The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-05-07
suB-TREASuRY-
rtract Of letter from an Intelligent gentleman in

SUB-TREASuRY- BANKING.
Extract Of letter from Intelligent gentleman in
Virginia
Assuming postulate the evident principle that
banks OF circulation based the probability that,
IN the ordinary Of business their notes for the
most part will be efned to their specie, and may be
safely put into circulation several times the amount
OF the latter, although payable in specie demand
remains to inquire what exceptions there are to this
rule Il is believed there are only two LIST Pancs,
"ihch produce runs on banks; and ID revulsons in
commerce The first, in country thinly peopled
ana extensive, can seldom produce much effect being
generally temporary. The second being more perma-
nent, are much more to be feared. Where they can
not be forcseen and guarded against II the cause is
deep seated they must produce suspension of specie
payment; our banking system having obtained
perfection enough TO provide eectuay against such
evils t3 M4
But il is evident that Government armed with a
Sub Treasury all times produce its pleasure
what otherwise is only the result Of great moral causes
within the control Of any man. political party,
and Of rare occurrence Il may collect the notes Of
any bank having notes in circulation than specie
in its vaults and exhaust il at once This operation,
too, would be far more fatal to the credit Of bank,
than when brought about by causes affecting all other
institutions of similar character would be imput-
ed to want of soundness in its condition And If a
Bankrupt Law in existence, such as the Presi-
dent recommended ii is clear that any bank in the
Union could be destroyed in few days at his plea
sure.
II may be urged that the President would not thus
abuse his power. But it would be pressed with very
i'll grace by those who remember Gen Jackson's At
tempt to break the Savannah Branch Bank Of the
United States, frustrated only by the foresight of
Nicholas Bddle who discovering the impending storm
fom the sudden disappearance of the notes Of that
bank threw in timely supply Of specie.
Every bank in the Union, after the Sub Treasury
law is enacted either submit implicitly to the
President, and become his tool, or wind up its
Germs. II they submit, he becomes monarch Of the
whole money power,-if they wind up, independent
Of the deep distress inflicted the country his pr
tronage is increased in proportion the value of
ney is enhanced. The hundred thousand offices
in his gift salaries remaining the same will be equal
to half million of such offices now Private cred,
being destroyed his favor will be the only road to
fortune well distinction, and it will affect the
suit very little, whether he is called Emperor, King
or President
That the Sub Treasury would grow into great
Government Bank think might confidently be ex-
pected but il would add more to the convenience
than the strength Of the Government, that being
already amply fortified by the control Of the money
power.
This subject, presume has been discussed in the
Senate, although | have not the debate, and
doubt not Mr.. Webster has applied the energies
of his powerful mind to its elucidaton, for which
think he is amp'y qualified than any man of that
body At all events deem il the duty Of every pa
riot to resist the uttcrmost the establishment Of
utterly psrnicous to the country, as the
one that makes the President the master Of the Ma
TONS purse. Our banking institutions require re-
formation doubtless, TO some extent. Provision, If
possible, should be made. by the competent powers
against such dreadful frauds those lately discovered
in the Virginia Bank at Richmond; but their utter
destruction, or what is worse, complete servitude,
would be ruinous to destroy an important part
of the human body because il Is sometimes the seat Of
main -