The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-04-10

II
10 lhr s-lec I'd banks 10 The credit al The Trixn,
OF the uailrd States and lhatIhe certificate Of Ar
siIe should be tken b. the collectors and receive.
~ evidence o. such paymen's--,hat the selected
banks, IN consideration ~ such depnsies, shonl5
perform, without charge, the same duies 10 the 90
vernmeni. in transferrn g the public funds and al
iribung the same ~ payment OF the pub c Creditors
a were performed By the late Bank Of the Uniri
States.
A new and important feature In the system is,h.,
which requires ihUss making payments 10 Iba ,o
10 deposiie the same In Of the selected
banks aud taking the certificate OF depoSiIs ~ ~
collector and receiver evidence Of such paymsn,
There is no difficulty IN carrying this plan INTO nrs
ical operation In regard Go the receipts OF cnslom
\ and from lands, which together form subaan,alIv
/ the revenue uf the Union. Under this teynl. ~
there w.,ud be no hazard Of loss The goyeInms",,
would have AZ lis security, the whole capital ~ NJ
bank, amouRiing TO millions, 10 which Tie deposi,s
should be made with the additional personal re>prn
sibilily OF directors II required. This abundant ana
undonbed security would come IN place az IN
persoaat responsibility OF the collectors and receive.
1 aud their Sufeties-which all experience has sboun
cannot b. relied on for any considerable amount :
These officers would then b. exposed to no tempro
ton--noi dollar OF money Iced pas> through their
/ hands, and OF course not dollar would be subjected
10 hazard By them. There would be no neceS>,v
for personal surees nor for the pains and peaItie>
| proposed by the sub-treasury scheme-aIl Of which
the experience Of The whole civilized world teaches
us cannot avail when we violate thai divine precep,
"lead Us not into temptation" This system has been
long 10 practical operation in Virginia, where Il ha,
e1ectually cured al the evils under which thai an
Client common wealth. for a great len 9Th Of time i,
! severely suffered.
will MOI occupy your time In presenting or en-.
largDg upon the ohcr advantages of the State Bank
| system over the Subtreasury-schcme. They have
been 50 olien presented that deem Il unnecessary
10 arge them farther Al this time. The new featur.
OF u, 10 which baye already called your Attention
is worthy OF all consideration and which ough %
ensure It's adoption IN preference TO The pains and
penalties OF the Sub treasury scheme unless the 1
ter possesses other advantages, which conteib4lance
all The benefits OF the State Bank syem. This lead,
me TO an examination Of The third and las, plan for
the management OF the hscal concerns u the govern
ment, viz tie Sub treasury.
The objection 10 this system may he casSed under
! three heads. 1 lis want Of economy. 2 lis want
OF safely and It's exposure 10 hazard VI the public
money. 3 lis dangerous Increase Of executive
power
Ia regard to the frs want II economy none Of ils
most jealous advocates pretend but that II viii re-
quire a considerable increase ~ public expenditure
10 carry il into efirc, Even this expense ought
10 be incurred by such m experiment unless there
was moral certainty of accruiny benefits which
would concordance The objection from that sorrce
But there i no such certainty. On the contrary, all
experience Is against itand IL should ever be at
tempted, experience hereafter will show that the
great expense of conducting The system n estimated
by its friends, will be bagotce, compared with
what the Government and the people will be sub
jeced % in IFS practical operation. Whereas under
The State b INK system the collection safe keeping
and disbursement Of The public money would all b.
done without the cost or hazard Of a dollar TO The
Government.
In regard to the second objection, the hazard 10
which il exposes the public money The recent de-
velopmens In your own c lily sufficiently demonstrate
the total insecurity OF enlrusling large amounts 10
the custody of individual AGENTS No matter what
may be The responsibility of their snreties-no mat.
ter what penalties may be prescribed for q violation
Of duty, they are altogether inadequate when the
4 SO as CuDiuity
undermine the integrity Of the individual who is
posed TO il. 1.-The system OF deposing in hanks BY
those who pay the du'ies had been in operation, as
have already suggested not dollar would have
passed through the hands Of your late Collector or
District Attorney; and dollarwould he los 10 the
Government Their fidelity would have been secured
from The very fact that there was nothing 10 tempt
them The same nigh, be said the numerous de-
faulters In The receipts of money from public lands
Under the system which propose, the Government
would have saved millions Of dollars which have
been lost 10 the people and he country would have
been saved from the disgrlce, al home and abroad,
which these enormous detalcaiions have brought
upon IL. The individuals themselves, too would
have been saved 10 their families and friends and
society," instead Of being driven from their country.
But notwihSt nding these astounding disclosures
there l. no attempt On the part OF The minisraion
To correct the abuses. No sufficient guards are
thrown around the collectors aud receivers of The
public money IL Is the Snb-Treastry scheme, or
nothing. Afierthe deialcalions which have already
been discovered, one would suppose that some mea-
sures would be taken by the Executive department
10 gu. I'd against them hereafter Nosuch measures
have been taken. Your present collector has the
public IN Jney under his control as much as the Tor
mer one He can appropriate il to his own use Is
much as his predecessor. Far be il from me 10
any thing by way. of disparagement TO Mr.. Hoy, |
speak Of him as would speak Of any man in his
situation. He is constantly receiving an enormous
amount of public money. The port of New York
pays about three-ffIs OF The revenue from customs
OF The whole Union This money is accumnlaIing
on his hands. He deposites il in bank 10 his indi-
riduai cred-not 10 the credit of the Government,
nor 10 his own credit, as collector but to his ndi-
vdual credit, the same any mar would dcpo>ie
his own funds. Suppose he should be tempted 10
embark 10 stock specuati1n--a speculation which
promised large profit. He has means enough on
hand, and could engage in il without the knowledge
Of The Government, and f successful without any
questions bling asked. But II unsuccessful, the Go
vernment might look for the money il has looked
before. Again; suppose your collector is able 10
Withstand the temptations which have SO forciby
beset his predecessor and his associate but still has
half million OF dollars to his individual credit in
bank, and should die, what becomes Of this money
II must 60 TO his executors administrators and be
distributed amongst his creditors according 10 law.
The Government cannot claim il. IL has no ear
mark upon II by which il can be distinguished as
Government money, and must be treated like all Other
depoSileS To the private credit OF the individual his
state Of things ON the part Of the Executive depart
ment Is moi accidental IL is well known TO The ad-
mni>tration and 10 its friends in Congress lis
desgncdy kept in this situation. For what pnr-
pose and IRON what motives leave others 10 Judge
They profess to be opposed 10 any connection with
banks; still the collectors and receivers are per
mtled 10 deposi,e the public money in banks TO their
individual credit, and the administration and is
friends will permit IL 10 be deposited in any "'hcr
ray When Mr.. Wright's bill pre-, cribing certain
penalties, was under consideration in the Senate,
proposed the following as an additional section
"And be 1t further enacted, That whenever eoIec'
tor receiver shall depose any Of the public money
in any bank, Il shall be deposited 10 the credit Of me
Treasurer Of The United States instead of the individual
credit OF such collector or receiver"
twas rejected by a party vote. You will per.
ceive did not propose TO make il compulsory on 'ne
l .l.... IL