Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1838-01-03

Indeed, am more than ever convinced of the |
dangers TO which the free unbiased exercise Of |
political opinions-the only sure foundation and |
safeguard of q republican government--would be |
exposed by any further increase of the already O.
ycrgrown influence of corporate authorities. I
cannot, therefore, consistently with my views Of
duty advise a renewal ola connection which cir \
cumatancos have dissolved.
The discontnuance Of the use of the State
banks for fiscal purposes, ought not to be regard
ed as a measure of hostility towards those insti
tuiions Banks properly established and con-
ductsd, are highly useful TO the business Of the
country, and will doubtless continue to exist in
the states, so long they conform to their laws,
and are found TO be safe and beneficial. How
they should be created, what privileges they
should enjoy, under what responsibilities they
should act and to what restrictions they should
be subject, are questions, which as observed on
a previous occasion, belong to the states TO de-
eide. Upon their rights, or tho exercise OF them
the General Government can have no motive to
cncroach. It's duty towards them is we'll por-
formed, when it refrains from lcgislating for
their special benefit, because such legislation
would violate the spirit of the constitution, and
be unjust to other interests; when it takes no
steps to impair their usefulness, but SO manages
its own affairs as to mako il the itcrest of these
institutions to strengthen and improve their con-
dtion for the security and welfare of the CON-
munity at large. They have no right to insist
OH a connexion with the Federal Government
nor on the use of the public money for their own
benefit.
The object ofthis measure under consideration
is, to avoid for the future a compulsory connec-
ton of this kind. 1t proposes to place the Gen.
eral Government, in regard to the essential points
| of the collection, safe keeping, and transfer OF
the public money, in situation which shall re-
liovc it from all dependence on the will of irres
ponsible individuals or corporations; to withdraw
| those moneys from tho of private trade, and
| confidc them to agents coustitutionaly selected
and controlled by law; to abstain from improper
interference with the industry of the people and
Withhold inducements to improvident dealings on
the part of individuals: to give stability to the
| concerns of the Treasury to preserve the mea-
sures of the Government from the unavoidable
| reproaches that flow from such connection, and
the banks themselves from the injurious effects OF
a supposed participation in the political conflicts
of the day, from which they will otherwise find it
difficult to escape
These ara my views upon this important sub
ject; formed after careful reflection, and with no
desire but to arrive at what is most likely topro
mote tho public interest. 1t was hardly TO be
hoped that changes SO important, on subject so
| interesting, could be made without producing a
serious diversity of opinion, but SO long as those
conflicting views are kept above tho influence OF
individual or local interest so long they pur-
sue only the general good, and are di scussed with
moderation and candor, such diversity is benefit,
not an injury. If the majority of Congress see
the public welfare in a different light, and more
especially if they should be satisfied that the mea-
sure proposed would not be acceptable to the pco-
pie, shall look to their wisdom to substitute
such as may be more conducive to the one, and
more satisfactory to the other. In any event,
they may confidently rely on my hearty co-ope-
ration to the fullest extent, which my views of
the constitution and my sense of duty will per-
init.
1t is obviously important to this branch in the
public service, and the business and quiet Of the
country, that the whole subject should in some
way be settled and regulated by law and if pos
IDLE, at your present session. Besides the plan
above referred to, am not aware that any one
has been suggested, except that Of keeping the
public money in the state banks in special depo-
site. This plan is to some extent, in accordance
with the practice of the Government, and with
the present arrangement Of the Treasury Depart
mont; which, except, perhaps, during the opera
ton of the late deposite act has always been al
lowed, even during the existence of National
Bank, to make temporary use of the state
banks in particular places, for the safe keeping
of portions of the revenue. This discretionary
power might be continued, if Congress deem it
desirable, whatever general measure may be a.
dopted. So long the connexion is voluntary,
|
ties, and little of that dependence on the banks,
which must attend every such connection when
compulsory in its nature, and when 80 arranged
as to make the banks fixed part of the machinery
Of Government.
1t is undoubtedly in the power of Congress SO
to regulate and guard it as to prevent the public
money from being applied to the use, or intermin.
gled with the affairs of individuals. Thus ar.
ranged, although it would not give to the Gov
eminent that entire control over its own funds
which desire to secure to it by the plan have
proposed, it would, it must be admitted, in
great degree, accomplish one of the objects which
has recommended that plan to my judgement
the separation Of the fiscal concerns of the Gov
eminent from those Of individuals or corpora
tons. With these observations, / recommend
the whole matter to your dispassionate reflection
confidently hoping that some conclusion may b.
reached by your deliberations, which, on,
hand shall give safety and stability to the fisca
. operations of the Government and be consistent
on the other, with the genius Of our institutions
and with the interests and wishes of the grea
mass of our constituents.
1t was my hope that nothing would occur t.
make necessary on this occasion, any allusion t.
the National bank. There are circumstance
however, connected with the present state Of it,
affairs that bear SO directly on the character o.
the Government and the welfare Of the citizens
that l should not feel myself excused in neglect
ing to notice them. The charter which termi
mated its banking privileges on the fourth O.
March, 1886, continued its corporate powers two
years more, for the sole purpose of closing its af
fairs, with authority "to use the corporate name
style, and capacity, for tho purpose of suits fo
final settlement and liquidation of the affairs ant
acts Of the corporation, and for the sale and dis
position OF their estate real, personal, and mixed
but for no other purpose. or in any other manner
whatsoever" Just before the banking privileges
ceased, its effects were transferred by the banl
to now state institution then recently incorpo
rated, in trust for the discharge of its debts ant
the settlement of its affairs. With this trustee
J by authority of Congress, an adjustment wa,
subsequently made of the largo interests which
the government had in the stock of the institu
ton.
The manner in which trust unexpectedly ere
ated upon tho act granting the charter. and in
volving such great public interests, has boen ex
ccuted, would under any circumstance be a Fl
subject Of inquiry but much moro docs it de-
serve your attention, when it embraces the re-
demption of obligations to which the authority
and credit of the United States have given value
: The two years allowed are now nearly at an end
II is well understood that tho trustee has not re-
deemed and cancelled the outstanding notes OF
tho bank but has re-issued, and is actually re-is
suing since the Sd Of March, 1886, the notes
which have been received by it to a vast q.
mount.
According to lis own official statement, so late
as the first Of October last, nineteen months af-
tor the banking privileges given by tho charter
hal kol IA