The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-16

report OF tbs Secretary OF the Treasury oil ihe Th Jsnu
cry, have been little npwards OF two millions Tour
h1ndred thousand dollars 4, ths Treasury q he United
States and more than one third Of this whole
IN the vaults Of tins local banks ~ A.
I" In several instances, where opportunity existed
Of selecting the bank, preference has been gwen to
the State Bank at least portion oil the depostes has
been made with /" and this, in some instances. where
branch Of the United States Bank was located in the
| same place. ..s
And again cannot subscribe to the opinion Of the
Secretary Of the Treasury, il il Is meant that the ability
TO pay the Of any deposies which the govern
ment may make, under any exgency, 10 greater than
that Of the State Banks" &c ; with regard TO safety
am strongly inclined to think 1t is on the side Of the
local banks"
The Bank Of the United States, is conceded, to be
dispensed with, and il Is believed that there insupera-
BILE objections attending the only other scheme which has
been brought into competition with the employment Of
the State Banks The very decisive by which that
scheme (Mr. Gordons smendment,) has been rejected
by the House. shows conclusyey that II is not likely TO
receive the sanction Of the House or Of the people
However plausible it may be its face however capt
waiting the fancy Of those who have peludces against
all banks and who think any connection between the
Treasury aud banks dangerous IN political point Of
view, easily to be perceived that these objects
not to be accomplished by the plan proposed il is in
these respects wholly delusve. Admitting the exis-
Of the deprecated evils under the bank system the
scheme rs proposed for disconnecng the government
and banks does not 60 ota towards the accomplish
men OF the object The whole effect OF would be 10
transfer the power Of selecting the deposte banks from
the Secretary Of the Treasury and confer it upon the
subordinate officers Of the Treasury. The money will
still be deposited in the banks for il proposed
compel the collectors and receivers to keep the public
money in specie in their own houses and, If II were,
Il would render the scheme more lndefensibc and the
whole natter therefore, ends in changing the person IN
whom you will repose conhdence--whether in high
officer Of the government, the elevation OF whose posi-
ton, placing the eyes Of the whole country upon him,
furnishes guarantee against any improper use OF his
discretion, whether you will devolve this discretion
mere subordinate or upon an army OF subordinates,
whose livelihood depends upon their retaining their Of
hces who less exposed to the public gaze, and per-
haps less under the restraint Of high moral considera
tons who may be stimulated by desire to propitiae
the powers that be, abuse their discretion and whose
situation such that they may give the worst effect 10
this kind Of influence when they choose to exert IL and
all this is to be accomplished increase Of
pense, considerable multiplication Of officers, and
great addition to the patronage OF the Executive This
scheme them in the present state of things cannot be
approved And. in truth in whatever aspect this mat
ter be regarded, whether political question or
mere financial one, it end in choice between
the Bank of the United States and the State Banks.
Great objection is made to the employment OF the
State Banks on the Of the dangerous political in
auence which would be created This objection is
made, only from the friends Of United States Bank,
who can see no such danger in Bank Of the United
States, but with by the opponents Of Bank
Of the United States With great apparent consistency
they say they consider the Bank Of the United States
dangerous the liberties Of the country and that all the
objections apply with equal force to the State Banks
But Mr. Speaker must be recoeced that the danger
apprehended from the United States Bank never was
supposed TO from the incidental financial connec
ton between it and the government. The power it
possesses and which is regarded by those who do
regard It dangerous. derived from other
from its immense capital, with numerous branches To-
Gated in different parts of the country, all welded by
directory, and governed by one will making it,
like the tabled Brareus with hundred arms, obe-
dent to mind and supported by one immense body.
Thus constituted, it is giant holding the public credit
in its hand like a.bird which it control crush at
pleasure.
The developments OF the last year or two have given
awful force TO the apprehensons which had been previ
ousy INDUCED, Of the dangerous power Of such inst
tuon whenever became its interest to use that power
to control public opinion, in any other way affect dis
asrousy the credit and currency Of the country These
evils not think, to be apprehended from the State
Banks They will derive yer, little aid in point Of po-
cal power and influence fIom the inconsiderablc pro-
portion Of the public derived from the depo
Sites distributed they must be among great many Of
them. They scattered all the country exist by
distinct and unnconnected charters of interpretations de-
rive their existence from the State Governments, and
themselves watched by and must keep watch upon
other and rival institutions and each and all Of them
having very limited capital Under these circumstances,
must regard all that is said about the danger Of a
league of State Banks and the tremendous political in
fuence and controlling patronage which is to be de-
rived from using the State Banks places for the de-
posites Of the public money, entirely fancifu and de-
ceptive
No little hostility displayed against the State Bank
system because, somehow other, 1t seems TO be I'M
agned that it is calculated very greatly to enhance the
prosperity Of New York, aud to work IN some way or
other injurously other parts Of the country and it
is vehementy assaed here and elsewhere in this spirit
Now am entirely loss to comprehend all this
The city of New York, being the great commercial EN-
porium of the United States, the entrepo Of very
large portion OF our commerce. 49, and must necessarily
be- the place for the collection Of equivalent proper
ton Of the revenue. But do not how that well
should be Of envy, jealousy or dstrust against
New York, against the State Bank system II is the
city which feels the benefit, not the State Of New
York particularly not the interior Of New York. any
than the interior Of Pennsy lvana, Virginia
Much revenue is received there because much COM
nerce comes there. But is received than
would be received if the revenue collected by q
United States Bank, by collectors and receivers
New York will be just as much benefited by one sys
TEN the other We ought not if we could and
could il would deprive the city Of New York of
the commercial advantages derived from her natural po
son and from the concentration Of capital there, in
pursuit Of the most profitable investment of it. You
have neither legislative authority moral power to
do it.
Mr.. Jefferson said that it idle for Lcgs-
ature to say by law that there should be towns where
God and nature had said there should not be towns
In the same sense, say that any efforts yon make,
by your legislation to check the growth arrest the
prosperity of New York, will be vain the efforts
Of infant to fetter the limbs Of giant You cannot
do it, unless you command the winds and the
waves, and vainy arrogae the power which the cour
tiers of Canue persuaded him he possessed and say to
the waters Of the sea- thus far shalt thou come and
farther All those illusions, then. this subject and
in this debate to the particular interest which New
York feels in this question: and the less insignificant
and equally pertinent references and at the safe
ty and system of that State cannot regard but mis-
placed, and having very much the appearance Of un-
worthy appeals to prejudices Of the very lowest kind
stated in the beginning Of my remarks that was