The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-12-25

situation. Endangered In the first place by their own
msmanagemeni, and again by tie conduct Of every
institution which connects them with the c 'nre of
trade IN our own country, they yet subjected be-
You'd all this, 70 the effect of whatever measures po-
iicy, necessity or caprice, may induce those who
control the credits OF England 10 resort 10. mean
not 10 comment upon these measures, present or
past, ana much less 10 discourage the prosecution II
fair commercial dealing between the two countries,
based on reciprocal benefits but il having now been
made manifest that the power Of inictng these and
similar injuries sby the resislless law Of credit
currency and credit trade, equally capable Of ex-
tending their consequences through all The ramifca-
lions OF our banking system and by thai means in
directly obtaining, particularly when our banks are
used as repositories OF the public moneys, danger
Gus po'illcai influence In The United States l have
deemed u my duty to bring the subject TO your no.
uce, ana ask Tor II your ser ious consideration.
~ Is an argument required beyond The exposition
Oh these Iacts to show The improperly of using our
banking Institutes as repositories Of The public
| money! Can we venture not only 10 encounter The
| fisk Oh their individual aud mutual mismanage-
men' out at the same time, to place foreign and
domestic policy entirely under the control OF TO
reign moneyed INTEREST," To do so is 10 impair the
independence of our Government as the present
credit system has already impaired The independence
OF our banks Ii Is 10 submit all its important ope-
iaohS, whether OF peace war, 10 be controlled or
| lhwaricd at hrst by our own banks, and then by a
j power abroad greater than themselves. | cannot
n.ing myself 10 depict the humiliation 10 which this
Government and people might be sooner or later
reduced u The means for defending their rights are
| 70 De made dependent upon those who may have the
mos powerful Of motives 10 impair them
NOT Is only IN reference to this effect Of this state OF
thngs on the Independence of Government our
banks that the subject presents itself for consideration;
so be viewed also in its relation the general trade Of
our country The time is not long past when defci-
ency OF iorelgn crops thought afford profitable
market Tor the surplus Of industry; but now We
await with fevsrsh anxiety the news of the English
| harvest not so much from motives OF commendable
sympathy, but fearful lest its anticipated failure should
narrow the field Of credit there. Does not this speak
| volumes to the patriot Can a system be benc6cent
wise, or just which creates greater anxiety for interests
dependant on foreign credit than for the general pros
perry OF our own country, and the profitable expora-
| Ton OF The surplus produce Of our abor
/ Inc circumstances to which have TINS advcrted,
appear TO me TO afford weighy reasons developed by
late events to be added those which have on for
mer occasions offered, when submitting your better
knowledge and dscernmen the proprey Of separating
| the custody OF the public money from banking nstu-
tons Nor has any thing occurred to lesson, in my
opinion, the force Of what has been heretofore urged
The only ground on which that custody can be desired
by the banks, is the profitable which they may make
Of tho money Such use would be regarded in individuals
as breach OF trust or crime Of great magnitude and
yet may be reasonably doubted whether first and last
is not attended with mischeyous consequences
when permitted to the former than TO the latter The
practice OF permitting the public money to be used by
It's Keepers as here believed TO be peculiar this
country and TO exist scarcely any where else To pro-
cure It here, improper influences are appealed TO; un
wise connexions established between fhe Govern
men and vast numbers Of powerful State institutions;
other motives than the public good brought bear
both on the Executive and Legislative departments and
selfish combinations leading to special legislation,
formed II is made the interest of banking institutions
and their stockholders throughout the Union to use
their exertons for the increase Of taxation and the
cumuation OF surplus revenue; and, while an excuse
IS Afforded the means are furnished for those excessive
issues which lead to extrsvagant trading and specua
ton ana are the forernnners OF vast debt abroad and
a suspension Of the banks at home. In
| Impressed, therefore as am with the proprety Of
the funds OF the Government being Withdrawn from the
private use OF either banks individuals and the public
money kept by duly appointed public agents; and be-
levngtas DO that such also is the Judgment which
discussion reflection, aud experience have produced on
the public mind. leave the subject with YOU It's at
all events. essential To the interests of the community
and The business Of the Government, that decision
should be made. ..7..'
Most of the arguments that dissuade us from employ.
ing banks IN the custody and disbursement the public
money apply with equal force to the recent of their
notes for public dues The difference is only in form
In one instance, the Government is creditor for it.
depostes, and IN the other for the it holds They
afford The same opportunity for using the public moneys
and equally lead 10 all the evils attendant upon it, since
bank can as safely extend its discounts on a depose
OF lis notes In the hands OF public officer $ one
made IN IT'S own vaults, On the other hand would
give TO the Government greater security for in case
Of failure the claim Of the notehuder would be no better
than that Of deposilor. . .-.
am aware that the danger Of Inconvenience to the
| public, and unreasonable pressure upon sound banks
nave been urged as objections to requiring the payment
OF the revenue in gold and silver These objections
have been greatly exaggerated From the best esti-
mates we may safely fix the of specie in the
country at eighty five millions of dollars and the Dor.
tion OF that which would be employed at any one time
IN the receipts and disbursements OF the Government,
even u the proposed change made once would
not, Is now after fuller investigations believed exceed
four or five millions. II the change were gradual seve-
raj years would elapse before that would be reaur
Cd with annual opportunities in the time to alter
the law, should experience prove it to be oppressive or
inconvenen The portions Of the community on whose
business the change would Immediately operate, are
comparatively small, nor is it believed that its effect
would be IN the least unjust injurious to them
ln the payment OF duties which constitute by far the
greater portion Of the revenue, very large proportion
derived from foreign commission houses and agents Of
oregn manufacturers who sell the goods consigned to
them, generally at auction and after paying the duties
out OF the avals, remit the abroad in specie or its
equivalent hat the amount Of duties should in such
cases be also retained IN SPECIE can hardly be made
matter OF complaint Our importing merchants. hv
whom the residue OF the duties paid only pecu
ar!y interested In maintaining sound currency, which
the measure in question will especially promote but are
from the nature Of their dealings best able to know
when specie will be- needed, and procure it with the
least difficulty sacrifice. Residing too almost uni
versaly in places where the revenue is received and
where the drafts used by the Government for its dis.
bursemens must concentrate they have every opportr-
nifty to obtain and use them in place Of SPECIE should
II be for their interest or convenience or the number
Of these drafts, and the facilities they may affurd as
well as OF the rapldy with which the public funds are
drawn and discussed, idea may be formed from the
fact that of nearly twenty millions of dollars paid to
collectors and receivers during the present year, the
average amount IN their hands any one time has not
exceeded million and half; and OF the fifteen mil
lions received by the collector Of New York alone dur
ing the present year. the average amount held By him.
subject to draft during each week has been less than