Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1839-05-02


"that the time would come, when we
should be able to dispense with the agency
OF all banks, especially those oil circulation -
On the contrary, they were treated with |
remarkable liberality and indulgence, aud |
the probability lie, that il they had con,inu-
ed 10 pay their notes promptly in specie, the |
Government would have cun,enied itself
with recommending, as President Jackson
had done, that the selection of the deposita.
ries and the duties 10 be per formed by them.
should not be left to Executive discretion.
But, IN May, 1887, the whole scene was
Charged. All the banks of the country, by
simultaneous movement, suspended specie
payments. This left the Government PEN
nnyless and helpless. BY the laws then in
force, II was not al liberty, If unhappily il
had been so disposed, TO receive notes of
non sPecIe>paying banks in payment of The
revenues, nor wore the dishursing officers
permitted TO tender such notes to the public
creditors. of the thir,y.two millions in the
vaults OF The banks, the Government could
not command dollar, and SO far az il de-
Penueu on these resources, every officer in
public service, the whole army and navy.
every contractor aud laborer on tho pubiic
works, were left without pay, and conse
qoehtiy without subsistence. Had such u
catastrophe occurred during war or any 9th
er period oil great public calamity, il mus,
nave shaken the foundations OF the Govern
men'. As II was, il became necessary to
apply an immediate remedy TO the evil, and
no less DUTY, 10 prevent, il possible, its re-
currence. Under these circumstances, the
President called Congress together in Sen.
TENDER 9th samo year, and being eo;nin
| ed by the Constitution 10 give that BODY.
from time to time, "intormation of the State
! OF the Union. and recommend to their con.
siueTh'ioh suCh measures as he shall Judge
necessary and eXpedient," he accordingly
suoNh',e'i ihe plan of an independent Trea-
snfy, disseminating The reception of bank
paper and the use of banks, and substituting
agents Immediately responsible TO Congress
The reasons which induced him TO make
TINS recommendation, were laid fairly and
ihi'y before The country, and it is not our
purpose 10 repeat them. The banks, as we
have seen, bad violated the conditions of the
contract, under which they had become de-
positafies OF the Revenue, and had thereby
themselves dissolved the connexion thereto.
lore subsistng between themselves and the
Government; and as no one was found har.
dy enough in Congress 10 advocate their
employment as fiscal agents during the sus
pension OF specie payments, or 10 make their
deprecated notes receivable for the public
dues, 1t became absolutely necessary 10 have
recourse to some other eXpedient. The ma
'JorIty OF the friends OF the Administration
believed, that there as no other aIterna-
i've, thanrto incorporate another Bank of
! The United States, ogive the highest equal
ny OF value throughout the Union TO the
medium in which the taxes and duties should
be collected OF to refer back 10 the prac-
t'ce and principle Q, the Go.srn,nen, as es
to lake the custody Of The public MONEY oni
OF tbe hands of the Executive, where il had
been thrown by the suspension, "to place il
under the custody OF the laws,'' and TO pre.
vent The renewal Of q connexion with the
oanks which had proved disastrous to their
real interests, as well as 10 those OF the Gov.
efhment. Ii was supposed, Banks Of circu-
iation were, from their nature, banks of
hazard, aud liable to periodical commissions
from imprudeni overtrading, which the use
OF The public monies as discount fund, would
only s'imuiate-lhat ii was not wise 10 sub.
Ject The Government to contingencies which
might periodically deprive the Treasury of
the use OF lis funds, and make il necessary TO
ca'i congress together al great expense and
neon venience, 10 supply ihem-that al.
though there nigh! be some greater danger
oiloss, in leaving the money in the hands of
the public officers, for a longer time than
necessary, Tor its collection and disburse
ment; YET that by bringing down Ire revenue
10 iheeXPenditures thus preventing sur
plus, and by The enactment Of proper regu
iations 10 control and punish deiaul.ing off.
GERS, The loss would never be more than
small percentage on the whole revenue
which would never materially affec, the ar,
ton of the Government: whilst on The other
hand, however safe the Bank notes, paid in
10 The vaults OF Banks for the public USE
| might be,yet their suspension rendered these
! Paper promises unavailable, and occurring
al critical periods, might, besides the ruin.
Gus direct loss, virtually dissolve the body
Polilic that when the specie IN the coun.
Try amounted TO eighty millions of dollars,
! The use OF four or five millions for effeclinp
Treasury pay ments, which would be jmme
! dialeiy thrown again into common circula,
ton, would not iDjure The Banks, but would
add to the stability Of the currency that
the increase Of Executive patronage in the
appointment OF the few additional officers
necessary, 10 carry the system into successful
operation, would be more than counterbal.
anced by depriving the President of the no
inIcal influence 10 he exercised over league
OF Deposite Banks, their officers, directors
and stockholders and in short, that the
circumstances OF The times were all favora
Die 10 a permanent separation OF the Treas
ury from The Bank institutions o: The coun.
try, for dissolution Of the connection be,
tween our political and trading interests
and for restoration oil The fiscal action of the
Government ito The safe and solid path of
The Constitution"
See Walls able Report, and the sdmi.
rable speeches OF Messrs Buchanan and
Calhoun on that subject
tMr. Van Buren, denies The constitutional