Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-02-24

have lst SHOWN; soon ue INV "Ns'O''
excess by them. =,
think, therefore, Mr. President, that under the pro
visions Of the substitute have proposed lot Tue ~.
deratlun Of The Senate, there would be no dube VI J
unreasonable extension of discounts on The pubic ".P
sites. know, however, there are gentlemen VI l.;
leIurrce mud patriotism, who are Tor any aosou'e ~ "
bitiun OF HE banks Gsc"unng, 10 any extent h""r.
moderate, the public cep0sltes, and WHO 1a'or Do
Of carr ing out thai prohibition, syseh' VI '
depnsiles. The high respect entertain Tor the "Ph'o"'
of those gentlemen has induced to CONSIDER ieif sn9
cpslions with than ordinary anxiety 10 cnihe " "
same conclusions; but after horoug examination ann
heclnn according n the best lights my understanding
mn satisfied that no system OF SpcclnL deposl es, now
sprcous in theory, could be worked out III
without involving consequence which they themselves
Tor least, large majority OF lheinl would promptly
rcpuLale IN The first place. ii is dem"nstEhOe, mum
bly conceive that any system oi SpecMi dep's'tes |"
be practical and efficient must lead TO collection OF The
revenue dyrcHy Indirectly, in specie; ana l's hey
oppose as earnestly as do. The Government must
always hold itself ready 10 pay It's creditors 10 .ne
iaujM currency Of the country, y Gema"aeui ms
the Banks bound 10 d., on behalf OF me HoVr
ernment, under the general deposIte system put II
yuu adopt the sp,ciat drpnse system, ahu coNrc'
Tie revenue, al the time, IN bank notes. lHe ua"n'
would be bound 10 pay out To The puOlic cfeui'oi oy
idcnical Mates deposited with them for this Is Inc lunua'
mental and immuluGle idea ut q special depose row.
then would such system Uork? The public creditor
would present his warrant to dtpostc bank'he naN
would offer him, in payment fist llIS nole aho theh a',
these notes suiting the convenience OF the crrdor'
and The bank being bound TO pay 10 other, The pn"c
claimant would GO unpaid anu the en9a.emt us VI W"
Government be dlshonured. TO AVOID Inc DANGER "
such result the Guvernmrni if il adopted system of
spcat dcpusiles would be DRIVEN 0l necessity 10 COL
lection Of lh revenue gold aud silver "r, otherwise re-
ceving the Of sprcie banks pr" J2rma col
lect The specie from them from the banks ny WINCH Iey
were issued, and place that sprce on SptcWl drPosle
But here would be- the difference in tie practical Ell
Tho tbe Inn
community connected with them. between collecting
the revenue in The first instance in gold AID SILVER hnd
collecting ii 10 the notes OF sprcie. paying BANKS 10 W
converted into gold and silver by denand upon The banks
The Honorable Senator from New York ORR. NEghl)
expressed The opinion that tie latter mode OF operation
would be the IIarsesi and when II Is considered lhal
this periodical conversion ot bank notes ~ona De IN
iar,e masses and attended consequently, with Perodi-
cal and distressing cOnracOnS 81 the currency cannot
but agree with him. Al all events there are bull these
two modes of working out Spcciat depose stem IN
prnc.ice and er the nor the other, IL seems 10
me- can be made acceptable those who oppose the
ub.rcasury scheme, on account OF It's tendency 10
currencies in the cnuntry-god ana silver Tor
the Go"crnment-Paper far the people:
There subsidiary objections to this spcrtnt GeposIte
system. which, although not Of much weight as that
which have just stated. cannot be overlooked III just
and comprehensive estimate OF it. II you adopt H. you
rrnonnce, al once all means Of engaging lie interests
and enlslng the Cooperation q" the hunks to carry out
any of those reforms IN the paper currency, which have
heretofore been avoe ob'ct OF the policy OF The
country. You also pay them, and pay them, too,
no siderable for their services To the Govern
ncnt and thus abandon Of the strong grounds at
Of ecOn0my) which bank agency has heretofore been
preferred to individual agency in conducting the opera
lions OF the Treasury
But 10 lake up the subject in enlarged view, IS
there any valid reason why banks should moi be permit
ted 70 discount moderate extent. average balances
Of public money in their possession as well as on ndiv
dual depus;tes' Wherever banks exist, 10 receive dcPo
Sites public private is regular branch OF their bust
ness and discount upon the baanccS " MoSe
dcpoSteS which experience shows are not likely 10 he
drawn nut by the deposi,ors, as Legitimate and acknow-
lodged an operation Of banking as |" discount upon their
rnps Is il not for the interest Of all that tins should
be d"ne-lha portion of the national capital sh"nd be
0nnhaa;rd by being locked up from USE ou. That the
whole should be nude tributary in so;e way or other,
10 the Inauguration and support vi the national industry:
No Just distinction be shown, IN this respect be-
tween public aud private deposles Accordingly IN all
countries where banks exist and where lie Pnohc mo-
news are deposited in those institutions dePosItes oil that
kind have been invariably recognised within proper Ii.
ils as perfectly legitimate source Of discounts and
accommodation 10 the COMMUNICATE Is admitted that
it has been uniformly the case in this country IN regard
the public funds both OF the General Government and
orlhe States from the adoption Of the Constitution down
to The present day. What light, then, has broken in
upon u.s. that We are all at once, grown so much wiser
than our fathers; In England, the practice Is, md has
been invariably the same and here take upon me 10
TO the contraryto w.t. that the balances OF the public
moneys in the hands Of the Bank OF England were not
discounted upon, but were regularly and abiluay ap.
piled to the purchase of Exchequer Bills, on behalf OF
The Cover nuicnt The fact s Ollerwise-the Bank oil
Enuland has the use Of these balances for banking pur
poses and this of them is so well understood and
ayowpd that in some instances, where the balances have
risen very great amount, las, tor series ct years
alter Ie06, they did to between 81 Oooooo ana ~
COO 0OO equal 10 near SG0 900 600 of money! the
Bank has been required to pay special compensation
to the Government for that use. But the ordinary ba.
lances of public money in the Bank oil England range
fran 81 ego 600 10 - 600 600 s,ering-abou twenty
millions of dollars Of money-the use oil which Is
PERMITTED 10 the Bank without any compensation. In
like manner, the balances Of public money in France,
which are occasionally transferred to the Bank oil France,
are permitted he used az source ol extended dis
counts and am informed by an enlightened cDrresPnn'
dent in that country actually used TO the great
relief Of industry and trade, during the late commercial
crisis
Shall less benefcent use be made Of the public mo-
news no, called for by the necessities OF the Govern
mcu in this Republic of ours than in the mnnarchIes OF
Europe? Shall alone, OF all The great family OF mod.
ern civilized communities revert To the oabarous prac'
tce Of hOardng land that too IN specie the occasional
surpuses which, from The nature o our revenue system
can neither he oreseen nor guarded against: a most
able and eloquent friend in The other House hlr Legare)
has Justly characterised the process of taxation as spe
sirs of cynf,cgtion It So Sir Is II not incumbent
upon u.s. them when by SO harsh process, we nave unde
spnrdy levied upon the people more than necessary
for the ants of the Government. 10 mitigate the cx1c
ton as much possible by restoring the overpus to
lhrr use through the channels OF business and com.
MERGE Why should the Government play the dog IN
The manger neither using ills idle hoards itself nor per.
hitting any body else 10 use them Etf"rs have been
made 10 the practice of discounng upon the pub
lie de posles odious by representing II as thing Tor The
benp6 of the banks alone But is ii so? Does not every
class Of the community experience the benefit, and none
more so than the great agricultural class, the price of
whose products depends mainly on the facilities OF sound
credit, and the abundance OF active eaPn d,ftused
auonr the n,erchanls-the more immediate customers
of the banks?
II has been sometimes said, also that the practice Of
dscrunng on the public deposiles adds 10 The lnctna
tons of the currency But the reverse is demonsrably
true When large amount of revenue is collected by
The Government and is neither dsbursed in the public
s.It L. nit iLrarL The