Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1838-12-14

lions OF dollars, by an issue Of Treasury notes
as a means TO enable the Government to
meet the consequences OF their indulpencies,
but afiording. at the same time. facilities for
remittance and exchange and by steadily
declining TO employ as general repositories
OF the public revenues. or receive the notes
OF all banks which refused TO redeem with
specie by these measures aided by the "a.
vorable action of some of the banks, and by
the support and cooperation Of a large por-
ton OF the community, we have witnessed
an early resumption OF specie payments in
our great commercial capital, promptly fol.
lowed in almost every part Of the United
States. This result has been alike salutary
to the true interests ofagriculture. commerce,
and manufactures; TO public morals. respect
for the laws. and that confidence between
man and man which is SO essential in all
our social relations
The contrast between the suspension OF
1874 and that OF 1897 is more striking
The short duration Of the latter, the prompt
restoration Of business the evident benefits
resulting from an adherence by the Govern
mcni to the constitutional standard Of value,
instead OF sanctioning the suspension by the
receipt Of rredeemable paper and the ad-
vanlages derived from the large amount OF
specie introduced into the country previous
10 1887, afford valuable illustration OF the
true policy ofthe Government in such cri-
sis. Nor can the comparison fail 10 remove
the impression that a national bank is ne.
cessary in such emergencies. Not only
were specie payments resumed without its
aid but exchanges have also been more ra-
pidly restored than when il existed thereby
showing that private capital enterprise, and
prudence are fully adequate to these ends
On NIL these points experience seems 10 have
confirmed the views heretofore submitted to
Congress. We have been saved the morti.
lcaiion Of seeing the distresses of the COM
muniiy for the third time seized on to fasten
upon the country so dangerous an insiitu-
lion and we may also hope that the bust
ness OF individuals will hereafter be relieved
from the injurious effects Of continued ag-
i,ation Of that disturbing subject The limit.
ed influence OF national bank in averting
arrangement in the exchanges OF the coun.
try. or in compelling The resumption of spe-
Gle payments. is now not less apparent than
IFS tendency 10 increase inordinaie specula-
ton by sudden expansions and contractions !;
its disposition to create panic and embar.
rassment for the promotion Of its own de-
silns its interference with politics and its
far grco,cr power for evil than for good Ell
Their in regard TO the local institutions or the
operations Of Government itself What was
IN these respects bot apprehension or opin-
ion when national bank vas first establish
ed, now stands confirmed by humiIiating ex-
perience. The scenes through which we
have passed conclusively prove how little
our commerce. agriculture, manufactures, or
finances. require such an institution, and
what dangers are attendant on its power--a
power. trust, never 10 be conferred by the
American people upon their Government.
and still less upon individuals not response.
bic to them for its unavoidable abuses.
My conviction of the necessity Of further
legislative provisions for the safe keeping
and disbursement Of the public moneys, and
my opinion in regard to the measures best
adapted TO the accomplishment of those OBJ
jects. have been already submitted 10 you.--
These have been strengthened by recent
events and, in the conviction that time and
experience must still further demonstrate
their proprety. feel il my duty. with respect
lul difference TO the conflicting views of oil b.
ers again 10 invite your attention TO them
With the exception of limited sums de-
posted in the few banks employed under the
act Of $40, the amounts received for duties,
and, with very inconsiderate exceptions,
those accruing from lands also, have, since
The general suspension of specie payments
BY the /deposile banks. been kept and dis
bursed by the Treasurer. under his general
legal powers, subject 10 the superintendence
Of the Secretary of the Treasury. The
propriety Of defining more specifically. and
OF regulating by law, the exercise Of this
wide scope OF Executive discretion. has been
already submitted to Congress.
A change in the Office Of collector of one
Of our principal ports has brought to light a
deialcation OF the gravest character the par
tlculars OF which will be laid before you in a
special report from the Secretary Of the
Treasury. BY his report and the accom-
panying documents. il will be seen that the
weekly returns OF the deiaulting officer ap-
parenliy exhibited, throughout faithful adj
mlnlsIratlon OF The affairs entrusted TO his
management 1t, however, now appears
that he commenced abstracting the public
moneys shortly after his appointment, and
continued TO do so, progressively increasing
the amount. for the term of more than seven
years, embracing portion Of the period dur
ing which the public moneys were deposit.
ed in the Bank of the United States, the
whole ofthat of the State Bank deposile sys-
tenn, and concluding only on his retirement
from Office. after that system had substan-
tally failed. in consequence Of the suspen-
sion of specie payments
The way in which this defalcation was an