The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-09
GOVERNOR MARCY AND THE SUB
TREASURY SCHEME.

We have read the late Message of the Governor
of New York through with the most deliberate at
tention, and confess ourselves surprised TO find in
that State paper the following
:" Ii the view | have taken Of the origin of the
difficulties in which the country has been involved
is correct, they in great degree attributable to
the accumulation of large surplus by the
United States and the use of i by the banks. II is
the duty OF Congress to guard against evils OF this
source and L is gratifying TO perceive that the Pre-
sident Of the United States has promptly directed
their attention TO the subject and suggested import
ant changes in The existing mode Of collecting keep
| ing, and dsbursing The public moneys. There can
be question: that il is both the right and the duty
| OF the General Government, 10 collect the public
dues in the legal currency its equivalent, and
to keep its funds that they will be al its command
whenever wanted for disbursement Fully concur
ring in the necessity Of attaining these results, am
| confident that the measures necessary TO produce
them may be of such character will not affect
injuriously the business of the banking in
situations of the country. One of these measures,
and the most desirable among them, is the dscon-
tinuance Of the use Of the banks as fiscal agents of
the General Government, or such modification OF
their agency as will effectualy prevent them from
using for any purpose whatsoever, the public moneys
| that may be committed 10 them for safe keeping.
| This diScontinuance or essential modification of
their agency will, have no doubt, prove mutually
beneficial to all parties and to all interests"
It appears to us, that the views contained in the
foregoing, aribuing g in great degree" "khc ori
gin Of The difficulties in rchieh the country has been
inrotred, to The accumulation Of large surplus Of re-
reRue BY the United States and the use Of IL By The
banks, do not harmonize with other parts of the
Message in which the origin of the difficulties are
explained The Message in other parts attributes
their origin in part to restless spirit of adventure
and daring enterprise, is prominent characteristic
| of the American people. Under its impulse, their
conduct for some time previous to our present diff
cultics tended TO overacon in all branches of bust
| ness"
Also, to,
"The open credits which it is now known were
extended by certain houses in Europe TO merchants
and bankers in this country, had n powerful and
perncious agency in causing our present embarraSs
ments The facilities thus literally given on the
one side, and most mprovidently used on the other,
led to an excessive importation of foreign goods and
the consequent accumulation OF very large foreign
debt which the avails of our exports did not furnish
the means of paying Over trading at home is the
almost inevitable effect of excessive importations
| from abroad"
| II adds,
"The same fruitful source of evil has also pro-
duced what was anticipated as blessing but has in
fact proved TO BE- public caamity-the accumula-
ton of a large surplus revenue"
twill be seen that other and leading causes are
detailed by Governor Marcy, to which he adds, the
accumulation Of the surplus revenue, as having pro-
duced the difficulties, and led to a suspension of
specie payments by the banks
But says the Governors Message,
Notwithstanding the embarrassment of their Gus
toners, it is probable the banks would have sustained
| themselves in this trying emergency, had not the
difficulties in which they we're involved been greatly
aggravated BY the measures rendered necessary TO
execute the deposile law"
Here is the sole cause Of all the difficulties given
| = q G
NECESSARY TO EXECUTE THE DEPOSITE
LAW" But for these measures the banks would
probably have SUSTAINED THEMSELVES"
This is an admission of what we have all along
been contendng for that IL paS The measures adoptcd
IN Tie crcctioa Of the depositc act that led 10 all The
difficulties which orertook Tic banks.
| The Message in our opinion, very Justly re-
marks,
credit considered in their nature and combination,
are truly extraordinary, and viii not be likely 10
occur again."
After this expression, we were truly surprised to
find the recommendation following it, contained in
the first extract above, OF "Me diSeontiauancc o.
tic use Of khc baS as the fiscal agents Of he Gorern-
,neU or such a modification Of their agency as w,h
eEectaalfy prcccm them from using, for any purpose
,ch0tercr the public moneys that may be committed tor
safe Keeping" Our surprise was greatly increased
on finding in the same document the following
statement:
"From the organization the federal government
down TO the present pecuniary crisis its funds have
been deposited in banking institutions and in TINS
situation have contributed 10 increase their ability TO
accommodate their customers.
Now, we appeal to the candor Of Governor Marcy
himself as well as TO all other unpreIudiced and