The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-09-01

4 banks TO perform the duties oil hscal agents Tor
the government at the time of the removal OF the
depostes.n
Gen. Jackson also said:
by the use of the State Banks, it is ascer
tanned that the moneys of the United States can
be collected and discussed without loss or ncon-
venience.n
And Gen. Jackson instructed Mr. Woodbury.
TO say to Congress:
"This (the Treasury department takes great
pleasure IN stating that the public money con-
tinues to be collected and deposited under the
present system of selected banks, with great
ease and economy in all eases and with greater
in some, than at any former period. The trans
fers of it to every quarter of the county where
II is needed for disbursements have never been
effected with more promptitude, and have never
been entirely free Of expense to the Treasury.
The payments to creditors, officers and pen
sioners have been punctual and convenient, and
the whole fiscal operations through the State
banks have as yet proved highly satisfactory
Incidental to this the facilities which have been
afforded to the commercial community in do
nestle exchanges were probably never greater
or at SO moderate rates.
And as to the general utility of banks to the
government Gen. Jackson said Tin 1899
" II is unj Just TO the State banks TO attribute to
them the embarrassments of the Government
and country, which led to the suspension Of
specie payments, and a deprecated paper cur
rency /; all those evils are attributable to other
causes.
In consequence of combinations among men
OF wealth, opposed to the war, the requisite loans
OF money could not be procured-disasters over
took our arms for the want Of necessary supplies
of funds and others were threatened If pa
triotsm ever actuated banks, it was felt in the
4 operations of many of the local banks at that
gloomy period At the hazard of their eris-
fence, they furnished the means of raising
armies and maintaining them in the field and
it was in their efforts to sustain the government
that they 50 far crippled themselves as 10 be
obliged to suspend the payment Of specie If
the Bank of the United States had then existed,
il must have done as the State banks did, or il
would have effected nothing in support Of the
| Government. If il had not joined the combpa-
ton against the Government, il could not have
furnished the funds which the exigencies Of the
country required, without suspendng the pay
ment Of specie. Instead OF hostility and per-
secution, the Government oredMe state bdahS
gratitude and support Their credit during
the whole war was as good as its own and
without their aid, the Treasury must have stop
ped payment"
A. Mr.. Van Buren, prefers individual agents
to banks as depositaries of the public treasure.
But General Jackson employed banks; and as
to the preferdbleness of banks and bank paper,
he instructed his Secretary OF the Treasury
Mr.. Woodbury., to address Congress as follows
1t is gratifying to reflect, however, that the
credit given by the government, whether 70
bank paper or bank agents, has been accompa-
MED by SMALLER losses, in the experience under
the system of State banks, in this country, at
their worst periods, and under their severest ca
lamities than any other kind of credit the 20
al,
MARY transactions
Thus the truth on this much misunderstood
and misrepresented subject appears 10 be, not
only that one failure of a selected bank did not
occur within the period while no United States
Bank was in operation, but that of those which
afterwards stopped payment within three or
four years, chiefly from the causes before men.
toned and part Of which causes produced
eight or ten fold as many failures in England,
under the full control and influence Of national
bank there as well as here four of the number
have since discharged all their liabilities and the
residue of the liabilities of all the others as de-
post banks, in the manner before estimated is
less than $4,000. This is not the 1.-THE of the
sum which has frequently been lost to the Trea-
sury by the failure OF Individual merchants TO
discharge only their obligations for imports not
equal to the sum frequently lost by the failure of
many single disbursng agents connected with
the different departments Of the government,
and under larger bonds for security. Whether
they losses by State banks arose from an un-
| sound policy pursued by the United States Bank
or from circumstances which under the paper
system neither legislation nor caution can al
ways avert or form less unsuitable reasons and
in spite of all the sautary influence the Ma
tional Bank could exercise il is true in praise of
this description of public debtors--the selected
banks-hat there is not now due on deposite in
the whole of them, which have ever stopped
payment from the establishment of the Const-
tuition TO the present moment, sum much be-
yond what is now due to the United States from
one mercantile firm that stopped payment in
1925 or 1896, and of whom ample security was
required, and supposed to be taken, under the
responsibility OF an oath. Ii we include the
whole present dues of the government from dis
credited banks at all times, and Of all kinds,
whether of deposits or not, and embrace even
counterfeit bills, and every other species Of I'M
available funds in the Treasury, they will not
exceed what is due from two such firms. OF
almost 100 banks, not depositanes, which during
all our wars and commercial embarrassments,
have heretofore failed, in any part Of the Union,
in debt to the government on their bills or other
wise, it will be seen by the above table annex
ed to the report that the whole of them, except
seventeen, have adjusted every thing which
they owed and that the balance due from them,
without interest, is less than 49,, 000.n
AS to the ineligibleness of individual agents
he instructed Mr.. Woodbury. to say that
Individual agents" would "probably be
found less responsible, safe, conreniem and
economical"
5. Mr.. Van Buren, arrogates 10 the Executive
unlimited control over the public moneys.
But Gen. Gen. Jackson said:
''No one can be more deeply impressed than
am, with the soundness of the doctrine which
restrains and limits, by specific provisions, Exc
cutive discretion, as far as it can be done con