The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-07-04

Madison. And il is upon this principle that the
notes Of specie paying banks have been uniformly
received In payment Of the public dues ever since.
do not think Il would have been very wise IN The
trainers OF the constitution, 10 have Tied uptbe hands
Of the Government, and not permit Il TO be governed
by IFS convenience or its necessities as 10 the medium
| in which il should collect IFS dues. do not think
that the Interpretation placed upon the Constitution
/ by Gen. Hamilton, sanctioned repeatedly BY Con-
gress, and uniformly practised upon by every adj
ministraion since the foundation OF The Govern
| meni, can be overthrow by the uniounded and un-
just eulogy which he made upon The British Go
vernment, referred 10 by the gentleman from South
Carolinaj there Is too much propIiety and good
sense In the Interpretation 10 be by that which
is neither fact argument but addressed 10 the pre-
JUDGES Of The heart; and H. the gentleman from
South Carolina alleges, the genius OF Hamilton IS
| stamped upon our whole banking system, think be
will hnd another genius equally distinguished, ms
| strongly impressed upon them-l mean MIR Calhoun,
who now favors the doctrine Of the gentleman, and
who was the very FIRST that proposed 10 make bank
notes receivable in payment OF The public dues, by
| law.
feel well satisfied, from the various crcumstan-
ces which attended the progress of national affairs,
and the many embarrassnents and difficulties in
| which governments may be involved that II could
not have been designed by The Constitution 10 take
away from the Government all discretion upon this
subject, and conhne II TO single medium The
great embarrassmeDts ard Inconvenience which
would have resulted 10 the Government from such a
restriction are TOO manifest TO require argument,
and clearly disproves any such design. The power
to control the medium, comprehends the power to
restrict; which leaves, IL should do, the whole
matter under the control and al The discretion Of
the Government. Much weight is due TO the opinion
/ Of Mr.. Hamilton upon this subject, both from the
| fact, that he was among the warmest and abIest
champions Of the Constitution, and was familiar
with the objects Of Congress in passing the act Of
1882
The second leading object Of the bill is TO place the
receipt, custody and disbursement Of The public
ney in the hands Of The agents 81 Tie TREASURY In
commencing his remarks upon this branch Of the
| subject the honorable gentleman from South Caro-
lima (Mr. Pickens) with much significant emphasis,
inquired whether the Government was not capable Of
Keeping its opn money, answer, yes, and when
admit that | admit nothing which in the slightest
degree affects the question, for, Sir, the Government
itself is conducted BY men, and so must the public re-
venues be received, kept and disbursed by mem and
whether il be in the keeping of individuals or The
must be kept in either by the authority oflaw The
only question is, where il will be most safely kept
and most puncually restored. The agents OF The
Treasury are not the Government nor are the banks
the Governments; either will be mere agents, and
| one or The other must Of necessity be resorted to,
the only question is whether the one or the other
| be the safest
The first argument in favor Of the employment Of
| individual agents is that they will be officers Of the
Government, responsible TO it, In the discussion OF
this part of the subject it should be borne in mind,
that the banks are artificial or legal persons, and
have the power to make contracts, incur liza
bilities, and 10 and be sued that individuals have
In all matters coming within the pale Of their char
ters incorporation. The only difference is that they
are not criminally punishable. TO the same extent
that individual agents in becoming custoders of the
| public money, will be officers of the Government, so
willhe BANKS either will custodiers ofthe public
money by contract W hat constitutes the responsible
ty ofpublic officers? Their liability TO be removed.
Banks may be discontinued and TO this extent there
is equal responsibility. The bond and security of
individual agents is relied upon. Banks can give
more ample bond and security; so that in this point
of view there is more responsibility the part Of
the banks than individuals and the question: at last
is resolved into thai OF greater safety and punctuay
First, as 10 satay.-What, Mr.. Chairman consti-
utes greater safety the greater capacity to redeem
certainly then, il we Judge Of the superior safety
of individual agents or banks by their capacity to
redeem, the question is decided at in favor Of
the banks because their capital if prudently selected
will always be infinitely larger Than the individual
estate of any agent who will be employed Bond
and security will not change the case, because the
banks not only give equal but generally larger
%nd better security =; because Of The greater conf
ney can be recovered from defanlting agent by suit
SO it can from defaulting bank as cerainiyand as
promptly But, why labor this question The common
judgment of the country has decided 1t. In all the
commercial cities, men of business deposile their
money for Mte-keeping in the banks. Strangers
60 TO these cities and carry large sums with them,
deposite it. for safety, in the banks, and there are
now, notwithstanding the suspension, upwards of
$50 5000 of private funds deposited in the banks
for safe keeping without interest. The Government
by the OF banks from its very foundation, has
tilted TO their superior safety. Why have not indi-
vduals been selected repositories Of private funds
Why have money holders preferred depositing their
! funds in bank without interest, to individuals with
INTEREST," The answer Is easy, because OF the supe-
rior safety OF banks. Why do capitalists seek in
vest their funds in bank Stock individual loans7
Because of their greater safety. These evidences
think would be sufficient to convince the most skep
tical, that the banks were the safest repositories.
But, Mr.. Chairman, we are not left TO the uncer-
| Ia nj
before that most unerrng and certain of all hui
man tests, practical results. We can compare the
two systems and test their relative merits by fact.
have before me statement containing a list of the
names and the balances due from all banks which
were repositories OF the public money, and which
have failed, They are .wenty-one in number, and
the balances S759, 729 As without interest They are
as follows
Balances due from State Banks ,ehich ,cere deposito
gies Of the public money and irhich are in default
Since paid
Amount due. or secured
| Saline Bank, of Va $1,000 90
Q Juniatla Bank Penn. $500 90 .-
Bank of Washington, do. q S4 81 49, S4 81
Cumberland Bank, of
Alegany, l,l76 81 l,l76 81
5 Bank of Somerset, 55273 Al 6,24S Is
Miami importing and ex-
porting company, SOL 90 5,4l7 Al
! Farmers and Mechanics
Bank OF Cincinnati, 1896 OIL
Bank OF Vincennes, 16S,32S 81 $3.50 40
Bank of Missouri, 1852 % 1896 A
10 Bank of Edwardsve, 1880 90 1889 %
II German Bank Of Woos-
ter 80, 364 90 30, 1872 &c
- Centre Bank of Penn s,92S AZ s,9as as
I3 Franklin Bank of Alex
andria, $4,000 90 55s IS
IA Bank OF Columbia, 2l5,2s7 90
Is Bank Of Illinois, Shaw ..... !.
nee Town, 2S,367 IS 27,l73 16
l6 Farmers & Mechanics
| d. I,l,a