The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-12

issue OF small notes, as our Legislature have
just provided, and as Mr.. Riyes Currency
Bill so wisely regulatedl Have the funds
Of the Government been placed in them as
special deposite? This principle would have
essentially contributed TO obviatc the objec-
tons Of the message, flowing from the late de-
tention of the public funds and realized one of
the great advantages which il discovers in
keeping them in the hands of the sub-treasu-
rers. But in the next place, can the system
be said to be fairly tried in the state of things
which has Just transpired The message
complains, that the suspension Of the Banks
occurred in a time of peace and of apparent
prosperity--not as il did before, in 1914, in
period of war. This remark is true enough
but when was the country ever in such stu-
alton in state of peace, as il has lately been3
and when Is IT likely again TO occur! So un-
precedented spirit Of speculation and over
dealing, in foreign goods, in public lands, in
all the departments of business, both at home
and abroad. The message ascribes this mis-
chief indeed to the Banks themselves. What
then How was the sub-treasury system to
have corrected the evil! Would it have ex-
tinguished the spirit that seems TO have ragged
over both continents! We do not understand,
that the President means to arrest the whole
banking system-Would it then not have
gone on to rage in spite of the sub-trcasuy
system But the message contends, that the
large public deposites thrown into the State
Institutions have stimulated and enlarged this
spirit Of speculation. Admit the fact-are the
State Banks to blame for raising the 40 mil
lions of surplus--or is it an unwise Govern
mcnt to blame for it! The Republicans Of
the South insisted upon cutting down the
tariff, and reducing the revenue. But Con-
gress would not take in sail in season; and
when this immense surplus was accumulated,
it was to be disposed Of, in some way or other.
Thrown into the State Banks, and the Secre-
tary Of the Treasury himself stimulated the
State Banks to discount freely upon it, it has
done much mischief If it had been thrown
into the sub-treasuries, it would have done
mischief likewise in different way. But
this large surplus is phenomena in our fnan-
ces. 1t is not likely ever again to occur. 1t
has contributed, as the message admits, to
force the State Banks to suspension of pay
ments. But the whole history of the last three
years is ain anomaly. 1t furnishes no conclu-
sive argument against the State Banks, pro-
perly organized by the States, and employed
by the treasury. The strong position of the
message is, that the public deposites will al
ways prompt the Banks to excessive dis
counts and over-issues. There is great force
in the proposition-it constitutes strong OBJ
lection to the State Banks. But can it not be
obvated or weakened ? The message asks,
in another place, "May not Congress regu-
late, by law, the duty of those officers, and
subject it to such subversion and publicity,
as to prevent the possibility Of any serious
abuses and excessive discounts on the public
deposites, on the part Of the Executive" In
like manner, may we not ask, whether pro-
visions may not be hereafter made to prevent
the possibility of any such serious abuse on
the part Of the Banks? We would prefer,
with the Rochester Republican," to pay
them for the expense Of their agency, rather
than they should abuse the opportunity of
the deposites. We ask, too, whether Con-
gress may not impose other restrictions upon
the Banks-and whether the State Legisla-
lures may not organize them upon better prin-
ciples The message itself emphatically says:
"rhe whole matter is now under discussion
before the proper tribunal-the people of the
States. Never before has the public mind
been SO thoroughly awakened to proper
sense of its importance never has the sub
ject, in all its bearings, been submitted to so
searching an inquiry. 1t would be distressing
the intelligence and virtue of the people to
doubt the speedy and efficient adoption of
such measures of reform as the public good
demands. All that can rightfully be done by
the Federal Government, to promote the ac-
complishment Of that important object, will,
without doubt, be performed" We must in
deed be deaf to the voice of experience, If we
did not profit by her recent lessons. The
Bank system imperiously calls for great re-
form; and there is no doubt that it will be OBJ
tanned.
One remark more upon this subject-The
Message suggests, that when the revenue is
cut down to the legitimate expenses of the
Government, there would be less occasion for
the Banks to transmit the public funds; and
there would be less money for the Sub-agents
Of the Treasury to keep and control. This is
perfectly true-We join the President, heart
and hand, in the reduction both of the ex-
penses and the revenue; but the argument
cuts both ways. The less revenue there is,
the less will be the deposites in the State
Banks, and the less opportunity Of swelling
their discounts and circulation. If small
revenue, therefore, weakens the objections to
his system, it equally weakens the objections
to the State Bank Deposite system.
We still contend, therefore, that it is better
to try the State Bank System. Organize it
better, and limit it, as far as possible-Let us
not suffer the unparalleled events which have
recently transpired to shake entirely our con-
fdence in it, as fiscal agent. Let us not
rashly fly to another Expedient. We prefer
that alternative, of course, infinitely TO an I'M
constitutional and mammoth National Bank
AT all events, let us deliberately reconsider
the whole scheme--Seek to strip it Of its
ohio nlinna-- and only n1lnnf tho sub snru