The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-05-11

sioa, that the saluary aclion IL The general machi-
merry DID n'd then depend upon The aid or presence
y my oink-~heei There seemed 10 be- no novel
yin dispensing with bink agency All other GO
vernmcnts collect and dishnrse by the agency of
TIER own officers. The obvious. and the actual
course, al the formation Of our own government was
u execute fiscal dulles like al other federal duties
by federal agents; and 10 certain extent this had
bsen ever since inevitably, the practice This was
the priReipk, the rnLe--and the departures from II
were, in reality The experiments Neither was there
political herrsy any more than novelty, in di>pens-
Ing with banks; the early republicans in uhuse
faith had been instructed, had d pre,aied con-
nexon betyeen state and banks, and experience had
justified their resistance.
Nevertheless, ms The rule had been departed from,
and as the departure had been long acquesced 10, a
return q first principles became serious consdera-
lion For my own part barely agitaied the snb-
Ject orally when visit 10 this city, In July, 1888
aud by correspondence while at Washington. The
laws contemplated, that The actual operations OF re-
ceiving aud paying should be performed by public
officers. The Treasury circular Of the Isl OF May,
io5i, prescribed the currency In which dues might
be collected, and the manner In which deposites
should be made. The aid rendered by the banks OF
dePoshes was confned, }. 10 safely keeping the pub
lie funds; to transferring them required; and
o. 70 the purpose OF check upon pubic ofhcers.
The inquiry which agliaed was, whether the trea-
snry at Washington and branches from Il might Lot
take rhe places Of the u $. Bank and branches, and
accomplish the purposes Of safely keeping, transfer
ring and checking. As 10 The nature Of the enrren-
cy, com or bank NOES, confess contemplated mere
" an extension vi the restrictiun Of the existing
Treasury order. II prohibited The acceptance OF
any note under 30; and was disposed gradually 10
extend the prohibition. Instead OF limiting opera.
iions TO the mere wants Of The government, was in
cined 10 aid commercial transfers; and could not
conceive, why such service night not be rendered
and remune rated, as well as the transport Of letters
by post-ofice department.
Although these and similar views presented them
selves, traced out no plan. Suggestions and in
quiries only were made orally or in my correspon-
drnce, Answers TO several Of my letters are nov
before me, and makethe 10 loving quotations from
two III them:
A Ieuer. dated al Philadelphia, on the 10Th of
August, 1888, says
Having said much on subject [the unrestraned
issue OF paper as mDney] which can never tire ~
execra..ng; most heartily approve Of your plan The
bank Of deposite and exchange would he exempt from
all the exceptions, 10 which banks Of circulation arc
subject. il would fulfil The purposes Of internal ex-
changes and commercial transfers. In looking forward
TO such measure u is necessary TO anticipate what
might be said ~ opposition. The appointment Of de-
pntyireasurers Would lie opposed par example, by the
Richmond Enquirer, the ground nf inordinaie patron
age, and large salary officers This is oil. I can
likely 10 be brought forth unless the usual quantity Of
lncoherent defamation; such the ESSAYS Of Cato.
IN the u s Gazette oil Of which have had the patience
to read, but VI which the mind call up SEN
tence worthy Of regard
",
Seplember, 1888, says
"You forget, for wrote TO Won twice. expressing
The las, time cocisey entire confidence and recon.
mendstiun OF your I,at Gi'her local repositories,
such the loan officers Of former times were or as
deputy treasures, both Of which oruls you suggested
ihres four times and which | expressed my wishes
To see realized The ony difficulties, | suggested.
out Of the idea about placing the money power
in the hands Of the Executives failacy in itself. since
The mode Of abuse Of What is called The money power
is. fact the thing which Your plan would correct,
that is. the issuing Of paper as money, which Is not
money but credit The other difficulty was, the pre-
text, that would be sci up Of the government turning
broker il small ntsge proposed 10 be charg-
cd on drafts,
II ,hrnk if you were to make project Of this dcs-
cplion, in elhodcol FORM aud submit It TO the
President, the effect would be good !"
Although thus and much more zealou>ly encour-
aged, | bare Y continued 10 agilate the subject
What my correspondent called pldns were >ugges-
Il ms only, intended 10 elicit rem rks. My impress
sion was, that the change, which | discussed was
calculated 10 Promote political purity. As 10 the
safety of the public funds in the hands OF our own
officers confess, | never SUPP oSed that The bars,
bJis and chests of bDkers could b. stronger than
oalhs OF Office love Of country and the dread Of in
fanny.
But, as | have repeatedly said although these
were my impressions, my main object waS-an in
uuiry by Congress. And consequently il under
stand the true meaning Of the word Conservative"
my views were wholly Of that character ] was not,
indeed one of those Conservatives, who pretended
that government should have nothing TO do with the
currency: on the contrary, considered the preser-
vaion Of sound currency one Of the objects and
obi gai ons Of government. The power TO coin mo
ney meant 10 be an active power; and one Of
the objects OF the power 10 regulate commerce was
TO secure adequate supply of coin. On the Other
hand I was no, Of those conservatives, who are
| for doing nothing because il may he difficult TO do
any thing: on the contrary, saw in the increase oi
Itb., ,f
ney the Strunges; of all reasons for their reduction
Nevertheless, was mol for Screlary'S project any
more than tor an Executive experiment. mas for
eoileciag f, and tlHei da ioas monetary qnsi"ns
and IOr such @tnd legislation as Congress ShaH 6utd
| up m hat f0nndnti0R ........ VIII.
II may not say, positively, that the most saufary
effects would have been produced il this course had
been adopted al least cannot err in asserting that
series OF ds,reSses and diScofd such as has seldom
been witnessed any where, would have been avoided
| The incidents Of the last lew years have Impaired
cur ,litical reputation, as well as our moral>--to
! say nothing Of social and commercial embarrtSs-
ments. In moment Of universal peace, and not
withs,andng vast resources, there Is general
su pension Of payment except in paper, which no
one can tell The value ot To meet this crisis, Con-
gress was called and vet the Executive omitted 10
mention The true source of the evil, or its aggrava-
lion by his predecessor. Insead of sugges ing means
10 secure currency for the general purposes OF So
ciey, he seemed 10 consider The fiscal currency as
the only proper object Of Legislative So!iciude. IL
is not surprising therefore, that the late session was
aborve. And IN the mean Time, Gas II Il was IN
tended tempt public officers 10 abuse Their trusts
and thus 10 create an impression, that bankers ale
the only honest agents) The public money is left in
the hands of receivers generally and they may run
al large, like seed without hopple or haer
- . But must stop in nv
own career. L. me then say that in 1888, did
I su sgest separation OF State from banks, and did
| inquire how that object might b. accomplished
| Whether my views were sound or not, have no
apprehension, Thai You will accuse M OF desiring
10 establish government bank, or to extend The
bonds Of Executive power. Finally "ualess Gas
| Sir William Temple says,) you mean To quarrel
and not argue with me, you viii Tot call my opin.
ions absurd, because they may not agree with your
own" Yours, &c, WI. d.
| SIX M,Nur ,crrRE-In 1910 nine hundred fami-