The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-08
COMMUNICATIONS.
FOR THE MADIsoSl1N.
PUBLIUS-NO. XIII.

ject, for collecting and keeping the national revenue
has distinctive reference 10 The present and the fu-
ttre It contemplates as being most advisable and
proper, that the collected revenue shall be placed
special deposite with solvent State banks so long
the banks deny specie for their notes and that when
the banks shall have resumed specie payments, the
collected revenue shall be placed with them, as here
olore, general deposite II insists that The Fede-
raj Government shall continue TO deny the notes of
the State banks long they deny specie for their
notes; and that, so the banks return to pay
ments of specie for their notes. the federal govern
ment shall return TO receipts of their notes, in all
payments of money on the public account. And
while it proposes special deposes of the revenue
with solvent State banks, during the suspension of
specie payments, the national finances being proper
y conducted the while in gold and silver only, il dis
cards the special deposite plan as permanent mea
sure to be observed ater the banks shall have
ed specie payments.
The poet says, that vice TO be hated needs only to
be seen. 1t seems TO that The present manner of
keeping the collected revenue TO be condemned
needs only to be known The Jedcrat officers collect
ing the rereane, are he keepers Of IT, RatlH is 10 be
di5ursed They have not yet been furnished, al the
public expense, with " fre-proot vaults and safes"
1t is not 10 be expected they will provide themselves
with them at their own expense. No place of depo-
site for keeping, is designated by law. Hence
the public moneys are kept by the Receivers; or
ployed in their own uses placed in the hands of
such persons as will take it on loan; put on depo-
site in such places as they may select. There is no
system. 1t is Madness without method All is un-
NEUTRALITY-SUSPICIOUS. No wonder when
the revenue is wanted for disbursement il is often
not to be found 1t excites no surprise that, in
cent report from the Secretary of the Treasury in
compliance with resolution adopted by the House
of Representatives, in October last, the aggregate
sum, under the two heads of " Collectors" and Re
cevers" stated as due from them, amounts TO several
millions If in the short space Of two years. as is
the fact the defalcations of Collectors and Re-
ceivers who have been REQUIRED the larger portion
of the time TO make deposites II Inc banks, have
mounted up to this enormity, what amount Of defal
cation may not anticipate in case these Collec-
tors" and Receivers" BE- made permanent deposita-
ries, as the Subtreasury scheme proposes With
what number of suits would the country be harassed,
to from those who would venture, in the full
ness of friendship TO become the surelies of Collec
tors and Receivers, all exposed 10 such scheme Of
temptations and hazards!! A scheme, the bare re-
commentator OF which by the President ofthe Uni
ted States racks and disorts every part of the body
polite.
II is TO correct this confused manner of keeping
the collected revenue daily giving proof of insecure
ty, that the plan of placing it on special depose with
solvent State banks is proposed think the propri-
ETY. of the plan, as temporary expedient, must be
manifest, and further comment unnecessary.
But this plan Of special deposte, manifestly pro-
per, while the banks deny specie for their notes. and
the federal government properly denies their ire
deemabe notes in its receipts of revenue, would be
impracticable permanent plan; unless, indeed,
the national finances are to be permanently conduct
ed in gold and silver only, To say that the notes of
spece-paying State banks may be received by the
Federal Government in collecting its dues and when
so received shall be placed with State bank on spc
cial deposite, e. that the identical note deposited
shall be repaid and not another, is an absurdity with
out subtlety To collect the notes of bank, and
place them with it, denying it liberty TO use them
for the government to do this, in collecting its vast
revenues would be to cripple the bank, by consign-
ing large sums offs emission TO deness to drive
it to an enlargement Of its emission in order to over
come the embarrassment. Whether the bank would
suffer the hinderance enlarge its issues, it needs
not that one be initiated into '" bank Secrets 10 be
enabled totell The plan would drive the deposhe
banks Cor at least furnish pre'ext for them to do
precisely what it is asserted, by some few, 1t would
prevent But it is waste of ink and paper to oppugn
the specious plan its special friends are not able TO
define.
If then the special deposie project cannot be just
" supported as measure to be observed AFTER the
banks shall have resumed specie payments, the ede-
raj government must conduct its finances in gold and
silver and establish Sub Treasures; or revert to
national bank; or revive the Slate bank system OF
general deposites.
It is an objection, strong enough by itself, against
the plan of conducting the finances in gold and sill
YER that its friends find it necessary, in the teeth OF
their objections TO United States Bank, TO create
large mass of paper money in the form OF Treasury
notes!
With respect to United States Bank, it sufhces to
saw its friends do not venture at this time, 10 bring
it forward for adoption.
The only valid objection urged against the State
bank deposite system, is that as IL IS noT organised,
il Is incapable of furnishing uniform national cur
rency, and OF conducting the federal finances. rms
objection is certainly strong enough 10 condemn inns
system and TO require the nation to revert TO onl'
ed States Bank unless The objection can De Reinforced W
ehaRging its organisation. The change which rea-
Sonng from past experience will show 10 DC pest CAL
culaled to removed the objection, and TO endow the
system with efficiency is to reduce the number oil the
State banks, and 10 adopt the system Of branches, in
slead Of isolated banks so that the people Of one
State may be enabled u become acquainted with the
bank papef of other States and the banks themselves
be enabled 10 become mutual helpers in conducting
the exchanges. Against the practicabiliiy Of this
change II is objected that all the States will not act
alike In answer, it sufices 10 say ifths teachings
Of terrible experience have not already been sum
Client, an amendment Of the Federal Constitution
would be- to cons,ran all the States 10 act alike and
10 adopt the change The Two modes Of amending