The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-12

and the banks may exert upon the integrity
and liberties Of the country. is urged as
reason Cor disseminating the connection which
has existed from the foundation of the Co
vcrnment 10 the present hour. Sir am not
only surprised at this reason, but the source
from which it comes for, sir, practice dis
proves the danger, and il is directly at war with
the opinions Of the late Administration, and
those previously expressed by these high pub
lie officers This argument is directly at war
with the argument Of Gen. Jackson's Mes
sage Of December, 1884, upon this subject,
in which he says,
"The attention Of Congress seanesily invited to the
regulation of the deposies IN the State Banks by law
Although the power now exercised by the Executive
department ia this behalf is only such uniformly
exerted through every administration from the origin of
the Government up the establishment OF tho present
Bank yet il is one which is susceptible Of regulation
by law and therefore, onght so TO be regulated The
poper Of Congress direct IN what places tho treasurer
shall keep the moneys in the treasury, and to impose
strctions upon the Executive authority, ~ relation 10
their custody and removal is unlimited and its exercise
sill rather be couried than discouraged by those public
officers and agents whom rests the responsibility for
their safety II is desirable that little power pos
side should be left the President Secretary Of the
Treasury over those nstltuons--irlich, beiag fhts
freed from creeniirs iefnener and ,ciftOnt
head 10 direct ther operations, ,ooad hare lenher The
temptation nor the ability 10 interfere IN The political
conflicts Of Mc country Not derioing their charters
fron The national authorities, ney irouM nerT hare
those inducements 10 medie IN general elections trhich
haze led NE Bunk of The Uaaed States 10 agtfae and
eon1nise ae country for uPleards Of tro gears"
Also, his Message of December, 1885, in
which he says,
by the use Of the State Banks, which do no. de-
rive their charters from the general government and
are not controlled by It's authority, "a is aSc;rtliaed
INT the moRras of N: United States Be collected
and dbnrssd irihoa loss Inconvenience, and that
all the wants Of the community, in relation to ex-
change and currency, are supplied as well rs they
ever have been before. Massage Of Dee, 1885
These sentiments were concured in by the
late Secretary of tho Treasury, fNlr. Tancy,)
BY the committee of ways and means Of 1894,
in their able reports; and by the present Sc
cretary Of the Treasury. ] would now inquire
what new developments have transprcd, TO
change these decided and uncquivocal OPT
mons What political intrigue has the banks
been engaged in what elections have they
iuteriored with what political influence have
they attempted TO exercise? and when and
has it been since the last session of Congress?
know Of none, and have heard of none. Ii
the opinion is merely speculative, then expe-
riencc leads to an opposite conclusion. Mr..
Chairman, let us simply refer TO facts, and
draw from them the most rational and direct
conclusions and every man must be con-
vinced that this reason is not sufficient to JUS
tiiy resort to the system now under cOnsl-
deration--the officers of the banks hold their
place, at the hands of the directory the
directory, Of the stockholders, and the stock
holders at the hands Of the State Govern
ments The bank officers, directors, and
stockholders, none of them, hold their place
at the discretion of the ffdcral ETecniioe. The
only influence, then, which the Executive can
exercise over these institutions, will arise out
of the profit which may be derived from the
use Of the public money, which may, from
time to time, be deposited in their vaults ::
this profit with but ono or two exceptions
will not be sufficient to benefit the banks to
hazard the displeasure of the State Govern
ments-aIways overlooking their operations
and to draw them into any Of the corrupt
purposes of this Government. Under the
system proposed, the tenure of all the officers
holding the public money, will be at the dis
cretion Of the President, without any coun-
teracting influence whatever Let any man.
then, judge where there is most danger Of
Executive influence, with the banks or the
executive officers. The response is not doubt
full.
The next objection which occurs, to my
mind, is, that the system proposed will exert
a hostile influence upon State institutions, and
be subversivc Of State rights. Mr. Chairman,
no member has minated the idea, that for
lnpr inl IF fin,a II al,
dive>t itself of a paper circulation, if the
soundness of the circulation is preserved,
there must be some harmony Of action. The
natural war which paper wages against specie,
and specie against paper, must be avoided
This bill, which strikes at the credit of the
banks, by excluding their notes from payment
OF public dues, and thereby necessarily mar
rows the boundary Of their circulation and
lessons their profits will necessarily produce
counieracling policy on the part of the
banks; that policy will be the resort TO small
note issues, for in this way alone can they
drive specie out of circulation to enlarge their
own, and thus add to the embarrassment Of
The country. But Mr.. Chairman, this is not
the most serious objection to this bill it will
engcndcr jealousy and hostility on the part Of
The States towards the federal Government !;
state of things greatly to be deprecated and
pregnant with great evils to our institutions.
Mr.. Chairman, do you think that the States
will be passive under the operation Of sys-
tenn which is SO blighting to institutions
created, nourished, and matured BY them and
to which they arc so much indebted for their
present Aonrishing condition, and their rapid
march in science wealth. internal improve
mcnts and general prosperity. Will they sec
these means of their future prosperity sappcd
and destroyed | think not. Pass this bill,
and then arm this Government with the
power Of a bankrupt law, in relation 10 these
banks, by which board of commissioners
appointed by federal authority, may discon-
tinue any Of these institutions and Won nj nncn