The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-07-11

| have nothing TO say about their being Sc
duced TO the embraces OF this Government by
its promises of splendid profts-nor Of the me
rits Of the system established by The deposite
law--nor Of the capacity of State banks 10 carry
on the fiscal operations Of the Government
speak only Of the manner in which they per
formed their obligations 10 the Government,
prior, and subsequent TO- the suspension in May,
1857; but, Mr.. Chairman, the opinions OF men
~ nigh places and who were bound, officially,
70 know all about the business, must be far bet
ter than mine, and therefore call the attention
OF the Committee 10 the following item, which
! read from the Message Of Gen Jackson, in
December, 1884
Happily il is already illustrated tina, the agency of
such Institution Jas the Bank Of the United States)
is not necessary the fiscal operations of the Co
vernmcnt The State banks are found fully adequate
the performance Of all services which were required
Of the Bank of the United States quite as promptly
and with the cheapness. They have maintained
themselves and discharged all these duties while the
Bank Of the United States still powerful and in
the field as an open enemy and il is not possible to
conceive that they will find greater difficulties in their
operations when that enemy shall cease to exist
And from the annual message Of 1885:
The experience of another year has confirmed the
utter fallacy of the idea that the Bank of the United
States was necessary fiscal agent of the Govern
ment Without its aid, as such indeed in despite of
all the embarrassmens il in its power create,
The revenue has been paid with punctuaty by
citizens the business Of exchange both foreign and
domestic, has been conducted with convenience and
the circulating medium has been greatly improved.
by the use of the State banks which do not derive
their charters from the Genera Government and are
not controlled by its authority it is ascertained that
the moneys Of the United States can be collected and
discussed without loss inconvenience and that all
the wants OF the community, in relation to exchange
and currency, are supplied well they ever have
been IT, under circumstances the most unfavorabe
TO the money market il has been found that the con-
sdcratons on which the Bank Of the United States
rested It's claims 10 the public favor were imaginary and
groundcss it cannot be doubted that the experience of
the future will be more decisive against them
And Mr. Secretary Woodbury., in his report
OF the same year, says:
This (the Treasury Department takes great plea
sure in stating that the public money continues to be
collected and deposited under the present system Of
selected banks, with great and economy in all
cases and with greater in some, than any former
period The transfers of it to every quarter of the
country where is needed for disbursements have ne
yer been effected with promptitude and have
been made entirely free of expense to the Treasury
he payments to creditors, officers, and pension
ers have been punctua and convenient and the whole
fiscal operations through the State banks have vet
proved highly satisfactory Incidental to this the ia
cilities that have been furnished 10 the commercial
community in domestic exchanges were probably ne
Yer greater or at so moderate rates
But the shouts of triumph were made to ring
Jackson, in December, 1886:
Experience continues to realize the expectations
entertained to the capacity of the State banks to
perform the duties of fiscal agents for the Government
at the time Of the removal of the deposites 1t was
alleged by the advocates of the Bank of the United
States that the State banks, whatever might be the
regulations of the Treasury Department. could not
make the transfers required by the Government or
negotiate the domestic exchanges of the country 1t
is now well ascertained that the real domestic ex-
changes performed through discounts by the United
States Bank and its twenty five branches least
onehrd less than those of the deposte banks for an
equal period of time and if a comparison be insti-
tuted between the amounts of service rendered by
these institutions the broader basis which has been
used by the advocates of the United States Bank in
estimating what they consider the domestic exchanges
And Mr. Woodbury., as in duty bound, swels
the chorus:
I" II is source of high qualification to be able to add
that while selected and employed, not single dol
lar lost to the Government by any OF them, or
single failure occurred to transfer promptly and pay
out satisfactorily the public money entrusted to their
custody nor is it believed that the domestic exchanges
of the country were ever lower regular than
during that period and the large amount of them
performed by these deposite banks in ordinary pur-
chases or discounts, equallng from hundred and
forty to two hundred millions of dollars yearly or near
third more than those OF the same kind by the Uni
ted States Bank while the fiscal agent of the Govern
banks on this important subject
We all recollect that General Jackson, when
leaving the chair of State on the 4th of March,
1887 delivered what he was pleased TO call
Farewell Address to his fellow-citiZens, in imi-
taton of the example set by the revered Father
of his Country; whether impiousy or not, every
individual viii determine for himself For my
own part sir hope no future President will
renew the experiment, and from the Ill success
attending this | think no one will, II he has any
regard for himself or respect for the opinions OF
the people. | want my children, Mr.. Chairman,
to draw lessons OF piety and patriotism and wis
dom from the Farewell Address, and not from q
Farewell Address that may be issued by par
tsan President having claims upon his party
only, and not upon his country
BIT sir, in this address he says:
AT the moment when surrender my last public
trust leave this great people prosperous and happy
Gen Jackson for once was deceived-'twas
the calm that precedes the hurricane that mis-
led the Hero of New Orleans" when thus
looking upon the clear blue sky--the experiment
was strained to its utmost capacity OF tension.
Mr. Van Buren, took the seals of office, and in
two short months was compelled TO call an extra
session of Congress to provide the ways and
means to keep the machinery OF Government in
motion; the deposite, and all other banks, having
exploded from one end of the Union TO the
other. with forty millions of the public money,
nomnally in their vaults, but really scattered to
the four winds of Heaven, under the direction
of Mr. Secretary fancy, Mr.. Secretary Wood
bury and the President himself
FRO Re CONTINUED.
C,COTT's TACTICS just received for sale by
4 ID h. lea "A