The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-13
THE LATE DEPOslTE BANKS.

The following article we take from the
Frederick Times. We recommend all those
who were the advocates of the deposite bank
system in 1884, and who are now waring
against all the banking institutions of the
country, to peruse it attentyely
ssThese banks have been accused OF treachery TO
the Government in consequence Of their suspension
of specie payments, and every loco TOGO Journal in
the Union, has been crying out loudly for their de-
struction As an apology for this wicked and ruin
Gus course and as an argument against their re-
employment as the fiscal agents OF the Treasury
the destructive papers charge the banks with over
trading on the public dePosites, and thus becoming
the authors of the calamtes which have overtaken
them. How unjust the imputaton. Ii any treachery
has been committed, we think it can easily be fixed
upon the loco foco presses and those officers of the
Government who are in favor OF the Sub-treasury
scheme Let it be recollected that the law Of June,
1896 required the banks TO pay an interest of two
per cent. all the public deposites placed in their
possession, exceeding one-fourh of their capital ac
tually paid in! This not only authorized but COM
pctled the banks TO discount on the public moneys
whether they willed it or not, in order to enable
them to pay The interest charged
Moreover ii must be fresh in the recollection Of
the people, that Gen. Jackson and the Secretary
of the Treasury time after time instructed the depo-
site banks to discount literally the public depo
sites, TO extend their accommodations and increase
their loans TO the mercantile community, in order
to counterfeit the narrow minded policy of the United
States Bank. IT, after being thus invited, thus en-
couraged, thus instructed and thus ordered TO dis
count literally and extensively on the public funds
the banks involved themselves in difficulties, is it
becoming in the General Government, or any of its
supporters to desert them in the hour of trial which
has been hurried upon them By its o@n impfadeat
0drice2
But for the next great blow which Unexpectedly
fell upon them, they could have escaped from their
perilS The Specie Circular drew out the very life
blood that sustained them. That act made specie
an article of merchadize, created an exorbitant de-
mand for it, and consequently, the vaults of the
banks were drained Of their contents to supply that
demand. W.T..
Ii is now in the power of the government to reme-
dy the diSordered state of the currency by It's simple
fat. Let the Sub Treasury scheme be abandoned
let the unjust and destructive policy of demanding
gold and silver in payment OF the public funds be
dscounIenanced for il is The parent of all existing
derangementS--let Secretary Woodbury. initiate the
example of VIM III. Crawford in the days of the first
suspension, and then confidence will be restored and
The banks can Immediately resume
Those who would understand the liberal policy
which the government then pursued towards the
banks, and The timely aid which afforded them in
preparing Tor resumption, are requested to read
the extracts from the correspondence which that
great hnancier held with the banks in 1916 They
can be found in Mr.. RIvEs' speech. In those pure
days OF the republic, no portion Of the press was 50
traitorous to their country to evince the least hos
tility to the banks and the credit system II was re-
served for the dangerous nnoyaors of the present
day to commence this work Of deSoalion and ruin
We regard every supporter of such policy as a
most deadly enemy TO the business interests OF his
country, and the time is approaching when they will
b. condemned and creetatcd in every part of
public.