Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1840-10-10

Bank than when :, Is in Treasury In either case
i mgst Dc held subject n tie daft orihe Secretary
Of the treasury, sui therefore, as liable to he with
drawnant perverted 70 Improper uses al the vii 0,
the President, in The one case Is tie other.
Another clsm1rous Objection IS that Il establish.
IS one Snd of nancy Cor the Government, and an-
other for the peope-g0d aud silver f'W The Gov
eminent, and bad money for the people" This IS
grave charge to make out Of nothing. The aN
merely places the government and the people on he
same footing, The people have night 10 gold and
silver CON. The constitution exp eSsy pcov des that
nohing but gnh and silver shall be a legal tender
N pavmeat 1T debts. No man can b. legally
CURED 10 take am thing else Nh1ever receives
bank paper does 50 voiunlsnly--yet II Is cou,rudrd
that the government should be required 10 Jake what
any citizen has a,,right to reIuse Il is light that
lnlEldIss should be at liberty To receive whatever
ucy think proper, but pubic ioihcels ought not, Tor
obyiou, reasons To be invested with Discretionary
power To receive the lega currency or something
else at their pleasure. Such power woul be iabe
to dangerous abuses.
In has been ndustriousiy circulated hy some
WING politician. !lhat the power 10 issue Treasury
nots Is one ofthe clauses oi The Independent Treas
NY Bill. Any oEe who has read It eau testify 10
The contrary. There is nothing more untrue The
Treasury notes now IN crcuIatlun were issued by
consent Of all parties in Congress, as temporary
eipedIen Cor TIE relief of the banks and importing
merchants that were owing the Government large
amounts.
It is said that 1.-THE public money would be safer
10 United SlateS Bank than in the Treasury OF
the Uailed States" Il Is tue that Uuted States
Bank could offer lis capital, strong boxes and the
integrity OF It's officers, Tor security. The money
would b. kept in the mother Bank and some seven
ty-dve branches, with from two TO three hundred
clerks aud officers who must be trusted in greater
or less degree. Among tins number there must be
always some risk OF dishonesty. In addition 10 this,
from the very nature of bank il would be liable
to ose by the revusions OF trade, and the tuciua-
tons OF paper money. Ihls risk, although not .edSI-
" calculated, is immense. Tie National Bank might
fail, or dissipae its capiaI stock and then the GOV
eminent having no security whatever would lose
all its revenues. Nor is ibis euppostjun at all I'M
probable. In 1919 the United States Bank was on
the verge Of bankruptcy, and the present UNITED
SrATEs BANK OF PENNSYLVANIA, although declared
by Mr.. BpDLE 70 be stronger than the former bank
has suspended specie payments, ttctce since 1881
and is INV considered nsovent
The Constitutional Treasury provides that the Of
6cers Of the Governs ent who collect the revenue,
shall give bonds amply secured, to larger amount
than will be placed inther hands at any one time
and that any one Of them uses, lends or permits
the public money to be used, while in his charge, he
shall be indicted as teion, and fned and imprisoned
Now can you punish bank and make it honcst!--
II It uses your money! lean ynn lmprison il and hnt
~ Can you disgrace il by making it fcton'
VIII not the money be sifer IN the hands of ndi.
viduals selected for probily and honor, under such
guards, than ii the hands Of banks which we see Vi
oating their faith with impunitv, and committing
acts of fraud and perhdy that would forever dis
grace private citizen? Is II not absurd to say thai
ihese institutions are more trust worthy than thC
honest trppmpn nj tho fnubtrV2
IS an insult TO tile intelligence, honesty and patriot
| ism OF the people, and yet il IS the common Grgu
| nent ol the whig parry!
EFFECTS OF THE INDEPENDENT TREAS
| URY AND lHE BANK UPON THE GENER
| AL GOV ERNMENT.
The federal government has no CONSTITUTIONS
power To apply any direct correction TO the evil ten
dencles Of the bankng system. II belongs TO the
States, and is subject 10 their exclusive coatr0L--
| Even the advocates OF National Bank place tlt
| authority on The ground ofan incident some oihe
power,
BY the Independent Treasury Law, the revenue
oCtbe country will be collected after tie 30th Of Jun,
| lS43, In gold and silver com. The weight Of the cd
elal revenue, instead of Contributing accclerat,
| the downward course oil the banks as il has hereto
| fore done, viii then be thrown INFO the opposite
| scale. The exactlon in gold and silver in payments
| to tho government, besides diminishing the demanC
| for bank paper, 10 The amount required for making
those pay ments and thereby, 10 that extent dI,cour
aging It's issues. will create steady aud constant,
recurrng demand for specie, which the banks wouIl
have To furnish and by which they will he daily re
minded of the necessity OF maintaining due proper
Son betw their issues aud the means oil redeemmf
| them and will thus be restrained from running into
excess. Ii was BY frequent demands fur specie ol
balances due by the local banks 10 the United STATE,
Bank, that that institution operated, 10 limited ex
| tent, as check upon their issues, and regulator
Of the local currency; and there no reason 10 doub
that similar demands for the purpose of making pay
ments 10 the government would produce az least as
| salutary an effect
The independent Treasury, by checking the o
yer action of the banks, will prevent excessive i'm
portations, which has hitherto produced SURPRISES
whereas National Bank being the custodian o
the public money, has direct interest IN slimula
ting excessive lmportaions, that II may receive am
bank upon The revenue and accommodating surplus.
l A National Bank can never exert the sane
wholesome influence over State banks, in pre-
venting their excessive issues, that an lndepen
deLl Treasury will for a national bank offer
over issues itself, and then il loses lis power. |
continually expands and contracts its ISSUES, anC
therefore there is 10 uniformity in rs action OF
the State banks. 1t alternately stimulates then
to over action, by It's own practice and example
and then forces them to rulnous contraction
which operate oppressIvey on themselves and lh'
business community. This is illustrated by th'
conduct Of the United States Back in 1920
when, by receiving large amount OF hCies OF h'
State Banks, il stimulated them TO over issue, be
cause their notes held by The United States Bank
we're allowed TO remain uRredeetned, by payln!
interest The reports Of this institution show tina
they always hada large amount Of notes Of Stat
banks on hand. usually varying from two TO three
millions Of dollars. besides other debts and bal
| ances.
} In every point OF view, the influence ofihe In
dePenden, Treasury upon the local currency, wi
| he mach r,o,. .al,,sayv than that M a Ma iona