The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-09-29

report 10 the Senate" in case of the non-renewal
ofthe charter Of the Bank Of the United States the
Stale Banks may, and must be used by the Treasury"
These institutions present every guarantee that
could be desired for the safety Of the public revenue
their weekly returns TO the Treasury of the
amounts OF public money in their possession furnish
the most efectual check on any mafeasance or in
fidelity Of the public collectors-a the same time
from the separate directions and the sovereign State
supervision to which they are subjected, they can
neither enter into political combinations, nor be
made the medium or the instruments OF any infu-
ence Of the Federal Executive adverse 10 the public
liberty. The creatures of, and under the constant
control Of the State Legislatures il they should, at
any time forget their duties or lend themselves 10
an improper purpose, the abuse would be instantly
and watchful guardians Of the public liberty and Of
The rights OF the people and the States. In short the
Conservatives hold, in the language of what was
then considered as an authoritative exposition Of the
creed OF the whole party BY the organ Of the admi
nistration in November, lS34-"that the system Of
deposites Of the public money in the State Banks,
regulated by law, il will be, is good for safety
and The least habLe 10 abuse By The Executive of any
pAich the art Of man can conceire"
This system, however, is now said by those who,
till lately, were its sturdest champions to have
failed. How failed? Was il a failure, to have ac-
complished (and oflen under circumstances Of the
greatest difficulty the important ends Tor which it
was instituted in manner so signally successful,
tbathe President (Gen. Jackson) and the SecStaryof
The Treasury cameyear after year. from 1880 1887,
celebrating It's complete snccess-appealing triumph
antly to the experience Of each succeeding year, as
demonstrating, beyond the possibility Of controversy,
"the capacity of the State Banks to perform the
duties of fiscal agents for the government" and to
supply all the wants Of the community in relation to
| currency and exchange" in manner the most per-
tectiy satisfactory? Do the facts, so sedulously
brought forward and with such Just applause, by
Gen, Jackson in his very last annual message to
| Congress-that the Deposite Banks, In little more
than year preceding the date Of his message had,
"acith the greatest promptitude and regularity" and
free OF all charge TO the government, made transfers
of the public money for IL TO the amount Of $50 6S,
1874, (more than ffty-nine millions of dollars, while
the whole amount transferred by the Bank OF the
United States in 1872 was only $l6,000OO0, (six-
teen millions,) and that the amount of domestic ex
changes performed by them was, at least, onethird
greater, and done al lower rates, than had been
gotiaied by the Bank Of the " s andifs Twenty-Five
branches" during an equal period of time-do these
facts show failure of this much misrepresented
system? Far-very far otherwise.
But in the month OF May, 1887, under an extraor-
binary combination Of adverse circumstances the
Banks, throughout the whole Union suspended, for
time, the redemption of their notes in specie; and
this suspension is said by those who take counsel of
their passions and preudices and appeal to The pas
sons and prejudices Of others, much more than they
consult their own understandings, or address the
public judgment TO constitute fragrant failure OF
The State Bank Deposite System! If the DePosite
Banks, in common with all the other Banks OF the
country, under the peculiar circumstances above
mentioned deemed il a measure both Of prudence
and safety TO suspend specie payments, for time,
their real solvency was never for moment, doubt
fuhey continued to meet their responsibilities to
the government by payments to the public creditors,
in manner entirely satisfactory to those who were
10 receive them-the balance due TO the government
has been reduced by these payments to the merest
rife, and il is now well understood that the govern
nen will not sustain the loss of cent by them.
With what fairness, then, can it be said that the
State Bank Deposite system has failed The Bank
of England suspended payments in specie for cent-
fom successive years. through period both OF peace
and war Did it ever enter into the mind OF any
person TO contend, that account that the policy OF
Bank had proved itself failure in England On
the contrary its charter has been renewed, by gene
raj consent since and it is now in the iull vgor OF
renovated existence In regard TO the suspension Of
specie payments by the Banks in this country in
May 1887, run no risk in saying that there is
not rejecting mind in the nation, conversant with
such SUBJECTS which does not now admit, that at the
time it was determined upon and in the circum-
stances, both foreign and domestic, which then sur
rounded the Banks, it was wise and necessary
measure, and that its operation has been beneficial
TO the whole country in avertng far greater calam-
ties which must, otherwise, have fallen upon it.
But the State Banks have now by general and
spontaneous movement, resumed specie payments
Within fifteen months after their suspension, they
come forward, and proclaim their readiness to meet
all their liabilities in the strict legal currency of the
country So speedy and thorough recovery, in
spite of all the difficulties thrown in their way fur
nshes the best proof of the general soundness OF their
the policy of those who have sought to sustain rea
sonabe public confidence in them and who go for their
employment, as public repositories in decided pre-
ference to either fthe other systems proposed This
resumption, deprves the advocates Of both of the ri
val sysems-the Sub-lreasury and the National
Bank-of the strong ground on which they have
hitherto stood. The partisans Of each have relied
mainly upon diStrus of the State Banks to sustain
their respective schemes. If reference be had TO the
discussions which Immediately preceded the estab-
shment of the late Bank Of the u s. in 1876 will be
seen that the main argument Of its advocates and al
most the sole one with its able and distinguished
protector, (Mr Dallas was that, without both the
aid and coercion of such institution, the State
Banks could not be brought back 10 specie payments.
They have now resumed specie payments without II,
and have shewn such regulator to be, SO far, unne
cessary. In like manner, the favorite and most eff
cient topic urged by the Sab-tyeasuryites in
mendation of their scheme, has been derived from
the al alleged ia.hessneSs corruption and insecurity
spece-paymens, in the face of all the discourage
ments and difficulties which have been opposed TO
| them, is a signal refutalion Of these charges and
levels at once, the stronghold Of their Subtreasury
opponents.
The policy Of the Conservatives, then, stands forth,
at present. in the clearest and most imposing atti
tude. The resumption Of specie payments has vim
dicated the merits of their system from the preju-
dices and aspersions directed against it, and at the
same moment and by the same blow, has demolished
the main ground on which the two rival systems have
been built up and supported And yet in the face Of
these facts, are told by the advocates OF the Sub
treasury, whose only hope Of success is in the trad
tional unpopularity of National Bank, that the sole
alternatives before the country the Subtreasury
scheme or a National Bankl Will the people per-
nit few artful politicians intent upon some design
OF their own to force of their own creation
upon them, and narrow down their sovereign choice
TO or the other of the two bad measures, when
third free from the objections BOTH is open tothemi
No they will not They will say away with all bad
or dangerous schemes--we will have neither Ma
mort he Suh- trea Sur 81