The People's press, and anti-masonic Democrat. [volume] (Middlebury, Vt.) 1836-1838, 1837-09-12

concerns 10 occurrences like these. But This iml-
nent risk is not the only danger attendant on the
surrender of the the public money TO the custody
and control of The local corporations. ThOueh the
object is to aid the Treasury, its effect may be TO
Introduce in the operations Of the Government
Influences the most subtle, founded on interests
the most selfish.
The use By the banks, for their own benefit, of
the money deposited with them, has received the
sanction OF the government from the commence
ment of this connexion. The money received
from the people instead Of being kept till it is need
ed for their use is, in consequence oitlis author
", a fund on which discounts are made for the
profit of tn 'se who happen to be owners OF stock
in the banks selected as dcposito les. The suppos
ed and often exaggerated advantages of such
boon will always cause II TO be sought for with
avidity. | will not stop 10 consider on whom the
patronage incident to it is To be conferred whelh-
er the selection and control 10 be trusted 10 Con
gress or 10 the executive either will be subjected
10 appeals made in every form which the sagacIty
of interest can suggest The banks under such
a system, are stimulated 10 make the most of their
fortunate acquisition, the deposits are treated as
an increase of capital loans and circulation ire
rapidly augmented and when the public exigen-
cies require return, it is attended with embarass-
menis not provided for, loreseen. The banks
that thought themselves most fortunate when the
public funds were received find themselves most
embarrassed when the season of payment sudden
ly arrives.
Unfortunately, too the evils Of The system are not
limited to the banks. Ii stimulates general RASH
ness of enterprise. and aggravates the fuctua-
tious ofcommerce and the currency. This result
was sirkingly exhibited during The operations of
late deposite system, and especially in the purcha-
ses of public lands. The order which ultimately
directed the payment Of gold anu silver in such
purchases greatly checked, but could not altogeh-
er prevent the evil. Specie was indeed more
IN, b.s he wi he
banks could create at pleasure; but still being
obtained from them loan, and returned as
depOsie which they we're again a. liberty to use,
only passed round The circle with diminished speed.
THIS operation could not have been performed,
had the funds of the Government gone into the
Treasury. TO be loaned out for their own profit.
while they are permitted to substitute for it a
credit in account.
In expressing these sentiments, | desire not to
undervalue the benefits of salutary credit to any
branch of enterprise The credit bestowed on
probty and industry is the just reward of merit,
0nd honorable incentive to further acquisition.
None oppose it who love our country and under
stand its welfare. But when it is unduly eIcour-
aged, when it is made to inhame the public
mind with the temptations of sudden and
unsubstantial weath-when il turns industry into
paths that lead sooner later into disappointment
and distress-it becomes liable to censure and
needs correction. Far from helping probity and
INDUSTRY, the ruin 10 winch IL leads tails most Sc
verely on the great and laboring classes, who are
thrown suddenly out of employment, and by the
failure OF magnificent schemes never intended to
enrich them, are deprived in a moment of their
only resource Abuses of credit and excuses in
speculation will happen IN despite Of the most
salutary laws; no Government perhaps can alto
gether prevent them but surely every Govern
ment refrain from contributing the stimulus
that calls them into life. Since therefore, expe-
rience has shown that to lend the public money
TO the local banks is hazardous to the operations
of the Government, at least of doubtful benefit to
the institutions themselves, and productive of
disastrous arrangement in the business and cur
Iency of the country, is it the part of wisdom
again TO renew the connection?
1t is true that such an agency is in many res
poets convenient to the treasury. but it is not in
dispensabe. A limitation of the expenses of the
Government toits actual wants, and of the reve-
nue. to t ose expenses, with convenient means
for its prompt application to the purposes for
which it was raised, are the objects which we
should seek TO accomplish. The collection, safe
keeping, transfer, and disbursement of the public
money, can, it is believed, be well managed by
officers OF the Government. Its collection, and
10 a great extent It's disbursement also, have in
deed been hitherto conducted solely by them
neither National nor State banks when EMPLOYED
being required 10 do more than keep it safely
wfrtfe in their custody and transfer and pay it in
shall direct.
Surely banks are not more able than the Gov
eminent to secure the money in their possession
againt accident, violence, or fraud. The asser-
I on that they so. must assume that a vault in
bank IS stsonger than vault in the treasury
and that directors, cashiers, and clerks, not Sc
lected by the Government. nor under its control
are worthy of confidence than officers Sc
lected from the people and responsible to the
Government; officers bound by official oaths and
bonds for faithful performance of their duties
and CO: stantly SUBJECT 10 the supervision of Con-
gress.
The difficulties of transfer, and the aid hereto
fore rendered by banks, have been less than is
usually supposed. The actual accounts show that
by far the larger portion of payments is made
within short or convenient distances from
the places of collections; and the whole number
of warrants issued at the treasury D the year 1884
year, the results of which will, it is believed
afford safe test for the future-fell short of five
thousand, average Of less than one daily for
each State; in the city of New York they did not
average less than two day, and at the city of
Washington only four.
The difficulties heretofore existing are, more
over, lily lessened by an increase in the cheap
ness and facility of communication and it NAV
be asserted with confidence, that the necessary
transfers, as we'll as the safe keeping and dis
bursements of the public monies can be. with
safety and convenience accomplished through the
agencies of treasury offices. This opinion has
been in some degree confirmed by actual expert
ence since the discontinuance Of the banks as
fiscal agents, in MAY last; period which. from
The embauasments in commercial intercourse
nfpI OhSta aS rpat thatn h