The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-29

powerful institution and the Executive, come lo'
ward, and, as was done on the occasion OF another
memorable coalition In another country, 10 the name
ofmy country, Itorbid tie hanns
Bui have sill another and more extensive OBJ
ject, Mr.. President, in moving The resolutions on
your table. desire TO show, by the acts oil the ad-
miniStraiion that whatever dissertations and homi-
lies ,he Executive officers may favor US with on the
Sub Treasury system, and In favor OF diroree from
hanks they have by their practice borne the highest
of all testimony TO the superior safety convenience
and other advantages Of banks as repositories and
fiscal agents OF the Government. Since the suspsn-
sion OF specie payments by the banks according the
construction put upon the deposite act June 1856
BY the Secretary Of the Treasury, and concurred in
by the Committee Finance of this body, there
are hardly any banks which are competent 10 be
ployed repositories under the provisions vf that
act. BY thaiaw, II is said, no bank can be legally
employed as depository Of the public moneys, In
the manner, and On the terms contemplated BY II,
which may have at any time since lsi July, 1886,
issued notes OF less denomination than ave dollars
This being the case with nearly all the banks, the
consequence has been that the Treasury Department
has been ieft almost entirely to Its own discretion as
10 the manner Of keeping the public money and, in
the exercise of this discretion il has continued for
the most part, sill 10 employ banks as repositories
styling hem however, special instead OF general de-
positories, as they would be under The act of June
1856. happears from the annual report of the Sc
cretary, now before me, thai there are at present
sixteen banks (including the Bank OF the United
Staes0 so employed, at the discretion of the Depart
ment, over aud above the four which still remain
general repositories under the provisions of The law
OF June 1886 The public moneys deposited in these
sixteen bank described by the Secretary placed
there special depositss; but apprehend these se
cal deposites vary in essential respect from the
general deposites made in banks under The provisions
OF the act of 1886. have, therefore, added the
resolution respecting the transactions with the Bank
OF the United States another calling upon the Secre-
tary br precise information as TO the nature of his
yUfEngements with the whole OF the sixteen banks in
which public moneys have been placed on special
~, sfn.t nICn f.
ney these special dpostes have been made; whether
they have been held in the identical moneys orgi-
nally deposited and whether the drafts drawn upon
these deposes have been paid out Of and the ba-
lances remaining exist in the very moneys original
ly deposited and none other. The answer 10 these
queries will serve test the true character of the
Secretary's special depostes, and unless am greatly
deceived will prove them to be nothing but deu-
sve play upon words.
In reviewing the list Of the different public deposio-
res contained in the annual report Of the Secretary Of
the Treasury this singular and striking Of things
appears that while the Sub-treasury system is still
urged upon u.s. and the Secretary of tho Treasury has
in the existing condition Of things, full discretion
direct the keeping Of the public moneys he thinks
BEST OF aggregate Of public moneys in the possess
sion of all the different repositories amounting to S4-
500 30O the of S2,s796 SOS is deposited in hanks,
81 800 827 in the four mnt and 1898 only pre-
sent in the hands OF collectors and receivers Could
there be a stronger testimony than this involuntary
tribute the part of the Secretary OF the Treasury
the superior safety and convenience Of hanks public
repositories OF the Of 80 S79 665 deposited in
banks, S295 ID only is deposited in banks employed
under the provisions Of the of 1886 The balance
TO witt So 5S4.45i is deposited in banks employed at
the discretion Of the Treasury Department. and, OF that
81, 73s ,4Ss in the Bank of the United States alone
The practice of the Executive, them even while
protesting TO have adopted the Sub-treasury system,
affords the most implicit recognition of the superior
value and advantages of banks as repositories and
fiscal agents. They deprecate, it is true, connex-
ion with banks; but i is legal connection, sanction
ed ana regulated By laac 1t seems, which they depre-
cate not one depending on Executive discretion. Not
only the practice Of the Administration but the ex-
press language both Of the President and Secretary
Of the Treasury, recognises the high, and in the
present condition Of the commercial world, l might
add almost indispensable utility Of bank agency in
the fiscal operations of the Government; bnt they
are for leaving the employment of banks to the riH
and discretion Of the administrators of the Govern
ment The Secretary of the Treasury, while rea-
soning in favor OF his Sub-treasury scheme says
An appropriate and occasional use would still be
made of the banks BY the Treasury, is done by
But neither party would be forced into a species of
vassalage-a constant, necessary and dependent
connexion," &C. The President, in his message,
taking up the same idea, says: Banks like other
State establishments, may be used or not, in conduct
ing the affairs of the Government, as public policy
and the general interests Of the Union may seem to
require. The only proper principle upon which their
intercourse with the Government can be regulated is
thatwhch regulates their intercourse with the private
citizen-the comforting of mutual benefits. When
the Government can accomplish financial opera
ton better with the aid Of banks than without, it
should be at liberty to seek that aid 1t would the
services OF private banker, other capitalists or
agents. giving the preference to those who will
1t on the best terms" II seems, then, that the Secre
tary of the Treasury and the President are BY no
means against the employment OF banks, but they
are against tying up the hands of Executive discre-
ton in their employment. "An appropriate and
occasional use may be made of them by the Treasu-
ry," says The Secretary, whenever convenience
should require it," They may be used or not" re-
peats the President as public policy and the gene
raj interests Of the Union may 10 require :" and
the Government should bcletat hterty 10 seek their
aid as il would the services Of private banker" SC.
Who would ask, under this system, would be the
Judge when convenience" 70 use the language Of
the Secretary, "public policy" according to that
OF the President, required the use Of banks2 OF
necessity, the Ereeuiire-the Department charged
with conducting the " financial operations" of the
Government.
Now, with due Difference, MUST be permitted to say
Mr. President that of all the systems yet suggested for
conducting the finances OF the country, this, to my mind,
is fraught with the deepest dangers the public liberty
What, sir banks to be used NOT fiscal agents,
according the President and Secretary Of the Trea
sury may determine it to be useful polite convent
ent TO do SOL The consequence would necessarily be
to put all the moneyed institutions Of the country under
the power and at the devotion Of the Executive No
rule of ao being established regulating the employment
Of banks-no limit fixed TO the number which might be
employed terms prescribed on which they should be
employed might be employed to-day, and ano-
Their tomorrow those already employed might be
dismissed and new ones taken into the service OF the
Government, the sole will and pleasure Of the Execu
tive-what would this be, but TO convert the whole
community OF banks into sutors for Executive favor,
and subject them the dominion OF Executive power
Under this system, if the Executive wled it, the
Sub Treasury scheme might be carried out in
ton of the country with all its desolating eSacois of