Southern pioneer, and Carroll, Choctaw and Tallahatchie Counties advertiser. (Carrollton, Miss.) 1840-1842, 1841-06-12
LETTER FROM Ex-PRESIDENT MON
ROE.
New YoRx, Jan. 90, 1881.

Dear Str: The confidence have in your
recfitude and patriotism will induce me TO
give an explicit answer TO the general inter-
rogatories contained in your letter of the 7th,
though fear that my continued weak state of
health will make it less satisfactory than il
otherwise might be, especially as have none
of the official documents with me which are
calculated TO illustrate the subject.
You ask me what is my opinion of the eff.
feet which the United States Bank has on the
national currency, and as TO the policy of re.
newing its charter? what the situation of the
Government, without its aid, during the last
war! what its general advantages in regula-
ting exchange, in facilitating rernittances to
individuals, and its general Importance
When the old United States Bank was first
Instituted, was one of those who voted a.
gainst il in the Senate. | doubted the pow
er OF the Government, under the Constitution,
to make such an establishment, and was fear
full that the influence which it would give to
the Government, over the moneyed concerns
of the Union, would have a very improper
effect on our free system. The bank was in
stituted soon after the Government was adopt
ed, period when the question of the relative
powers OF the two Governments excited
great feeling, and divided the Congress of the
Union into very jealous and violent parties.
was of that party which construed the pow
ers OF the national Government strictly, and
sought to impose on il correspondent restraints.
So far as any change has taken place in my
opinion, it has been the result of experience,
and prompted by belief that such change
would give strength 10 the system, and not
weaken or endanger it.
| Between such a bank and any arrange
Iment which the Government can make, the
alternative must he between bank of the
Government itself, and under its exclusive
control; reliance on its own resources and
surplus funds, deposited in a manner TO pro-
lduce the best effect; and a dependence on the
banks of the several States. i have no hesita-
ton in declaring il as my decided opinion,
that neither of these could accomplish the
great objects contemplated, and that each of
them is liable, in other respects, to the most
serious objections. To bank Of the Govern.
ment, this remark is applicable in both views.
and with peculiar force in the latter If con-
fined to the metropolis, it could not extend its
d scounts beyond very limited circle, nor its
agency as a depoSite for the revenue received
IN the several States, nor for remttances 10
individuals; and for other objects it would be
equally limited. Such an institution requires
an active supervision by those for whose bene-
fit it is intended. The regular official duties
OF all the departments in the Executive, rem
del it impossible for that branch to perform
that service without an interference with
those duties to the injury of the public. If
branches should be established, their position
might enable them to remedy some of the de-
fects stated, but they would accumulate others
efmuch greater force. The interference with
the constitutional and regular duties of the
Executive would, in the same degree, be in
De- H,k Ia
evil. A bank thus instituted being under the
control Of the Executive. by the appointment
of its directors, and, in all its operation, might,
in the hands of bad Administration, be
welded as an instrument to sap the founda-
ton OF the Government ITSELF Appeals would
be m ide to the Government from every part
of the Union for its influence in obtaining
discounts, and thus seduction might be prac-
tised to great extent for the worst purposes.
The influence would be reciprocal. Those
connected by such tie with the Government
would be looked to for support at elections,
who would not fail to render it. Thus the
revenue of the nation, raised by taxes on the
proper objects, to support their free Govern
ment, might be made an instrument To its
overthrow.
The second alternative suggested, a reliance
on the surplus funds, for the accomplishment
ofthe objects contemplated, it must be obvious
must fail in every instance. The revenue of
La government is generally limited to certain
specified objects, according 10 an estimate for
each, and to which it is appropriated. The
fund raised sometimes falls short of the OBJ
lject; it seldom exceeds it in any considerable
amount. For the want of surplus, it must
lie idle in the Treasury until appropriated,
and if appropriated as provision for an en-
lergency-for war, for example-it must still
lie idle until that event occurs, or be loaned
out. II could not lie idle; the whole nation
would revolt against it; and, if loaned out, it
might be impossible to obtain it when called
4 for, and might even be lost. In this mode, the
regulation of the value of the currency, of
Exchange. and of rendering service by facil-
IIifaiinp remittances would be ahortive. The