Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-05-08
Twenay-Gfth Congress---Sd sess
SPEECH OF MIR. BENTON, OF Missouri,

LINUS sidHu ~ comparison UeI"PtH le pa'hS anu
the collectors and disbursing agents; and the difference
Is more than five TO one in favor Of the collectors and
these agents. In both instances, the comparison goes
hack TO the foundation of The Government. ard il is to
be observed that the losses nnionp the collectors almost
lent!rply accrued under the old system, before The Tour
years law took efFect-thni. law which brings The &C.
counts OF every moneyed agent 10 n close every four
year. This law, with other regulations at the Depart
ments, have nearly put an end to losses by colleclors.-
In the War Department, in the disbursement OF one nun
bred millions in the lost fifteen years, there has not oeeh
the loss OF 4 dollar. The other Departments have also
been greatly improved. If the comparison had been con
fined 10 the last fifteen years, since The new la" ana Inc
! new regulations have been in force, il would have resulted
! still more 10 the discredit OF The banks and to the honor of
iIhe Government agents. Bat IL is not by the losses up
| peating CT the Treasury books that this great question
Is 10 be answered. Those books only show Tho oirect
losses to the Government from the use Of bank paper
and banks as repositories; the indirect losses TO the 90.
vGrnment, and The losses to its creditors and to the whole
community from the use Of deprecated paper, must also
he taken into The account; and then the nlIschIe!s from
The use of these banks and their paper money, appear IN
their enormous, incnlculable and appalling amount Cen
tlemen of the Opposition have REQUIRED with great com.
mendation, to the report of q committee to The House OF
Representatives, of which Mr.. McDutfie was chairman,
some even or eight years ago, 10 show The evils "i a
Treasury bank-that phantom OF which there Is M ex'
istence any where but in their own imaginations They
produce his report with every commentator; OF course
they cannot object 10 lis authority; and here IS a para
graph taken from it which should begin 10 open their
eyes, q Z " eyes Vi 'IC uhl " u -
The losses from Government reliance on local banks and
their paper money.
"The Government borrowed, during the short period
of the war. eighty millions Of dollars, at an average dES'
count Of fifteen per cenlum, giving cer'ihea'es "i S'ock'
amounting to eighty millions of dollars, in exchange Tor
sixty eight millions Of dollars in such 6ank paper as
could be obtained. Upon the very face OF the transac,
lion, therefore, there was a loss OF twelve millions OF
dollars, which would, in all probability, have been saved
If the Treasury had been aided by ouch All institution as
The Rank of the ~ g Rut the sum OF Sky cIIal mi.
lions of dollars received by The Government was IN Il
appreciated currency, not more than halt as Viluaoie as
that in which the stock given in exchange Tor IL, mas
been, and will be redeemed. Here then is mother loss
OF thirty four millions, resulting inconteslioiy ana tx
clusively, from the depreciation ofthe currercy. and max
ing, with the sum lost by the discount, forty SIX millions
of dollars"
Mr.. McDufie SAYS, and says truly, ia his report that
this loss Of forty six millions was only one item IN Inc
catalogue Of losses-that The loss to the community. and
to the Government creditors, from using appreciated
pa per was bevond calculation Hs remedy Tor these
losses was a National Bank, mine 10 an adequate supply
Of gold and silver, and especi1dy OF goid ana !, II Is
asked how much gold will be sufficient. | answer, that go
far as the currency Of n N9tional Bank IS concerned,
twenty odd millions would oe enough tor that Is 'me
maximum amount Of currency that she ever inrn'sncd
A supply then of twenty odd millions Of gold would
meet all objections arising from the withdrawal Of her
currency, and tina, AMOUNT will be in the country before
the present term of SIR Van Buren, s administrator 1'
pires. and double mat amount in seven or eight years.
4 ne los O n IIDtlN CIFIItpl " 4" i'~'' wv ''''
The Use of depeciated paper during the late war. Even
the Treasury notes were deprecated, in some parts, as
low as SO I.3 per cent. The loss to creditors rom the
use of bank Of notes, since May last. has also been
great The public moneys in the hands "f the ~dep"si'e
banks were then 80 millions; The Government has been
paying il out ever since, to the great profit Of the banks,
to the immense discredit of The G~overnment. itself, and
10 the heavy loss of many Of its creditors.
But the money test cannot complete the comparison lie.
tween the two classes %ofngents Other considerations Oi
great weight, and more of still graver character. belong
10 the subject. First, in point ofamennbihty The 20.
vernmen, officers are amenable 10 The Government, sub
iect TO its Il Tvs and its orders; liable to summary proceed
inps for default, and to be pursued by execution where
ever they 90, and responsible in person and property,
themselves and all their securities, for all that Is owing
by them. Not so with the banks. They are The crca.
lions of the State Governments, subject TO State laws.
and having great influence over the enactment ct Stale
avs which concern themselves. The States may pro.
tecl them, and have protected them. against Tie Federal
demands. They have passed acts To prevent The rfcnve-
~ of DAMAGES which the charters had fixed; and to pre-.
vent executions against. The banks themselves, unless the
creditor would consent 10 receive his debt in curren,
hanks notes. This is what has been done; II Is what is
now done; and here is the evidence OF 1t.
Mr.. B then exhibited 4 document, obtained from the
De par,ment of State, containing the acts passed by the
Legislatures of different States since the suspension OF
soscie payments in May last. They were passed in Stnles
where there were %deposite banks, then holding abou' 81
millions of public money, standing IN The name oil The
Treasurer Of the U. s., or in the names of disbnrsing
officers. These acts, in some instances, reduced the da.
a which depositors and holders of notes were emit.
tied TO recover; and. in some instances. denied the exc
cutiou against the bank, unless the creditor would en-
dofse up1n it that current notes should be receivable -
Mr.. B said he had seen no instance in which those acts
made any exception in favor of the U. 5 and he read
the tuIes If SO vera Of The acts, and the names III the States
in which lhey were passed. and referred TO the Senators
from those States 10 say whether there were any eXcep.
linn No Senator answering in the affirmative, Mr. Is
renamed and said that here was an insurmountable Oh
iecIiop IN the future employment OF Stale Banks as pub
= .-E-, ~ r Tho PpntIn nj Their nnlpa n lie
navuep, of Federal re venue The States had l~nterposed
between the Federal Government and the holders oil the
moneys They might ~inlerpose ogaIn and Tor ever. BY
G. doino ,bey injured the u. S, and laid a ground Tor
co,,nI,in and collision with the State GoverninPnls.-
Evprv couside ration of harmony and mutual ~indePend'
rnce shonld forbid The possibility of such occurrences
for the future.
Aoain; The deposite banks. whether a National Bank.
~ cai,Iogue of State Banks. were the friends Of high tax
es and low appropriations. They went for surPIuses. forrhe
accommodate ion of themselves and a few Of their friends.
They went far taxing he nation to the utternost, and
s,inting appropriations TO the minimum, that enormous
surnluscs should remain in their hands for lnons To them
selves and friends. He (Mr. b. had a table in his hand,
obtained from the Treasury Department, and showing
The annual amount Of balances in the Treasury from the
foundation of the Government To the present time, and
which he would read IL was valuable for two purposes:
To show how little need The Government has for
large balances; 9 How large these balances became
when the banks were powerful and the Government con
nec,ed with them. In The first years Of the G"vernment,
The banks were few in number, and comparatively wenk;
and then the ~,urpluses stood thus:
Year. Balance.
1850 S2s 239
I7eO $40 O23
1901 g3 9G5
1872 7c34 I4