Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-03-05

meot OF power Lei the honorable Senator from Ne"
orb nnhr The knot. b, leading The bark, 10 n ~
sumption OF specie payments. t,s | am sure. V,
proper means he could easily do,) aud not on II b,
The Sub Treasury scheme. aud ] will br amonR tho
FIRST 10 award him The civic wreath. With Mr.. JET
'crson III his memorable letter to Mr. Madison
wlnlc tse Federal Constitution was under considr
rnuon sa,, " am ma friend 10 strong govern
nrnt. II IL always Oppressive. hputs The Gorer-
norS al Their case, bit at The crpsnsc ofhe people. -
Here hes the fdfl objection 10 the Snb.ttrasury
schrm" II puts tho - Governors Mt the'r ease. y
IN, IL dangerous aud Oppressive" TO the people.
What system oi policy. then. II would he asked
would pursue The M ne great 9uthont,. whose
words have already quoted ss,s. " = good patriot
aud true politician will always cons,d"' how To
make the most OF the erstnr materials, al hls eonn-
tN. This Is the ioundai,"n principle on which !
would bu,ld. Experience has shawn. IN the Ian
suare used by the present S~cr.n, ol The Tteasu-
ny IN 1884, that banks ar the most Irresponsible.
sale. convenient aud economical hscnl agents Tor
the government. The State Banks ARE institutions
now eflShns. | would "mdLe He most oi them i,r
the public service There ~ national bank
my institution III existence and the condition
VI the county, already sutchn,ged with banks, the
state oi public oplniou, the known sentiments aud
plrd9e, "i thosr charged with the public admins
uailon, ali eonspre 10 render II very UNLIKELY that
there vii, hr an, such institution 1T least Ion years
10 come. | say Lrlhet-,u IN, humble "p,n,on,
there ought 10 be such institution; FIRST, b.t ansr
there ~ constitutional M hort, 10 create II. aud
secondly, became H. political dangers, IN any i"tm
~ winch II has hrfrtuiore existed. have been found
10 more than concordance it's supposed advantages
other respects. Then, ~ 10 the Sub treasury
scheme, II ia novelty uur,l, unknown Ia our laws
and usases, which could not be brought into ex's-
f"N., ,hnnt violating all the hnbnnd"s ol oni
people, dcianginc the npcIat,u'.e l,nstuc.s aud
haznrd,uC the most cherished principles ot our ro-
llica institutions. What then ought 10 he done :
Rccnr 10 the elisting materials al the country,
the State Banks" make the most OF ihrW Ion tnc
convenience OF the government, ~ well ~ ior the
general good reform thrir abuses, tolirct thcir
defects. aud adopt ever, picr,ntion which ma, be
necessary 10 ensure their hielll, aud rlhcrncy
Thesr institutions II istiuc. have recently, IA cum
mon with every oth.r interest III the country aud
with the whole commercial world, been subjected to
serious cmbafassnents. All agree. however though
differing rs In the particular causes which produced
them, that those eubarrassmruts have beru the ic-
suit nj very peculiar and extraordinary clrcumstan-
ces. The banks too, winch were cnplo.cd AZ TIA"
Repositories and fiscal agents oil tho government,
have, Tor thr NOS. part. amid circumstances ri tho
greatest dinicuy actually discharged all then en-
gagcmcnls 10 the government, enormously heavy,
rs they wrrc in consequence oil the large surplus
revenue; on the few who have tot vet done 80, have
satisfactorily secured the comparatively small pa
lauccs due from them. In BE- pald At short periods,
according 10 an Indulgence voluntarily granted I"
them by Congress. The past, Therefore, candnlly
considered furnishes ground against The renewed
employment ol the State Banks ~ hsc.l agents OF
the government Experience may have aud doubt
less, has, disclosed circtsand riiots ~ the peculiar
plan upon which they have hccn hcfcIolofr employ
ed. Correct, then. ihos" trors-suppl, those de
iects-hut do not rrIrtt then employment alogfih-
81. This. SIR, The general principle on which |
have hottoined the proposition have snbmte" a'
4 substitute for the bill reported by The honofab'e
Senator from New York; aud ! wall now proceed to
explain, detail those provisions OF the substitute
winch Distinguish II from the state bapk depos''e
system a, heretofore organl2cJ.
II ~ nov generally acknowledged that Que oil the
principal circumstances which contributed to en-
ha,,ass the operations oil he l,r D.posr system, was
the large number nj banks employed ~ depo,iioirs,
amounting, IN ihr end believe, 10 nrai ninety
This increase OF number N pant WIS rendered ne
cessary by that provision !" the act OF Jnnr, $3.50,
whch required that, where the amount al pnblie de-
positrs IN any bark exceeds three tonltits OF us
capital actual, pid IN, the surplus should br Trans
lrired 10 some other In the execution at the act.
however,, (iiom considerations Which am not abie
to explArn) there was sill further increase III the
uun,be, al Il. postoiies, moi called iot b, ~ require
inents OF tins provision. 1t Il oh'ioos no" 'he
Whole play oil the machinery must have been weak
cned and ob,truclrd by tins needless .""pItSy "i
,ts a,ts, am satisfied thai twenty banks, Jldi-
r,ansl, selected aud properly located vault be con-
pricnt to do the whole business OF the Iieasnf.
Department, with much less danger al r"'n1il''S
mont to the Banks, aud atdr noi" Easy AMI '1eeiuh
suprry, ION the part al the Secretary. me sun
II
Banks to bc employed public dcpos'tor'es Shall
in no casr crcccd hrcntY fire, 10 hr chosen from
uonp the most solid and respectable banks III the
respective States. aud thar ocA on, '"el as mum
her to be determined solely with reference 10 the
wants and convenience OF the Treasury ~ conh"ct-
na liz fiscal operations.
The substitute also prop lsrs an important change
in the mode of selecting the deposlte banks. Here
oGDrc they we're chosen by the Secretary OF the
Treasury. ri his will and pleasure alonr. THIS sole
agency OF the Executive viii. IN designating the de
postorics OF he public money, exposed the aie sys
TEN 10 \ siis picion OF iasorism and want at c"n-
Gdencc in general. which greatly impaired ITS moral
oIc. and admitted possibility OF abuses, whch' II
~ ccrtanl, proper, shsnlj be guarded against II
was this which caused be eharac efi'ed as the
pci-bank system. propose to diyesi II OF this char
artcr y subecting The selection OF the Secretary oil
the Treasury, case, to tho supervision and
contlol of Congress. II the selection be made dn-
,iuo the session Of Congress. Is to be Immediately
submitted tot the approval of the two tlouses-ii,
during the IT is 10 be lad before ihrn ~ TIE
commencement OF The ne, session. to b. IN like man
ner confirmed or annulled by them. HE elect OF
lhls provision viii he to hrns eeery thing, relating to
the public moneys, under the direct and elic'eni
control OF the representatives Of the people anu tue
States, aud IN delicate and important mattff Ia
leave as lulle as possible To Executive discretion.
Another leading provision IN the substitute IS one
which requires the Opposite banks to have week.,
| settlements with the banks. IN their vicinity, wl
which they have business transactions, and tn cal" '"i
balances IN specr. whcnercr and 10 Whaier'r eren
may be necessary check oser-issues aud to pre-
| serve tn. soundness of the currency. In tho OPP
ton of this Practice by the late Bank OF the Dnl'od
States, consisted lis boosted power aud influence rs
a regulator oil the currency. There IS no reason
why the same salulaIy control should not BIZ txer
ciscd hy the deposits banks, and with even greater ct