Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-01-06

II l..
ntes greater anxiety for interests dependent on
foreign credit than for the general prosperity OF
our own country and the profitable expectation oil
the surplus produce of our labor
The circumstances to which have thus ndver-
ted appear to me to afford weighty reasons, de-
yeloped by late events, to be added to those which
hive on former occasions offered, when sub
hitting to your better knowledge and discernment
the propricy of separating tbs custody OF the pub
lie money from banking institutions. Nor has any
thing occurred TO lessen in my opinion, The force
of whot has been heretofore urged. The only
ground on which that custody can he desired by
the banks, is the Profitable Use which they may
make of the money. Such use would be regarded
III individuals rs breach OF trust, or CRIME OF
great magnitude, and yet it may he reasonably
doubted whether, first and last, It is not attended
with more nischIevous consequences, when per-
n,iited to the former thnn to the latter The prac
tice of permitting the public money to be used ny
its KEEPERS as here, is believed to he peculiar 10
this country and to exist scarcely anywhere else
To procure it here, improper Influences are ap
pealed to unwse connections are established be
tween the Government and vast numbers OF pow
erful State institutions; other motives than The
public COOL are brought to bear both OH the Exc
culiye and Legislative departments, and selfish
combinations, leading TO special legislation, are
formed. 1t is made the interest OF banking inst-
iutons and their stockholders throughout the I'm
ion to Use their exerons for the increase OF taxa
ton and the accumulation OF surplus revenue
and while an excuse is afforded, the means arc
furnished for those excessive issues which lead to
extravagant trading and speculation, and are The
forerunners of a vast debt Abroad and suspen-
sion of the banks at home.
Inpressed therefore, as am win the proprle-
" o. the funds Of the Government being with
drawn from the private use OF eiiIler banks or IN
divlu,ls, and the public money kept 10y duly APP
pointed public agents; aud believing as do, that
such also is the Judgment which discussions re-
Election and experience have produced on the pub
lr mind, | leave he subject with you 1t Is at all
events essential to the interests OF the community
and the business OF the Govcrnlnent tlat decis'
ION should be made
Nnst of the arguments that dissuahe us from
I. flowing banks in the custody and disbursement
We public money, apply with equal force to the
ut ofthcir notes for public dues. The differ
oncc is only in form H. on instance, the Gov
eminent is creditor for Its deposltes, aud III the
other for the notes it holds They afford the same
opportunity for using the public moneys and
equally leads to all the evils attendant upon il, since
bank can as safely extend its discounts OH a de
pose OF its notes in the hands of public officer
as OH one made in its vaults. On the other hand
it would give to the Government no greater secu.
ritv for in case offailure, the claim Of the noteho
der would be no better than that OF depositor.
am aware that the danger of Inconvenience TO
the public, and unreasonable pressure upon sound
banks, have been urged as objections to requiring
the payment Of the revenue in gold and silver. -
From the best estimates we may safely fix the
amount of specie in the country at eighty five
millions of dollars md the portion of that which
would be employed at any one time in the receipts
and disbursements of the Government, even IT the
proposed change were made at once, would not,
it is now after fuller investigation believed, exceed
over four or five millions. lf the change were
gradual, several years would elapse before that
sum would be required, with annual opportunities
in the mean time to alter the law, should expert
ence prove it to be oppressive or announcement
The portions of the community on whose business
the change would Immediately operate, are COM
paratively small, nor is it believed that its effect
would be in the least unjust or Injurious to tI'o'n
In the payment of duties, which constitute by
far the greater portion of the reveauc, very large
proportion is derived from foreign commits
sion houses, and agents of foreign manufacturers,
who sell the goods consigned to theln generally, at
auction and after paying the duties out of the avails
remit The rest abroad in specie or its equivalent -
That the amount of duties should, in such cases,
be also retained ia specie, can hardly he made a
matter of complaint. Our own importing mer
chants, by whom the residue of the duties is paid,
are not only peculiarly interested in maintaining a
sound currency which the measure in que ton
will especially promote, but are. from the nature
of their dealings, best able to know when specie
will he needed, and to procure it with the least
difficulty or sacrifice. Residing, too, almost uni
versa ly in places where the revenue is received,
and where the drafts used by the Government for
its disbursements must concentrate, they have eve
ny opportunity to obtain and use them in place OF
specie, should it be for their interest conven-
fence. Ofthe number of these drafts, aud the IA.
cilities they may afford as well as of the rapid.
y with which the public funds are drawn and
dsbursed, an idea may be formed from the fact
that, of nearly twenty millions Of dollars paid ia
collectors aud receivers during the present year
the average amount in their hands AT any lne ha'
not exceeded million and half; and OF the hf
teen millions received by the collector OF New
York alone during the present year, the average
amount held by him, subject u draft during each
week, has been less than half a million.
The ease ard safety of the operations Of the
Treasury in Keeping the public money are pro
NOTED by the application of its own drafts to the
public dues The Obi Gctipn arising from having
Them too long outstanding, might be obviuted, anc
they yet made to afford TO merchants an banks
holding them, an equivalent for specie, and in tina
way greatly lessen the amount actually required
Still less Inconvenience will attend the require
meni of specie in purchase of public lands. Sucl
purchases, except made OH speculation, are, in gen
eral, hut single transactions, rarely repeated by tit
same person; and it is fact, that for the last yea
and half during which the notes OF the sount
banks have been received, more than moiety O
these payments has been voluntarily Eace in spe
Gle, being larger proportion than would hav
been required in three years under lire graduate
proposed.
lii moreover principle Than which none is bette
settled by experience, that the supply of the pre-
cious metals will always he found adequate to tn
uses for which they are required. They aboun
ia countries where other currency is allowed
la our own States, where small notes are exclu
died, gold and silver supply their place. Whe
driven to their hiding places by bank suspensions
little frmness in the community soon restore
them in a sufficient quantity for ordinary purpo
ses. Postage and other public dues have bee
collected in coin, without serious Inconvenience
even IN states where deprecaled paper currenc
has existed for years, and this, with the aid q
treasury notes for part ofth time, don
houtinterruption during the suspension of 1887
AT the present moment the receipts and disbursC