The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-22


seac,sa snhseonent 10 The ACT OF 1885, as wen as the
reasons which led 10 their being selected, wnch Wi
enlighle The public mind 10 the rue character OF
the sys,em itself; and 10 discrimination bslween
having hanks employed under reper motires 70 carry
il out and having banks appointed, which through
cornn Vaccinations obtain the public funds TO prop
NJ MAR own desperate and falling condition.
The case Of The Boston Banks Is buta single case
among great many that exist ofseleclions banks
that were made of character to operate equally
nowerfn In throwing discredit on the State Bank
system. Many more can BE- named, whose selection
was oui,e as il-advised and injudicious. Under
these circumstances and facts win it Be longer oe-
rated that system shall be cried down. the nstitu-
lions Of our country warred upon TO annhaiion,
when they are innocent and the entire fault lies in
ano,her quarterl Will the Senator stand forth and
repeat now, that Experience has decided against ne
rsripal of The STATE Bank Opposite system"
The Senator in his ardent zeal 10 cast discredit on
the Deposile system and the Banks, seems 10 have
lost the powers Of mathematical calculation. He
says
On the first of May last, affer anticipating thehrd
insiament be transferred TO the States there were
in the depose banks over twen,y-eight millions OF
dollars. This sum was charged with the expendi-
lures of the government and these expenditures were
to b. made; contracts had been entered nto The APP
preparations for specific objects were necessarily APP
piled those objects; the government went forwards
and Notwithstanding the failure OF the public depoSl-
tories and the control Of the public funds was there
By placed beyond the power fthe government, yet
the emb lrrassment, the Inconvenience, and The acn
al loss resulting from such state Of things mus DC
visited upon the government, and that loss may DC
fairly estimated by ascerainng the actual difference
between specie and The kind OF currency In which
The government was compelled 10 make lis disburse-
menls. That difference has been, on an average, az
least five per cent; and the government 10 making Us
disbursements although the public funds were nomi-
nally passed al their par value, yet contractors must
have calculated for the depreciation IN me cur
rency.
In all the supplies made in all the materials found,
and in all The services performed, the difference De-
tween currency equivalent TO specie, and depre-
ciated paper currency, entered into the calculation
in determining the value Of such supplies, and IN
fixing the worth of such labor This difference was
indeed a loss then 10 the government; and upon the
actual sum then in deposite in the selected banks,
that loss could not have been less than one and hall
millions of dollars. Add 10 this the yexaion and
embarrassment which the government must nave
suffered by Of the failure OF these pubic de-
poSitories-and, as farther consequent loss, the
whole expenses of the late extra session OF Con-
gress.
In this extract, is exhibited dealing by whole
sale in misrepresentation TO great an extent as
can be found in the space in any part of Mum
chausens tales.
In the first place, the whole amount of public mo-
ney at the credit Of the Treasurer about the LIST of
May as appears by an eDfcial table which have
before me, was but twenty-six millions eight hun
dred thousand dollars but out OF this sum- the third
instament was paid on the first OF July, amounting
to over nine millions. Bya report of The Secretary
of the Treasury lately laid before the Senate, il APP
pears that there is sill remaining in the hands OF
their depoSe hanks balance of about six millions,
making together the sum Of fifteen millions OF dol
lars, upon which the Government can have expert
enced no loss. The Senator vaunngly asserts that
the Government has experienced an average loss OF
five per cent. the whole sum OF twenty-eght mil
lions enormously stated by him 10 have been in the
hands of the banks which "eold not hare been less
than one and a hall million Of dollars" But basing
calculation upon facts as they exist, on his olca
principle the loss would amount to but little more
than half a million dollars
But deny that there has been particle of loss
to the Government on the principle estimated by the
Senator There has not been day since the sus-
pension Of specie payments by the banks, that the
paper of the deposite banks would not purchase as
much Of any article whatever in market as previ-
ously, and be equally as acceptable in payment of
contracts Indeed for those purposes, they have
been equally valuable with specie. Members of
+,
purposes as well as specie during the extra session,
and accordingly most Of them sold their specie Tor
paper and pocketed the premium.
Equally falIacous is the allegation, that " the
whole expenses of the late extra session of Con-
gress" is a consequent loss upon the suspension OF
specie payments BY the banks. There is not the
least particle of fundaon for the assertion, which
will show The report of The Secretary of The Trea
made In at 10 eY shows.
that the amount at the credit ofthe Treasurer of the
United States, was at that time less than nine mil
lions The amount Of the fourth installment to be
deposited with the States on the LIST Of October fol-
lowing, exceeded nine millions. Either that law
could not have been executed or the wheels of Go
yernment must have been stopped IN case had been
attempted for experience has shown that the ex-
penses Of the Government far exceeded the revenue
up TO the regular meeting OF G ngress II is clear,
therefore, that had the banks not have suspended,
the extra session must have been called to provide
for the then exerting exigencies
There are many other misrepresentation contain
ed in the Senator's speech founded on the late report
Of the Secretary ofthe Treasury, which shall no
tice specifically in another paper. The sole object
of these have been like those already exposed, to
produce prejudice against the banks generally and
to assist in crying them down.
would recommend the Senator as he values
character for veracity, issue new edition of his
speech corrected and revised. Patriotism aud mis-
representation can never so together.
Senator Wright declared, that there was but one
alternative, the Sub-treasury or National Bank
Senator Hubardis of different opinion I; he says,
Citizen consider that but two alternatives are now
presented as relief measures. The one is the mea-
sure emanating from the Committee on Finance
the other is the substitute for that measure proposed
nv Tho Senator from VIRGINIA y