The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-08-18
ADDRESS or THE HON. .. 9. CLARK.
To tie Republican Electors 81 Chenango
' II County. ~ Y.
(Continuedl
(Conlinued.)

(Coniinued.)
But to return 10 the extracts. President Jacksons
Cabinet opinion September, 1873 sA
.The only consideration applies 10 the safety OF the
nuh;c funds If deposited ia those (he S,ate) nsu-
ion. and when Il Is seen that the directors OF many
Of than are not only willing to pledge the character
and cspi,a Of corporations IN giving success 70 TINS
measure. (,he State Bank depos,e measore,) but also
their own property and reputation, we cannot doubt
that they at least believe the public deposlies will DO
..fs IN their management The President thinks that
these facts and circumstances afford strong qua
roafv as can be had human affairs Tor The safety Of the
public lunds, and the praccability OF new system oil
collection and disbursement through the agency OF The
State Banks"
Mr. fancy, Secretary of the Treasury, In his first
report 10 the House OF Representatives, AFTER the
removal Of the deposites, Dec. 3, 1883, says
"The propriety Of removing the depostes being thus
evident and being my duty to select the
places TO which they be removed IL became me-
cessary that arrangements should be Immediately made
with the repositories Of the public money which
would not only render u safe, but would at the same
time secure 70 the Government and TO the community
at large the conyenences and facilities that in
tended be obtained by Incorporating the Bank OF the
Uated States Measures were accordingly taken Tor
that purpose, and copies Of the contracts which have
been made with the selected banks and OF the letters OF
instructions them from this department. herewith
submitted There has not yet been sufficient time TO
psrfsct those arrangements, but enough has aready
been done show that, the score Of expedien-
cy Bank Of the United States is not necessary either
for the fiscal operations Of the Government, the pub
Lie convenience; and that every object which the char
ter to the present bank designed attain, may be
n efectuslly accomplished by the State banks. And,
fshis be done, nothing that useful will be lost or
endangered by the change, while much that is desra 10
will be gained by IT, For Of these corporations
win possess that absolute and almost unlimited do
minon the property Of the citizens OF the United
States which the present bank holds, and which enables
il any moment At its own pleasure, 10 bring distress
upon any portion OF the community whenever II may
deem it useful to its interest to make its power felt
The influence Of each Of the State banks
rily limited to its own immediate neighborhood, and
they will be kept in check by the other local banks-
They will not, therefore, be tempted by the conscious
Of power aspire to political influence, nor likely
20 interfere in the elections OF the public servants
They WILL moreover be managed BY persons who reside
in the midst Of the people who to be Immediately
affected by their measures and they cannot be insen-
sble Indifferent to the opinions and peculiar interests
ofthose by whom they daily surrounded, and with
whom they are constantly associated
"Hhe State banks selected are all institutions Of high
character and undoubted strength and under the
management and control Of persons Of unquestioncd
probty and intelligence"
1.-THE State banks, have no doubt, can furnish a
general circulating medium, quite uniform in value
that which has been afforded by the U. S. Bank and
probably more So"
Sscresarys Report, M. Crarford, 10 Congress, Fs6
FEB. is, 1892
" In such case, (when there was no branch OF U. s.
Bank the only alternatives to suffer the public
money TO remain in the hands Of the receivers until il
could be expended, directed it 10 he deposited in
some Of the local banks. Experience had shown that
it prudent adopt the first of these slierna
tives. Indeed Congress, Influenced probably by this
conviction, had in the year 1900 directed that the re-
venue bonds in all the principal cities should be depo
sited for collection in the Bank Of the United States
and in 1909, 1t further directed by law, that the
principal disbursing officers should keep the public mo-
mics in incorporated bank. Acting in the spirit
of these legislative iDjunctons, founded the idea
that the banks furnished additional security, my pre-
decessors had directed the public money should be de-
sa Ike was placed under my direction
in Oct 1916 there eighty nine banks Of deposi,e
in the Union II recent experience has furnished evil
dence in any degree conflicting with that which pro-
duced the Legislative njunctions TO which have re-
euedit has also shown that the o6eia integrity Of
the public agents has not been augmented"
Here we have the testimony of Mr.. Crawford,
that II was not safe topermit the public money TO ac
cumulae in the hands IF the collectors, and Of the
superiority Of the deposite system over the Sub
treasury
Mr. GaAatn's Report TO the Senate, jan $780,
The banking system is now firmly established and
in its ramicaons, extends to every part Of the United
States. Under that SYSTEM the assistance of Banks
appears to necessary for the punctua collection Of
the revenue and for the safe keeping and transmission
of public moneys. That punctuaty Of payments 10
principally due to banks is a fact generally acknow-
lodged It is, to certain degree, enforced by the re-
fusa Of credit at the custom house, long former
revenue bond, actually due, remains unpaid Blu.
think, nevertheless, that order insure that prcci-
sion in the collection, on which depends correspond
ing discharge OF the public engagements, would if
made Of banks be found necessary 10 abo-
lish altogether the credit given on the payment Of
.duties-a measure which would affect the commercial
capital, and fall heavily the consumers That the
public moneys safer by being weekly deposited in
banks, instead Of accumnlatng in the hands Of coec
tors is seif-evdenl And their transmission whenever
this may be wanted for the purpose OF making payments
mother places than those Of collection cannot with any
convenience, be effected large SCALE in an extern
sve country, except through the medium Of banks Of
persons acting as bankers.
The question, therefore, is, whether bank incor-
,porated by the United States, number Of banks
incorporated by the several States, be convenient
for those purposes.
norenewal Of the charter, be used by the Treasury"
Gen. Jaekson's Message, Dee 1884.
Happily it is already illustrated that the agency Of
such institution, (U S. Bank,) is not necessary 10
tho fiscal operations Of the Government. The State
banks found fully adequate 10 the performance of
all services which were required Of the Bank Of the
United States, quite as promptly, and with the same
cheapIess.
now refer you to extracts from speeches of gen.
tlemen, whose opinions are entitled to weight and
respect or were for when they delivered them
the question Of employing the State banks was not
considered SO much of party question as the Sub
treasury Ks now, as is shown by the almost unani-
nous vote Of both parties on the passage Of the act
authorizing the employment OF the State banks us
repositories But the administration having deter
mined To discontinue the depose system and having
staked their political fortunes ON the "hazard of This
Al "a AZ -