The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-17

noting resumption among The tchole number"
| would respectfully inquire what there is in the
letter Of the Secretary partaking in the remoest de-
gree any thing Of an encouraging character 10 The
Banks 10 resume To my mind, il is altogether OF a
discouragng character. The above extracts from
his report are of hostile character and calculated
to alarm the Banks In relation TO the letter of the
Secretary the Globe Of Saturday night thus for the
Government speaks:
| "By the letter Of the Secretary OF the Treasury
the public is also assured that every Legitimate means
be exerted for the same purpose in the regu
lar action of the General Government, without an
abandonment Of any Of the principles 10 which il
stands pledged, will be afforded
The Banks, il appears to me, cannot fail to per-
ceive thai the policy Of the Government 10 which
il stands pledged" is an.agonislcal to aiding
tanning the banks in resuming the payment Of their
obligations in specie.
II the course Of policy pursued by Mr.. Dallas and
Mr. Crawford and the means employed by them,
were essentially necessary 10 bring about resump-
tion of specie payments, by the banks in 1917 (and
who will doubt that they were not how Is itpossible
that the Banks can resume now with the opposite
course Of policy which the government pursues2
The Government must adopt an entire new, and
different course ofpolicy towards the banks they
will never be able TO resume so as 10 furnish any aid
to the commerce and business of the country. Nor
will the Government itself be able to collect the reve-
nues OF the country in available means until The
Banks do resume, This was emphatcally stated by
Mr. Crawford in 1916.
The facilities extended 10 the banks in 1877, by
The Government, to induce them TO resume, and to
secure them in the undertaking, were extensive, in
addition 10 the amicable feelings and countenance of
the Treasury Department. The whole Of the public
balances (Which amounted to many millions) in New
York, Philadelphia, Baltimore and Richmond, in
the possession of the State banks which had collect
ed them, owing to the Government, though trans
ferred to the Bank Of the United States, to be
held uncalled for Except in some inconsderabe
amounts contingenty) until July following.
| With the banks in the Interior which became
the recipients of the money received from sales
of public lands facilities and inducements of
different kind were extended II was stipulated
that they should not only hold all the sums deposit
ed with them, and become the diSbursers of il so
far as the public exigencies required il, to be
done in the vicinities of their location; but, it
was also stipulated that all excuses deposited with
them, beyond the sums that would be expended, and
which might become expcdent to transfer to other
places, should after due notice, be transferred by
themselves
For said Mr.. Crawford to have proposed the
resumption of specie payments TO the local banks on
the condition that they to become the deposto-
lies of the public money received at the land offices,
whilst the obligation of the Bank of the United
States to transfer The public revenue to be en-
forced was 10 insure another failure the part Of
those banks; they roula hare been required al short
Intervals, to discharge in specie the trhos amount Of
their notes ,rhieA had been reccired at the land oces"
q I .,1:.
for inducing the local banks TO resume and continue
specie payments; that the obligation to transfer such
part of the public money deposited with them as was
to be expended at other places should be imposed
those banks" 1t became, therefore, necessary TO
present to them some other inducements to assume
this obligation than the mere possession of the pub
lie funds during the time that was requisite for max
ing the transfer" .'.. ....s
1t must, il seems 10 me, be perfectly manifest that
unless the policy to which the administration stands
pIcdged" be abandoned, it is wholly impractcabe
for the banks To resume,
That very policy contempatcs the receipt of such
bank notes only, and ARRAYS nader circumstances
aUo,cing their early presentation for payment and
at SHIRT and fred periods 10 be concerted into specie
and 10 be kept By The officers Of the Treasury
Therefore if the authority Of Mr.. Crawford is TO be
relied upon, if the banks were 10 undertake to re-
sumo under the circumstance OF such policy being
adhered to and practiced by the Government, they
will resume but TO suspend again al an early day
thereafter.
Nor can partial resumption take place by sim
gle State, with any benefit to the banks or the COM
munity If the banks in New York undertake to
alone they will require all the aid the legis
lature can extend to them in means, to meet their
outstanding circulation, and protect their specie.
They will neither be able to discount nor furnish
circulating medium to the citizenship. Crawford
remarking, that in small portion of the Union
specie payments were continued" said, "they Chose
banks) must have failed, had not the circulation of
the paper Of their weaher neighbors, and the issue
of Treasury notes came to their aid. But for this
adventurous circumstance, wholly unconnected with
the wisdom and foresight of their directors, specie
payments must have suspended there or the best in
terests of the community been sacrificed From that
period until the resumption Of specie payments carly in
1877, Treasury notes andtc notes Of The banks nch
had suspended payment, forned hc great mass Of tic
circulation in Tie eastern parts Of the Onion. SPECIE
OR THE NOTES BANKS WHICH CONTINUED TO PAY
steele, FORMED no FART THE RECEIPTS OF THE
| GOVERNMENT IN BosToN AND THE DISTRICTS EAST or
THAT TOWN, UNTIL ABOUT TIE CLOSE OF THE YEAR
1916"
Exactly the same will be the case with New York,
in case the banks in that State undertake to resume
singy. The best interests of the people will be
crfccd the circulating medium will be the notes of
weaker banks Of the neighborng States the govern
mcnt will not be able TO collect its revenues in spe-
Gle or notes orspecie paying banks.
ask you, sir, to look at the state of the finances
Of the nation. An exhausted Treasury; which it
| to