The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-05-01

/ Il exists In every free Government under The sun
| In The hands OF the immediate Representatives oil
| the people. Take The plan OF Mr.. Riyes for ~
stance which confess appears 10 me the most ellsl-
Bile which has been suggested. You know that !
have ever been opposed 10 the incorporation OF
Bank OF the United States as beyond the leg'ii,
mate powers OF The Government What Is that plan
This
Isl. To designate, BY law of Congress, the Banks
OF the States which shall be the repositories OF the
finds Of The United Slaies-laking care not to have
Them too numerous.
3D. To select those Banks which are the deposit
tories Of the funds of the respective States, because
they are the most stable Banksihe States generally
being large stockholders in them, and responsible
for their sovency and their administration .
3d. That neither the President nor Secretary shall
remove the deposes from, or discontinue me agency
OF any Bank selected by Law, without The ultimate
4h That ali warrants from the Secretary, TO
transfer money from one Bank 10 another, shall pc
annually reported TO Congress, with the reasons ior
such transfer. This would prevent ang paflaliy
in favor OF one Bank to the prejudice of another,
and to take away from the Secretary the ability 10
create preference in one part Of the country Tor
the benefit Of another.
9Th To have all the money deposited directly In
Bank after our mode In Virginia, not subject TO any
warrant but that Of The Treasurer, duly counter
signed BY another officer. These details couia Dc
worked out BY such an accountant as our Anditof,
and would afford the same security 10 The Federal
money, that exists TO the money OF This Common
wealth. The only exception that cnn perceive
aBd this j. hardly an eseeption) Is, where aa
yances are necessary AZ distance such as advances
10 Paymasers Of the Army or Navy. Ia lneSe,
sufficient security should BE- required but The mo-
ney paid 10 the PdymaseIs, In The first instance, ny
warrants from the Treasurer. This Is brief oul-
line of the scheme OF Mr.. Rves, and donb! not II
il could b. fairly carried inloeff CT twoud save the
public money from piiiage, and give the conniy
currency sound and sufficiently uniform Tor oil pre-
teal purposes. Nt,h such system, ana no more
money drawn from the people than The sriclest roo
nomcal wants OF The Government require, all would
be safe, In my opinion"
By way Of comment, will contrast Gen. jack
sons and Mr.. Van Burens opinions, on part Of
the subject-matier Of that extract from the Wing
When, in 1888 the public money was put on deposile
with State banks, Gen. Jackson invited the regu-
laion ofhe whole matter by "judicous legislation,
and repeatedly insisted in his subsequent messages,
and by the bills introduced in the House OF Repre-
senatiyes in the sessions Of 1874, ls34-5 ana
1885 % that as little discretion as might De con-
sstent with the sale-keepng OF The pubic money
should be left to the Executive. What says Mr.
| Van Buren? Hlving, at The extraSessron OF Con
gross, in 1887 recommended the Sub treasury, when
would confer, unnecessarily, unprecedented DIS
cretion on Executive agents-having, in one oil MS
messages, spoken Of "a temporary use" Of State
| banks and OF Z" a voluntary connection" with them,
| in some untold manner of special deposites, about
which, even the Richmond Enquirer is now silent,
! Mr. Van Buren, at last says:
;. like other State establishments they (the batks)
may be used, not, in conducting the affairs OF the
Government public policy and the general interests
of the country may seem require. The only safe or
proper principle upon which their intercourse with the
Government be regnlaed,s that which regulates their
intercourse with the private czen-he conieIring oil
mutual benefits When the Government can accom-
plIsh financial operation better with the AID Of the
banks than without it should be at liberty to seek that
aid as it would the services of private banker, or
other capitalists agents giving the preference othose
| who will il on the best terms. =
He says further that this discretionary power,
may be given, if deemed desirable by Congress.
| Thus while General Jackson contended that as little
"discrelion" possible should be et 10 the Execu
tive Mr.. Van Buren, in terms, asks for the Execu-
i've Ito be given il iStrue he admits by Congress)
ga di cretionary power" which must be very large;
for there is no conceivable manner Of voluntary
connection" which can be granted by Congress in
general terms, leaving the details to the Executive,
that will not necessarily confer large mass of dis
cretionary powers on the Executive. Such grant
of power, enabling the Executive 10 seek The aid Of
Stale banks, would that Of private banker, and
to give the preference to such as would serve on the
best terms must necessarily, if made at ALL be made
in general terms. Lei the manner Of the voluntary
connection, which may BE- esteemed the best, be IN
dcated and it shall BE- shown that that very manner
cretionary powers PuBLlus