Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-03-09
VOL. 3s, NO. 2s-WHOLE NO. 1742.


these three faculties make it bank and by far
the most important of the three is that Of the pow
er OF issues. That this bill creates bank of IS
sues, most sincerely believe, and shall now at"
tempt ~ prove and the proof will be first extra
neous, and secondly intrinsic.
AS 10 the extrabeous proof, rely upon the re-
peated declarations Of the late President OF the
United States in his annual messages On more
than one occasion he stated the praclicabiity of
establishing bank on the revenue of the Gov
ernnent, and to be under the superintendence of
the Secretary Of the Treasury And when he
vetoed the charter of the late Bank of the United
States, he expressly declared that, if Congress had
applied TO him, he could have furnished the
scheme of bank free from all constitutional
objections; doubtless meaning Treasury bank.
The present Chief Magistrate and the present Sec.
Of Treasury have, also, repeatedly, in language in
their messages and reports characteristcullv am
biguous, II is true, but sufficiently ineligible, in.
timdted the facilities which the commerce and bu-
suess of the country would derive from the drafts
issued by the Treasury in virtue of this bill. The
party, its press, and its leaders, have constantly put
this sub Treasury scheme in competition with
Bank OF the United States, and contended that the
issue was sub-Treasury or Bank of the u. States.
But how can they be compared or come in com.
petition with each other, if the most important
function OF bank of the United States that of
supplying medium OF general circulation and
uniform value, is not to I've performed under this
bill?
Iprcss TO the important, and think, conc usye
proof, supplied by the provisions themselves of the bill
Alter providing that all money paid to Government for du
lies public lands and other dues shall be deposited with the
Treasurer of the United States the receversgencIa sud
The minis the tenth section enacts
shall be lawful for the Secretary Of the Treasu
~ to transfer the moneys in the hands Of any deposary
hereby constituted 10 the Treasury of the United States
to the Mint at Philadelphia the branch Mint New
Orleans the offices Of either OF the receivers general
e public moneys, by this act directed to be appointed
be there safely kept according the provisions Of this
and also to transfer moneys The hands Of any deposit
ary constituted by this act 10 any Other depostary cons
utcd by the same his discretion and as the safety Of the
public moneys and the convenience of The public service
sinai seem to him to require which authority 10 transfer
the moneys belonging to the Post Office Department is al
hereby conferred upon the Postmase General far
It's exercise b him may be consistent with the provisions of
existing laws and every depository constituted by this act
shall keep his account of the paid 10 depos ted
with him. belonging the Post Office Department.
and distinct fom the account kept by him Of other public
neys paid deposited And for the purpose of payments
on the public account shall be lawful for the Treasurer Of
the United States to draw upon any said deposorcs
as he may think conducive the public interests,
the conV enence Of the public creditors, or both"
Thus is the Secretary invested with unlimited authority
TO transfer the public money from depository another
ana TO concentrate 1t all, IT he peases, at single point
But without this provision the city Of New York
y must be the place at which the largest portion Of the
public money will be constantly in deposte 1t collects
lone about two thirds Of the duties imports and is be-
coming, if be already the money centre of the United
States. II Indispensable create bank Of issues
that the place of and the place f payment should be
IDENTICAL The issue Of the paper be at city, and
me place Of payment may be different and distant
CITY, Nor IS tue Form Of the paper materials 10 carry
into the genera circulation Of the money Of the country.
Whether it be in the shape Of bank notes, bank checks,
post notes Treasury diafs of consequence II
there be confidence it, and the paper be Of
mount passes by delivery and entities the holder demand
the specie upon It's face at his pleasure, will enter into The
general circulation and the extent Of its circulation will
be governed by the amount issued and the confidence which
ii enjoys,
j presume hatn' will contest these principles. Let
Apply then provisions Of this BILL The last clause
of the tenth section, already cited, DECLARES
And for the purpose of pay the public unit,
snail be lawful for the Treasurer Of The United States to
draw upon any of the said dcposaes oshe may most
Conducive the public interests to the of he
public creditors or BOTH
Here is restriction whatever the amount or form
Of The draft There is nothing to prevent his making il for
$780, $50 OF $40 There is nothing to prevent he use
OF bank paper: and the draft viii Lave the number Of sig
natures usual to bank PaPer It will may be signed BY
NOW, sir, let me suppose that citizen has demand up-
on the Government f S5ooc, and applies Treasur-
or Tor The payment On what receiver-genera viii YOU he
WIN ne asked nave The amount On the receiver general
! at New York? In what sum? One half OF the sum in
drafts of $780, and the other il drafts of $50 The Treas
mer cannot lawfully decline furnishing The required drafts
lie IS bound by law consult the convenience Of the public
creditor The drafts are gwen TO him, What will he do
win thcmF There is not spot, in The whole ccumfer-
ece Of the United States, in which thcee drafts will no,
command premium or be at par Every where to the
um of from quarter to . per cent, Every where
eas and NORTH, they vii be al par What again ask will
the holder do with hcm? vii he The indisc ciIon
or folly Of cashng these drafts and expose himself 10 The
hazard and Inconvenience of losing carrying The specie
about him? No such thing Being every where better
What have supposed likely be done by me will he
done by every creditor Of the Government These drDs
TO considerable extent will remain out, enter the general
circulation, and compose part Of the currency of
me county, COMMANDING at particular places notes of
the bank ofhe United States have Done now do pre-.
MUM, but any where being certainly good for the amour,
on their face All this IS perfectly PLAIN and inevitabe-
And the amount of this element of Government drafts in
the general currency ofhe coany will be what gov
erned by The amount Of the annual disbursements of Gov
eminent. In the early administration of III Tressurv
I, and f,ltntt
dence II will be as much better than paper of the
Bank Of the United States or the Bank of England as the
resources of the United States superior 10 those Of anu
mere private corporation Sub-lreasurcrs and receivers
general may fly with tbs public money comnited to their
chagemay pecua,e speculate they please and un-
ike The condition of banks, whose fraudulent officers souan
der the means of those Institutions the nation remains
bound tor the redemption Of all paper issued under its au-
lhoriy But the paper Of the late bank Of the United
States acquired confidence where or less IN
and GU: of the United States 1t was received Canada
IA Europe, and at Canton The Government drafts upon
receivers general VIII have much and extensive
, circulation Who will doubt their payment? Who will
doubt question the honor and good faith Of the U States
n their redemption? The bankers Of Europe-the Roh-
chllds and The Barmgs-wl receive them without he,ta-
on aud prefer them TO The specie which they represrnt
whenever The tate OF exchange not decidedly against this
country because they can be safely cBnty
kept than specie itself And with respect our Stale
banks these Treasury drafts will form the basis of their o
efaons. They will be preferred 10 specie, because they
will be convenient and free from the hazards incident
10 the possession of specie. The banks will require no
specie than the wants of the community for change
make Necessary
, | Thus, SIR, viii these Government draits or bark
ootes, as they may be called, remain in eircula
non. The issues of he first year, under the appro-
pralions Of the public revenue, will be followed by
the issues Of succeeding years More and more will
It 6e perceived 10 be needless and iudsceet cash
them and more and more will the specie oil the coun.
Try accumulate in the custody Of the recevers-gener-
al, until after lew years, the greater part of the
d specie of the cornlry will be found in tie vaults Of
y The repositories, represented by equal amount of
: Government paper In circulation. can conceive nj
AiIt dro.N
u from the vaults oil the deposares, and that is whe
: from an uniavorabe stale OF our foreign trade the
course oil foreign exchange is much against US aud
g then this system will isInish great isclilies 10 the