Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-30

The SUB-TREAsURY BILL AND THE GOVERNMENT
The Globe of Tuesday has elaborate article in which
argues the merits Of the system proposed to be adopt
ed IN the following strain, which may be taken as the
Of the arguments of the Cabinet in support of
this their avore measure and the very essence of Mr.
Van Bsrens administration
The bill leaves this matter to the laws as thew
stood before the suspension of specie payments They
permitted the reception of bank at the discretion Of
the Treasury Department but those only could be re.
ceived which were convertible Immediately into specie
the laws requiring that bank should not even be
rendered to a public creditor unless convertible on the
spot into gold or silver.
The Independent Treasury BILL as it passed from the
Senate TO the House puts the Government precisely in
the relation to the State institutions in which the United
States Bank Stood when il received and discussed the
revenus for the Treasury That bank received the is.
sues OF State banks, located where it had offices or
branches, and thus enabled have weekly seule.
mens and payment OF the balances due in specie its
own notes, or equivalent II was in this way thai
the president of the Bank of the United States held that
control over the State banks which subjected their is
sues to his discretion. ana enabled him b,ast in his
letter to the Senate committee that there very few
state institutions which he could not destroy.
The reception of the notes of specie paying banks by
the Treasury, with the incidental power Of cashng
them al pleasure certainly invests the Secretary with
faculty which may be used for sslutary purposes or
abused 10 produce great mischief. AT such a unctur
as the present II be benehcialy exerted aid the
banks IN the resumption of specie payment-by giving
now cosed-and, by thus restoring public confidence,
the press upon the banks after resumption, for specie
will be diminished When the solvent banks shall have
been again established in credit and in the exercise Of
their regular functions the md which the Treasu
~ may have their issues through the paid in
Tor revenue will enable hold the banks in check by
the stated settlements which they be called.
This as the during the time when the Bank of
the United States adjusted the balances arising in favor
of the Government from the receipt OF the Slate bank
notes, would have the effect prevent ever-issues
But the question for the statesman is, whether these
collateral advantages growing of the be-
tween the State institutions and the General Govern
meat are greatly everbalanced by the mischief which
must ultimately from assoeiatine Government with
bank power7 Our opinion is decidedly against the
connection in the remoest degree. The power Of the
Federal Government the banks will inevitably be
abused under Administration Of the Federal Co.
yernment political objects. The united power Of the
banks and Government reaching the minues hbres Of
interest throughout the Union, and which, like the secret
ly accumulated electric fluid, any moment be
made to strike the chord OF ambition and avarce in the
bosom OF every influential the continent, must be
omnipotea. The association ofthe money making pow
er with the political power, s, in word, utterly against
the genius OF the institutions Of this country II is
adutcrous connection, and vitiaies both. The union
tains the Government throughout with corruption, and
IN bringing the alswayng Influence of politics int
moHeyed and commercial purssts-the banks
s~ayed from all the maxims OF sosnd policy, which
alone they stand. and they become the Instruments
OF political and pecuniary specuatous combined Pru
dence and proby 10 dealing is abandoned by themthe
public confidence forfeted-and the system, beginning
an prostitution. ends in bankruptcy