The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-20

control should NOT DC eAefCtseu ny the depO-
site banks, and with even greater effect, inas-
much as their aggregate capital and presumed
amount Of transactions with other banks,
would, no doubt, exceed those of the late Ma
tional Bark. II will be perceived from the
terms of this provision in the substitute, that it
Is not contemplated to enjoin on the deposiie
hanks fired and insroraJis regHisiiion Of
balances from the other banks in specie, under
all circumstances whatever; for considering
the large balances tharwould be habitually &C
cumulated by them against the other banks in
the process Of collecting the public revenue,
such a requisitlon would be destructive in ma
ny cases, to institutions Of unquestionable
soundness. II is contemplated, therefore,
that this power should be exercised under
proper safeguards, and only 10 The eateai that
may be necessary TO restrain imprudences or
excuses, endangering the general currency.
| Ii was 10 this extent only, as have shown in
previous part ofthese remarks, that The pow
or was exercised by the late Bank of the
/ United States.
! The substitute likewise makes il the duty
ofthe Secretary ofthe Treasury to use his in
/ fuence TO bring about an arrangement, las no
doubt is entertained he could do,) among the
several deposiie banks to receive and credit
as cash the notes Of each other in payment of
the public revenue, tchererer so rendered.
/ The effect Of this arrangement would be TO
| put the notes Of the dcposite banks practical
/ Ia on the same footing as the branch notes Of
the late Bank Of the United States--eyery
where receivable in payment OF public dues,
and enjoying, consequently, general credit
and circulation throughout the Union. Ii
| 1sxsx,
the advantages Of aa uniform paper currcn-
cy, as The preceding provision would secure
| to il sound one and the two together, in
supplying, practically, the benefits promised
by National Bank, would supersede the
strongest arguments now urged in favor Of
such an institution.
| In regard to The kinds Of money, in which
the public revenue is to be collected, the sub
stitute adopts, with slight notifications, the
provision OF the currency bill of the last ses-
sion Of Congress. 1t declares that the public
dues, Of every description, for lands as well
as customs, shall be received in gold and sill
yer, or Treasury notes, or such notes OF spec
cie-paying banks, (under certain restrictions
intended to promote the suppression Of small
notes,) as the deposite banks, subject to the
supervision and control Of the Secretary ofthe
reasury, shall agree to credit to the United
States as cash. II will be perceived that in
the proposition now submitted, have post
poned for one year the exclusion Of the notes
of banks which issue bills or notes under FIVE
dollars. It is known that many Of the States
authorize notes under that denomination; and
some, who have heretofore prohibited them,
will, il is supposed, authorize the issuing of
them under existing circumstances, and for
limited period. 1t is evident that the use Of
this description ofnotes, in supplying the place
Of, and consequently diminishing the demand
for specie in small dealings, would tend mate
rally to facilitate the resumption of specie
payments by the banks. This consideration
has induced nae, under the peculiar circun-
stances Of the times, to adjourn for one year
the period for excluding the notes Of banks
ssing bills or notes under five dollars; and
the same consideration has prevailed with me,
for the present, TO limit the farther exclusion
OF bank notes to the issues Of such banks as
shall, after the expiration of two years, con-
tinue to issue bills or notes under ten dollars.
In doing this, under the exigencies Of the
times, wish to be understood as not abandon
ing my original opinions, (Which remain I'M
changed,) in favor of extending the prohibit
ton of small notes ultimately TO all under the
denomination of twenty dollars.
Finally, the substitute, in furtherance Of the
great policy Of fixing period to the present
disastrous reign Of irredeemable paper, pro-
vides that after the LIST day of July next, the
notes of no bank which shall not then have
bona fide resumed specie payments, shall, at
any time thereafter, be received in payment Of
the public dues. This, in connection with
the liberal provisions made by the Substitute,
in other respects, for rc-establishing the credit
of convertible bank paper, will am persuad-
ed, bring about general resumption of specie
payments at the time designated. The mere
fxation of day by Congress will exercise a
powerful moral influence; and not the less
SO, az the day fixed corresponds with that in
dcated bya majority Of the banks in the Bank
Convention held in New York in November
| last.
These, Mr.. President, are the leading pro-
visions ofthe measure have submitted, which
distinguish it from the system heretofore
| adopted for the employment of State Banks as
repositories of the public money. In many
respects, they make Of it ne,r system, OBJ
WAITING some Of the strongest objections which
have been hitherto urged against it, providing
new guards agaiiis, abuses and containing new
provisions for extending its usefulness and ef-
ticiency. Under an able and mol nafIendly
direction, feel every confidence that it would
meet both the wants Of the government and
the wishes Of the country,
shall, doubtless, be asked what arrange
ment ] propose in regard to the banks dis
counting on the public deposites. There is
no absolute uierdiction Of their doing so, in
the measure propose, (ior to this, think, |
hal ha nh oh r,,ll Ia
obsacles,) but it carefully wthdraws the sii-
muIls Ia the use uf thot nowpr which hoe hara