The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-05-29
COMMUNICATIONS.
TO THE EDITOR OF THE RICHMOND
ENQUIRER.

still urgethe Special Deposte scheme. You say, Eve
go against the of State banks general deposo-
ries-because, we against the banks discounting
ON the public deposites-for variety of reasons,
some of which are strongly set forth in Mr. Van
Burens Extra Message then enter into further
detail which is effectually to "em off The baakS from
any business operalionso on Mepublie deposites. This
scheme which yon SO strenuousy support is not less
Objectionable, in my opinion, than the Sub-treasury
in its most odious form. II accomplishes that which
General Jackson, before the removal of the deposies
took place, pledged himself should not occur. 1t
annihlates the public money, SO far to exclude
it from employment for the benefit Of commerce and
the country. Are you not aware that it has been the
nvariable policy Of The Government not only to per-
nit but to direct those employed to collect the pub
lie revenue, to extend all proper and convenient ia
cies to those who were the payers, that could con-
sisently be done on the public moneys in their
hands II was done underline old Bank Of the Unit
ed States. II was done with State Banks after the
expiration of the charter Of that bank II was done
with the late Bank the United States. II was done
again in 1888 by order Of General Jackson.
Why this change Of policy now, that has prevailed
in practice from the formation of the Government
You answer, for reasons set forth by Mr. Van Buren,
in his Extra Message Now what are these reasons2
take them to be the following. Said he, "the mo-
ney received from the people, instead Of being kept
till is needed for their use u.s. in consequence Of
this authority Ito use i) fund on which discounts
are made" Again, he said 81 the banks under
such system, are stimulated TO make the most of
their fortunate acquisition, the depostes are treated
as an increase Of capital; loans and circulation
rashly augmented" Again, he said, abuses Of
credit and excuses in speculation will happen in de-
spite of the most salutary laws; government, per-
haps, can altogether prevent them but surely every
government refrain from contributing the slim
illus that calls them into life" These are the parts
of the Presidents message which, presume, you re-
fer to- as justiyng your favorite deposite scheme
But are there fallacies in these theories of the
President Are bank "loans and circulation rash
ly augmented" Did the Government contribute
the stimulus" to call them into active life" by per-
hitting the public moneys to be employed? Will
the humiliation of those moneys, prevent the abuses
of credit and excuses Of speculation Isay that it
will not. a..@..@ ..sY ...
/ will shew that "loans and circulation" were
more rashly augmented by bank employed as
public depostary, with literally no public money in
its hands, than they were by any other one holding
the largest amounts of public money, and therefore,
demonstrate, that the use Of the public moneys did
not contribute the stimulus" that led to such aug
mentaon and that annihilating the of the pub
lie revenues by locking them up on special opposite
will not operate to prevent it, | go to your own
door; and 'earry the rar into Africa" refer TO
the Bank of Virginia; whose President is said be
"the new light" on which you relyan advocate for
the special depose scheme; and who it is also said,
has furnished programme, which is in this city, in
his own hand writing to be submitted 10 Congress at
the proper time.
will venture to assert, that there is not another
bank in the country, with but moderate amount
of capital, whose loans and circulation arcre SO
rashly augmented" those of the Bank of Virginia
have before me official tables of the condition of
the Depose Banks at various periods from which
institute the following comparison between the Bank
of Virginia, and some of the South and Western
banks, where discounts and circulation were the
most extended. take the item Of loans, public de-
posites circulation and capital