The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-10-26
Ffom Ae petsr.bure Inlelligsneo.


correct, win exena sauary influence. and II wrong,
will do no harm.
Future disclosures viii more fully tell than Is now
seen, 10 what extent The policy OF those conducting
The administration OF the General Government, has
exerted disastrous agency In bringing about The
stoppage of cash payments BY the bank Of the United
States, and by the other banks drawn into the same
delinquency BY force Of its example. While, how
ever, the bad influence OF the policy Of the Admins
lraiion, OF using banks or not,H al will and I'M
regulated by law, Is not YET fully revealed, and 10
The unialiaed pubic may never be, enough Is alrea-
dy known TO satisfy all no will dispassionaely
anime the transaction, that the sale by the Execu-
tive, in 1888, OF the bonds the Government held
agains, the United States Bank. for a credit on is
books, and the arrangement g for the more distant
public disbursements, To the amount OF between four
and ve millions Of dollars in the notes OF the bank
enabled that Bank more boldly and vigorously TO
" shoot from the legitimate sphere" OF banking, 10
which the Richmond Enquirer very sensiby i'm
putes the pending suspension Thou IN thus helped on
10 its mad career OF speculation 10 this bad result
there are those who contend thai the suspension
CUES powerfully in favor Of the permanent adoption
Of the Presidents policy of using banks or not, al
discretion la policy, 10 secure the adoption OF
which, as has lately been confessed the President
" has constantly and firmly directed all the constu-
lional power OF his station"
Lei US examine this lttle--lei US see whether
this suspension argues in favor of the Presidents
scheme of excluding the State Banks altogether in
conducting The operations Of the federal asury or
~" 10 use them or not. In other words, let us in
quire whether this suspension should bring the Stale
Banks into dsrepuie the agents test for keeping
and discussing off federal revenues.
The only argument urged by its advocates in ia
yor Of total partial "dvorce of Bank and State"
which has exerted any influence on the popular mind
Is, that when the governments funds on deposite
with State Banks, il is constantly liable 10 be de-
prived by means OF suspensons) Of the power OF
u'ing them: that when its funds thus locked up
the government is constrained to borrow money, IN
some form or other though at the time its Treasury
may be overlooking. That this argument is with
out point and entitled to no influence, when viewed
in connection wi The proposed plan OF using Banks,
or dispensing with them at will must be open TO he
slightest investigation, when the untenable assunp-
ton IS excluded, that the parsonage clothed with mat
large discretionary power, will be also possessed OF
unerrina forecast and discrimination in using L.
Indeed ii would be most likely most men, lhat
the very time at which these institutions moS I'M
safe, at seemingly most prosperous time, would be
the very time at which, in exercising that DISCRETION,
they would be most apt TO use them.
Now let Us see what the argument is worth, when
ii is applied 10 a total divorce which compre htndS
constant specie exacon in collecting the revenue,
and keeping of il in the strong box" Of the fede
raj officer. The argument of The advocates OF the
divorce in this connection, assumes thai the funds
of the government, thus kept will be constantly
cure to its To refue this assumption, 1t needs
only TO be mentioned that, even il the srong box IL
sell be not portable, its contents may be carried off
ny us htepeE, ana tIt government mus
and constrained TO resort to loan, in form or
other, tor SO much il its be scanty, or II
abundant, and in either case, be chargeabe with the
dishonor of its agents act.
II may be fairly inferred from this prominent
gument of the advocates OF the divorce, that their
chief If not only, design and care are TO keep the
general government clear Of deTiment. They them
selves have seen this, and have taken pains TO es-
cape the resulting censure. They have attempted
TO ward of the odium by asserting that certain and
SalutaTv al the divorca he ~ lee he
banking operations OF the country within due bounds
and To save the country from the troubles and dis
grace Of Bank suspensions. And, 10! how oppor-
timely the present suspension, coninedto the United
States Bank OF Pennsylvania and the smaller Banks
within the sphere Of its influence, comes in aid Of
that assertion And ii the suspension shall become
more general the inference will only be the clearer
in aid Of that assertion! Aye, and did We be-
fore The eyes and in the ears Of the people that the
effect OF the divorce would keep The Banks in check
and the community harmless! /! We give you Joy
on this occasion OF your success We advocates ofhe
divorced We give you joy that an opportunity is thus
early afforded the people to and feel The decep
hon you have praclised on them and are striving 10
perpetuate. The government al ease and the com
munity IN trouble! Such is the wisdom of your sug-
gestionS and the fruit Of YOUR tolls We advocates Of
the divorce! Would to God they were confined TO
yourselves. ...#. " ss..,.. ".....
Can this be denied1 Can it be denied that the
benefit promised TO Wheedle the people into its sup
port, has not resulted from the divorce, to maintain
which the President has constantly and firmly" en-
ployed all the constitutional power OF his station 7"
II has been attempted TO be denied by the Editor Of
the Richmond Enquirer, and strange il is true con-
sIdering him an opponent of the divorce. 1t has
been denied that the promised benefit OF keeping the
Banks in check by virtue OF the divorce has failed,
and II has been denied by asserting that the divorce
has not yet gone into effect,
II might be asked, il The Sub-treasury scheme is
not in force, what measure of finance and fiscal
agency is viii the Richmond Enquirer enlighten
me on this topic2
But let us look to the facts. There is no law d.
recng deposite OF the federal revenues in State
Banks. II any portion Of thai revenue Isl any where
on depose, IN any State Bank it is there 10 the
dit OF the federal officer making the deposite and
there TO the credit of the federal government
The reader will recollect Mr. Tallmadge's PROPOSE
lion that any such deposite should be TO the credit Of
the government was rejected by the friends of The
Subtreasury in the Senate. The collectors of the
revenue are the keepers of it, agreeably to the laws
OF the treasury Department now in force. Al
though the notes of specie paying banks are taken,
according to the laws the subject, in receipts Of
the revenue il is well known TO every one at all ac-
quaned with the conduct Of the Treasury Depart
ment during the last eighteen months, that those
notes are pretty speedily presented for specie which
is equipoent in its tendency to prevent SuSpen-
sion, wi specieexaction in collecting the revenue.
Ihcn these being the facts the Sub-treasury scheme
which proposes specie exaction and the keeping of
me collected revenue by personal agents is, to all
lntents and purposes, in force, to the full extent
ever be to effect The promised benefit OF preventing
suspensions of cash payments by the banks and it
has thus early failed OF its promised achievement.
have not written one hundredth part of what
would write, il | had time, but SO it is, | must leave
to you and others whose business it is and who get
paid for H. place these events in their pro-
per colors before the public eye.
PUBLIUS.
October 10TH
Practical Operation Of the Sub Treasury Principle.
NJ ~ had rIa Il,.t.o If H.
operation of the Sub Treasury principle. report (he
Richmond papers make no mention Of t) reached here
that the Governor either had issued or was about to
Issue, Proclamation, commanding the Sherhs and