The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-02-05
Mr.. ToUcEY, OF CoNNECTIcUT-Los
BY BANKS.

BY BANKS.
We listened to the speech made by Mr.. ToucEY
against the appointment of the investigating COM
mittee by ballot. Having always regarded him as a
pious and moral man, il was not without surprise
that we heard some Of his declarations. Being dis
posed to regard them as flowing from the ardency
of party debate, we RETAINED from noticing them,
until we saw the speech published. That we have
in the Globe of Wednesday night and we presume
written out by Mr. Toucey himself.
In his speech, Mr.. Toucey says: ION the 4th OF
March, 1887, the Government had lost, since the
formation OF the Constitution, MORE THAN SIX MIL
LIONS BY BANKS" After enumerating other losses,
he says all these losses grew out OF system which
we are endeavoring to REFORM" and says he, 4
include fire millions of losses By deprecated and
rorthless bank paper" We are aware that MIR.
Toucey will say, that the Secretary of the TTea-
sury so reported at the last session. But we re-
specially inquire what that report Of Mr. Woodburys
WORTH made, as it was, for the purpose of dispa
raging the banks, when il went directly to contra dict
what he said in relation to the same subject at time
he was defending the banks2 We allude to the
report made BY Mr.. Woodbury. to Congress on the
18th day of December, 1884 In reference TO the
employment of State banks on former occasion,
he said, ii is memorable fact connected with
this inquiry though often represented OtherTsc, that
not single selected bank failed between the ex-
piration Of the old charter and the grant Of the
new one; and that of our losses included in
our unavailable funds happened until some time in
1917, after the Bank Of the United States was in
operation" The whole OF the dues tothe Govern
ment" at that time, from discredited banks, whe-
Their as repositories or not, embracing even coun-
erfeit bills and every other species Of unavailable
funds in the Treasury" he stated TO be $l,O75,9d.
This very table, made up at that time, is appended
to the last Treasury report and referred to in that
document. Again he says, "justice to the, State
banking institutions, as body, whose conduct in
particular cases has certainly been Objectionable,
but rhosc injuries TO the Government hare been al
most incredibly exaggerated and achoe great benefits
10 IT, both during the existence of two national
banks, and while neither of them existed, have
been almost entirely overlooked"
He furthermore said Z" 1t is to be remembered
that many of the former losses occurred indirectly
from rar and ebarrassments afeetimg deeply the rholc
community are banking institutions !" he very
properly referred to the patriotic Loan of some The
Statcbanks during the late acar," made by them TO the
Government These facts are a part Of those he ad-
duced then TO present. as he said, "e truth on this
much misunderstood and misrepresented subject"-
With what propriety we ask, can an artificial loss
be trumped up against the banks by the use of their
paper during the war, when the credit of the Go
vernment was reduced tnrenty per cent below the
value of the notes Of the banks, and when it was
garded as an act of patriotism the part ofthe banks,
to exchange their notes for Government stocks or
Treasury notes, at that rate to supply the means of
conducting the war; The Government was obliged
TO 90 TO the Banks for the means of carrying the
"a Al. lie hall http
bred and fifteen millions OF the pnblic debt, the
whole amounting to about one hundred and thirty
millions existing at that time. In any future wars in
which the country may become engaged the Govern
mentwill be compelled again to goto the banks for the
means with which to prosecute it; and in all proba-
bity will be under the necessity of inuiting them
to suspend specie payments, as the British Govern
ment did the Bank of England. Notwithstanding
such truths, the Government is engaged in war
against the banks, and striving to establish metallic
medium for ITSELF We have that high respect for
Mr.. ToucEY that we cannot but believe, if lie had
been aware of the facts have adverted to, in re-
laion to the banks, he never would have been the
willing instrument of disappearing them as he
has done in his speech.
But Mr.. .Toucey was always supporter OF Gen.
Jackson and his administration. lnthe speech how
ever, he makes war direct on one OF his most
prominent measures The State anksystem, which
Gen. Jackson established, under which the banks
authorized and requested to make loans on the
public money, Mr. ToucEy declares 10 be corrupt
and corrupting, unconstitutional and demoraizing"
Says he, this abuse, the use Of the public money
for private purposes, thus encouraged and sanction
ed" he regards as "giving rise 10 nearly all the
losses that occur" and that, in great majority of
cases, it is the direct and immediate cause Of the
loss" Now, let US show what General Jackson said
in 1888, respecting the use Of the public money. In
the paper read to his Cabinet before the removal of
the deposites, he said, The Jundsof The Government
iriA not be anaihiatcd By being transferred. They
,ciH be Immediately issued for the beneftof tadc"-
This is what Mr. Toucey says, ire hare endcavored
toeradieate" There is spirit of diseDgenuousncss