The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-09-08

The SITUATION OF THE PUEBLO MONEY AT This rrME
SCATTERED ALL OVER THE UNITED SrArEs BY THE on
DER OF Ma. SECRETARY Woodbury. IN DEFIANCE or
TIVE LAW OF CONGRESS.
Congress having five times rejected the Sub-trea-
sury scheme which had for its object (among other
hngs) the keeping OF the public money by Executive
officers appointed by and liable at any moment to be
dismissed by the President nearly every body sup
POSED when Congress adjourned, that, when the
banks resumed specie payments, the deposite law OF
1886 would compel the Secretary TO revoke his cir
cular, issued shortly AFTER the banks suspended,
quiring the Receivers and Collectors 10 keep the
money, and that roald be deposited IN bank to the
credit OF the Treasury as il had been previously
But what must be the establishment Of Congress
when they meet! What must be the indignation of
the people ofthe United States when they hear that
their public money is scattered over the country in
the hands OF Receivers and Collectors and that not
single Deposite Bank has been selected, nor is it
intended that one shall be selected.
Who can tell what these Receivers and Collectors
are doing with the public money! What is to pre-
vent them from using III What check has the Go
vernment over them under this beautiful financial
system of Mr.. Secretary Woodbury7 They make
their own returns to the Treasury Department, and
state what they please in them. How can the Sc
cretary know that the money they represent to be in
their hands is actually there? The banks under this
system have nothing do with the Government, and
Of course make returns 90 10. If the Collectors
deposite the money in bank, they have placed there
to their private credit, and check for It at
any time for their private purposes. Under the
deposite law of 1886, the Collectors and Receivers
were required to deposte the revenue they collected
in bank every week, to the credit of the Treasury Of
TIE United States; and Of course, when thus depo-
sited It could not be touched by any pithont tie
authority Of Treasury draft The banks were re-
quired TO make regular returns every week Of the
deposes made BY the Collectors and Receivers; and
by looking at these bank returns the Secretary could
always detect any delinquency the part Of the Col
lectors and Receivers But having separated Bank
and State" to use the unmeaning slang Of the day,
he has separated the public money from all sorts OF
safeguards over il, The Collectors can at any time
use the public money without The Governments
knowing any thing about il; and, If it should be
misapplied or embezzed, where is the security !!
The Collector at New York collects during the year.
about twelve million of dollars, and he gives secu-
rity in perhaps fny or one hundred thousand dol
lars !! The penalty OF his bond!l
The banks under the deposie law, gave any Sc
curity that required besides the security Of the
whole amount of their capitals. The Government
was perfectly secure, and will not loose by them
single dollar unless by one Of the Secretarys family
banks at Boston.
But this great invention of modern finance, which
is to immortaize its wise authors" The separation
of Bank and State" Why schat perfect farce it is!
Is it supposed that the people are to be eternally
made the dupes of Aumbags, and to be deceived by
the sound Of catch phraSs2
The whole amount of this new discovery in f.
nance, Of separating Bank and State" consists in
depriring the Government Of the means which the
banks would afford it, Of detecting Interpretations of
the public money and the better security Of its safe
keeping. In every other particular, the connection
is just as great as it ever was. Is not the revenue
paid at this time in bank paper Is it not deposited
in bank by the Collectors at their own private credit,
propided they don't think proper to use it, And can
not the banks use it, or Bank upon it, Ito use another
modern phrase) when thus deposited in the same
way they did before If tsus their interest to do so
The revenue is collected in the promissory notes of
banks and yet the Treasury cannot trust the banks
with the keeping of their own paper!!! Under the
deposite law, when the money placed at the
dit of the Treasury in bank the Government had
the right to draw il all out in specie 1cheneue IL
chose TO do So What more can il do now with the
notes OF the banks in the hands Of the Collectors and
Receivers Is the Government any more secure
now, by holding the bank notes. than it was before
when it held the bank returns and certificates Of de-
posite? What is bank note but an evidence Of
debt duet And is not bank certificate Of deposite
the same thing in substance? OF what conceivable
benefit then can it be to the Government to have its
revenue scattered all the country, in the hands
of Receivers and Collectors, without having any
check over them whatever when that revenue is
collected in bank paper? In our opinion more
unwise and ndefensible Encouragement of financial
affairs, and keeping at unnecessary risk Of loss and
plumber Of the public money, never has characte-
rized the conduct of any Government upon the face
of the earth than that which has governed the affairs
of this nation for the last eighteen months /! Can
the people submit to in Will they permit party
rage and dsciplius and the corruptng patronage of
this Executive Government to disgrace and ruin
their country?
The question is now full before the people, whether
they will continue to control their revenues as
heretofore, or whether they will resign the whole
into the hands of the Executive to use and dispose
of at his discretion. In coming to the decision of
that question: let the people not forget that their own
future liberties are Immediately identified with it.
DIVORCE OF BANK AND STATE-THE
HARD MONEY GOVERNMENT.
But few days since, the official organ de-
clared, that the Sub-treasury system is in full
operation all over the country. Said Mr..
.Cambreleng, defeat this bill (the Sub-trea-
sury) and go home, the Sub treasury is now
the law Of the land, and will so continue
through 1889, 40, and Al in spite of lamen-
tations here or elsewhere" But no longer
ago than Monday night, il was stated in the