The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-13
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The following was prepared and published IN an
swer 10 an article lin the Richmond Whig) IN iavor
OF the Special Deposite scheme. THIS scheme was
first proposed BY the editor OF paper IN New fok'
The edilor OF the Richmond Enquirer and all others
who have espoused the plan, having ialled, and,
presume, being unable 10 yindcate and define The
odns opcraad in which il can be carried into effect,
and be made efficient, will venture TO add my voice
again in call upon some ADLER advocate, who has
hitherto been dormant, to come forth and give US me
details, The main object Of the plan being, when
the banks resume cash payments and the national
revenues shall again be collected in their notes, 10
cnirust the sae-keeping Of the collected revenue on
deposile with The banks SO "to separate The depo-
sites in from the discounts of the banks and attbe
same time not njurously affect their interest,""
wish il were practicable. Wilno one tell explicitly
in what manner the desirable object can be accom-
plished
THE SPECIAL DEPosITE SYSTEM.
Hinder this system you say I" the particular kind OF
money to be received for The public dues, will be es-
tablishtd by law" This srue and equally so OF al
the many projects proposed II, under this special
system The kind Of money designatedby law, be gold
and silver only /" or the notes. bills or paper issued
under the authority Of the United States, agree
with you that the special deposite OF such particular
kinds Of money in selected State Banks, would be
safer more economical, and more convenient Than
the establishment Of Sub-lreasuries. The plan
have submitted 10 the consideration OF the enlighen-
ed, insists that mode of keeping the collected re,
venue so long as the naiional finances are conducted
in gold and silver in other woids unill The banks
return to payments of specie for their notes and to
their deposilors, whenever demanded. Here an I'M
poriant question presents itself, namely: WIN me
Banks, il the Federal Government SHAH REJECT their
g.. H., I'D Ypra
consent 10 become the keepers Of gold and silver Tor
that government, for the small commission 1t could
afford TO give2 Would they, for the largest com,
mission that Government could JlSihably give :
Would not service, giving sanction to the releclon
OF their notes and distinctly admitting il 10 be Just
be degrading 70 The Banks rendering the service II
is evident it would be act on the part the BANKS
undertaking their notes convertible iIto CON- ana
is fair to presume that respectable bank would I'M
dertake the service.
But the fact is The advocates of the special depo-
site system are not willing that gold and silver De
:" the particular kind OF money established by law 10
be received for public dues, IN exclusion OF con- con,
vertible Bank notes They insist such notes shall
be so received. Ills this manner of special depose,
which The opponents of the system insist is utterly
praccabe-which, they insist, cannot be carried
into effect so secure 10 the Federal Government
the uninterrupted and unimpared use OF its deposit
ed revenue, wiihoul gaming ii privilege denied 10
other holders of nueS and depoSors, including me
State Governments, in the event OF suspension o.
specie paynents-which they insist, CANNOT be car
red into effect so as not TO affect injuriously The
interest of the banks, and, at the same time, pre-
vent the public moneys from being employed" Tor
Banking>purposes ... y.
Permit me further 10 touch this manner of special
dcpoSite, very delicately
IT, by special deposiie, be meant that, in case OF
suspension of specie payments by the deposte banks
they are to agree and bind themselves, notwihsand-
ing the suspension pay up 70 The Federal Govern
ment, in gold and silver, the whole amount OF the
revenue originally collected in their notes. and on
deposi,e with them at the moment of Suspending,
admit the system would be always 10 secure 10 that
Government the uninterrupted and unimpaired use,
in specie, OF its whole collected revenue on hand.
But the opponents of this system deny that would
be reasonable proper or just in the event Of sus-
pension TO give that Government that exclusive phi
vilrge. If the special depose system is to have this
extent, and be endowed with this discriminating IA
Guilty, had just lief al once have the discrimi-
nation Of the Sub Treasury scheme in full.
II the identical bank notes on special depoSite, are
to be paid out to the public CREDITOR and not others
Of the species Of money" The system will in
juriously affect the interest of the banks, by embar-
RAISING their operations to the full amount of paper
depoSe, and consigned TO ideneSs ill il is want
ed To be diSbursed-or else the bank will enlarge its
emission TO overcome the embarrassment; and the
object Of the system TO prevent over-acon, Will be
defeated or in other words, the evil OF over issues,
which The plan is intended 10 prevent, would be pro-
duced and be covered with the excuse Of being
measure of deiencc-of self-proection against the
crippng operations of the plan, as unsteady as Grip
ping.
II the system shall allow that the public creditor
abe paid in the same species of money deposited TO
the credit of the National Treasury" and shall not
require that the Identical notes be paid out by The
bank il will be al liberty to nnge the notes on spe-
cal depose, with lis other notes on hand; and the
system will be imperative and impoent to prevent
"lhe public moneys" thus deposited, from being
employed" for banking purposes.