The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-09-01


credit
Gen. Jackson acted on views Of Government
duty the exact reverse Of this.
s. Finally, Mr. Van Buren's administration
rests on the Sub-treasury scheme in all lis parts,
as the wisest and best policy of the govern
ment
But Gen. Jackson, his official advisers, and
his public organs, concurred together in con
demning that scheme in all its parts.
Mr.. Polk, as the official organ OF the Treasury
IN The House OF Representatives, said:
= a corporation may be safer than any indi-
yldua agent, however responsible he may be,
because II consists Of an association of indiyid-
uals who have thrown together their aggregated
wealth, and who are bound in their corporate
character 10 the extent of their whole capital
stock for deposit. In addition 10 this the Secre-
tary OF the Treasury may require as heavy col
lateral security in addition 10 their capital stock
paid in, from such corporation, as he could
from an individual collector or receiver, which
makes the Government deposite safer in the
hands Of a bank, than il could be with an indl-
vidual. 1t may be well questioned whether the
heaviest security the most wealthy individual
could give, could make the public deposits safe,
at the point Of large collection. In the city OF
New y ork, half the revenue is collected. Seye-
raj millions oipubc money may be IN the hands
OF receiver at one time, and, II he be corrupt,
or shall engage in speculation or trade, and meet
with reverse Of fortune, the loss sustained by
the government would be irrctrleyablc.
- As then, between the responsibility of a
public receiver and bank corporations, as banks
do exist, and are likely 10 exist under State au
thority the latter, upon the ground OF safety 10
the public to be preferred Banks, when
they arc safe, recommend themselves TO the ser
vice Of the Treasury for other reasons. The
increased facilities they possess over individual
collectors or receivers in making transfers Of
Il Shftraa
without charge TO the public Indeed this is a
service which individuals, 10 the extent of our
revenue, could not perform"
I, :. Whilst the deposit is in bank the bank may
use il. keeping itself ready at the same time, 10
pay when demanded, and it is not Withdrawn
from general circulation, so much money
boarded and drawn from the use of the commu-
nifty. If in the hands Of receivers, they may
hoard it, by keeping it locked up in a strong box,
or use il at their own risk, in private specua-
tons or trade, or they must for their own secu-
rty, and on their own responsibility, place it at
last on deposit in the banks for safe keeping, un
til they are called on by the government for il.
This temporary use Of the money on deposit in
bank, constitutes the only compensation which
the bank receives for the risk Of keeping it, and
the services il performs. II receivers be en-
ployed, they can perform no other service than
TO keep the money, and must be paid compen-
saton from the Treasury
And the Globe promulgated the views Of
Gen. Jackson on this point az follows:
" 1t Is well known that the President himself
is opposed to this project, and that his friends
in Washington, whether of the cabinet or not,
heartily concur with him in the course OF policy
| il is cxpedent to pursue"
And again;
"If General. Jackson had suggested such a
| system (the sub Treasury what peals Of pdtri
II II
quent Senators against the us1rper and tyran
1 who desired to get the millions of the Treasury
into the very hands Of his partisans and para
n sites
\ And again
4 1t is as papable as the sun, that the effect Of
the scheme (the sub Treasury would be 10
4 bring the public treasure much nearer the actual
custody and control Of the Executive than il is
now, and eapose IL 10 be plandered by an hum
dred hands, where one cannot now reach IT,"
And again:
Z We verify believe that the present system
(State banks) of deposies for the public money,
regulated by law as il will be, is as good for
safety, and the least liable TO abuse by the Exc
cutivc, Of any which the uH Of man can CON
ceire."
And again
Ii uhe sub-Treasury) is disorganizing and
principles OF our Government and its entire prac
tlce from 1889 down 10 this day"
And mot to enlarge by further scope of ex-
tracts from newspapers) the Richmond Enqui-
rer, the chief organ Of General Jackson in Vr-
ginia, said:
Z We have objected 10 the sub Treasury
scheme, $50 caled) that, in the first place. il
will enlarge the Executive power already too
great for a Republic 2dly, that it contributes to
endanger the security Of the public funds; and,
3dly, that it is calculated to produce two curren-
cies-a basor one for the people, and better
one for the Government The more we reflect
upon the matter, the more we read the speeches
of the orators on both sides, the more firmly are
we satisfied of the strength of these objections.
at is certainly subject to very strong objec-
tons, not the least of which is the very great in
crease Of patronage TO which it must give rise,
and patronage Of the most dangerous influence,
as being 50 Immediately connected with the
public money"
And again:
''But can see no advantage, and, on the con
trary, fruitful source of mischief, in making the
Government officers the keepers Of the cash.
Place about them what guards you may, in the
shape Of commissioners, inspectors, or whatever
else, J1ecuidtion raj be eadiess. There is no
security ia il, and it will involve heavy and un-
necessary expense. The chief and everything
objection, however, Is the endless source of pa
tronagc 10 which il would give rise Make the
machinery as simple you may and open TO
vIew wherever money is temptation will creep
in, and corruption in every form follows at its
heels.n
In the quotations which have thus laid be-
fore you, and the authenticity and substantial
accuracy of which challenge the friends OF
Mr. Van Buren, TO disprove, YOU find embodied
the main objections to the sub Treasury Bill.