Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1842-05-14

] repositories Of the public money, which would no.
o,iv ,spdcr II safe, but would at the same time
secure to The Government and 10 me community
at large the couveniences and faciities that were
intended TO be obtained by Incorporating the
Rank Of the United States. Measures were &C
cordlngy taken for the purpose, aud copies oil
the contracts which have been made with Inc Sc
lec,ed banks and Of the letters OF instruction TO
them from this Department, are herewith submit
ted > The State banks selected are al tnStt'
tutions of high character and uHdOubtsd Strength,
and are under the management and control OF
persons Of uagucstioned Probity and intelligence
The banks selected have also several
enpaged to honor each others notes
and drafts They providing general curren'
Gu at least as sound as that of the Bank Of the
United States, and rrW afford facilities TO com
merce and in the business Of domestic erchdnSe
quite equal to any which the community heretofoFe
enjoyed."
The italics are my own; but who cnn longer
doubt that the Administration and It's policy were
The greenhouse Of the State and local bank sSs-
tenn? If the People have been deceived, who Did
ed in the deception After language like this,
coming from the organ OF the Administration,
had been spread before the people, nothing short
Of stubborn InfidelIly tho subject could have
resis ed the confidence, which every where pre-
vailed in the issues of the local and State banks;
and none but superhuman powers could have
prevented the operation Of the temptation that
was presented TO the Legislatures OF the states
TO seize what many Of them honestly believed to
be the golden opportunity OF enrichIng themselves
and the country by the creation OF banks where
ever thew were dema nded. The notes OF the Bank
Of tho United States had maintained for forty
wears a specie value. The People were promised
lha, the local and State issues should be- "quite
equar' to such paper. The banks which were
soon after created had the public confidence in
advance. Let now SEQ what instructions
were given the local or deposlte banks retcr-
red to by the Secretary of tho Treasury.
have selected from the mass the one TO the
Girard Bank of Phiadel pha, the recen, fate
OF that bank and the effects produced by its eX-
plosion now fresh ia the recollection of the SEN
ate III illustrate the subject with peculiar force.
/ read the whole letter, as 1t Is short, and as
desire those who may do me the honor TO read
my remarks TO have Il before them:
TREASURY DEPARTMENT, SEPT 20, 1888
Sir: The Girard Bank has been selected by
this Department as the depository OF the public
money collected in Philadelphia and its vicinity
and the collector at Philadelphia will hand to
YOU the form of a contract proposed to be execu-
ted, with a copy ofhs instructions from this De-
parimcnt. la selecting your institution as one
of the fiscal agents Of the Government, not only
RELY on lis soiiiity and established character, as
2 affordine a sufficient guaranty for the safety oil
The public money entrusted to its keeping, but
, confde also in its disposition 10 adopt the most
liberal course which circumstances Will admit to-
+ wards other muneyed institutions generally, and
particularly 10 those in the city at Phiadelphia
6 The deposites of the public money rcH enable
you to AFFORD increased facilities to commerce, and
: to ertend your accommodations to indiriduais;
and, the duties which are payable to tho Go"
erument arise from the business and enterprise OF
the merchants engaged III foreign trade, It is out
/ asonable that they should be preferred IN the
3 additional accommodation which the public depos
ties will enable your institution to give where II
can be done without IL justice 10 tho claims Of
: other classes Of the community.
| am, very respectfully, your ooedient servant
, Secretary of the Treasury.
, To the PRESIDENT Of the Girard Bank, Phha
mIuht m lliplv the facts and evidence on this
{ point 10 a great extent, but desire 10 condense
as much rs possible for wish to be read as
we'll heard. Now, sir, for the consequences
. Of this policy.
PIub,us. the author of valuable pamphlet recent
ly published in New York, Mr.. BUCHANAN: Who
. is The authorl Mr. SMITH: | cannot say; II has
= been suggested to me to be from tho pen Of Mr.
f Gallatn but do no: assert II. tor do not know
g entitled "The Crisis and The Remedy upon
this point says:
at is now twelve years since the mandate wen
forth, in tho message TO Congress oil December
= 1899, to destroy the credit and financial system
of the Union. The first experiment resulted IN
the nordnate multiplication OF irresponsible STATE
banks; and the consequent excess OF their paper
led TO The issues Of most OF stocks OF the " est
t ern and Southwestern States, and the creation
a OF the greatest portion of their present heavy
5 Indebtedness. For cannot be too often re
d minded Of what should never be forgotten, that
: during the ten wears, from lS2o to 1851, whiie
u a National Bank existed, only twenty-five state
e banks were created, with So, 900 OF capital
}. whereas from 1880 to 1910, during The preva
}, lence of the State bank system, the authors o.
: which now call themselves the supporters OF
q specie currency, three hundred ana tor'v-eIgh
4 new banks were created, with S26So0o,ooo o
c capital: and during the wears OF 1883 and 1886
o and part of 1887, while this system was al lis
: height more than one half of the whole amour
: of existing State bonds created, comprIsI ng
: nearly the whole OF the stocks of those States
: whose inability to pay Is now apparent, al Ieas
e whose situation is becoming bat too critical
Mr. President is 1t a matter of surprise thai