Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-12-06

1ieHe"ai oI connection which circumstances have
dissolved
The dlscontnuapca of the use of State banks fol
hscai purposes ought not be regarded as measure
OF hostility towards those institutions. Banks pro-
pery established and conducted highly useful to
the business of the country and will doubtless con
TIME 10 exist in the States so long as they conform
TO Their avs, and found be safe and beneficial
How they should be created, what privileges they
should ENJOY, under what responsibilities they should
act, and To what restrictions they should be subject
are questions which, as observed on previous oc-
caslon, belong 10 the States TO decide Upon their
rights, or the exercise of them, the General Govern
Hlent can nave no motive 10 encroach. Its duty
wards them ls well performed when ii refrains from
iegsiang for their special benefit because such legs-
aiion would violate the spirit of the Constitution and
DE UNJUST TO other interests; when takes steps
impair Their usefulness but manage its affairs
as TO maze II the interest of those institutions to
strengthen and improve their condition for the secu.
rty and welfare OF the community at large
They have no right to insist connection with
inc Federal Government, nor on the of the pub
lie money for their own benefit. The object of the
measure under consideration is, 10 avoid for the iu
ttre a compulsory connection of this kind. 1t pro-
poses 10 place the general Government, regard 10
the essential points, of the collection, safe keeping
and transfer OF the public money, IN situation which
shall relieve II from all dependence on the will Of ir-
responsible individuals or corporations; 10 withdraw
these moneys from the uses of private trade, and
confide them to agents, constltulionay selected and
controlled by law 10 abstain from improper inter-
inducements TO improvdent dealings on the part of
individuals; to give stability to the concerns of the
Treasury; 10 preserve the measures of The Govern
ment from the unavoidable reproaches that flow from
such connection, and the banks themselves from
the Injurious effects of supposed participation in the
political conflicts Of the day, from which they will
otherwise find-t difficult to escape.
These are my views upon this important subject
formed after careful reflection and with desire but
to arrive AT what is most likely promote the public
interest. They are now as they were before, sub
mitted with unfeigned Difference for the opinions Of
others. Ii was hardly to be hoped that changes so
Important on subject SO interesting, corld be made
without producing serious diversity of opinions but
so long as those conflicting views kept above the
influence of individual or local interests; so long as
THEY pursue only the general good and discussed
with moderation and candor, such diversity is bene
fit, not an injury. If majority of Congress see the
public welfare in different light; and more especial
ly if they should be satisfied that the proPos
ed would not be acceptable to the people; I shall
look TO their wisdom TO substitute such may be
more conducive 10 the one and more satisfactory to
the other. In any event, they may confidently rely
on my hearty cooperation to the fullest extent which
my views of the Constitution and my sense of duty
will permit.
Ii Is obviously important to this branch of the pub
lie service and 10 the business and quiet of the
try that the whole subject should in way be set
tied and regulated by law; and possbe al your pre-
sent session. Besides the plans above referred to-
not aware that any one has been suggested except
in special deposite. This plan 49, to some extent in
accordance with the practice of the Government and
with the present arrangement of the Treasury Depart
ment; which, except perhaps, during the operation
of the late depose act has always been allowed even
during the existence Of National Bank TO make
temporary use of the State banks particular places
for the safe keeping ofporis of the revenue. This
Discretionary power might be continued, if Congress
deem desirable, whatever general system be adopt
ed. So long the connection is voluntary need
perhaps anticipate few of those difficulties and little
of that dependence on the banks which must attend
every such connection when compulsory in its nature.
and when arranged as 10 make the banks a fixed
part Of the machinery of Government
1t is undoubtedly in the power Of Congress 30 10
regulate and guard II as TO prevent the public money
from being applied to the us or intermingled with
the affairs of individuals. Thus arranged, although
il would not give to the Government that entire con-
troll over its own funds which desire to secure to il
by the plan have proposed, il would il must be adj
mitted, in great degree, accomplish one OF the OBJ
jects which has recommended that plan TO my judg-
ment-the separation OF the fiscal concerns OF tao Co.
vernment from those ofindviduals corporations
With these observations, l recommend the whole
matter TO your dispasslonate reflection confidently
hoping that some ic0ncluslon may be reached by
your deliberations which, on the one hand shall
give safety and stability TO the fiscal operations Of the
Government, and be consistent on the other, with
the genius of our institutions and with the interests
aud wishes Of the great mass flour constituents.
IL was my hope that nothing would occur 10 make
National Bank. There are circumstances, however,
connected with the present state OF Its affairs, that
bear so directly the character OF the Government
and the welfare Of the citizen, that should not feel
myself excused in negecting notice them The
charter which terminated its banking privileges on
the 4h of March, 1886, continued its corporate pow
ers two years more, for the sole purpose of closing
its affairs with authority to use the corporate name
style and capacity, for the purpose Of suits for final
settlement and liquidation of the affairs and acts OF
the corporation and for the sale and disposition OF
their estate real, personal and Mixed but for no other
purpose or in any other manner whatsoever" just
before the banking privileges ceased It's effects were
transferred by the bank 10 new State institution
then recently incorporated, in trust for the discharge
OF iis debts and the settlement OF It's affairs
With III trustee, by authority Congress, an adj
isstment was subsequently made Of the large interest
which the Government had in the stock Of the nsfitu-
ton. The manner in which trust unexpectedly
created upon the granting the charter and involy
ing such great public interests has been executed
would. under any circumstances he a fit subject OF
enquiry but much more does il deserve yeur atten-
ton when II embraces the redemption OF obligations
10 which the authority and credit OF the United
States have given value. The two years allowed are
now nearly nj an end Ii is well understood that the
trustee has not redeemed and cancelled the oustand
inc notes the bank but has reissued and 10 actually
reissunp since the third of March 1886, the notes
which have been received by IL to a vast amount.
According n it's own Official statement so late as the
first of October last, nineteen menihs after the bank
inc privileges given Ivy the charter had expired, Il had
nm jer liz control uncancelled notes Of the late Bank