The Ohio Democrat and Dover advertiser. [volume] (Canal Dover, Ohio) 1839-1840, 1840-01-10

'clVeu Tor pubic dues; that the next largest |
have been by disbursing officers, and the least
by collectors ard receivers lfthe losses on
iuty bonds are included, they alone will be
hreefold those by note collectors and receivers.
Our whole experience, therefore, furnishes the
strongest evidence that the desired legislation
ofConSress is alone wanting 10 insure, in those
operations, the hsheel degree OF security md
facility. Such, also, appears 10 have been the
experience Of other nations From the results
Of inquiries made by the Secretory ofthe Trea.
sury in regard to the practice among them, am
enabled to state, that in twenty-five out Of
tweniy-seven foreign Governments, from which
undoubied information has been obtained fhe
public moneys are kept in charge of public Off
GERS. This concurrence of opinion in favour
Of that system is perhaps as great as exists on
any question Of internal adminiatra ion.
In the modes of business and official restraints
on disbursing officers, no legal change was pro.
duced by the suspension OF specie payments.
The report last referred TO will be found to cons
tain, also, much useful information in relation
to this subject.
u have heretofore assigned to Congress my
reasons for believing that the establishment of
All Independent National Treasury, as contem.
plated by the Constitution, IS necessary 10 the
safe action of the Federal Government. The
suspension Of specie payments in 1887 by the
banks having the custody Of the public money,
showed nlso alarming degree our dependence
on those institutions for the performance of du.
ties required by law, ,thatI then reco nnended the
entire dissolution of that connexion. THIS re.
commendation has been subjected, as desired
il should be, to severe scrutiny and animated dis
cussion; and allow myself to believe that, not
withstanding the natural dyersities of opinion
which may be anticipated Oh all subjects involv
ing such important considerations, il has secur-
ed in its favor as general concurrence of pub
lie sentiment as could be expected on one OF
such magnitude.
Recent events have also continued to devel-
op new objections 10 such a connsxion. Sell
dom is any bauH, under the existing system and
practice, able to meet on demand all its Iiabill,
ties for Geposltes and notes in circulation. Il
maintains specie payments, and transacls pro-
fitable buIiness, only by the confidence of tn,
public in its soIvency; and whenever this is de,
stroyed, the demands Of Its depositors aud not,
holders pressed more rapidly than it can MAKE
collections from its debtors - force it to stoI
payment. This loss of confidence with its con
sequences occurred in 1887, and afforded ihe a
pology Of the banks for their suspension. Tn
0 public then acqniesced in the validity Of the ex
D cuse, and, while the State Legislature did nc
exact from them their forfeited charters, Con
h, gress, IN accordance with the recommendatio
It of the Executive, allowed them time to pay {
: yer the public money they held, although CON
n PEELED 10 issue Treasury notes to supply the Dc
e fcisncy thus created.
It now appears that there are other motive
: than want Of public confidence under whic
/ the banks seek to Justify themselves in refus
tomeet their obligations. Scarcely were Ii
l. country and Government relieved, in degre,
8 from the difficulties occasioned by the gener
e suspension OF Ie37, when partial one occurrir
lie within thirty months ofihe former, produce
'e new and serious embarrassments, though il hi
+ no palliation in such circumstances as were
y legged in justification Of that which had pre-,
y, ously taken place. There was nothing in d
" y, condition Of the country TO endanger a W,
,e managed banking institution commerce W
nj deranged by no foreign war, every branch
10 manufacturing industry was crowned with ri
" rewards, and the more than usual abundance
a our harvcsts, after supplying our domestic war
n had left our granaries and store.houses 6ll
. with surplus for expectation. II is IN t
midst uf this, that an irredeemable and deprer
III tied paper currency IS entailed upon lhe peoE
+" BY a large portion of the banks. They are I
~ lrven to it by the exhibition of a loss Of pub
be- confidence, or of sudden pressure from tn
depostors or noteholders, but they excuse the
=" selves by alleging that the current Of busine
- and exchange with foreign countries, whi
es draws the precious metals from their vauI
e. would require, in order to mhet it, larger CT
u" tailment of their loans to a comparatively SIN
ia portion Of the community, than it will he c.
mt venient for them to bear, or perhaps safe for
ng banks to exact. The plea has ceased 10 be {
W ~ Of necessity. Convenience aud policy are n
ri, deemed sufficient to warrant these Institute
EN- in dlsregarding their solemn obligations. 81
''- conduct is not not merely an injury to indIv
zen
rt. ual creditors, but it is wrong 10 the whole :
SCI munity, fom whose beraity they hold n
art valuable privileges whose rights they viol
,m' @ whose business they derange, and the value
gal whose property they render unstable and in
nry cure. 1t must be evident that this new gro
:.n m for bank suspensions in reference to which t
six action is not only disconnected with, but wi
Of ly independent Of that of the public. Civ,
'ate character to their suspensions more alarm
ss a than any which they exhibited before, and gr
ity, ly increases the improperly Of relying en-
on. banks in the transactions of the Government
al, a., A large and highly respectable :
ish. & tion Of our banking institutions are,
oke affords me unfeIgned pleasure to 8
'an. Fexempted from all blame on accouu
3 1; OF this second delinquency. They h,
~ ~" of to their great credit, not only con