and excess
e es OF speculation will happen, in despite of
the most salntary laws no Government.
|, perhaps. can altogether prevent them but
ID surely every Government can refrain from
contributing the stimulus that calls them into
life.
, Since, therefore, experience has shown.
e that to lend the public money to the local
: banks is hazardous to the operations Of the
4 Government, at least of doubtful benefit to
j the institutions themselves. and productive of
d disastrous arrangement in the business and
+ currency Of the country, is it the part OF wis
!, dom again to renew the connexion2
a 1t is true that such an agency is, in many
It respects, convenient to the Treasury; but it
d is not Indispensable A limitation of the
s expenses of the Government to its actual
= wants. and of the revenue to those expenses,
. with convenient means for its prompt applica-
1 ton to the purposes for which il was raised,
Il are the objects which we should seek to ac-
e complish. The collection, safe keeping.
a transfer, and disbursement Of the public mon
d ey. can. il is believed. be well managed by
- L. III