The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-08-25


what reproaeh is cas-, upon the adn;n;.,..,. -
well as the character Of Mr.. Madison a.. ~ %
ninent trainers Of that sacred instrument, rbe
iion may, with much propgieiy, be asked sbo n.
likely 10 know best the intention Of The f,ano,
constitution Mr. Madison or Mr. Van Buren, !.
we same letter appears this declaration in relation
'he public money being used in banks IL Which /,
deposited Says Mr. Van Buren,, lis use va. ,,,s.
until lately and then only to a limited EATEN, d.,
authorized by any act Of the Government SUI,
Mr. Van Buren, when he penned this MASSAGE
have forgotten the administration Of the Treasr :,
panment, by MIR GalatIn, Mr. Dallas o,d ~
crawford, under the administrations or N, MI
ana Mr. Monroe, each Of whom moi only au,ho,,,.,
'he use OF The public money BY the banks bot r,o,,
them TO use II for the benefit OF commerce ana Z, s.,
the collection OF the public revenues Can NJ, IL,
buren have forgotten a more recent occasfon 49,,
IN December, 1885 the present inc,gben, !, \,
treasury applied TO the banks in New Yoyk botE,
the public money, TO assist him IN de,ising ,l,ns
that the surplus in their hands beyond VIA, a..
could loan out, might also be loaned out Tb, A.
CURED under the administration Of Gen I,1sa,
who, in September 1888 declared that The pubic i.
ney by being placed in the keeping Of State bank. n
stead Of the U. S. Bank rouM not b, on,;1,J,,.,
but roud stiH continue 10 be ioaned out for the bn,s
q trade could bring forward many other proofs
Of the error INTO which Mr. Van Buren, has fallen
IN making the above statement, did deem il at all h.
cessary
ne recommendation Of the sub Treasury scheme
IN 1857 was accompanied with general denuncs,ion
OF The banks throughout the country They were
charged with Perfdy and tredehery to the Govern
men--with having been the authors OF all the dsa.
tiers which at that time beel the country ana An
continue to aiflc, il and also with having refused I,
pay over, when demanded the public money thew held
at the time Of the suspension in May, 1887 These
Misrepresentation have continued to be repeated fran
time to time to the present, in high places and else
where, often, that in many instances the propara
tors of the fasehoods themselves have been induceto
think them true; while vast many OF those who have
mol had access to the proofs which would contradict
| them, know not that they otherwise than true
| The State papers emanating from General Jackson
| and the head of the Treasury Department from De
cember 1888, down 10 March 1897 90 to rebu, the
charge of perfdy and iIeachery So far from the
banks having been the authors the disasters which
commenced in lS37 and the ruin which has devastated
the country since aver that the Administration were
| the founders and consnmmators Of the whole | am
aware of the seriousness of the charge and should
not venture to make it not susceptible Of being
sustained by ample and incontrovertible proof
| We had first an expansion and then a contraction
Of the currency. In these be found the elements
OF all the disasters which have afflicted the country
| Who were the authors of the expansion Who OF
the contractionl The Administration saw the banks
say, the Administration. Now 10 the proof
ordS sha hat 4, 6.
ect with the Administration 1882 to 1895 to en
tinguish rapidly the national debt For the accom-
plishment Of that measure the surveys Of the public
lands, from whatever source acquired were acceIe.
rated as much practicable As fast as SURVEYED
they were brought forward in the market and offered
at public sale Speculation was thus invited and an
COURAGE by the Administration itself The effect Of
these measures was greatly TO augment the revenue
from the public lands In 1884, il amounted to 81
5000 which considerably exceeded the amount the
year previous In 1885 twas Sl4 700, 900; in 1886,
twas 81 500 600 in 1887, the reyulsion commenced
when was reduced TO 81, 100 600 and, in 1885 10
SS,ooo,oOo The payment Of the public debt was
completed in 1885. The balance in the Treasury on
the Is, January 1884 was Sll, 100000 on the 81 Ja
nuary, 1885, SS,9o0,00o; on the lst January, 1880
SO, 200 600; the lst January 1887 $40 3oo 600
Lest IT may be said that the revenue from custom,
We're increased in equal degree with that from
lands, and contributed equally To swell this vast H.
crease, give the amount derived from that source fol
each OF the above named years In 1884 the revenue
from customs was Sl6a0o0Oo; in 1885. SO. looGDa
in 1886, S23, 10000; in 1887 Sll 100000: and il
1888, Sl60ooooo
No, only did the Government prior to 1886 press
the sales of the public lands in every Quarter by sd
vering and inviting purchasers at public auction but
they loaned out through sxs-aerdiaary ,aeatss when
they could not DO il nv the ordinary hss vast balances
Of the public money, which encouraged SPECTATORS
and furnished the means Of sgctllassors All will
rccoilcci the circular issued br Mr. Tancy IN 1898 10
tie dePosiic banks, 10 lean out the public money
while in their hands far practicable This order
remained in force In the latter pan OF the year 1885
when the expansion, thai had been gong on for some
tune, had extended itself TO an extraordinary degree
some of the largest dcpose banks became alarmed at
the appearance things, they then progress
ing and they wrote me. requesting that would en-
deasor TO prevail the Secretary Of the Treasury to
authorize them 10 call for specie for part OF the ba
lanccs which had accumulated against the other banks
in the collection of the revenue for the purpose Of
giving check to the wild and extravagan expansions
and rpeculatons then going on, did so The Sc
cretary declined giving the permission applied for
But what did he do shortly after Exactly the oppo-
site of what the banks had asked
In December 1885 he wrote TO the Iepositc banks
in New York, suggesting mode by which the money
in their hands which they could no, themselves losn
out, might be loaned by other banks and requested
their aid in carrying out the suggestion
That was not all. The Government, not only au
~ ~ ~ ~.