The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-24

ney was iniquioasly drawn from the pockets Of the
/ people, and u would have been iniqutous not TO
have returned ii 10 them, but those who directed il
\ ought to have understood the effects OF such mea
sure, and TO have made il so gradual that Il might
/ have been accomplished without producing great
public calamity The sudden distribution Of the
surplus revenue was the Immediate cause Of the cri
sis under which the country is suffering, and il Is
i not at all extravagant TO say, that might have
weaihered the storm without shipwreck but for this
single measure enforced il was and the deposite
banks have fully and faithfully performed their Of
flee. They have not failed then, but in common
with all the country and there is not the least rea
son to suppose that they will not in future, be ade
qnaie, efficient and faithful agents Of the Govern
ment, In performing the duties required by IT, All
the circumstances were extraordinary, and form no
example for ordinary times They had in deposite
at one time, forty millions of revenue. To COM
pare the merits of the Government scheme with the
lastpractice, must suppose the Government vaults
to contain forty millions OF gold and silver at one
time Now will any one be found TO advocate such
result-yet ten years ago IL was as little expected
as il is now that like result will follow ten years
hence. We ought not to legisate only for the hour
in which we live All sound Legislation should be
governed by the past, and look TO the future There
is no evidence that the Government has lost cent
by the deposite banks in the commercial cities; and
TO those the question must always be referred be
fairly treated, and there is little doubt on the other
| hand, that under the Government scheme heavy
losses must be sustained unless II shall be for
unate in the choice of its trustees than has hiher
| to been.
Another plea for the sub-treasury scheme Is, that
i il will diminish the patronage Of the Government
There is not an institution of Government that we
should no, be called upon TO abolish, if this were
sound argument. The postofiice should be abolish
cd, SO the custom houses and land Offices, and we
admit il they could be dispensed WITH il might be
wholesome restraint upon executive authority, to
abolish them all. The evils, however, must be suf-
ered for the corresponding benefits. This evil too
L nj nfrnnn fhav - harl
ought TO suffer, and TO take as a compensation, the
benefits they will afford, and, as an immense COM
pensation, the fact that they will avert this treasury
scheme. But is 1t true, that this scheme will dimi
nish Executive patronage2 Is it not probable that
it will, on the contrary increase in The latter is
my opinion. / have been intimately conversant for
upwards OF forty years even from boyhood with
banks, and il is contrary to my observation that
cept sometimes in the national banks that have ex-
listed politics have influenced the selection Of direct
| ors; and have never known with slight exceptions
in cases before mentioned, any active interference
in public elections by bank directors under bank in
| fuence. On the ether hand, have never known
election in which the direct officers Of the general
| Government, were not active in supporting the
friends OF the actual Administration. The officers
4 under the government scheme, who will finally be
numerous whatever may be now said TO the contra
ry, will be true Swiss, and make up for any defcien-
/ cy Of numbers by abundant zeal and activity. The
fair conclusion is, think that it will increase, not
diminish Executive patronage. But, if the argu-
i
urged, the consolidating tendency of the Govern
ment scheme is danger fifty fold greater than any
that can follow from any increase Of patronage
through the employment Of State banks, as the depo-
STORIES of the revenue %&.. u.~ H.
Another argument in favor of the scheme Of Go
vernmen If, that as the public treasure will be lock-
ed up in the public vaults it cannot be employed in
banking as il would be lift were deposited in banks
/ Until our day, this would have been conceived a
great public evil. The President seems TO have es-
timated the average Of the public deposiles at ten
millions of dollars We have seen, that they have
at times, been forty millions. As the country in
creases in population commerce, manufactures and
wealth. the average must increase correspondingly,
and it is probable 1t will in twenty years, amount
to twenty millions. Now TO embosom twenty
millions of money permanently in the public
vaults (and 10 the extent Of the average amount it
will be permanently Withdrawn from the active cap
ita Of the country is just ascomplete extnguish
ment of the public wealth, as if the amount were
again buried in the mines from which il was dug
| 1t can have no influence in preventing excessive
banking as is alleged As to that effect, 1t is alto
gether immaterial from whence the fund is supplied
whether from the Government deposites or from
capital supplied by stockholders. The Government
depostes will at no time form considerable portion
of that fund which is the basis of bank loans and if
no other restraint be interposed and the temptation
Of profit present ITSELF il will be furnished to
limited amount. 1t is falacy then 10 assert, that
locking up in an unproductive state, the public mo-
ney can have the least effect in preventing banks
| from affording excessive loans II will diminish
the means of the country to employ and encourage
industry ard commerce. but il will put no restraint
| upon the excuses ofbanking.
| Thus have i examined the arguments in favor
of this scheme, which, l think, are entirely fala-
cious, and, it appears to me that as far as We have
viewed it, the whole potency of the measure is to do
evil, both politically and financially But its acutest
evil is temporary and immediate The great sut-
erng of the country, as before said is from the I'M
soundness ofthe currency. The artisan stands idle,
the agricuuralst cannot realize the profits of his
labor the merchant dare not adventure, the capital
ist has locked up his funds There is general pa
raysis. Restore the soundness ofthe currency, and
in the place of this nacion, will succeed universal
activity and our prosperity will be the brighter and
more cheering, because it will have succeeded this
| general gloom The very moment is propitious to
the accomplishment ofthis happy change The ex-
changes are nearly, if not quite at par. In few
weeks they will be in our favor. There will be no
demand specie for expectation, and ifthe Govern
ment will only promise its confidence and counte-
nance to the banks, on condition that they shall re-
sumo their payments, bona fde, there is nothing to
prevent them from doing before the first of jan
uary. But the Government denounces and reviles
them, and withdraws from them the public conf
dence. How can they, under these circumstances,
resume specie payments These must depend ON
public confidence Without that confidence the
Bank Of England, usually referred to as the stand
ard Of stability, could not continue its payments in
| the precious metals a week But the Government
has its little by-play, which it seems determined TO
accomplish regardless how tragically the great po-
pular drama may terminate, which requires i TO de-
stroy instead Of restoring that confidence which is
indispensable to the prosperity of the country
We are threatened, under these circumstances, with
new danger, Our beneficent product, cotton, with
magnificent diffusiveness, has become as necessary
to the happiness and comfort of millions of people in
Europe, as il is instrumental in our prosperity. But
they only pay for it in their products and ma
! nufactures which, under the paralysis we suffer,
from the unsoundness of the currency we have al
most ceased to demand flour imports be not reviv
| ed, and the way to revive them is to revive the
soundness Of our currency. which will revive our
enterprise, this great article must lie on our hands,
to great extent and fall to price that will be GALA
mitous to the grower and increase the present general
suffering.