The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-08-18
Mr. Benion's Speech on Re-eAarteriag The Bank Of Inc
49, TLaifxd States HfqrcA 81 1884

Uaitsd States, MareA 81, 1884
Mr. Benton said, he deprecated the spirit which
seemed to have broken oot against the State Banks
Il was spirit which argued badly for ihe rights 81 e
States Those banks were created by the States and
the ioorks Of the States ought TO be respected the
stocks in those banks held by American citizens
and ought not to be inuriously assslled. The very
mode Of carrying on the warfare against State Banks
has itself been injury and Just cause OF complaint
Some OF the most uncomfortable have been picked out
their affairs presented in the most unayorabe light and
then held forth sample Of the whole. How much
more easy would il have been to have acted more
grateful and more equitable part A part more just
TO the State Governments which created those banks
and the American citizen who holds stock IN them n-
stead Of hunting Out remote and inconsidorsbe banks
and insliluling most disparsging scrutiny into their
small affairs aud making this high Senate the consp
cuous theatre for the exhibition al their insignhcsnce
why take the higher order Of State Banks those
whose name and character are well known! whose
stock upon the exchange Of London and New York 10
superior TO that of the S. Bank whose individual de-
poses greater than those Of the rival branches Of
the u. 8. Bank seaied 10 their neghborhood, Whose
bills Of exchange are sought for eagerly as those OF
the Federal bank which have reduced exchange below
the rates of the Federal bank and which, in every par
ticular that tries the credit, is superior to the
which receives so much homage and admiration Mr.
Benton said there plenty Of such State Banks
he had described; they were to be found in every
principal city from New Orleans to Boston,"
ne spirit VI 10 otate banks was OIL Ie-
orgn and seemed to keep pace with the spirit Of
attack upon the political rights Of the States. When
the first Federal bank created in the year l79 it
not even made by its charter place Of deposites
OF the public money Mr. Jefferson preferred the State
banks that time and declared himself in his cabi
net opinion to Gen. Washington. Mr. Galls,in de-
posted part Of the public moneys in the State banks,
during the whole Of the long period that he at the
head Of the Treasury. At the dissolution of the FIRST
bank he turned over all the public moneys to these
banks, taking their own obligation for the payment Of
the same. Again During the whole war, the Govern
ment was borrower instead Of deposition. II be-
came the OF the local banks and would have be-
the servant and slave OF the United States Bank,
if il had continued"
Here We have just and faithful history Of the
Stale bank deposiie system-its origin under Wash
ington-its continuance under all the succeeding
admnstralions-its usefulness, and its safety. Mr..
Benton asserted, that In proposing to regulate the
State bank deposie system BY Law, he stood on
JEFFERSONlAN ground. On what ground does
he now stand, when he not only refuses TO perfect
the deposile law, but voted to take from the Execu-
tive all the restraints which the law had imposed
upon him in regard TO the keeping and discussing
tion committed to the President as "a larless state
of things. now he Is for returning the same law
less state. Then he was the advocate OF order and
law; now Of confusion and discretion. Then he
for placing the control Of the money under the
Peoples Representatives, to whom it properly be-
longs; now he is willing to place il in the pocket Of
the Executive, with carte blanche for its manage
ment
and the foe Of consolidation He then considered
that an attack on State banks was an attack upon
State sovereignty And Is this not true? They are
the creations of State legislation brought into being
Of the people OF the States. Some of the banks in
the Union are owned entirely by the States Over
these institutions the General Government can have
no control, except by agreement made with them, as
A. 49, n.~~
by Congress which shall destroy the local insu-
tions is an invasion OF State rights as perfect and
direct an attack by the troops Of the United States
under order from the President would be upon the
edi6ce in which they transact their business. That
the Subtreasury would destroy those institutions,
have no doubt, as will hereafter attempt TO show
Jealousy of Federal encroachments on The rights of
the local governments, has strongly marked the
croIc statesmen nom Sssrson down 10 Iacksou.~
Mr. Benton says truly that this spirit against State
OF the Republic--strongesi now where the spirit
Of consolidation was the strongest-and weakest
where the defence Of State rights the weakest"
What change has come over him! No man in
this Nation has more uncompromising enmity
against the State banks than Mr. Benton. II his
assertion be true then he is where the sprit de-
fepd State rights is the weakest"
Mr.. B. also speaks of the facilities furnished by
the banks to the Government in prosecuting the late
war IT'S true that these institutions, acting from
patriotic impulses, when the credit of the Govern
ment crippled, and at the darkest period of our
history 10 the rescue and opened their Golfers
to the pressing and impcrious wants Of the country
Through their aid We were enabled TO bring the war
to speedy and glorious termination. They con
tributed to necessities with no nggardly hand
So liberal were their loans that, as Mr.. Benton says
the I" Government became the servant of the local
banks" But now how changed! These former
kind Offices Of the banks forgotten; and Govern
ment is now striving not only to be their MASTER but
their destroyer. The report OF the Secretary OF
~ ;, thah on n
says
"It is gratifying to reflect that tho credit given by
Government whether to bank paper or to hank agents.
has been accompanied by SMALLER LOSSES in the
experience under the system Of State banks, in this
country at their WORST PERIODS, and under their
SEvEREST CALAMITIES, than any other KIND Of
credit the Government has given in relation its
pecuniary transactions"
And now, can it be believed that this same Secre-
tary, who in his report, and in all his reports up to-
that the banks were repositories safer than any other
and that the losses by them had been much less than
by any other has been so far operated on by Execu-
tive influence as to contradict all he has heretofore
said on this subect2 IT'S too true. In report
made by him TO Congress, on the 9Th of February
last he attempts TO destroy the effect of all his pre-
vious reports. What is the conclusion Either that
his old reports were true and that the February
port is false that the latter is false and the former
are true. What humiatng reflection that no
confidence be placed in our official public docu
ments! Old ones may be altered and garbled, and
new ones, contradictory TO the old, may be gotten up
to subserve the purposes of party Let it be borne
in mind that the Secretary does pretend that there
has been any loss by the banks since his report of
| 1884. The Secretary has failed, altogether failed
in his objectto prove that the Government has lost
more by the banks than by individual repositories
He has not succeeded in falsifying his former re-
cords.
1t is worthy Of notice, that Il did not occur to Gen.
Jackson, or TO any one of the gentlemen whose
speeches above quoted or TO any other advocate
Of ct Ia he hail