The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-01


scribed over u IN golden letters The GOVERNMENTS
raAA and ploney" One at the other end Of the
same room, inscribed On Il in ordinary letters Tls
PeoPles pank and moaey" Il must also provide
distinct SCI Of books, clerks counters desks &C. &C,
10 connection with performing the duties then de-
yoying on IT, i must be recollected Il Is bound to
keep all the money il may receive, (although il may
all be in bank notes all in treasury notes Jas specie
as special dpOsite and not TO use bank upon the
same. Now, how is such bank to comply with
these provisions There is one way, and but one
way. That Is this--W Whenever sum 10 bank notes
treasury Is brought to the bank TO be depo-
sed at the credit Of the Treasury as specie il must
on the instant, take equal amount of specie from
its vault and place in that ofthe Government,
and substitute in Its vault the notes for the spe-
Gle thus taken from because Il is not permitted to
the notes. even for the purpose Of converting them
into specie which Is obliged to pay on account of
these notes so deposited the same day that the de-
posite Is made, IL called for. These are the details
attending the only mode In which the proposition
can be carried into execution. ! apprehend 1t will
De found 10 embrace difficulties and objections
enough to stagger the most strenuous Of It's advo-
Gates. II will establish emphacally two currencies,
the heller for the Government the 6aser for The Peo
pie. Il viii also Gin the words of the Message) fully
accomplish one Of the objects which recommended
the plan (the Subtreasury) 10 my Judgment sepa-
ration Of Le fiscal concerns Of The Goveraaeat from
those Of Individuals corporations" That plan,
however, is altogether impracticable. There Is not
reputable bank in the country, which either could
or would have any thing to do with the public mo
neys on such conditions.
Another plan i, that the public revenue shall be
collected in gold and silver the notes OF specie
paying banks, which the deposite banks win agree
to pass to the credit of the Government as cash. and
to be paid away in specie fcaled for by the holders
of treasury warrants. This would not be special
deposite 1t would be general one. Il is precisely
the proposition embraced in Mr. Riyes' currency
BILL which the President says he considers thai both
Houses of Congress negatived, and in which he en-
tirely concurs.
Another plan Is, that the collectors and receivers
shall receive the notes Of specie paying banks in the
immediate vicinity, in payment OF public dues, and
then draw the specie themselves from the banks
which issued them and place it special deposite
in bank at the credit Of the Treasurer Of The United
States. can perceive no possible advantage to be
derived under such process. 1t would in the first
place, expose the money TO risk and danger in the
additional operations which it must perform; and
il finally retains the odous distinction of better
currency for the Government than for the people.
There is still one other plan suggested, which is
this That the public revenue shall be collected in
specie or in the notes Of specie paying banks, and
held special deposes; and the of each bank
50 received shall be returned to It and payment de-
manded in specie, as often only as once in every
sixty days This plan is full of obec ions. II as
siss to give circulation, and 10 keep out for
tain time, an increased amount Of bank notes; it
will lead to frequent and sudden expansions and
conlracons the part OF the banks ii will lead to
connection between the Government and the banks
Of novel and perncious character, as injurious to
the interests Of the latter ultimately, derogatory
to the character of the former
1t has been suggested that the banks acting as spe-
cial repositories, under the scheme of special depo
sites, could not be called upon part with specie in
payment Of the warrants of the Treasurythat indi-
viduals would first secure the specie and then ex
change IT with the bank for its notes. which they
would take away in lieu Of the specie if that should
be the case what benefit would the bank derive from
| the exchange Not the least whatever. II could
only place such specie, taken from the Government
vaults, in its own vaults, TO await the presentation Of
the same notes. SO exchanged, for payment in specie
II could not be enabled to extend its business by the
operation, single fraction.
Take the special deposite scheme in every shape
in which it can, by human ingenuity, be wrought,
and analysed it unavoidably exhibits, al last all the
important objections contained in the Sub-treasury
scheme, which appertain to collecting and disburs-
ing the public revenues in specie only. The same
disastrous consequences will attend the operations
under one as under the other proposition
The adoption of either of these schemes, will as
certainly lead to establishing National Bank, as
that effect succeeds cause. Against establishing
such an institution, the warmesf supporters of the
Sub-treasury scheme cannot entertain stronger and
more deep-rooted objections than the writer
The operations of the Sub-treasury and Special
Opposite Schemes when reduced to practice, will
be the same. Each or either will keep in constant
motion large sum in specie, which will lead 10
total arrangement Of the monetary affairs of the
whole country. In place OF regulating the late
and present disorders in the general currency,
they will serve but to add to those derange-
ments. The people will be influenced to look
back to the time when the United States Bank
existed and to that when the deposite bank system
existed prior to the act Of Congress of June 1886,
by which the latter was thrown into confusion I'M
der both of which we had sound currency, of equal
value throughout the Union. They will be taught
10 believe that il was National Bank then, and that
alone which gave them sound currency. They
will be told that il is only through the means of es-
tablishing National Bank that a sound currency
can be again restored Under their accumulated
suferings and so believing, the people WILL en- massc
and by reclamation, call for the establishment Of
National Bank Under such circumstances they
will have one.
most respectfully, yet urgently, admonish the
advocates of those schemes, .Qhe Sub-treasury and
Special Deposite) to pause and ponder well is no