Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-15

ed between themselves.
The speech Of the Senator from South Carolns, was
plausible ingenious abstract metaphysical and general
izing 1t did not appear to to be adapted TO the bo-
SONS and business or human life 1t erial and not
very high up in the air, Mr., President elher-no quite
high as Mr. Clayton in his last ascension in his
balloon The Senator announced that there was sin
gle alternative, and no escape from one or the other
branch Of it, He stated that we must take the bill I'M
der consd the substitute proposed by the Sen
aor from Virginia. l do not concur in that statement
of the case There is another course embraced in ne
Their branch OF the Senator's alternative and that
course is to do nothing, always the wsest when you
are not certain what to do Let suppose that nei.
Their branch of the alternative is accepted and that
nothing is done. What. then, would be the conse
quence There would be restoration of the law
of 1889 with all its cautious provisions asd
ties provided by the wisdom of ancestors which
has beeu SO tramplcd by the late and present add
mnistrations By that law, establishing the Treasury
Departments, it is provided that the treasure oil the
United States is to be received, kept and discussed
by the Treasurer, under bond with ample security
under large penalty, fixed by law-and not left, as
this bill leaves it, the uncertain discretion OF Secre
lary of the Treasury. IT, therefore, were TO do
thing that law would be revived; the Treasurer would
have the custeoy he ought to have, OF the public
money and doubtless he would make special deposites
of il in all instances with safe and sound State banks, as
in some cases the Secretary OF the Treasury now
obliged to do Thus should have in operation that
very special deposite system much desired 10y
gentlemen. by which the public money would remain
separate and unmixed with the money OF banks. there
is vet another course unembraced by either branch of
the alternative presented by the Senator from South
Carolina and that's to establish Bank of the United
States constituted according the old and approved
method of forming such institution tested and sane
toned by experience a bank of the United States
which should blend public and private interests, and be
subject topubic and private control united together IN
such manner as TO present safe ana sanitary cheeks
| against all abuses. The Senator mistakes his own
abandonment of that institution l know that
the party in power has barrcaded itself against the
Enlistment of such bank. 1t adopted at the last
H.. a,,1 Dan tad
luton that the people of the United States should
have such bank, although 1t might be manifest that
there a clear majority OF them demanding It, But
the day will and trust IS not distant when the
will of the people prevail In the councils OF their
own government; and when it does arrive bank will
be established.
The Senator from South Carolina, reminds that
denounced the pet Bank SYSTEM and so we did, and so
we do But does it therefore follow that, bad that
system was we be driven into the acceptance OF
system infinitely worse? He tells US that the bill under
consideration takes the public funds out of the hands OF
the Executive and places them in the hands OF the law
1t does no such thing They now, without law, ii is
true the custody ofthe Executives and the bill pro-
poses by law confirm them in that custody and to
vey and enormous powers OF control OF the Execu
tive over them. Every custodary of the public funds
provided by the BILL is creature Of the Executive de-
pendent upon his breath and subject to the same breath
for removal whensverthe Executive. from caprice from
TYRANNY or from party motives shall choose order It.
What safety is there fo the public money, if there
hundred subordinate Executive officers charged with
its care whilst the doctrine Of the absolute unity the
whole Executive power, promulgated by the last
and persisted III by this remains unre-
voked and unrebuked.
While the Senator from South Carolina prefesseste
be the friend of State Banks he has attacked the whole
banking system Of the United States He Is their friend
-he only thinks they all unconstitutional. Why
Because the coming power possessed by the General
Government and that the coming power he argues was
intended supply currency OF the precious metals
But the State Banks absorb the precious METALS and
withdraw them from circulation, and therefore, are IN
conflict with the coming power That power, ace riding
my view al it, is nothing but naked authority to
stamp certain pieces of the precious metals 10 fixed
proportions of alloy and pure metal prescribed by law
that their exact valne may be known When that Of
fee is performed, the power unctur otcii-the money
passes Of the mint, and becomes the lawful property
of those who acquire They may do with it they
please throw il into the ocean, bury In the earth, or
melt il in crucible without violating any law When
il has left the vault Of the mint the law maker has
nothing do with it, but protect il against those who
attempt TO debase counterfeit, and subsequently TO
pass lawful money. In the sense IN which the Sen
ator supposes banks conflict with the coming power,
foreign commerce, and especially commerce with
China conflict with il much extensively That Is
the great absorbent Of the precious metals and is
therefore mach unconstitutional thas the State
banks. Foreign commerce sends them out OF the
country banks retain within H. The distinguished
Senator is no esemy to the banks-he merely thinks
them injurious the morals and industry OF the sosn
try. He likes them very WELL but he nevertheless
believes that they levy a tax OF twenty millions an
nually on the ndu stry of the country! Let exam
inc, Mr.. President, hsw this ensrnous and iniqst
tous assessment s made, according to the argument
of the Senator from South Carolina. He states that
there is a mass af debt due from the community to
the banks amounting TO Si75000000, the interest up
on which, constituting about s25,00O00o, forms the ex
ceptonable tax. Now this sum is not paid by the
whole community, but only by those individuals who
obtain discounts from the banks. They borrow money
Mt per cent interest and invest IT in profitable adj
ventures or otherwise employ II. They would not
borrow IT, il they did suppose they could make
profit BY it, and the probability is that they do make
profit by IT, Instead, therefore, OF there being any
loss in the operation there is an actual gain to the
community, by the excess OF profit made beyond six
per cent, interest, which they pay
What are banks7 They are mere organized agen
cies for the loan Of money and the transaction of
ary business regulated agencies acting under the pre-
scripons Of law, and subject to responsibility aora
and legal far ranscendng that under which any private
capitalist operates number OF persons not choosing
to lend out their money privately associate together
bring their respective capitals into common stock
which is controlled and managed by the corporate GO
vsrnment OF bank. If no association whatever had
been formed. large portion of this cspi,a large por
ton therefore OF that very debt Of 000 would
still exist in the shape OF private loans. The Senator
from South Carona chit well collect the aggregate
amount Of all the mortgages bonds, and notes. which
have been executed the United States for loans and
that the interest paid upon the total sam cons
tuted tax levied upon the community.
La the Of the debtdue to the banks from the
community and from the banks the community, there
would not be much difficulty the Senator seems to
"A. ,r chr dnp IN he hauk