The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-13

In three deposite banks IN New oI h'dhu 'he Da'
Including noies) due them at the same time, from
other banks, at the respective dates, as follows;
public money on Balances due from
Deposte Banks and Notes
ls35-June lst, 1856 1863 .......5,3ol99o
Aug. lst, .4,709635 ...... 5,22hHS
18Th, 1886, 40. 4,66S723
3ls,, IS, l570ai ..-,... 4,3S2,457
Sept 18Th, !. "a, 76O96l .....' 37shioo
Nots-7as last line including only too of hhs haree
banks employed at that ttms
Ii will b. seen that the claims against the other
banks, held by the deposie banks, in almost every
instance above stated, nearly equaled or exceeded
the amount of public money at same time held on
deposite II must be apparent TO all, that u was
through the means of collecting these moneys main
w. that these balances were accumulated II is these
balances which places the deb-or banks at the mercy
of those to which they are owing. And hnaily It
is through the employment of these balances, as far
as il NAV be requisite that sound currency is sus-
tanned without njudiciously and njuriously affect
Ing The natural blslness operations OF the country
Ii upon these balances, those owing them attempt
ed an improper enlargement OF their business, the
demand of payment in specie on account Of them,
after reasonable notice, on account OF the whole
amount due Of the comparatively small sum OF half
a million of dollars, would Immediately give
check and cause retrograde action in the operations
of such banks
1t is by the employment Of such agents. and the
udicious exercise by them of the powers delegated
TO them in the collection Of the public revenue that
ALL which The prosperity of the country relies upon
for security "a sound currency is preserved by the
simplest of means; and without unnecessarily Great
ing embarrassment, or Withdrawing from useful en-
ploymen any portion of the capital of the nation
Far different would be the effect in case these ba-
ances had been collected in specie they were paid
as the Sub Treasury scheme contemplates or ifthe
banks which collected them had chosen at any time
to have demanded their whole payment in specie, In
the former case ii would have been impraccable 10
have made the collections; and, in the latter, had
such demand have been made, it could not have
been met to half Of its extent; because, the ba-
lance in some of the exceeded three times the
aggre gate amount Of specie all the other banks pos
SeSsed.
As farther illustration Of the power the deposite
banks commanded over the other banks find il sta
ted on the authority of their returns, that the
30h September, 1885, but two of those banks in New
York heldbllancesa gains other city banks and notes
of same amounting 10 about two millions of dollars.
This was independent of balances due them from
country banks. These balances alone, would proba-
bly, have equalled the whole amount of specie held
by those owing them.
The balances accruing ont Of the collection of the
public revenue in favor of the banks employed for
sucn purpose, remains with the banks thus made
deb ors beyond what may be necessary call for in
specie, by way of preserving salutary check on
their operations, until they melted down through
the operation of diSbursing the of money thus
accumulated, through the payments made TO the Go
vernment creditors.
The utility of such system is proved by the ex-
perence of many years. Its simplicity under pro-
per and effective supervision cannot now be ques-
toned Wherein ask, can be shown the sound
policy of abandoning such system to fly 10 others
that we know not of" AT best, to which is but
an untricd expedient"
Is this a proptious period for making an erperi-
ncnt which is to changethe whole financial system of
he government whichhas existed and been practiced
ton from 1889 down to the present day. A period
when the monetary affairs Of the whole country are
in state of disorder and arrangement induced b.
circumstances which are not likely soon il ever
10 occur again. AT period too, when sound policy
indicates that il would be the evidence of wisdom
on the part of those having the power to adopt a
course calculated to inspire confidence on the part
of the government and the community in the solid
moneyed institutions OF the country, and encourage
them 10 resumption Of specie payments; thereby
securing a sound currency, regularity TO all the pc
canary transactions, and harmony to all the money
ed operations throughout the country.
cannot bat believe, 1t to be more in accordance
with the dictates of reason and the counsels of wis
DOM to seek, first the accomplishment of the fore.
going objects and when attained and the country
thereby restored to lis won,ed prosperity, then in
case it shall be deemed polite and wise, and moi
until then, introduce the "Watried erpedieM," the
Sub Treasury scheme. .
shall continue the subject in another paper.
VALERius PupLUs
NOTICE-A general meeting Of the Minister'S