The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-06-05

site Of the public money and the salaries OF the OH
GERS and their clerks who receive and dSourse ~
portion Of this risk Inconvenience, or expense hesu
10 be incurred where we'll regulated Bank Is made
the fiscal agent. ~,
But the present system is also IN the opinion Oh the
undersigned injurious TO the business and currency
Of the country. Instead of permitting the credit
and the finances Of the Government 10 lend Their nd
rect but efficient aid in sustaining the credit ana iegu
lang the currency OF The country, bings mo ueot
hostility those important interests In the progress VI
the system sufficient amount Of gold and silver TO
supply the wants of the Treasury must be Withdrawn
from circulation and locked up in vaults, leaving no
representative To supply It's place IN the general ceu
laiion. A large amount, also, in the hands OF those
who pay or receive from the Treasury Is equally
withdrawn from general circulation, an made TO How
through those channels alone which lead into, ana
out Of the public Golfers. The other avenues OF com
merce and intercourse thus deprived OF their pro-
portion OF the precious metals
Within the ffty-two years during which our con-
stituional Government has existed we have had Tor
two periods of twenty years each Bank Chartered ny
Congress-, as depository Of the public moneys and
as fiscal agent. We have had, also, at two inter-
walls amounting to about nine years, State Banks en-
ployed for like purposes, and during the remainder Of
the time the funds of the government have been kept
and the finances administered PATTY by banks aud
partly by individual officers OF agents The losses,
sustained by State Banks repositories during the
fra period Of their employment extending from 1911
to 1876 agreeable 10 statement prepared by the De
creary of the Treasury In 1888 and revised and re-
published in 1887, 81 000676 Ia the latter pc
Rod from 1888 to 1887 though actual loss is he
eved TO have occurred, yet the Treasury and the
country suffered Inconvenience and embarrassment
from the fiscal arrangements with those numerous anu
disconnected institutions. But during the forty years
that the two Banks of the United States were the de-
postores of the public money and the fiscal agents oil
The government, no loss whatever was sustained, nor
any delay, any expense incurred in transmitting or
disbursng the public moneys SO far as The agency OF
those institutions extended. Then as regards the
wants of the Treasury merely, the safety OF the pub
lie funds and economy IN Their administration, expe
ence has demonstrated the superior utility OF Bank
constituted and adopted by Congress fiscal agent
IL has ALSO proved that the active business the
country; its currency its credit its industry and ITS com
mercc intimately connected with, and dependent
upon the financial arrangements of the General Go
yernment. Ii they be wise and benefcent they indi
recy, but efficiently promote those great interests OF
the people, If constant and uniform IN Their action
they give TO those interests confidence and stability.
Since the removal of the public deposites from the
Bank of the United States in 1888, the Government
has had permanent fiscal agent and no definite
financial system All has been experiment, transfer
and change. The business OF the country has yielded
10 the unsteady impulse and moved forward with wild
iregulary; at one time, stimulated TO excessive ac-
ton at another, sunk into lehargy. And in provi-
ding for the wants of the Treasury is surely impor
tant to look also TO the wants and the welfare OF the
community from the products OF whose Industry tue
Treasury is supplied.
md AS regards those great interests, find the
testimony of past years less distinct and strong
in favor of money ed institution, chartered ny the e
neral Government and possessed of its confidence
and credit The period, embracing the asst ten years
OF the existence OF the late Bank of the United States
the fiscal agent, is fresh in the memory OF us all
and Is locked back TO period of great public pros
perty and, though other causes did doubtless, CO
operate to produce that favorable condition OF things
hl.l
the steady advance of the country in commerce. IN IN
dustry and in substantial wealth. was the existence OF
fiscal agent established by the General Government
and charged with the equalization of exchanges and
the regulation Of the currency.
In the present condition of country the relief TO
be anticipated from such institution cannot be inn
mediate, but must be the work of time; the business
of the country would however in the opinion of the
undersigned, steadily and certainly revive under lis
influence.
In whatever point Of light the undersigned is able to
vewithis subject he is rcsistibly led TO the conclu-
sion that such fiscal agent framed TO possoes those
important functions is alike essential to the wants OF
the Treasury, and of the community Such an insti-
tuition should be framed with deliberations for it must
have high duties perform and extensive Interests to
protect and promote; and it should be granted with
care for il will be liable TO great and dangerous abu-
As the fiscal agent of the government, and eff
fective regulator of currency in widespread com
munity, il should be steady and uniform in its action
and liked and stable in its character.
The undersigned has no doubt OF the power OF Con-
gress 10 create such an institution. Experience has
proved its necessity carry other expressly grant
cd has been exercised and recognized by the
Legislative and Executive Departments of the govern
ment during four fhs of the whole period Of our
tional existence and II has received the uniform
ton of our highest judicial tribunal.
ct that power has been questioned by many wise
and patriotic statesmen, whose opinions entitled to
consideration and respect and in measure like this
Of high political import, which, if wisely conceived and
cordially concurred in must have agreat and cndu
mig influence the prosperity of the country, IL is
Important as far possible, obyate objections and
reconcile opinion.
II such an institution be conceived in prnci-
pie and guarded in its details to remove all scrupes
touching the question of constitutional power, and
thus avoid the objections which have been urged
against those heretofore created by Congress, it will
in the opinion of the undersigned produce the happest
results, and confer lasting and important benefits
the country
The undersigned, therefore, respectfully recon-
mcnds the of such fiscal agent and the repeal
ofthe act Of July 4, 1910, providing for the collec-
ton, sae-keeping transfer and disbursement Of the
public revenue, except the penal provisions thereof
which WILL probably require revision and modlhca
ton.
All which is respectfully submitted
4. EWING,
Secretaryof The Treasury
Treasury DEPARTMENT.,
June 3D. lS4l