Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-06-15

use OF The public money-Tat il has stimulated many
OF 'hem 10 excuses we presume no one can doub-but
mol one tenth OF the banks in the u S. have held any Of
the public money and ye, all Of them suspended specie
ent'-The Madisonan should he the last aper in
The Country to deny the effect of public depos,es
the operations of the banks No is better acquainted
with the effects of the whole system, than the fdus
9chafes OF the Northumberland We all know, that Mr..
whitney has been in the habit Of vindcaling the Stale
oanks against the charge Of excessive oveIdealing-by
ascr,bng p great degree 10 the stimulus which they
received from the Secretary Of the Treasury In his
able Reply 10 MIR virgins first Report, he ascrbes
much ct the overdealng 80 and SO 10 the public de-
poslles 10 the acts OF the Secretary in stimulating them
10 relieve the people BY loans in lieu of those ich had
been made by the U. s. Bank-and to the manner in
which the public deposiies had transferred from
State institution to another He says, in the course Of
his letter:
81 have shown that The whole power of the Treasury
Department was eXertrd 10 stimulate enterprise, and
encourage speculation, by promoting the greatest poss
Bile extension OF fearful excuses in banking and in the
use OF credits generally, upon the unnaur0i accumuid
ton Of reuenue apprehend have furnished ample
evidence TO exonerae the banks from all blame in pro-
duclng the state Ut things you have described land truly
loo) existing at this period. This whole blame and
responsibility must fall upon the Secretary Of the Trea'
sury.'
He states, what might have operated as preventive
check 10 these bank excuses and rseded the
silly Of The Specie Circular Had the Secretary Of the
Treasury ecquesced in the request made in the hitter
purt Of the year 1885, by some of the banks 10 which
have already REFERRED TO collect portion Of The balances
due from other banks in specie, accumulated agaas'
them by the public revenue; it would have cffscuaIy
checked their disposition, then operating, wildly TO
tend their business and would have repressed the mad
spirit then raging for speculation. As have shown,
he pursued an opposite course He not only stimula
ted increase of bank credits for which the public do
main rapidly passing off in exchange; but he per-
mted to be exchanged for Rdlrduat credits, without
interposing 10 prevent il, that find any evidence
Of This assertion do not make lightly refer 10 q
port OF the Secretary Tor the proof, &c, &c.
We ask again, why should the credit of the Govern
ment essentially depend upon their acts instead Of its
own During the existence of the Bnnk of the u. s..
the State Banks relied upon their rcsources-They
were called on for frequent settlements and sometimes
Payments in specie Vi lis equivalent, d11 :c" "! their
condition be made by periodical settlements with,
and payments into, the Treasury? Aye, but it is said
they must pay up their balances in specie-"hats the
rub-But does the Nladsonian and its able
pundent know, that when the banks shall have resumed
specie payments nine tenhs of the public creditors will
prefer the convertible paper OF the banks checks
other places 10 which they wish 10 remit their funds TO
the ncumbrance Of specle' The banks promise 10 pay
specie demand 10 every note holder and depnsltur-
yet, how many of them actually demand IL Except il
be in the Of unavorabe foregn exchanges, when
specie is drawn to be exported the Nadisonan which
10 be familiar with practical banking, well knows,
greater portion Of the specie drawn from bankss
by other banks, in whose favor balances happen to fall
-ndivduas are content to use bank notes bank
dts, from the greater convenience of them, long
the banks keep their faith; and they ought
them when they fail to comply with their engagements
except in the most extraordinary emergencies such
was done in 1876 and then only for a specified time
with view Of inducing them 10 return TO specie pay.
ments.
There is no danger that the Government will insist
upon the payment of specie 10 the public creditors when
they will, Of choice receive the paper Of The Banks
The most serious Inconvenience that we can discern
in the Special Depose System, will be in the accunu
latoa Of large surplus Of public money in the 1rea.
sury, which would lock up heavy sums specic-but
f1cIpn he ia The Iltpra ha
alarm from any such prospect ut present-and per-
haps the very apprehension of snch evil affords the
most efficient means OF preventing il. We shall have
no more high Tarfs-no distribution acts The
revenue will be kept down nearly 10 the expenditure,
and should it occasionally fall short million two the
credit OF the Government, in some shape will easily
supply the temporary deiciency-and we firmly believe
that under that system The currency Of The country will
soon be restored 10 healthy condition. 1t cannot long
be endured by the people OF the that the standard
Of value and the credit Of the Government shall depend
upon the conduct Of eight nine hundred banks, with
unqualified control OF the public funds general depo
site Of great institution which sells itself
val power the government Of the people, and exercises
despoc sway the minor institutions The several
State Governments will interpcse and compel them 10
perform their engagements according to the tenor and
letter Of them, will annihiaie them-And the Fee
deral Government should not permit them to have its
funds on general depose We consider the State in
stu,ions the best deposafy Of the public funds, but
it must be under greater restrictions than they have
hitherto received. In word at present advised,
decidedly prefer the Special posie-believing it 10 be
the '.bes safety valve and the best alternative between
National Bank, and the Sub Treasury system.
If we are wise if have profled, ought TO do
BY the lessons which have been read to for the last
twelve months, not only will the Federal Government
be wise in collecting lis revenue, so as TO avoid
surplus of funds aud consequent extravaganza Of dis
burseme u.s. but the people will become cautious
and the banks more prudent. The Stale Legislatures
will limit their numbers, subject them 10 severe restrc.
TONS abolish the small notes. and thus throw larger
e Re-,
also wise not TO encourage the banks 10 issues and
dealings, by general depose of the Federal funds
We prefer the State Banks public repositories, most
decidedly 10 The system of Sub Treasures, Receivers
General public safes and vaults-but 20 for wise
srclons the and deposte Of the federal funds in
those institutions If the hladisonan would only assist
US in devisng the best organization Of the syslemif it
would only show the same sagacity in improving the
SYSTEM as it has done in finding flaws in it, have
doubt that The machinery would work smoothly and
tisfactoriiy.
We appeal then, again and again, TO the members Of
Congress TO consider the subectf they cannot do bet
ter modify the Of sc, according TO its general prn
cples We invoke friends TO compromise The ques.
tom do some thing before they separate and settle
the question. If the friends Of The Sub Treasury sys
find they cannot carry their sysem-lf the friends
of The General Deposte 6nd that neither they
~ theirs then invoke them TO settle down upon
| common ground, give stability to commerce, and
some peace 10 public counses What! shall it be
said that the trainers Of the Federal Constitution did not
think beneath them TO waive all their ultra ideas, and
to secure the Union of their country by liberal
promise of opnions' Could the trainers of our State
Constitution think il not unworthy Of them to the
Common wealth from discord, and dsunion, by liberal
compromise on the white and mixed basis Docs the
crisis bear any comparison with them-And yet
will gentlemen refuse to pipe all hands to quarters
save the ship:
The interests Of the country demand its settlement.
Nothing is more injurious trade, than luctualon and
instability. becomes every member Of Congress- there
fore who has the great interests of his country a.
heart than the petty purposes of party 10 settle this ques
upon permanent basis II IS in vain TO say,
cannot carry the Special Deposi,e. L" We will do 1t or
try was The ma kim Of noble and gallant soldier. We
know that the system much stronger in Congress Than