The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-06-14

broken oul against state BANKS now, AZ huSn
as Mr.. Benton did then.
We agree now with the statement made
then by Mr.. b.. that the resolution Of 1916
"ADMITTED THE NOTES OF ALL
sPECIE-PAYING STATE BANKS TO
RECEIVABILITY IN PAYMENT OF
FEDERAL DUES"
We agree with Col. Benton that, it ,ras the
resolution Of 1916, and tte pooer Of the Go
rernmeni, aciiag upon the local paper curen-
eies through lis reuenue system, that reformed
these eurrencies, and equalised The raiue Of he
notes Of 500 pecie-paying banks, then srist-
ing, Preferred to by him. whose notes ,oe'e
under The resolution oflsl6 receired IN pay
ment Of public dues.
We hold to the same doctrines now. We
contend that under the resolution Of 1916, it
is competent for the Government, with an
efficient head Of the Treasury, through lis
revenue system, TO act upon the local curren-
cies now, and TO equalize the value Of the
notes Of nine hundred banks, with the same
facility it did in 1884 upon FIVE hundred.
We contend that the State banks are the
work of the States, and ought to be respect
ed y and also. that the Esprit of hostility"
seems now to keep pace with the spirit Of
attack upon the political rights of the States
We would commend this part Of Mr.. Ben
toms speech, we herewith furnish, 10 the
especial consideration of our contemporary Of
the Richmond Enquirer, and all others, who
advocate the scheme Of special deposites.
We ask Of the editor OF the Enquirer, as a
particular favor, to copy it for the benefit Of
his readers. Z
Mr. B. deprecated tho spirit which seemed to have
broken out against State banks it spirit which
augured badly for the rights of the States Those banks
were created by the States; and the works OF the
States ought to be respected the stock in those banks
held by American. citizens and ought not TO be IN
juriousy assacd TO give value to stock held IN the Fe
deral bank by foreigners and aliens The very mode
OF carrying the warfare against State banks, has itself
been an injury, and just cause OF complaint Some
Of the most nconsiderable have been picked out-ther
affairs been presented in the most unfavorabe Light
aud then held forth fair sample OF the whole. How
much more easy would it have been to have acted
more grateful and more equitable part part more
| just to the State Governments which created those
/ banks, and the American citizens who held stock IN
I
siderable banks, and nstltnng most dIsparagng scru.
tiny into their small affairs, and making this high Senate
the conspicuous theatre for the exhibition OF their insg-
ni6cance, why take the higher order OF the State
banks those whose names and characters are well
known. whose stock upon the exchange Of London and
New York, is superior TO that Of the United States
Bank ? whose individual deposies greater than
those OF the rival branches Of the Bank Of the United
States seated their neighborhood whose bills Of
change are eagerly sought for as those o. the Federal
bank which have reduced exchange below the rates OF
the Federal bank and which, every particular that
tries the credit is superior the which Is recev
ing much homage and admiration! Mr.. Is. said
there plenty Of such State banks as he had de-
scrlbed they TO be found in every principal CITY,
from New Orleans to Boston. Some Of them had been
selected for deposc banks others not but there was
difficulty in making selection Of All ample number.
This spirit Of hostility the State banks, Mr. b.
said, was OF recent origin, and seemed TO keep pace
with the spirit OF attack upon the political rights Of tho
States When the first Federal bank created, in
the year l79, it not even made, by its chaIer
place Of deposite for the public moneys MT 'eneson
preferred the State banks at that Time and SO declared
himself in his cabinet opinion to President Washington
Mr.. Gallatn deposited part Of the public moneys IN
the State banks during the whole of the long period that
he was at the head Of the Treasury At the dissou-
ton Of the first Bank Of the United States, he turned
all the public moneys which he held III deposi.e
these banks, taking their obligation pay out all the
Treasury drawn upon them in gold and silver,
if desired by the holder. When the present bank
chartered the State banks stood upon equal footing
with the Federal bank, and placed upon equalI
ty with it banks Of deposiie, in the very charter
which created the Frederai bank Mr. b. was abiding
to the l4th fundamental article Of the constitution of
the bank-the article which provided for the establish
ment Of branches-and which presented argument IN
justification Of the removal Of the depostes which the
adversares of that most pertnaciously decline
10 answer. The Government wanted banks OF depose,
not Of circulation and by that article, the State
banks made Just much banks OF dcpose
for the United States the Bank Of the United States
is. They put upon exact equality, so lar as the
Federal Government is concerned for she stpnates
but for single branch Of the United States Bank,
and that be placed Washington city. As for all
other branches their establishment made to depend
not the will, power, Of the Federal Government
not any supposed or real necessity on her part to
have the Of snch branchesbut upon contingencies
over which she had no control contingencies depend
ing, upon the calculation Of profit and loss by
the bank itself the other upon the subscriptions OF stock
within State, and the application OF It's legislature. In
these contingencies, namely, if the Bank OF the United
States thought TO her interest TO establish branches
the States she might do or, il 1000 shares Of stock
were subscribed for in State, and hereupon appl
cation made by the State legislature for the institu
ton of branch, then its establishment within the State
became obligatory upon the bank In neither contin
gency had the WILL the power or the necessities OF the
Federal Government, the least weight, concern or con
sideration, in the establishment Of the branch II not
established and far the Government is concerned,
it might not be, then the State banks, selected by the
United States Bank, and approved by tho Secretary OF
the Treasury, he the banks OF depose for the
Federal moneys This argument, MIR. Is. said,
in justification of the removal of the dcposites, and IN
favor ofthe of the State banks which gentlemen on
the opposite side Of the neutrality-suspicious. who take
so much pains to decry State bauks-havc been care
fu not TO answer. But it is not the only argument IN
favor Of those banks which he drawn from the cs
aton OF the Congress which charercd1 the Federal
bank lie alluded to the Joint resolution of 1916, for