The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1840-01-07

ments must concentrate, they have every opportn
nifty to obtain 81 use them in place of specie sbonH
il BIO for their interest convenience OIL
number Of these drafts, and the facilities thew NAV
afford, well Of the rapidity with which tho
public funds are drawn and disbursed an idea NAV
be formed fiom the fact that OF nearly twenty mill
ions OF dollars paid to collectors and receivers dur
ing the present year, the avarage amount in their
hands at any one time has not exceeded a million
and n half, and of the fifteen millions received bv
the collector Of New York alone during the presen,
year, the average amount held by him, subject IN
draft during each week, has been less than halfo
million.
The ease and safety of the operations of ,bo
Treasury in keeping the public money, are nro
NOTED by the application of its drafts to Tho
public dues. The objection arising from HAVING
them too long outstanding, might be obvated an9
they yet made 10 afford to merchants and bonLa
holding them an equivalent for SPECIE and in bot
way greatly lessen Tho amount actually requir ed
Sill less Inconvenience will attend the Requirement
Of specie in purchases OF public lands. Such pur
chases, except when made specu lation are in
general, but single transactions, rarely repeated bv
The same person; and it is fact that foi the Inst
year and half, daring which The notes of sound
banks have been received, more han II moiey of
these payments has been voluntarily made in spe
cie, being Il larger proportion than would have
been required in three years under the graduation
proposed.
Ii is moreover principle, than which none is
better settled by experience, that the supply of the
precious metals will always be found adequate to-
the uses for which they are required They abound
In our own ST. IS, where small notes are excluded
gold and silver supply heir place. When driven
TO their hiding places by bank suspensions, fttie
frmness in the community soon restores them in -
sufficient quantity for ordinary purposes. Postage
and other public dues have been collected in com
without serious inconvenience, even nStates where
deprecated paper currency has existed for years,
and this, with the aid of Treasury notes for a par,
OF the time, done without interruption during
the suspension of 1887. At the present moment
the receipts and disbursements of the Government
are made in legal currency in the largest portion of
the Union--no one suggests departure from this
rule; and if it now he successfully carried Out
it will be surely attended with even less difficulty
when bank notes are again redeemed in specie
In country so commercial as ours, banks in some.
form will probably always exist but his serves 0nlv
to render it the more incumbent on u.s. notwi1h.
standing the discouragements Of the past TO strive
IN our respective stations to mitigate the evils they
pruduCe-to take from them, rapidly as the oh
legations OF public faith, and n careful consideration
of the immediate interests of the community will
permit The unjust character of monopoies; to check
so far rs may he practicable by prudent Legislation,
those temptations of interest, and those opporlni
Ties for their dangerous indulgence, which besey
them on every side, and 10 confine them strictly 10
the performance of their paramount duiy, that of
aiding the operations of commerce, rather than
consulting their own exclusive advantage. These
and other salutaIy reforms may, il is believed be
accomplished without the violation of the great
principles of the social compact, the observance of
which is indispensable 10 its existence or intpr(er-
ing in any way with the useful and profitable en-.
pOyment of real capi.aI
Institutions so raned have existed and still exist
elsewhere, giving TO commercial intercourse all no..
cessary facilities, without initiating or deprecintina
the currency, or stimulating speculation. Tins
accomplishing their legitimate ends, they have
gained the surest guarantee for their AMI
encouragement in the good will of the community
The direct supervision of the banks belong, from,
the nature of our Government, TO the States whp
authorize them IL is to their Legislatures that the
people must mainly look for action on That subject
n thp FnHn =;
The management OF lis revenue has also powerful
though less immediate influence upon them, it BE-
comes our duty TO see that proper direction is
given to it. Will" the keeping of the public reve.
nue. IN "A separate and Independent Treasury, and
of collecting IL in gold and silver, will have sal-
tary influence on the system of paper credit with
which all banks are connected, and thus aid those
that are sound and well managed. il will at the
same time sensibly check such as are otherwise by
nj once withholding the means Of extravaganza
afforded by the public funds, and restraining them
from excessive issues of notes kich thew would be
constantly called upon To redeem
] am aware il has been urged that this control
may be best attained and exerted by means of Ma
lional Bank The constitutional objections which
| am well known TO entertain would prevent me
IN any event, from proposing asscnting 10 that
remedy; but IN addition 10 this cannot after past
experience, bring myself 10 think thai it can any
longer DC extensively regarded effective for such
a purpose. The history OF the late National Bank,
through all its mutations, shows that it was not so.
Oh the contrary, it may, after aieful considera-
ton of The subject, be, Think safely stated, that a,
every period OF banking excess it took the lead that
IN 1917 and 1918, in 1923, in 1881 and in 1884 its
vast expansions followed by distressing contractions
led I" those of the State institutions. 1t sweed
and niaddened the tides Of the banking system, but
seldom alayed, safely directed them Alta few
periods only was snlu,ary control exercised, bu:
an enger desire, on the contrary exhibited for profit
in the hrst place; and if, afterward, its measures
were severe towards other institutions, it was be-
cause lis own safety compelled it to adopt them
IT did not differ from them principle or FORM its
measures emanated from the same spirit of GAIN
It felt the same temptation to overissues it suffered
from and was totally unable to avert, those ;nevi-
table laws of trade, by which it was itself affected
equally with them; and, at least one OCCASION,
At an curly day, it was saved only by extraordinary
oxerons from the fate that attended the
weakest institution it professed to supervise. In
1897 it failed equally with others, in redeeming its
notes thong the two years allowed by it's charter
for that purpose had not expired large amount of
which remains to the present time outstanding. 1t
is rue that having so vast capital and strength.
nod q use n n tha &c h.