Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-06-01
FRIDAY, .5Ess'E I, ae:ss.

shoho oe intended 10 restrain The abuses oil banking
lie WI! mt consider efforts o protect the public morals
and Iie interests Of the whole people against any and
all threatened dangers, hostile 10 him, or his bank
and It such charge is 10 come from those engaged IN
tie business OF banking il is 10 be looked 10: from those
only who nre conscious Of weakness requiring Tie aid
OF laws such as that now popnsedi from those VINO have
rrnyed the monopoly of having their notes exclusively
made the legal currency of the public Treasury, until
The wealth and power acquired from too much public
patronage and favor, have cmb"ldened them tn demand
as right, in all situations, the exclusive privileges
which were only accorded to relations the most intimate
and interests perfectly identical between them and the
puhiic from those whose habit of leaning upon the
QUO Treasury for support has become so confirmed
,dt that support is rendered essential to heaithtul rx
lstrnce To such the refusal To pass this part at The
resolution may seem hostile ac not because they he
Ieve they possess the light demand the pro'ecti"n
but because they feel lis necessity too deeply 10 be able
Ia The right.
1t may be said, it has been said that the Govern
ment is believed 10 be hostile 10 the State Banks. and
that this provision of the resolution should b. passed 10
Iebut So injurious presumption. The foundation Tor
this suggestion. and the character Of the remedy recon-
mendPd for the supposed evil deserve some examlna.
ton, that the public mind may be tisabused upon both
points.
First then what foundation is there for The allegation
that the Government hostile the State banks and
is prosecuting an discriminating agans, Them Pre-
viuus the month Of October, 1888 all the cunnrXi"n
which had existed between The Government of til" u
States and the banks chartered by the Stars for term
of nearly eighteen years, had been prescribed inmed
and conducted by and through the Bank u" the United
States acting the fiscal agrn, Of the Treasury of tie
u. States The committee, III former part OF this re-
port haze shown what that conncxInn was and how Tar
II extended il consisted in the reception, by the Bank
of the IT, States and lis branches lin payment OF the
-" The T. States. Of the notes OF such Stat" BANKS
as "redremed their engagements with specie" and were
"lOcard the city place wh.rr the receiving bank
or branch located, and the return OF those mites
the Stale Bank which issued them. ''at least
every week, 10 be r'decmsd rth specie. This the
character and extent of the cUnneXlun between the pub
lie Treasury and the local banks, under the fiscal
agement Of tie Bank Of the u. S. To prepare for HE
expiration Of the charter of that bank and for the wind
ing up OF lis affairs National Bank. an institution
which public opinion had clearly Indicated was not to
have existence IN this country after the expiration Of
that charter the Secretary of the Treasury under the
direction Of the President, ordered the public money,
from and after the .t day Of October lc33 TO be made
certain designated State Banks, and not in the Bank
OF the U. 5. This the commencement Of more
extensive intimate, and responsible connrXion between
the Government and the local banks II matured
and continued by Executive direction, without any de-
finite action the part of Congress until The 23i day
Of June, lS:. 10 the mean time this acton on The part
of the Executive branch OF the Government, was most
loudly complained Of exhibiting spirit Oi iavOTli'sm
towards The local banks dangerous To the public
Of the nation, destructive Of public confidence, and
srquenly Of public and private credit as rendering GER
tain the entire prosiration of business and the dissent
nation of distress and bankruptcy throughout the land.
The public revenue however continued 10 accumulate
with a rapdity Heretofore unrSamped, and business
took cudden impetus hich drove it from of
heahFuI and vigorous. TO Of wild and lrverish
ton in the space Of less than Two years. These ap
pearan filled the minds nf many o! the friends Of
the policy Of the Executive with anxiety and con.
Germ, while the complaints of the opponents Of The
policy were changed 10 the dangers impending over
the numerous millions Of the public money in the nse
cure hanks; the improper uses IN which the money
applird by the institutions; the certainty nf fatal de.
gemenls in the paper currency to BE- caused by the
excuses; and the like AT this crisis. and the 2}d
day of June, 1855 the act was passed entitled AN act
to regulate the depnsites of the public money. That
act lpralzed the conn" yi0n between the Government
and the banks and prescribed regulations Of law for lis
future continuance Sill the unnatural accumuat"ns
Of revenue continued IN n manner To alarm the minds of
ALL and 10 furnish the most conclusive evidence OF fearful
excuses in banking, and in the use of credits generally
The deposle proposed check 10 this state of things
so far as the public concerned slough did
provide another and what Congress considered safer,
mode Of keeping the vast amount Of treasure collected
and collecting. No other action If Congress provided
this check and much the greatest excess of coll"c
lions was coming in from the lands after the adjourn.
ment of Congress- the 18th ut July Io%6. and on the
lh day of that month the Secretary of the Treasury
under The direction Of the President issued the order
respecting the medium in which payments for lands
you'd after certain periods named be required tn be
made This order first changed the tone of complaint
from that of favorilisn the apart Of the Government
towards the local banks 10 that OF deadly hnsly against
them Time passed on, however. and Congress me, and
adjourned again, aud no law was passed affecting the
COLLECTION of the in any Of its branches The
order had had the effect diminish to extent, but
10 much less than anticipated by its friends
and predicted by ls opponents. the sal"s of the pubic
lands and Ia lessen in The proportion, The accu.
mutation of revenue from that BY this time,
also unrquiYoca evidences Of general business and
revusnn were exhibiting themselves, not
only throughout this country but most of the CONNER
cia countries OF Europe and rapidly did The change
sweep on that before the expiration of The month Of
MAY 1881 with few unmpnant exceptions, all the
banking institutions of the United States were induced
10 suspend the payment Of their notes in specie
This produced md embar raising state Of things
for the Government. All the of tho Treasury 10
meet the current expenditures Of the country on
deposire in the banks, and they were. by law the depn
STORIES of the scCruing revenue. Still the act making
them 50 prohibited the selection, Repositories. Of any
bu, snccie pa wing banks, and made it the imperative
duty Of the Secretary Of the Treasury Ia discontinue
any bank as n depository which should al any time
refuse TO pa" It's notes in specie IT demand
3D." and To withdraw from ii the public moneys
which il may hold deposIte al the lime Ot such
The dcpose banks, therefore,
all Ia he instantly discontinued and the country pre-
scned no others which could be selected because pre-
scented no specie paying banks Hence other repositories
different from and independent Of the banks, to be
constituted and a natural and almost necessary
SEQUENCE the officers Of the Government charged with
the collection of the public dues, were charged also
with the keeping of the money collected until il
nured for disbursement, Another duty nf the Seer tsry
of the Treasury made equally imperative by the depn.
sile law, was promptly 10 withdraw from the banks,
which had been Repositories and were discontinued, the
public moneys held by them dpp"si'e at the time OF
their disconnnance. The performance Of this duty
involved greater difficulty and, indeed, was rendered
impossible The laws which have been before referred
to- the resolution Of 1916 being included limited the
power we'll discretion of the Secretary of The ren
sury, to the currency or media OF payment he was ut
liberty receive from the banks or from any other pub
lie debtors and neither that resolution. any of the
other laws, permitted him 10 take in payments 10 the
United States the notes of any bank which did mt pay
its notes demand in The legal currency Of the s;
while another existing law. which will be hereafter re-
rrcd to- expressly prohibited him from paying out such
notes The suspension If specie payments by the
extended we'll 10 iheir pnbliC ard private