Madison Whig advocate. [volume] (Canton, Miss.) 1839-1841, 1840-01-25
PRESIDENTS MESSAGE.

COacluded.
4, the modes of business and official
,.,trainis on disbursing officers, no le-
cal change was produced by the suspen-
non of specie payments. The report
hs, referred to will be found TO contain
,,o much useful information in relation
d this subject
have hereto assigned to Congress my
reasons for believing that the establish
neni Of an independent national treasu-
r.. as contemplated by the constitution,
necessary TO the safe action OF the
k4slsl government. The suspension
4 specie payments in 1887 by the banks
.Eeg the custody Of the public money,
slowed in so alarming degree our de-
cadence on those institutions for the
ghormance OF duties required by law.
asi I then recommended the d solution
| q tia, connection. This recommended
Ton has been subjected, as | desired It
should be, TO severe scrutiny and animat-
ed discussion--and | allow myself TO
believe that, notwithstanding the natn-
ra diversities of opinion which may be
anticipated on all subjects involving such
important considerations, it has secured
IN It's favor as general a concurrence Of
public sentiment, as could be expected
on one Of such magnitude.
Recent events have also continued to
deFel0pe new objections to such a con
lscti0n. Seldom IS any bank under the
existing system and practice, able to
meet, 90 demand, all its liabilities for
deposiies and notes in circulation. 1t
nainiains specie payments and transacts
profitable business, only by the conf
isnce Of the public in its solyency-and
Ehenever this is destroyed, the demands
a' its depositors and ote-holders-pres
ed more rapidly than it can make col
.econs from It's debtors. force II TO SOP
uyment. This loss ofconfidence- WI n
IL consequences, occurred in 1897, and
Afforded the apology of the banks for
their suspension. The pubic then ac-
guessed in the validity OF the excuse
and while the statelegislatures did not
exact from them their forfeited charters.
Congress-, in accordance with the recon-
mendalion Of the executive, allowed
them time to pay over the public moneys
they held, although compelled 10 issue
treasury notes to supply the deficiency
TINS created.
It now appears that there are other
motives than a want of public confidence
under which the banks seek to justify
themselves in refusal to meet their OBJ
legations. Scarcely were the country
and government relieved in degree.
iron the difficulties occasioned by the
general suspension of 1897, when par
tai one, occurring within thirty months
o. The former, produced new and serious
emoarrassments, though 1t had no palia-
non IN such circumstances as were al
eged IN Justification of that which had
previously taken place. There was
nothing IN the condition of the country to
eadanger well managed banking instl-
.ihon; commerce was deranged by no
Nrelgn war; every branch of manufac-
turing industry was crowned with rich
rewards; aud the more than usual album
aance OF our harvests, after supplying
our domestic wants, had left our grana-
res and store houses filed with a sur
Plus for exploration. 1t is in the midst
o. this, that an irredeemable and depre-
GATED paper currency is entailed upon
NE people by large portion of the
tanks They are not driven to ii by the
exhibition of loss of public confidence,
q q a sadden pressure from their de-
Pos'losies or mole holders, but they ex-
SNse themselves by alleging that the cur
reli OF business, and exchange with
'o'eign Countries, which draws the pre-
uvas metals from their vaults. would re-
fsife' IN order to meet ii, a large curtail-
'aehi OF their loans 10 a comparatively
ssaail proportion af the community, than
= viii be convenient FOR them to bear,
" perhaps safe for The banks to exact.
iae plea has ceased to be one Of neces-
ssaF- Convenience and policy are now
Famed sufficient TO warrant these instl
.a'aons IN disregarding their solemn OBJ
"sahons. Sach conduct is not merely
20 injury TO individual creditors, but ii
: : wrong to the whole community.
nom whose liberality they hold most
'auaole privileges; whose rights they
Violate; whose business they derange,
md the value Of whose property they
render unstable and insecure 1t must
e evsden: that this new ground Tor bank
'aspensions, in reference 10 which their
action is not only disconnected with, bus
sholly independent Of that Of the pub
NC, gives character to seir suSpen-
Mons .'ons more alarming thass aay which
'aey exhibited before, and greatly In
sfeases the improperly Of relying on
Iae banks in the transactions Of the gov
ernmcnt.
large and highly respectable por-
bon OF mr. hsnktn Institutions are, 1t