Newspaper of Burlington Free Press, September 8, 1837, Page 2

Newspaper of Burlington Free Press dated September 8, 1837 Page 2
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V E S S A G E ntM miii; IMIF.SIM4NT OF TIIH tJNMTHD STATUS, 7'i f7ie ii'' Ifauir.t ')" Omgrm. nt the nwi mrnrt mini nflhr.J'irU icsttvn of the 7W'i. tiJi'th (!n:;rnn. fallow ('ihsriiii vf the Scmtc mill llnitit: of llrprestntntiw : 'I'lin m tit of i ho '.Mil iilMuiii! tlWij, rcgo'i. ling the t.'io-iies of I lit! public motley, uinl liriM'riiiu lh einplnyili'Mll of (Slate Oit-tricl uinl I'if ru 11 rial Bulks Cor Unit purpnso, nude H the ilmy til' t fin Secretary nf tin' Treasury In discontinue the mu of such of them n-i should itt any lime refuse In redeem tlioir it'll en hi specie, nnil to substitute oili. it banks, provided n sufficient unitib.tr could ho obtained to receive the public ilu-- llOiitCS Upon thutorilHrilld 0 HnlllloiHllluriJ in prescribed. Tho L'nnor.il mid iilui ist simultaneous su-qi ii-ton of specie paym Mils liy lilt! I'linksin May lnt, rendered tho nor. I'nrnniiciH of this duly imperative, in ro s'jicct to those whirh had boon selected tin dor tho act; and made il. ut tlio srt nu lime, impracticable lo cnip'oy t roqusito nuin bor nf iHIits, upon I ho prescribed condi tions. Tim specific, regulations established hy Congress for tho depo-llc and safe keep ing of I ho public money , having thus iin-".vp-cti'dly bi'com innparr'.live, I folt it. to bo inv doty to nfi'ird yip an early opmrin nity for the e.orci-o nf your Mipuvtsiry power over ihe subject. I wns also led to npprolioml that tho sus pension of specie payments, increasing llm embarrassments before existing in tlio po cuniary affair's of tho country, would so fur diminisli tlio public revenue, t hat tho accru tug receipts into the Treasury, would u it. with tlio rosoyrod livo millions, bo sufficient to dolrny the un.i vndiblo tw pence i)f the Gove.riuiieni, until tho ii-oal period for tho niee ling of C it.gro--s whilst tlio authority to call iiinu ilio S'ntos, for a portion of the minis deposited with them, was ion restrict ed to enable tho I) partinoiit to realize a sufficient tun unit Imm that source. Those apprehension-- have neon jii-tiliod by nib. tiequout re-ulis, uliicb render it oenmn ib.it this dellioioucv willoorur. if additional means b tun provided by Congress. Too difficult ios experienced by I ho mer cantile iniere-t, in uifctii'g their engage inuius, induced them to aonly to ui' previ ously to the actual riwpi.ui-iou nf sjiecic Vaymeut", for indulgence upon their bonds fordone-; and all t lie reliol'aiitliorized by law was promptly and cheerfully granted. The depetidauoo of ilio Treasury upon tbc avails of (hew bonds, to enable il to make i In1 depiisiii'-i wit h t ho Slates required by law. led mi' in ihentrsot to limit tins indul gence, to ihe first of September, but it has hiico been extended to the first of October that ihe matter might be submitted to your lurliier direction. Questions were also expected lo arise in ilio recess, in respect to lie; October ttistal incut oftho-io depo-uos, .squiring the in-terjio-iti"ii of Congress. A provision of another act. passed about the same tiuio, nurl intemli'd to secure a tVithful comp'taiwe with, tho obligation ol t ho Uiiiied States, to tat'fy n l demand:! upon iIkmii in specie or its equivalent, pro hibited Hie oHor ol any hank note, not con covert ible on ilio '.lot into gold or solver, at the will of I he holders ; nod tho ability of Hie (loveriiinent, v.itli millions on depostle, to meet in eiifraenient.s in tlio manner I hu- required by law, w;h rendered very iliiubtful by lie event to which I have re ferred. Sensible, that adequate provisions fir iltohc unexoeciod exigencies could only be made by Congress; convinced IhatHoincof I hum would bo indispensably necessary to t lie public service, before the regular po und of your meeting ; und desirous ulso to enable von to exercise, at the earliest mo. inent, your full constitutional powers (or t he rebel ol the country, I could not, with propriety, avoid subject iiiij you to the in convenience of !i-uinblintf at as early a day hi the state of the popular representation would penult. I am sure that 1 have done but io-lico to vour teuliiii;- in believing that this inconvenience will be cnocrfolly en eouiiierod, in tiie hope of rendering your meeting cutiuucii'u to the good ol the conn, try. During the earlier stapes of Ilio icviil sion lb rough winch wo have josl passed much acrimonious discussion arose, and great diversity of opinion existed, as to its nmi cau-es. i In-- w.i.s not surprising. I lie operations ol croon are so diversified and the influence which a fleet them so no ineruii--, and olten ro subtle, that even mi partial and well informed persons are sel dom found to agree in reflect lo them. To inherent dillieulties were also added other tendencies, winch were bv no means sihlo I" tho discovery of truth. It wa hardly lo b e.pcc'ed, ihat those who dts approved the policy m the tioveriimeni in relation to ill- currency would, m tho ex miod stole ol public fesding produced bv ihe occasion, fail to attribute to ih.it policy iiuy extensive i;inIaau-uiont in the mono lury nll.urri ol the country. I he m.iitor thus uceainij connected with tlio pis-ions nnd conflicis cif party: opinions were more or less directed by political con.-nleratious ; and differ iiclV were proloiiged, which might ot herwi-o I'.mve been determined by an appeal to f.icts.li v ill i exercise of tea-on, or liy mutual enures ioii. It is, however, n cheering reflection, thai circumstances of ibis nature cannot prefeut a community so intelligent as mm, from ultimately arriving ot correct conclusions. Mncoiiragcd by the firm belief of tins truth, proceed to siato my views, so far as may lie nerfiary to a clear understanding of l In rriincilies I feel it my duly in propose, nnd of llm reasons by winch I have been led l rentuiunoiid litem. Tiie lii-lnry of trsde in dm United State for the last three or four yearn, tillbrds the jdi-counls of the banks In three bundred I bo capaldo of affording thoui. Altbotigh ami t wenl v four millions. Hoi ween that advantages of this n irt were anticipated tuiio and llm lirM oi'.lnnuary, IflJG, le'tng when Ilio (iral Hank of I ho United States the l.iten period lo winch accurate ac- vvas created, tliey regarded it as an inci counts have been lecetvud, our biiikuigi dental acconunoil iliou ; not one which the capiMl was increased to iniru than two I Federal (iovvrinnont was bound, or could humircit anu titty tiuo millions: our paper Circulation to inoru than one hundred and forty millions nnd tbu loans and discounts lo more than lour hundred ami fifty. -even iuUioii?, To this vast, tnerca-e uru to bo added tho many millions of credit acquired by means of foreign loans contracted liytbo States anil Slate institutions, and above all, by the lavish accommodations extundjd by by foreign debtors lo our merchants. be called upon, to furnish, this necotui' datum is now, indeed, after the lapse of not uinny years, doiuandod Iroin it as tunoiig its first duties; and tin omission to aid and regulate commercial exchange, is treateu as a ground of loud and serious coinnlaiut. Such results only serve to exemplify the constant desire, iiinoiig mouiu nf our citi zens, to enlarge tlio powers of the G ivorti nt, and extend its control to Biibjecth Tlio coiisetnionces of this redundancy of wild winch it. should not interfere. Tney vredit, and ol'tbo spirit of reckless speculation i can never jitslifV the creation of an insll engendered by it, wuro u foreign debt, eon. ttj,m i nromoto such nb'picts. On tlio muiiuu ny mo 1'iiiv.mis, esiiiimiuii in contrary, thcv pistiy cxcito among too last at more than thirty inillions of dollars ; i cnmmilmtv a ,;,0f',. ,),ig0nt tnqnirv into ilio the extension t, traders it. the. t.terior nl ourl cmrucler'of ,h,e operations of u.ide. to eonntry; of credits lor supp .es great y beyond I j , , , , d d suc,, the wants ol the people; tho in vestments ol , ,vu,un w" tlnrty-nino and a half millions of dollars in "-'Cltar lavors. uni.rodiictivo public lauds, in the year iSWo Tlio various trnn.mclioiia wlueb bear the and If 3D, while in tho preceding year tlio 1 "nine of domestic exchanges, differ osson. sales amounted to only four and a half mill. ttally in their nature, operation, and utility, ions, the creation of debts to an almost count. One class of them consists of bills of ex lens amount for real estate in existing or change, drawn for I ho purpose of trans anticipated cities and villages, equally unpro- forring actual capital from one p irl of the duetivo, and at prices now seen to have been culnitry to another, or to anticipate the greatly disproportionate to their real value ; 1 proceeds of property actually transmitted, the expenditures of immense sums in improve-! i,s 0f tMH de-crtpHoo are Inelily useful incuts, which in many cases havo boon found jn tjlc moV(,m(,ts of trade, and well de to ho ruinously improvident ; tho diversion , ,,ncourago...ol wnicb can toother pursuits olinueb ol he labor that, b " , A , should have been applied to agrieulturo, 1 " . , " ,., ,. .. , ,i i,, itriiiMiiiiir I.. ,i n,n i class is Hindu tin of bills ot exchange, not largo sums in the importation of erain from drawn to transfer actual capital, nor on thu I'.nonn mi nvoniiilitiiri, iimniiiiiiti-r in l.-:t I , credit, ot oropertv tr.nHiintieil, uut to ere to about two hundred and fifty thousand dul- a'" tietitioos capital, partaking at once of lars; mid, finally, without enumerating other tho character of notes discoiuiteo m haul;. injurious results, the rapid growth among all and ol bank notes to circulation, anil owui classes, and especially in our great connner-; jnr t iio mass of paper credits to avast cial towns; luxurious habits, founded too oil- (xtent in the most objectionable manner. en on mere latieied wealth, and detrimental ! These bills have formed, for the last few alike to the industry, thu resources, and tho nrooortion of what are .Mm.ii- m uiu uujiiu. Iii view ol thoso (acts, it won'd seem imjiossible for sincere inquirers uftor truth to resist the conviction, that th; causes of the revulsion in bo'h countries havo been substantially the same. Two nations, the most commercial in the world, enjoying but recently the highest degree of aiqia- rnnl prosperity, and maintaining with each other the closest relations, are suddenly, in a time of profound jieaee. and without anv great national disaster, arrested in their ciroer, anil plunged into a state of embar rassment and distress. In both countries we have witnessed the same redundancy of atier and money, and other laciltties ol credit; ihe same spirit ol speculation : the same partial successes ; the same dillicol- ties and reverses, and, at length, nearly tiio tame overwhelming catastrophe. The most material difference between the re. ults in Ilio I wo countries has oulv been, that, with us there haslalso occurcd an ex tensive derangement in the li.-c.il nfiuirs of the rederal Governments, occasioned by the suspension of specie payments by the bank-. The history of these cause anil effects, in Great Britain nnd the United States, is ubstantially tho bi.-lory of the revulsion in all other commercial countries. The present and visible effects of these circumstances on ihe operations of tin; Government, and on the industry of the people, point out the objects which call lor your immediate attention. They are lo regulate bv liw the safe ioeping. transfer, and disbursement of the public moneys ; to designate the funds to be received and puul by tho Government ; to enable the Treasury to meet promptly every demand upon it; to prescribe the terms of itidolg''nce, and the mode of set tlement to be adopted, as well to collecting from individuals tho revenue that ha-, ac crued, as in withdrawing it from former depositories, and to devise and adopt such future measures, within tho constitutional competency of Congress, as will bo best calculated to revive the onturprr.'j and to piomolc the jirosperily of the country. r or the dejiosite, iruntor, and disburse ment, of the revenue, Nittonal and State batiks havo always, with temporary and limited exceptions, been heretofore em ployed; but., although advocates of each system are still to be found, it is apparent that the events of the hist few mouths have greitly augmented thu desire, long exis ting among the people of the United States, to Hoparato the ti-eal oieraliotw of the Government from tho-o of individuals or coriorattons. Again to create a national Innk, as a li-ctl agent, would bo to disregard the liopolar will, twice solemnly and unequiv ocally expressed. On no question of do mestic policy is there stronger evidence that the senliui'itiu of a large majority are deliberately fixed, and 1 cannot concur with those who ilutik they tee, in recent events, a proof that these sentiments are, or a reason that they sh mid be changed. K vents, similar in their origin and char acter, have heretofore frequently occurred, without producing any such change, and the lessons ol experience must be forgot ten, if wo siijipose that, the jirescnt over throw of credit would have been prevented by the existence ol a national bank. I'roneness to excessive i-sues lias ever been the vice of the banking system; a vice as prominent in National as in Slate institutions. Tins proponstty is n.s niib-er-viont to the advancement of pri vat rs inter ests in the one as in the other; nnd those who direct tlioni both, being principally guided by the same views, und influenced by thnsiiine motives, will bo equally ready to stimulate extravagance of enteririsu by improvidence of credit. I low strikingly is this conclusion sustained by expuriuuee. The Bank of tho United States, with tho vast iowers conferred on it by Congress, did not or could not prevent former or situ liar euibarrassmeuls; nor haw the still renter strength it has been said to jiossess, most cnnvincillir evidence that OUT jiresOllt under Its nresont charter, eonlileil it in tin. condition is chiefly to be attributed to over. existing emergency, to check oilier insti notion in all the ilepuitmuuiu 4)( bu--nes; unions, or even lo save itself, in G'oal mi over-nclion deriving perhaps i.s first tin poises iron) antecedent causes but .sliintiM led lo its dortroctivo consequence hy ex cessive issues of bank inipor. und by oilier facilities for the acquisition and enlarge ment ol credo. Al Ihe coiiuneiiceineut ).'' i ho yea r lii.U tho limiting capital of the I United Stales, including thai of tho Na tional Hank, then existing, umniinted to iiboiil two hundred miliums of dollars; the Britain, where, it has been seen, thu same causes have been attended with the same elfecls, a nritional bank, jiossessing power lar greater than urn risked lor bv the warm est advocates of such an institution here, has alrii proved unable to (ireveul an undue expansion of credit, and Urn evils thai tlow I'm i u n. Nor e.iii I find tiny tciuhlc ground for the re eOablishnnuil of a na tioiuil bunk, in the deraugi'inent alleged at ertned the domestic exchanges of the country, servin'r as the means ot usurious profit, "and con-tituting the must unsafe and nrecanous paper in circulation, 1 ins ,-ie c.tcs of traffic, instead of being upheld, ought to be discountenanced by the Gov eminent and tho people. In transferring Us funds from place to place, the Government is on the same loot int' with ihe private cilrem, mid may resort to tho same legal ine.ius. It may do si through the medium of bills drawn by it self, or purchased from others: and u tbc-o operations it may. in a tiriiuier uu doobtedly constitutional and legitimate facilitate and assi-t exchanges of indivnlu als founded on real transactions of trade The extent to winch this may be d me. and the best means ol effecting it. are entitled to the fullest consideration. Tins Ins been bestowed by Ihe Secretary of I ho Trensu. ry, and his views will he suuinillcu lo you in his report It cannot he concealed that there exists in our community ojiinions and feelings on this suhjeet in direct opposition to eaen oinor. lario portion of them, combining great intt ligeneo, activity, and inllunnco, are no doubt sincere m their ooliel that tlio operations ol trade ought to bo assisted hy such a connoc lion; they regard a national hank as noeer sarv for this purpose, and they are disincline to every measure that does not tend sooner or later lo the establishment ol such an insti tution. On the other hand, a majority ol'lhe neotilo are believed to hu irrecoonilalil v op. posed to that measure : they consider such ii concentration of now.r dangerous to our III) ei-iii's : and many of them regard it as a viola tion of the constitution. This collision opinion has doubtless caused much of tho em barrassiimnt to which the commercial transac tions ol'tbo country have been o.nsod. Itatil ing hashecomoa )olilieal topic of tho higher interest, and trado has siilfered in the conllir of parties. A speedy termination of this state of things, however desiralilc, is scarcely he cxnected. We have seen for nearly a century, that those who advocate a national hank, hy whatever inoitvo nicy may oe nuin onced, constitute a portion of our community too numerous to allow us lo hojio for an early abandonment of their i.ivontu plan. Until other hand, thev must inileed lorm an erro neons ustiiiiale of ihe intelligence and temper of the American people, who suppose, that they have continued, on slight or isiillieient grounds, tlioir persevering opposition io sue uu institution : or that they can ho induce hy pecuniary pressure, or ny any oiuer com biintion of circumstances, to surrender prin e'mles tlmv have so long and so inllcxibl maintained. My own views of the subject are undoing. ed. They have been repeatedly anil unr servcdlv announced to my lellow citizens who, with full knowledge of them, conferrei upon me tho two highest offices of tho govern incut. Uu the la-t ol'thoso occasions, I fel it due to the people, to apprise them distinctly 1 1 1 a t , III Ilio eveoi oi my uuluuo, t.i,M not ho ublo lo co-opcrato in the reestablish iimnt of a national hank. To these seuli incuts I have only to add the cxiiression an increased conviction, that the ro-estahlis incut ol such a hank, in any lorm, wniisi would not accomplish the beneficial pur po promiocd by its advocates, would impair tho ri-'htful siinromaev of the popular will ; iniiirn the diameter unit diminish tho intlueiieo of our political system ; and bring oiico more into existence a moneyed power, hostile to the spirit, and threatening the orinauciicy of our ropumicaii iiisiiiuiious Local banks have been employed for tb deposit nnd distribution of llm revenue, nt all tunes paruaiiy, nun on iiuuu niiieruni im;l. sinus exclusively ; lirst, anterior to the cstul lislnnoiit of the hrsl hank of thu United Mate secondly, in the interval between tho torini nation ol that institution ami tlio eiiarter its successor ; anil thirdly, during tho limit neriod which has now so ahruntlv closed. The connection thus ropcnlndly ottonilited proved unsatisfactory m each successive oe oasiou, notwithstanding inn various inoasuri which were adopted to facilitate or insuro success. On tho last occasion, in the ye ISIH, the omployiuaut of state banks was guarded, especially, in every way which ex perience ami caution could suggest. Person al security was required for tho safe hooping and prompt pnymunt of tho moneys to be re eeived, mid full returns of their condition were, from time to time, to ho made by tho depositories. In tho first stages, the measure was eiuiuiintly successful, notwithstanding tho violent opposition of the Bank of the U. .States, ami tho unceasing elforts niado to overthrow it. The selected banks performed with fidelity, and without any embarrassment lo theiusulves or to the community, their en

gagements with the government, and tho sys. tern tiroiuiseil lobe iioriiiauoutlv useful. Hut when itboeaiiui necessary, under the net nf J ii ii o, l-!l(!, lo withdraw Iroin them the public revenue for the purpose ol placing inn udili niunt to comply with thu demands of the Treasury, and numerous applications wuro made for indulgence or reliof. As tho In stalments under ilio deposile law became pay able, tlioir own embarrassments, ami tbu no. cossity under which they lay of cut tailing their discounts and calling in tlioir debts, in creased the general distress, nhd contributed, with other causes, to hasten the rovulsion in which, at length, they, in common with tho thor batiks, wore totally involved. Uittler thuso circumstances it becomes our leinnduty to inquiro whether there are not, connection between thu government and inks of issues, evils of grout magnitude, in. nroiit in its vory nature, and against which no precaution can clfectually guard. Unforeseen in the organization ol'tbo gov ernment, ami forced on tho Treasury by early juusauiun, uiu r,iu.iicu 01 uiiijiioying names, as, in truth, from tho beginning, more a meastiro of emergency than of sound policy. v lion wo started into existence as u nation, in addititioti to thu burdens of the now gov ernment, wo assumed all tho large hut honor, able load of dobt which was the price of our liberty; but wo hesitated to weigh down the infant industry oftho country by resorting to idotpiato taxation lor the necessary revenue. Tho faibties of batiks in return for the pri vileges they acquired, were promptly olfcrod, mil perhaps too readily received hy an em barrassed Treasury. Dining the long con. tinuanoo of a national debt, and the iutervuii- lillicullies of a foreign wai,tho connexion was continued from motives of convenience ; but these causes have long since passed away. Wo have no emergencies that mako hanks necessary to aid the wants ol tho Treasury; anil we have no load of national debt to pro- nle tor, and wo havo on actual doposito a irge surplus. No public interest, thorelbre, now requires the renewal of a connection that circumstances havo dissolved. The complete organization of our government, the nbtind- niceof'our resources, tho general harmony which prevails between ilio dilferent states :iud with foreign lowers, all cuahlo us now lo idect tho system most consistent with tho constitution, and most conducive to tho pub ic welli.ro. Should wu, then, connect the L'reasury, for a fourth time, with the local inks, it can only bo under a conviction that ast failures have arisen from accidental, not inherent defects. :V danger, difficult, if not impossible, to be avoided in such an arrangement, is made trikiugly evident in the event by which it litis now been dufeated. A sudden act of the auks entrusted with the funds of the people, ojirivcs the treasury without fault or agency of thu government, of thu ability to pay its This operation could not have bon par It ml of disbursing officers of the Army and lornted, had the funds of the Government Navy, nnd might, bo made entirely safe, 'y gone Into thu treasury, to bo rogitlurly dis bttrsed, und nut into banks, to bo loaned out for their own profit, while tbuy wore permitted to substitute for it a credit in account. In expressing lliepc Rontimcnts. I dosirc not to undervalue tbu benefits of a salutary credit to any branch of enterprise. The credit bestowed on probity and industry is the just reward of merit, and an honorable incentive to further acquisition. None oppose it who love their country and under stand Us welfare. But when it is unduly encouraged when it is made to inllnnu the public mind with tlio temptations of sudden and unsubstantial wealth when it turns industry into iatlis that lead sooner or Inter lo disappointment and distress it becomes liable to censure, and needs cor tcction. l''ar from helping probity and industry, the ruin lo which it leads fulls most severely on the great loboring classes who are thrown suddenly out of employ inent, and, by the failure of magnificent schemes never intended to enrich them, are deprived in a moment of their only resource. Abuses of credit and excesses in speculation will happen in despite of the most salutary laws; no Government per haps can altogether prevent them; hut surely every Government can refrain from contributing the stimulus that calls them into life. Since therefore, cxicricnce has sbown, that to lend the public money to the local banks is hazardous lo the operations of the Government, at least of doubtful benefit to the institutions themselves, and produc live of disa-trous derangement in tho boot ness and currency of the eonntry, is it the jiart of wisdom again to renew the con nuntion ? It is true that such an agency is in many respects convenient to the Treasury, hot it is not indispensable. A limitation of th expenses of the Government to lis actual wants, and of the revenue to those expen scs with convenient means for its prompt application to the purposes for which it was raised, are the objects which should seek to accooi)lisb. Thu collection, safe keeping, transfer, und disbursement of tho public money, can, it is believed, bo well managed bv officers of the Government, Its col lec ion. and, to a great extent, its creditors in the currency which tliey have j btsbursument also, have indeed been hither y law aright to demand. This eircuni- to coiioucieu soieiy oy ineiii; neiiuer na stance no llucttiation of ofcminerce could have lioiial nor State banks, when employed. produced, u tiie jiuniic revenue Had neon col. oetng required to do more than Keep cted in the legal currency, ami kept in that salely while orm ny the ollteers ot tho treasury, the nnd nav it in such norlioos and nt citizen whose money was in bank, receives it hack, since the suspension at a sacrihco in s amount; whilst he wiio kept it in the lo ll currency of tho country, and in his own possession, inirsues, without loss, the current of bis business. The government, placed in the situation ot tlio former, is involved in dil- roqtii'ing such securities, and exorcising such controlling supervision, ns UnngrW tuny by law prescribe. Tho priucil"' ollioers. whns tippointtiieuts would becoin 1 necessary under ih s p'an. Inking Ilio lar gest number suggested by the Secretary of the Treasury, would not exceed ten; nor ilia uddilionnl expenses, nt tho same esti mate, sixty thousand dollnrs n year. Tho inwer and itifluenco supposed lo bo connected with the cjstody and disbursement of the public money, nro topics on which tho public mind is naturally, and, with great pro irioly, peculiarly sensitive, Much has been said on them, in reference to the proposed separation oftho Government from tho bank' ing institution); and surely no one can olfyect to any appeals or animadversions on the sub ject, which am consirtont with the ficts, and evince a proper rcspeci tor ilio intelligence ot the pooplo. If a Chief Magistrate may bo al lowed lo speak for himself, on such a point, I can truly say, that to mo nothing would be more acceptable than tlio withdrawal from tho Executive, to the greatest practicable extent, of all concern in the custody and disbursement of public revenue; nol that J would shrink from any reponsibilily cast upon mo by tho duties of my office, but because it is my firm belief, thai its capacity for usefulness is in no degree (iroinolod by the iessession of any ia Ironage not actually necessary to tho perfor mance of those dulios. But under our present fonn of Government, tho intervention oftho I'xecotivo officers in the custody and disburso moot oftho jniblic money seems to be una" voidable; uod before il can Do admitted that tho iollucncc and power of the Executive would be increased by dispensing with the agoney of banks, tho nature of that intcrven. tion in such an agency must be carefully ro garded, and a comparison must bo instituted between its extent in tho twercssns. The revenue can only be collected by oflicers appointed by the President, with the advico and consent of the Senate. The public moneys in tho first instance, must, tbetfore, in all cases, i.iss through bands selected by tho Executive. Other officers aipomted in tho same way. or, as in some cases, by the I'rest deul alone must alto bo entrusted with thum when drawn for the pn rposu of disbursement. Il is thus seen that, even when banks are em ployed, tho public foods must twice pas through the hands of Executive officers. Be sides this, the bead of the Treasury Depart inent. who also holds bis office at the ploasura of the President, and some other oflicers of the same doiartinenl,must iiccc-sarny be invested with mote or less power in the selection, eon tinuatice, and svpcrvisinu, of the hanks that may be employed- The question i then liar eir custody, and transfer; , 7 . ' .u ri)Vm,,-.ml ...... UCII ,, ,!,,,,.,,,,, ,,1-ilw, ..nl.lii- ,.u,,,v tl, .. of banks is necessary to avoid a dangerous tunes as ihe treasury shall direct. Surely batiks are nut more able than extension of the patronagu and influence ol the Government to secure the mnnev in ' the Executive. But i it clear that the con I heir possession u-'nitist accident, vio- j neelion of the Executive with powerful men lence, or fraud. The as-ertion that they ''i'0'1 institutions, capable of ministering to are so. must assume that a vault in j the interests ol men m points where they aie nellies it could not have sulfered had it pur. I bank is stronger ilia., a vault in a treasury; I " aeees-ioio m com.puu.. i, .ess aoie io . . .. . . .... 1 . n . J t mIiMwii lltnn ti nun lt I i it 1 inn n I nirnnnii in tlm nod tlio coHMo ol tho liitlcr. 1 huso omlnr- and t hat directors", cashiers, find clerks, t .'V . , . , J . rassmen.sare, moreover, augmented by those . I10l Icctn.l bv Hie Government, nor uu- ! " '" .1". . . . P u' alutary and. just laws which lorlnd it to use ,, in rnotrol. re morn worthv of eonti l ." , ,. 1 ... 1 .' .. . . . .depreciated currency, and bv so doing, take ,,CI1C , (l1;ccrH scM frnm te pen-! ?. , Z. -1 i" plo and re--po.Hiblo to the Government; m,co, on tho part nf the i'.xecutive? May it ollicer-i bound by official oaths and bounds i i,u lioiieil that a nrudent IW of nub,ie for a faithful performance of their duties, jealousy and disapjirobalion, in a matter m and constantly subject to the sopervision peculiarly oxpo-uif to them, will deter tin of Congress. 'from anv sorb iutcrfei eoec. even if bight' The dillieulties of transfer, and Hie aid , ",Hlivus llL'""".1""1 ''"'I'ur!lli.vf l O'n- ..,.., , I , , i , ires so regulalu, by law, the duty nl Wj.o actual from the government the ability which iudi- iduals havo of accommodating their trans itions to such u catastrophe. V system which can, in l.mo ol iirolound peace, when there is a large revenue laid by, thus suddenly prevent the ajiiilieation and the use ol'lhe money oftho iicople, in the manner mil Inr loo nlnnets tool' have dirneli.d. rntnint bnwNn: hut who can think without i:ii nTnl i . t it.. -m ' officers, and sulueel it lo such supervision and rellection, that under it, tho same unforeseen s,.v f, I .,' i' i l,ublidl'-!ls lo l,ruvul "'" l'0-thiliiy or any events might have befallen us in the midst of, . 'l'; , " ' ' ' r"?r 'r prions abuse o:i the part ol the executive? i war, and taken from us at a moment when ' aoo is mere equal room lor sueu sopervisiou most wanted, tho use of thoso very ..leans I ,! o.s.a.ices i om u.e puces o. arl( ,,h,eiiy in a connection will, banks, which were treasured up to iroinotoour na- j co""-,ctl""! a,ll! the whole number ol war- j nrtii.g under the shield of corporate imimt tioual welfare and guard our national ti"bts .' ! fan's ts-uicd at the Treasury in the year nitics and conducted by persons irresponsible llia l a year, the results ol which it is to the government and the people r Ilisbe belteved afford a safe test for the future lieved that a considerate and candid invest. -fell short of five thousand, or an average j gaiion of these question will result in tho of less than one daily for each Slate; in : conviction that the proposed plan is far less the city of New York they did not average I ''able to objection on the score of executive more Thau two a day, and at the city "of patronage and control, than any bank agency Mlly four. I that lias been, or can uo devised. Wit tlnse views, 1 leave to congress tho Po such embarrassments mid to such dangers this government bo always exiiosed, while it takoj the moneys raised for and no- eeesary to the public service, out of llm hands il us own ollieois, and converts them into a jre right ol action against corporations en trusted with the possession of thorn. Jror can such results be ell'ectually guarded against in such a system, without investing the Evecu Washington only The difficulties heretofore existing are, live witbacoutrol over the banks themselves, i nmreover, daily lessoned hy an increase in whether statu or national, that might with iuecoea . auu iiicnny or comintuiica reason bo objected to. Ours is, iirohahly, the Hon; and it m.iy be as-erled with eonti- veriunent in tho world that is liable, deuce, Inal the neeessarv transfers, as in the management of its tiseal concerns, to i well as the safe keeping and di-burse. . tents : js of "reat importancn, and one on which we occurrences like these. But this iiiliniliont i of the otihhc llioneys. can bo With safety I mm scarce rxneet to be as united in sentiment is nut thu only danger attendant on the nMi convenience nceomohshi.il thron.rh the I :,s u-e :irn in inlerest. It deserves a full and surrender ot tlio public, money to tlio custody geiicy of Treasury oflicers. This opinion I free discu-siou, and cannot fail lo be benefit measines necessary lo regulate in tbu f icsent emergiuiey, the safe keeping nnd transfer of the public moneys. In the imrformance of constitutional duly 1 have stated to them tbu result of my own rchV'tions. Too subject ontrol of local eortiorntions. Though the object is aid to the Treasury, its elfect may bo to introduce into the operations oftho ovcrntnent influences the most subtle, found ed on interests the must selfish. The ti-'u by ihe banks, for their own benefit of the money deposited with ilieiu, has received the sanction oftho govern inent from the coinmeiiC 'iueiU of this con neelion, Tho in tney received from the iooile, in-tead of being kept till it is need ed for their use. is, in consequence of this authority, u fund, on which discounts tire made for tho profit of those who happen to bo owners of stock in tho biMiks selected as depositories. Tho supposed and often exaggerated advantages of such a boon will always cause it to be sought for with avidity. 1 will not stop to consider on whom the iatri)ii'igo incident to it is to be conferred; whether the selection and control bo trusted to Congress or tho Ex ecutivo, either will be subjected to ii)peals made in every form which the sagacity of interest can suggest. Tho banks, under such a svstein. are si. ululated lo make ihe mostofiheir fortunate acquisition; tho tie posiles are treated as an increase ol capi (nl; loans and circulation are rashly aug mented; and when Ihe public exigencies require a return, His attended with embar rass, ueuts not provided for, nor foreseen. Thus banks that thought themselves most fortunate when Ihe public funds wore received, find themselves most embarrassed when the season of payment suddenly arrives. Unfortunately, too, the evilJ nf tlio sys. tern nro not limited to the banks. Il stim ulates a genera! rashness of enterprise, and aggravates the fluctations of com merce ami tho currency. This result was strikingly exhibited during tbu operations nf the lalo doposiie system, mid especially in the jiurchasoof jioblic lands. Tho order which ultimately directed tho payment nf gold and silver in such iurclia-os greatly cheeked, but could not nltogelher prevent, thu evil. Specie was indeed more diilicull In bo procured than thu notes which the Irinks could themselves create nt pleasure; hut still, being obtained from Ibeiii as a oan, and n" u rued us a tleposttu, which bank tunes tlrm in circulation to uli 'iil )iri.H.t rx,,t ,., the (lomestu; ..xclianges i.onal institutions, or of transferring il to the ' they were again at liberty to use, it only itineivlivc iiulhonns, and ihe I uus uudjo) lt C0l,iitry , or m the facilities it mayl .slates, ihey found it, in many cases, ineonyo-, passed round the circle with diintslied speed has been, in some degree confirmed bv nc- toal experience since the discontinuance of the banks ns fiscal agents, in May last; a period which, from the einbarrnsments in commercial intercourse, jiresenled ob -Inch's as nr at as any that may bo here after apprehended, Tho manner of koeping the public mnn. cy since that period is fully slated in the report oftho Tren-urer. That u dicer also suggests the propriety of assigning, by law certain additional duties to existing estab lishmenis ami nllicors, which, with the modifications nnd safeguard referred to by him, will, he thinks, enable the De partment to coninine to perform this branch of ihe public service, without tiny material addition either to the number or to the present expense. Tho extent of the busi ness lo be transacted has already been staled: and in re.-peel to the amount of money with which the ollicers employed would bo untruted at any una time, it appears that assuming a balancu of five millions to bo nt all times kept in lbs Treasury, nnd I he whole of it left in the hands of the collectors mid receivers, the proportion of each would not exceed tin average of thirty thousand dollars; but that deducing one million for the use of the until, and assuming tho rcuiniiung four millions lo bo in hands of ono half of the liresenl number of oflicers -a supposition deemed inure likely to correspond with tho fact the sum in the hinds of each would still no less thin ihe amount of the bonds now taken from ilio receivers ol public money. Every apprehension, how over, on the subject, cither in respect to the safety of Ihe money, or tho faithful dis charge of these fiscal transactions, may, it appears to mo, bo effectually removed by adding to the (iresent menus of thu treasury tho establishment by law, of a, few impor. Hint points, of olllcors for tho doposito and disbursement of such portions of tho pub lic revenue as cannot, with obvious snfely and convenience, bo left in tho poession of ihe eolleeting oflicers until paid over by them to the public creditor. Neither the amounts retained in their hands, nor those deposited in tho ofhees, would, in an ordi nary condition of thu revenue, ho larger in most cas.es than thuso ollen under thu con ted by a dispassionate comparison of ojiinions. Well awiro myself of the duty of reciprocal concession among Ihe coordinate branches of tho government, I u-in promise a leassnable. sirit of cooioiation, so far as it can be in dulged in without Ihe surrender of constitu tional objections, which I bulicvo lo be well founded. Any system that may bo adopted' should be subjected to tho fullest legal provis ion, so as to leave nothing to ihe Executive bill what is necessary to the discharge oftho duties imiinsad on him ; and whatever plan may bo ultimately established, my own part shall bo so discharged as lo give it a fair trill, and the best jirospect of success. The character of the funds to be received, and disbursed in the iransictions oftho gov eminent, likowi.se demands your most careful consideration. There can bo no doubt that thoso who framed mid adopted the constitution, having in immodiato view tho depreciated paper of tho coofedciacy of which $jOO in paper woro al times only eqoal to $1 in coin in. tended lo provent tho recurrence of similar evils so far nt least as related o tlio transnc lions of the now government. They yavo lo Congress express powers to coin money, and lo regulalu the value thereof, and of foreign coin; they refused to give it jiowor to estab lish corporations tho agents then, as now chiefly euijiloyed to create a paper currency ; they prohibited tho stales from making any thing but gold and silver a legal tender in payment ofilubts ; and tho first congress rli. reclod bv positive law that tho revenue should bo received io nothing but gold and silver. It was iii strict accordance with this truth, that whilst, in the month of May last, thoy wcro every wliero scon, and were current for nil ordinary purposes, they disappeared from circulation the moment the payment of specie was re fused by the banks, and the community tacitly agreed to dispense with its em ployment. Their placo was supplied by ;t currency exclusively of paper, and, in many cases, oftho worst description. Already are the notes now in circulation greatly depreciated, and they fluctuate in value between ono place and another; thus diminishing and making uncertain the worth of property and the prico of labor, and failing to subserve, except at