The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-14

the conclusions to which they necessarily give rise
to satisfy not only the House but the country that
the present financial system is longer to be.re-
garded as an experiment. Through the agency Of
the State banks, the fiscal operations Of Government
nave during The past year. been eminently success
iui. The collection OF The public revenue, and the
transfer Of funds 10 distant points for disbursement,
have baen made by the deposile banks-promptly,
ehcienily, and without charge TO the public. No
tning mas been lost to the Treasury and no part OF
the pubic service has suffered Inconvenience by the
employment oil these agents. All this has been done,
not only without the aid of the National Bank, but
against its power, in defiance Of its efforts TO cripple
Their operations, to distress the community and en-
barrass the Treasury"
" might, was il deemed necessary proceed 10 show
the success with which these duties were performed
by the State banks from 1883 10 the creation Of the
present Bank of the U. 8. during which period they
were employed as fiscal agents"
" IL has been my object to show from well attested
facts that they are As SAFE as any other description Of
agency could be-" . II is no long
eI question of doubt whether they can, with facility
and prompness transfer the public funds to the most
distant points OF disbursement and perform all other
duties which, as fcal agents, they may be required
perform"
In the same debate Mr.. CAMBRELEso said
lam as little disposed as either Of the gentlemen
from Virginia, (Messrs. ROBERTSON AND GoRDoS, who
advocated the divorce plan them advocate tho
OF State banks but at the present moment there are
two reasons for continuing the plan adopted by the
Treasury The STATE BANKS SELECTED, ARE THE
SAFEST PLACES or DEPOSITS FOR THE PUBLIC MO-
NEy."
Mr.. PATTON said
1.-THE employment OF State banks as repositories Of
the public money is called an experiment.
deny that it with proprety be called an expert
ment There is nothing novel in tit has been going
on from the time OF tho establishment OF the first State
bank to the present day, State banks have been Sc
lected and employed by the Treasury, fscasgcnts Of
the Government in collecting and disbursing the public
money during ihe ohoie period from The adoption 81 the
CoasHtuton 10 The present monea and this embraces
periods when Bank Of the United States existed, and
when il did not exist Through all this
time, them from 1889 1916, through all admnistra-
tons and by all political parties, and especially by that
political party tchieh called REPUBLICAN" this
Internal agency Of the State banks" it has been
characterized by one Of my honorable colleagues (Mr
RoBERrsoN has been employed, under the suPerintend.
Of the Secretary Of the Treasury and as 1t would
SEEM approved and admitted by all 10 be tho best IN he
absence of a Bank offhe U. States" -
No final vote was taken upon the bill before the
expiration of the session of the 4h OF March, 1850
In the annual message of the President in De-
cember, 1895 the country was again told that the
experience of another year has confirmed the utter
fallacy of the idea, that the Bank OF the United
States necessary for the fiscal agent OF the
government Without its aid as such, in despite OF
all the embarrassment il in its power TO create
the revenue has been paid with punctuality by
our citizens; the business of exchange, both for
eign and domestic, has been conducted with conve-
nience, and the circulating medium has been greay
improved. By the use of the State Banks, which
do not derive their charters form the general govern
ment, ami not controlled by 1t authority II IS
ascertained that the moneys OF the United states
can be collected and diSbursed without loss or IN
convenience, and that all the wants OF the com,
munity in relation TO exchange, have been supplied
as well as they ever have been before.
In the annual report to Congress OF the Secretary
of the Treasury, in December, OF the same year. we
had this similar assurance:
90 No dana tine "a
the public money continues to be collected ana
deposited under the present system oil selected
banks with great care and economy in all cases,
and with greater in some than at any former pc
Rod The transfers of it to every quarter of the
country where it is needed for disbursement, have
never been effected with more promptitude, and
have been made entirely free of expense to the
Treasury"
On the 2ls of March, (1s36) following, Mr..
Cambreleng from the Committee Of Ways and
Means in the House, (of which Committee had
the honor to be member concurring in the report)
reported anew the bill providing for the selection
and employment of the State Banks as the fiscal
agents of the Government, and on the 23d day OF
June following it became law by the signature of
President JACKSON, having passed both Houses by
extraordinary maorities.
In August, (ls36) following, preliminary to the
election of Mr.. VAN buren, TO the Presidency, he
publicly declared his opinions of an adhesion to
this same local bank system of agencies, in letter
to Hon. SHERRoD WILLIAMS in the following empha.
tic language
al sincerely believe that the public funds can be
safely and conveniently transmitted from portion Of
the Union another that domestic exchanges can be
as safely and conveniently effected, and the currency
made at least sound under the existing system Of
State Banks those objects could be accomplished by
q National Bank"
All must concede, after perusing the foregoing
authoritieS,-the highest to be desired to establish
with democrats what has been the settled opinions
and policy of the democratic party this subject,
nd fhat fha scheme
ward at the expense, and to the utter overthrow of
system which, 10 use the language of the Globe, the
long sighted policy of the founders of the Constitu
tom placed their reliance upon in denying to Con-
gress The power of charerng corporations "a sys-
tenn which, through the last four years of General
Jacksons services in the Presidency, was the theme
of his highest exultation and eulogy and in each
Secretaries of the Treasury, (Mr. fancy and Mr..
Woodbury. uniformly reported TO Congress as both
safe and satisfactory TO both the Government and the
people; a system which MIR. Benton, as we have
seen, pronounced to have been approved by an ex-
perience of twenty years-an experience running
through the choe of the Administrations Of Jefferson
and Madison J" system which Mr.. Benton also pro-
nounced to be ".ebcrsosian gronRd;" system which
Benton declared to be the antagonist OF that spirit OF
potical consultations and of that infringe ment upon
State rights that sraS acquiring so badty TO those rights
and ssrongea NOR rherc ne spirit Of consolidation
ras STRONGEST and wheyc the defence Of State rights
,ras WEAKEST :" system, TO re-establish which, the
whole nation was kept in convulsive condition from
the day Of the removal Of the deposites from the
u. S. Bank, until the passage Of the act have
named, legalzing the system in all the length and
breadth that President Jackson and his Secretaries
had asked lit was, repeat, at the expense and
overthrow of such system, and Of all its concomi-
tant advantages promised by all its advocates that
the Sub Treasury bill was to be adopted and become
a aw-and all this mainly because the force of the
most extraordinary pressure in the money market
that was ever known in the business world, and the
which has been felt wherever trade or commerce
exists the face Of the globe extended to our bank
ing institutions through the failures of their Gus
toners and debtors sufficiently to cause temporary
suspension of specie payments
Twice before has the same event happened to this
e,rna ci,es ~ focal auents in history OF