The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-05-22

directly, by The committee al this time Il va,
Sudden impeiusp which business took wAs, ed
TO that impeus1 and upon whom is il PROPERLY
chargeable The banks or The Treasury Drzau,
mentl will endeayor TO show
The fact isrecorded, that the Deposile Bank ve,.
required in 1891 BY the Treasury Department
extend their discounts far as practicable upon liz
public moneys in their hands for the purpose Of T..
lieving the pressure in the mercantile community
caused by the curailpents Oft Bank Of The United
States. They did So Was this request ever coun.
fernandez or withdrawn II could not have been
as viii shortly be shown.
hmighf reasonably be supposed that, when il va,
discovered the business OF The country was IN .,s
Of "trid and fereriM acti0np growing on, Of -.
"unexaDpled accumulation OF the revenue" art
sudden impetus" which business took the Trea,ory
department would have suggested 10 The hanks vim
which the accommodating revenue was deno,sied liz
propciy Of disseminating 10 make discounts Co,,pa
ed on the same. The head Of that Department, NJ,
only omitted to do voluntarily; but declined 10 r
pose check TO the impetus that had been given h
business. In The latter part Of the year 1895 som.
Of The largest deposi,e banks, and friends Of he
policy, became alarmed al the appearance II ,fing<
as they were then going on, and with their mind,
filled with "anxiety and concern" they wrote ma
requesting that would endeayor 10 prevail on NE
Secretary Of the Treasury, 10 authorize them 10 can
for specie, for part Of the balances that had accu
mulaied against the other banks in The collection ar
the revenue, for the purpose of giving check ID
the wild and exravsgant expansions that were then
going on. ! waited on the Secretary explained !,
him The importance, and urged upon him 10 accede
TO the request. was, however, unfortunately IN.
successful That gentleman declined giving tie
permission applied for.
AT this early period then, the banks saw, the eyl
then impending over them, and proposed TO becon..
the instruments Of avering it, Their offer was u.
jected. Surely the banks cannot be properly charge.
able with conduct TO which blame could be imnp.a
up 10 this time.
will now advert 10 the course pursued hy the So
creary of the Treasury aboui and subsequent 10 that
period. That officer appeared not to have been a,
all aware Of the existence Of the state of thing.
such as the committee have described to have been
in full operation before the last quarter of the year
1895. In isannual report TO Congress in December
Of that year after stating The balance there would be
in the Treasury on the ls OF January 1886, over
all outstanding appropriations at about ten million
and half Of dollars remarks: HletAer his stqts
Of enriath prosperity ts Justly attributable to the fern
he character Of our people The physical advantage u
connyor to all combined il is subject Of arong
coagratuiation and exhibits rery remarkable ple
nomenon in The history Of tazation and finance" This
would not seem to indicate on the part of the Secre
tary of the Treasury at that time, feeling Of
anxiety and concern" at the appearances FOL-
lowing the "unexampled accumulation of public
revenue" and the impetus that had led to "wiIl
and feverish action in business.
The Secretary that same report takes pleasars m
stating that the public money continues TO be COLLECTED
and deposited under The presea! system Of seleetedbqA
nth great case and economy in all cases, and greater
than in any former period" AT the same tine
the Secretary passes compliment on the depose
banks for the part they had taken in assisting ex-
tend the loans on the public moneys. Said he their
discounts have been in general somewhat increased
but, though tempted BY the enierprsing spirit of he
times, not unusually increased in degree diSpro-
portioned 10 all their immediate available means
They have, also in some cases, been able to aid and
have literally aided, other banking institutions in
their neishborhood, by as large and long balances,
and other indutgeaees would appear to have been
sanctioned BY correct principles"
The Secretary of the Treasury here not only ap-
Pauds the deposite banks for having themselves ex.
hands but in addition, for having LEFT balances OF
in the hands OF other banks (not deposi,e) for them
to loan upon also! You certainly will not censure
the banks for this at this day.
l will now proceed little further and see what
the action of the Secretary Of the Treasury was un-
der the state of things have already referred TO-
which you described to have existed prior TO the Isl
of October 1885. On the 3lst day Of December,
1885, the Secretary the President of one ofthe
deposite banks in the city of New York as follows
(" As the public money has much increased in your
city, and under my present course of policy, will
continue to increase still more till Congress pass ap
preparation bills or give some special directions for
its investment, request the advice and aid Of the
present selected banks on the best mode of making
the SURPLUS USEFUL without endangcring its
safety until one of those events shall occur. Is il
not proper that the present banks should agree with
Others on such security may be deemed judicouS,
to hare the balances ,o them, till Congress by some
act, shall render necessary TO call for the whole,
part Of those balances - In another letter, dated
the 7h of January 1885, directed 10 The Presidents
Of three deposite banks then employed in New York
the Secretary sad 81 do not hesitate to express an
opinion, that The safest and most liberal use you can
make OF any surplus nat otherwise employed nor i'm
medIaely neeueu, WOulu DC 10 IL lie Us DdldLtc
due you in some other sound banking institutions
belonging TO your city, that employ ii bsnfeaiy
10 the community till wanted, taking collateral secu
rity for its forthcoming, whenever needed BY you 10
meet any Of the objects before named"
Thus invited, might almost say directed, by the
Treasury Department, the banks where the public
moneys were deposited did in accordance with lis
views leave with other banks large balances OF the