The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-06-12
THE FIscAL AGENT.

THE FISCAL AGENT.
The views of the President, in relation 70
fiscal agency, Swallowed forth in our paper OF
Tuesday last, commend themselves to every
one who feels the necessity of better system
than the present, and who may conscientiously
entertain constitutional objections to National
Bank like either of the two formerly established.
We are happy to find that they are extensively
approved.
The right of Congress to chatter a corpora
ton in this District is clear and undisputed--
there are no scruples any where on this point
The right Of the States 10 establish corporations
within their limits is also clear, and has been
too long exercised to admit of doubt. II is
the Union Of these powers, which the President
contemplates, as being perfectly feasible, clearly
constitutional, and as likely to produce, on this
subject, the happiest results. #n."5ars
With the mutual consent Of Congress and the
States, an institution can be created, which will
answer all the purposes desired by the friends
of a sound and uniform currency, and of a safe
and convenient depository and agent of the pub
lie funds, while, at the same time, the manner
in which we propose its creation, will assuredly
free il, more than any other system, from the
strifes of party, and the fluctuations consequent
thereon.
The only objection we have heard against il
Isl that il is not practicable thing for the States
to enter into an agreement or compact on this
subject. Let it be tried and if the States do
not, sooner or later, give their assent through
their Legislatures, then it will be because the
people do not want the benefits which such an
institution would be capable of bestowing.
And if the people do not want those benefits. as
suredly none will be hardy enough TO force them
upon them against their will. But there is
scarcely Legislature in the Union which does
not almost every year, charter banking corpo-
ration within its borders. How easy, therefore,
if desirable, would it be for these Legislatures,
instead of continuing to multiply local banks, to
give different and more wholesome direction
to this propensity. We do not contemplate the
destruction, or even neglect, of State banks, nor
would we propose that the branches Of Cen
trail Fiscal Institution should be made to supply
their place, or be permitted to discount accom-
mediation paper. We would have the State
banks supply the local currency and the local
wants. The fiscal agencies, while they supplied
a national currency of uniform value, should be
confined in their operations to the business OF the
Government, and the purposes Of commerce
For any thing beyond this the people should
look to the banks of the State.
The concurrent action Of the Federal and the
State Governments on this subject, is capable
of producing an Institution free from all consti-
tutional objections, and from which the friends
of popular liberty would have nothing to fear,
{, but much to hope for Under the supervision
I of Congress, it would be beyond the reach OF
the Executive, and while it would answer the
: best purposes of Sub Treasury and National
Bank, it would be free from the alleged dangers
of either. 1t would be a Peoples Institution
created by them, and liable to be uncreated by
the same power controlled in part by the Peo-
pies agents-holding in deposite for safe-keep-
ing the Peoples money--facilitating and cheap
ening tn. operations of their own Government,
and supplying currency always convertible in
to gold and silver, and Of uniform credit and
value wherever it may circulate. a.5
We believe Fiscal Agent of this sort is per-
fectly practicable and desirable. 1t is one upon
which all the real friends Of the Administration
may unite without any sacrifice. And we may
infer from the report of the Secretary of the
Treasury, that that officer when called upon,
will present plan, possibly as free from consti-
tutional objections from any quarter as the out
lines we have suggested.