The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-09-19

respecting the custody of the public mo-
ney, II Is desirable that as little discre-
ton as may be, deemed consistent with
its safe keeping should be giren 20 Ereeu-
lire agents." In the vaults OF banks the
public money is not accessible TO Executive
agents !" while in the vaults of the Treasury
il will be in the custody and under the control
of" Executive agents" This was what Gen.
jackson was DESTROYS Of avoiding.
In the remarks Of Gen. Jackson relating
to the public money becoming capital for
" commercial purposes" it is clear, and the diff
ferent parts Of the Message SO explains il,
that he referred to the surplus that was col
lected beyond the legitimate wants for defray-
ing the expenses Of administering the Govern
ment. He said, "The Government had,
without necessity, received from the people a
large surplus, which, instead Of being en-
ployed as heretofore, and returned 10 them
by means Of the public expenditure, was depo-
sited with sundry banks. The banks proceed
ed to make loans upon the surplus, and thus
converted il into bank capital; and in this
manner it has tendedto multiply bank charters,
and has had great agency in producing
spirit Of wild speculation"
II will be seen that Gen. Jackson referred
altogether to the surplus. And he said the
simplest and safest mode of obviating all the
difficulties that have been mentioned, is to
collect only revenue enough to meet the wants
Of the Government, and let the people keep
the balance Of their property in their own
hands, to be used for their own profit. There
would be no surplus to cramp or lessen the
resources Of individual wealth and enterprise
and the banks ,rould be left to their ordinary
means" There would be some guaranty
that the spirit Of speculation which seeks to
convert the surplus revenue into banking cap
ital would be effectually checked"
Here is both the bane and the antidote. 1t
was the surplus revenue that had caused all
the evils complained of-that formed the capi-
tai for commercial purposes-that stimula-
ted the wild spirit of speculation" The
remedy was to reduce the revenue to the
!" wants Of the Government" Gen. Jackson
never thought at the time of disseminating the
agency Of State banks in the fiscal operations
of the Government, as remedy for the evils
he pointed out, arising from the surplus re-
venue. On the contrary, he said, Expert
ence continues to realize the expectations
entertained as to the capacity Of the State
banks to perform the duties Of fiscal agents
for the Government, at the time of the re-
moval of the deposites." And in the same
message, speaking of National and State le-
gisla,ures forbidding the receipt in payment
of public revenue, and prohibiting the circu-
lation Of small notes, he said, "these mea-
sures will probably be filled up in due time by
the enactment Of State laws, banishing from
circulation bank notes Of still higher denomi-
nations, and the object may be materially pro-
noted by further acts of Congress, forbidding
the employment, as fiscal agents, of such
banks as continue to issue notes of low de-
nominations, and throw impediments in thu
way Of the circulation of gold and silver"
Thus, Gen. Jackson so late as December,
1886, was for regulating the banking and
paper money system, not destroying them;
and for continuing State banks as fiscal agents.
That when General jackson said at is
besides against the genius of our free institu-
tons to lock up in vaults the treasures Of the
nation" he did not refer exclusively to the
surplus repenue, we have the proof. On the
18th day Of September, 1888, before General
Jackson directed the public moneys to be re-
moved from the Bank Of the United States
Cabinet, that 1.-THE FUNDS OF THE
GOVERNMENT WILL NOT BE AN
INITIATED BY BEING TRANS
FERED. THEY WILL BE IMME-
DIATELY ISSUED FOR THE BENE-
FIT OF TRADE" At this period it will
be seen, that General Jackson did not antici-
pate surplus revenue, as is shown by his
message in December following. Even the
revenue collected for the ordinary expendi-
lures Of the Government, General jackson
did not intend should be " annihilated," by
being locked up in vaults, either bank or trea-
sury; until it was wanted by the Government
it was to be employed for "the benefit Of
trade"
Such scheme as the Sub-treasury was to-
tally condemned by General jackson at that
time. Said he, As one of the most serious
objections to the Bank Of the United States is
the power which it concentrates care must be
taken in finding other agents for the service of
the treasury, NOT TO RAISE UP ANOTHER