The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1838-05-23


that Congress has no right 20 make gem
eral deposiles Of The public revenue in
banks; and he denies. 100. thas il can
sUlhorize the reception Of any Thing suf
gold and silver in The payment Of debls
and dues 10 The G0gsrnment.
These questions. sir. are questions OF
magnitude, eerlsialy. and. since they have
been raised. ought 70 be answered. Thy
may be considered '0gelher. Allow me
IN The 6rst place. however. % clear them
from s0me exIrsneous matter. The ho-
norsble member puts the first question
lhus:-IlaTe We The right 20 make de-
posiIes in the hanks. in order 20 besiov
confidence in them, with view 10 enable
them 10 resume specis paymentsf And.
by way Of illustration, asks the further
question, Whether Government could
ennsIilutionally beslow on individuals. or
private association. the same advantages,
in order 10 enable them 10 pay their debisf
But this I take NOT ta be the question.
The true inquiry is. May MT Congress
authorize the public revenue. In the
intervening time between ils receipt and
its expenditure. To be deposited IN banks,
for The general purpose af ssfe-keeping,
in the same way as individuals deposile
their own money! And if tiis mode 0f
safe-keeping be attended with incidental
advantages, nf considerable imporisnre 10
the community, is not thai . reason which
may properly govern the discretion OF
Congress in the case! To benefit the
banks, or TO benefit the community, 10, in
this case, not The main object; IL is only
the incident; and as 10 the case put for
illustration, il would not be exported Of
Congress, certainly, to make deposiies
with individuals wHh a view, principally,
Of enabling such individuals 10 pay their
debts; il nigh. nevertheless, be very COM
pelent TO Congress, in soIne cases, and
very proper exercise of Us power. 10 de-
pnsile money, evea with individuals, in
such manner as that il might be advanla-
geous TO the depOsIiary. This incidental
. or consequential advantage results. often,
from the nature Of the transaction, and is
inseparable from il. II may always be
enjoyed, more or less. by any one, who
holds public money for disbursement.
Ia order To the necessary exercise Of any
of lis powers, Government doubtless msy
make c IN racts with banks or other
corporations as well as with individuals.
lfn has occasion 10 buy bills Of exchange.
it may buy them Of banks. II il has
stock or Treasury notes to sell. il may
sell to banks, as the Secretary has lately
proposed. IL may employ banks, there
fore. at its discretion. for The keeping Of
the public moneys, as th0se moneys must
he kept somewhere. II can no more
need specific grant Of power in The Con-
sntutiun for snch purpose, than one
merchant, becoming agent for another to
receive and pay out money. would need
a particular clause in his authority. ena-
bling him TO use banks for these purposes
as other persons use them. No question
has ever been raised in this Government
about the pnwer Of Congress tn authorize
such depusiIes. Mr.. Madison, in onpos-
ing the first bank charter In 1891. argued,
sIrenu0usly. that Bank OF the United
States was not necessary To Government
as a deposi.nry Of the public moneys,
because, he insisted, its use could be-
supplied by other banks. This suliicient-
ly shows his opinion. And in 1900.
Congress made il the duty of the collectors
Of customs To deposile bonds for duties in
The bank and il branches Tor collection.
When the charter Of the frs, bank ex-
pired. in 1911. almost every gentleman
who opposed its renewal commended thai
it was not necessary for The purpose of
holding deposiIes Of revenue, because
state banks could answer all such purpos-
es equally well. A strong and prevail
ing tone OG argument runs through all the
speeches on that OCCASION, tending TO this
conclusion, viz. that government NAV de-
rive from state banks all the benefi, which
Bank Of The United States could render.
In 1916, when the charter Of The last
bank was granted, il contained. as origi-
nally presented. no provision for making
The public deposites in the bank. The
bill was probably drawn. in this par,icu-
lar, from the model Of The FIRST charter.
in which no such clause was contained.
without sdverung to the law of 1900: hut
a section was introduced, on my motion,
making it the duty Of COLLECTORS 10 depo-
site the public moneys IN the bank and
ITS branches. IL was this section of ,hs
law which soms Of US thought was viola.
ted by the removal Of The de posi,es. The
maia object oil The deposl,e bill OF 1896.
as we know, was to regulate deposi,es of
The public money with The stale banks:
SO that, from the commencement, of The
government to The present time, nobody
has thought of making any question Of
the constitutional power Of Congress 10
make such arrangements.
The gen'lemaa's other proposition, and
which he lays down with sull more con.
idence and emphasis, is. tina, Congress
cannot, constl'atlonally. authorize The re-
ce'p' OF bank notes. though they be notss
oil sPee'e-pay'"g banks. IN payment of
uphiS tn The unvarnn,a.,.. -. L.