The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-10-21

4 A
specie or the notes without Inconvenience or loss
10 the hanks or TO any one. la the present Zee
Bile condition Of the State banks, weare told they
are unable, with an aggregate capital OF seseM
hundred millions, 10 furnish specie enough "
pay one-half or fourth of the annual revenue
Of fifteen or twenty millions. Until they arc
compelled 10 redeem their issues IN specie ~
the laws of the States, il would be visiting me
delinouencies of the banks on the people 70
collect any considerable portion OF the revenue
in specie But portion oil the revenue m'ees
be thus annually collected. which could DC grad
ually increased with the improves e',na,,Sa =.
the banks, until finally the whole could Re pane
without inconvenience. The hanks now hoard
nearly all the specie Of the country without re-
deeminp their notes. The collection al any
part Of the revenue IN specie would impose on
the banks the necessity OF rcdeeming 81 much
of their issues as would furnish the amount re-
quired for this purpose. The importer who held
their notes would demand Of them the specie
in exchange for their notes. which the Govern
ment exacled from him, and when the banks DC
come able 10 redeem their issues geneEaiis, We
should hear no complaint, either from them OF
from the holder Of thesr notes, II the whoae Is'
enue Were thus collected. Why should me oo-
yernmeni or an individual be required 10 receive
an irredeematle bank note, or 10 receive the note
al a snecie- having bank without the liberty Oh
demanding srecie for i'll The revenue must be
collected either in specie IN BANK notes IL
m hank notes, the specie may be demanded Tor
them so that unless the banks are forever 10 Is
sue an inedeemable paper il only remains 70 De
determined whether the specie shall be iur-
nshed in the first instance TO those who pay the
duties 10 Government or after the duties nave
been collected in bank notes, they shall furnish
il 10 the Government Our State laws provide
that bank notes shall only be received In payment
10 Government so long as they are redeemed IN
specie. So far, then, as the collection OF the
federal revenue is concerned, its gradual conec-
lion in specie would exert more beneficial and
less dangerous influence over the State or ma
tional Bank system Than collection In bank
notes The Government would have less con-
troll over the banks, the banks would be Under
more wholesome and regular check, resulting
from the necessity of charging their real capt.
raj and Of regulating their issues on sounder
basis Of gold and silver. BY this mode OF col
lecting lis revenues, the Federal Government
may aid in strengthening the present banking
system, and if its efforts are seconded by the
State Governments, and the laws will be en-
forced against suspensions, the necessity Tor
United States Bank, now ascrbed TO the deiec-
tive State bank system, will soon cease.
As to the custody Of the public money, when
collected, all that is wanted is safety. The State
banks would keep the revenue as safely as u
S. Bank or as sub Treasures. The only cause
for apprehension from using any bank as the de-
pository of public money, is found in their en-
ployment of il for banking purposes, in the
union OF the funds of the Government with the
funds Of the corporation. This is unjust as well
as injurious. Unjust to the Government and
people, and generally 10 the end injurious to the
banks, the people, and the Government. Under
the true theory OF our Institutions, there can be
no distinction between the people and their Go
vernment. But when Government collects taxes |
from the people, and allows corporation TO lend
their own money back to the people, It IS easy
10 perceive that they are the dupes and victims
of an unnatural combination between their Gov
eminent and the banks. The banks are stimu-
lated by the general deposit Of the public money,
10 over-issues, and thus, instead OF restraining
the evil tendency now SO much complained OF IN
the banking system, Government encourages It,
This can be obviated by separating the money
of the Government from the funds OF the banks,
by means Of special deposile-a cheaper and
believe a safer mode Of custody than has yet
been devised. II ensures 10 the Government a
return of the precise fund, whether of gold and
silver or of bank notes, which has been collected
and deposited, whilst it wthholds nothing from
the banks 10 which they are in any sense emit
tied. Ii enables Government TO change the Gus
tody of its revenues, and TO transfer ITS funds,
with less Inconvenience to the banks and with
less risk to itself 1t secures the benefits and
avoids the evils anticipated from separation OF
bank and State.
But hear some one exclam what is done to
make money plenty in a lazy mans pocket by
collecting the revenue in specie, strengthening
the State banks, and depositing the public mo-
ney especially with them? There is no relief
in all this 1 ask, what relief can be afforded
what is desired, from the action OF the Federal
Government After all, 1t is impossible tor Go
vernment to regulate the private business OF the
citizen 1t may, by equal and just laws, afford
protection to private enterprise. Ii may afford
facilities for the transaction Of our business
But Government of limited powers cannot re-
gulate the price of bill of exchange any more
than the price of hogshead Of tobacco. II
cannot fix the standard Of value for deprecated
bad paper. The object OF Government Is re-
straint, first on the arbitrary will OF those who
administer its high trusts, and next Of the will
of individuals In our scheme Of Government,
il has been attempted TO impose as much on the
one and as little on the other, as was compatible
with the general welfare of society. II the powers
granted by our constitutions to Government shall
fail to accomplish their great ends, the mode has
been designated by which the supreme Will that
created may alter or amend them. Is II not
safer to resort to this power of amendment when
any great necessity is supposed to demand the
exercise of powers not granted, than TO obtain
them by the construction OF a majority who as
agents under the constitution may enlarge their
own powers at their own pleasure, and alter the
original plan of the Government TO suit their
own caprice Inc CONSTITUTION 10 'he ohiy
bulwark of the People against the ambition Of
rulers, the only protection Of a minority, the on
" restraint on majority. BY amendments,
where the powers granted are found inadequate,
they NAV be enlarged under such salutary re-
straints as the will of the whole shall prescribe.
But when power is assumed under the subtle
process of construction, II is taken not as the
prantors choose to confer it, but as the grantees
think proper to have it, The Constitution
is worth more TO every man in the United States
than all the banks. BY stretching its powers