The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-02-01
sIll,976 IS

Thus leaving balance Of immediate liabilities, Tor
nearly one hundred and twelve thousand dollars,
with no other means TO pay it, than resort to the
line Of discounts, current and suspended
Il would seem, that the public money has been
used by this bank In paying off its individual depo-
sors, and in redeeming It's circulation; and that,
too in specie depositeS, made atler the suspension,
which had been collected in that currency from the
public deb.orsl
II am incorrect in anything which have stated
concerning this bank and It's operations connected
with the Treasury Department, LEI me be corrected,
Far BE- il from any desire Of mine to misrepresent
in the smallest Particular whatever.
have thus given an exhibit Of the condition of
one Of the present deposile banks selected by the
Secretary Of the Treasury, since the suspension Of
specie payments, in doing which he had an oppor-
tunity 10 exercise TO the fullest extent his discretion,
sagacy, and financial ability In case any loss shall
accrue TO the department, by the employment of this
bank hope that il will not be attributed 10 nhe
rent defect in the depose system. A magnanimous
mind should certainly save il from that imputaton,
under such circumstances. IL such result as is
here exhibited in the case of this bank arose from
unavoidable defect in the deposite system could
be most overwhelming argument against il. The
blame should fall on the quarter in which the fault
rests.
For the purpose of terrifying myself still stronger
in the position have assumed / refer to the manner
in which the act Of Congress- passed at the extra
sion, authorising an issue of Treasury notes, has
thus far been executed Under that act, they
authorised to be issued, bearing an interest as high
as six per cent per annum it being the same rate
of interest exacted from the deposite banks which
avaied themselves of the act of The same session,
granting 10 such chose profit by il an indulgence
as 10 the time within which pay the balances due
by them to the Government. In authorising the is
sue of Treasury notes. bearing sxper cent interest,"
il was directing that the public creditors should be
placed the footing as the public Debtors SO
far as regarded the receipt and payment of interest
by the Government,
While we have the evidence contained in an Off
cal report, that the banks which were indebted to
the Government have Gas far as they availcd them
selves of the act) complied with its provisions and
engaged TO pay interest at the rate of six per cent
per annum What has been the course of the Trea-
surv Department towards the creditors of the Go
vernment They were al first paid in Treasury
notes, bearing Trooper cent. per annum interest; and
after time, as if it were found that was too much,
and made this description Of payment TOO valuable,
another emission Of less value, bearing only one mill
per annum interest, was resorted to
The financial wisdom in which such plan was
originally adopted, and more particularly such
change followed, is past my finding out There mas
not been period when the first emission, bearing
an interest of two per cent, has not been from TWO
to four per cent under the value OF specie and al
length was reduced low two per cent below The
value of the notes of noa-pecie paying banks, and of
those banks in which the public money was depo
sited in the great commercial emporium of the coun
try This state Of things, il seems, led to change
of policy. Treasury notes are now issued, bearing
five per cent: per annum interest This issue of
Government paper, however, is deprecated below
the value of specie in New York three or four per
cent. ....
In these operations are exhibited resort 10 expe-
riments after experiments displaying an equal want
of financial ability, Of disposition to employ the
means, authorised by Congress, TO satisfy the de-
mands of the public creditors, in that which APP
preached as nearly practicable in value, to cgal
currency. In my opinion, the Secretary ought not
to have issued a single Treasury note that did not
bear interest at the rate Of six per cent, so long as
that Glass of notes could not command specie al their
par value Congress gaze him this latitude and he
ought to have gone to the utmost limit; and in my
opinion there was no discretion given him, so long
as those notes could not command specie at par.
The pa,tcring policy which has been pursued in
relation TO the issue of Treasury notes, authorised
has led to doing the height of injustice to individual
creditors of the Government and deteriorating the
public faith and credit, both at home and abroad.
shall continue the subject in another paper, and
endcavor to show that the Secretary in his late est
mates, for the year 1888, of receipts and expendi-
lures has erred from ten to fifteen millions and that
resort to new emission of Treasury notes will
consequently be called for, or o.her means have to
be resorted TO for supplying the deficiency.
VALERUs PUBLUs.