The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-13

under the immaculate control VI dcntfdi 1o
,ernaent they are the property OF the people OF the
different States We hele represent the States, and
have always understood be the Democratic doctrine
that the representative amensbe TO the constituent
for has conduct. The General Government Is clothed
by the Constitution with power make war TO conclude
treaties, 10 levy and collect taxes This Government
collects and disburses the revenue Of the naon and Is
answerabe the people aud the States and will be by
them holden 10 strict accountability Tor the manner IA
which these high trusts are discharged.
The Senator from South taTona, MIR. calhoun, 10
alarm our fears said this combination OF banks, with
Mr.. Bdde's hank at their head, will be mighty
engine Of power and will rule the country ! ask HIM
this question: VIII these twenty-five or thirty local
banks 10 be selected by the Secretary OF the Treasury
with the appreciation Of Congress, and to be dsconnu
ed a, the please of Congress, be more dangerous en-
pine OF power than the late Bank OF the United Sates
or the State banks we're The Bank OF the United
States was put down by the Of the people and
the depose banks PROSTATE the feet Of the Gene
raj Government the State banks in 1914, when
life and vIgor restored 10 the State institutions BY
the General Goycrnacut
The honorable member told US that confidence could
not pay seyenyhse millions OF debt. From the course
Of his reasoning understand him contend that banks
have no substantial capital which their issues are
based. Does lie not know that banks, established UNI
der charters from the States, must have capital con-
ss,ing OF gold and silver actually paid into their vaults
before they dollar Of paper to circulate as
money! No bank notes are put IN circulation hut upon
Of Individuals drawn and endorsed BY men known
TO the bank directors be both solvent and trustwof-
thy. Will the Senator contend that single Treasury
officer safer dcposary for the public treasure lhana
banking company, composed Of president and dlree-
TORS who are Interested in sustaining the solycncy aud
credit OF the institution under their charge Or is he
satisfied that the public money, in deposite with the
Bank OF lndauu would he safer we're deposited with
half dozen receivers Of public moneys in the land Off
OF that State The Bank of Indiana had capital
Of TWO millions Of dollars in specie Al the time othe
suspension OF specie payment It's issues were about fMo
and half 10 since the suspension il has reduced
its liabilities ever eight hundred thousand dollars At
the time OF suspending specie payment II had near
million OF public money It's vaults. notwithstanding
the suspenson that bank continues to pay all the drafts
drawn on by the Secretary OF the Treasury, either m
hard money or IN other par funds acceptable 10 the hold
Of the Treasury draft. II has reduced its deposes
TO about four hundred thousand dollars; and this sum,
assure You, will be promptly paid when called for The
pobkc depositcs have rather injured than benefited that
Institution. am not an advocate for continuing the
public deposies il that bank, but will
see the United States refuse its paper in payment for
public dues. &E
The State Bank Of Indiana can and will resume
specie paymen, soon as any other western bank
resume. have before me report of the condition
Of that bank the Goth of last month"; by which il
is shown that on that day its bills and notes discount
ed amounted to S3536,44l 20; gold aud silver in
bank 81 ,223,9ll g. circulation ~ ~ 200 excess
of circulation over gold ana SILVER is 81 O992 sS 81
The State owns half the capital Of the bank, and is
bound for The redemption OF its paper. The pro-
ceive that The State the private fortunes of the di-
rectorS and the capital of The bank, as well as the
security for individual notes and bills discounted,
are all bound for payment OF the public money de-
posted in that bank. viii gentlemen contend that
Sub Treasury officer is safer deposiiary Ter the
public treasure than bank thus constructed
think not They will tell us that banks will specu-
late on the public money tell them that Treasury
officers are quite as liable 10 these temptations as
those who have the management of our State banks.
BY the bill under consideration il is made the duty
OF the Secretary OF the Treasury to cause The books
and money in possession Of your Subj Treasury Off
GERS TO be examined once in each year. This will
require The appointment of swarms OF agents of the
Treasury, TO travel into every quarter OF the country
and they must be paid from the Treasury for their
services. Il is plainly to be seen that the BILL should
il become a law, provides for quartering on the
Treasury swarms of officers and agents OF The Ge-
neral Government, which, il not quite SO numerous
as the locusls were in Egypt, have fear
will prove as sore scourge 10 us as the locuss
TO the Egyptians.
The Senator from South Carolina (Mr Calhoun)
contends thai banks will issue the public depoSileS
to advance the interests OF the stockholders and con-
tract their issues TO facilitate speculaions This
the case with the Bank OF The United States,
shown by the report which allude 10 some time
ago, and it may again happen II not prevented by
those whose duty and interest required them 10 pre-
serve the credit Of these institutions. have cure
sir for all these evils b. keeping the State banks to
constant and rigid accountability by weekly settle
lnens, making il the duty OF the depoSie banks 10
settle their accounts at the close OF each week, al
lowing them 10 collect the balances due from debtor
bInks in specie, and compelling them 10 place the
balance due to the Government 10 its credit as 50
much specie on special deposite. Ii this course is
adopted, il will etecually prevent banks from issu-
ing on the public deposites.
The directors of the banks are generally men
the first standing in society, who have both reput
taon and private fortune al state and il brought
10 rigid accountability, will not touch your publ,
moneys, unless ii be 10 receive them on special de-
pose, and charge for the risk and sale-keeping and
10 pay them over when called for
The Senator from South Carolina pronounced
the proposition OF the member from Virginia 10 be
unconstitutional, and had passages read from the
Constitution Of the Uniled States 10 sustain his posi-
ton. will not detain the Senate TO give another
version of that instrument: let every one read and
understand that instrument for himself. ! am at
loss for words TO express my asionshment when
heard this declaration boldly made the floor Of
the Senate by the champion OF the United States
Bank, and OF The paper system of 1916 What was
constitutional, expedent and proper with him then,
is unconstitutional now. He must surely have been
right al one time How is this 10 be reconciled |
leave the honorable member 10 explain this Position
among others. In 1916, the people confded in his
judgment, and were not disappointed. But sir, he
IS asking too much if he expects the people 10 follow
AID eoniide in him upon every occasion when he
may til 10 change his political course. hope
he will not lake II unkind in me ii tell him, that he
like the banker, makes too heavy drafts his capt.
tai; we cannot longer honor them; we are consran-
ed TO withdraw that confidence reposed in him in
times gone by. He is, ON this question, the side
Of the administration, and take the other side be-
lieving that sound policy and the interests OF the
State serve require me to do SO.
With regard TO the banks of the District of Co
lumbia need say but word Other Senators are
better acquainted with them than | pretend to be-
and will in due time inform have been favored
with q statement of the condition OF one OF these
institutions which is to be satisfactory. Although