The Madisonian., 1840-01-28


that The money deposited to-day may be drawn out
tomorrow. Nay, the money deposited one day in
notes. may be drawn the next day in specie and il
Is only the average that IL always has on hand on
which IL can safely venture 10 bank-il knows In
Short that is deposites increase lis liabilities as well
as rs strength and il is only in the prop riion that
the latter succeeds the former, that such deposites
ef,ctualiy improve It's sources OF gain well con.
ducied bank regards its deposiles no less Than The
notes II has issued, part Of lis circulation and
in providing specie 10 meet the demands that may he
made on IT, il looks TO the one as much The olher
la consideration OF such increased liability; OF lis Ie-
iesing The deposlor from the and risk OF keep
ing his own money; and Of its taking The trouble
dsburse In large or small sums, according 10 the
order OF the owner II claims 10 profit BY The tempo
rary use OF part OF The money, and that claim has
been ratified by the common sense and cor mon JUS
iice of mankind
Now what, would ask, is there In this practice
Of banks, which deserves 10 be compared with the
Of public money by the officers who had The Gus
tody Oft The bank acts openly, in the regular
exercise offs vocation the officer acts caDdestine-
ly and 10 violation Of an express prohibition. The
bank uses lis own money at the same time that il
uses that Of lis deposor with which il is undislin-
gushably blended the officer uses that to which he
has not shadow OF right; and lastly, the bank
makes profit for the benefit OF lis stockholders the
officer aims TO make one solely for himself. am
not simple minded as to suppose that you not
fully apprized Of these plain d ,lincions but when
you would adroy seek 10 make some OF your read
10 coniound them, suffer me to ask whether the
ingenuity which mig have been excused aud even
praised as clever piece Of quibblng in Mr.. Van
Burrn the advocate, is altogether becoming in Mr.,
Van Buren, the President OF the United States.
But, sir, the practice which you condemn may be
justified ON yet higher ground Il is useful to the
public as well as the bank Nvt only is il the sole
condition upon which the public could have The tull
benefit Of these in>litu ious, but renders much OF
the money which would Otherwise be idle active
and efficient. Oae Of The acknowledged advantages
OF banks is, that by collecting into one reservoir all
the litle sums in lis neighboIhood the money which
would for time be valueless, is made TO perform
useful service. Ii such is the benefit OF small de-
posites how much greater is that OF the larger de-
posites of The government By the two geiher il
is clear that banks effect great economy in The use
OF money and either enable The community 10 make
the same amount Of exchanges with smaller
amount of the circulating nedu or make the
same amount of the latter perform greater amount
oil business
sitore, OF The public revenue you think would be
that il would stimulate the eaerisons OF those nsli-
tuons and their sockhold,r rs 10 the increase of,ax-
alton and The accumulation Of public revenue. And
do you really believe thai such would be The conse-
quences1 Suffer me, then, SIR, TO quiet the fears of
your mis-born zeal for economy.
In The first place, If the stakeholder owns but few
shares as is the case with the far greater number, he
would have TO pay more by reason Of the increased
Ia xalion than he would receive ir the increase Of
his dividends Then if the public expenditure
should increase with the increase of revenue, he
would have no additional dividends to compensate
his additional taxes. The influence Of the whole
class Of stockholders must also be very Insignificant
when compared with the influence of all The other
classes and lastly the number banks Interested in
lessenng the amount OF public deposites would
greatly exceed the number of those interested in ia
creasng them. The deposite banks in 1887, just
before the suspension amounted 10 30, while those
who did thus share the tavors Of the government
amounted to upwards of 100. Now, II is we'll known
that in the same degree that bank is The depository
of The public revenue, it has the means Of collecting
The of the neig ghboIing banks and equenlly
of lessenng their amount Of specie. A feeling of
selfdefence, therefore, would make them 700 banks
as much opposed TO large accumulations Of the pub
lie revenue, the favored banks could desire it,
and thus the preponderance Of bank interest, what
ever it might be, would be exeIled 10 lessen taxation
rather tha 10 increase it, The difference would be
yet greater if the Treasury, instead Of being allowed
To distribute its favors among SO large number, Tor
The purpose Of enlarging The share of government
patronage should be restricted 10 some 20 or 30
principal banks and their agen,s tiust sir, that
you may then dismiss your patriotic fears OF heavy
taxation from this source
In my next letter shall proceed TO consider your
other objections.
ONE OF MANY.