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to comment upon these measures, present or
kpast and much less to discourage the prosecu-
zion OF fair commercial dealing between the two
countries, based on reciprocal benefits; but II haV
ing now been made manifest that the power OF
inficting these and similar injuries, is, by the re-
sistless law of a credit currency and credit trade
equally capable of extending their consequences
through all the ramifcations Of our banking
system, and by that means indirectly obtaining,
particularly when our banks are used as depos-
tories OF the public moneys, a dangerous 2olitl-
cal influence in the United States, have deem
ed it my duty to bring the subject to your notice.
and ask for it your serious consideration.
Is an argument required beyond the expos-
ton OF these facts, to show the impropriety OF
using our banking institutions as repositories OF
the public money2 Can we venture not only
to encounter the risk OF their individual and mu-
al--Tnismanagement, but, at the same time, to
place our foreign and domestic policy entirely
under the control OF a foreign moneyed interest? ?
To do So is to impair the independence of our
Government as the present credit system has
already impaired the independence of our banks.
1t is to submit all its important operations,
whether of peace or war, to be controlled or
thwarted at first by our own banks, and then by
a power abroad greater than themselves. can
not bring myself to depict the humiliation to
which this Government and people might be
sooner or later reduced, if the means for defend
|
those who may have the most powerful of mo-
tives to impair them.


Nor is it only in reference to the effect of this
state of things on the independence of our Co.
vernment or of our banks that the subject pre-
sents itself for consideration it is to be viewed
also in its relations to the general trade of our
country. The time is not long past when de-
fciency of foreign crops was thoughtto afford
7 profitable market for the surplus of industry
but we now await with feverish anxiety the news
Of the English harvest, not so much from motives
of commendable sympathy, but fearful lest its
anticipated failure should narrow the field Of Gre
dit there. Does not this speak volumes to the
parriol2 Can system be beneficial, wise or just
which creates greater anxiety for interests de-
pendent on foreign credit, than for the general
prosperity of our own country and the proita-
able expectation of the surplus produce of our
labor ?


The circumstances to which | have thus ad
verted appear to me to afford weighty reasons.
developed by late events, to be added to those
which have on former occasions offered. when
submitting to your better knowledge and discern
ment the propriety of separating the custody of
the public money from banking institutions Nor
has anything occurred to lesson. in my opinion,
the force of what has been heretofore urged The
only ground on which that custody can be de-
sired by the banks, is the profitable use which
they may make of the money. Such use would
be regarded in individuals as breach of trust,
or crime of great magnitude, and yet 1t may
be reasonably doubted whether, first and last it
is not attended with more miSchievous conse-
quences, when permitted to the former than to
the latter.


The practice of permitting the public money
to be used by its keepers as here, is believed to
be peculiar to this country, and to exist scarcely
any where else To procure it here, improper
influences appealed to unwise connections
-al-
numbers of powerful State institutions other
motives than the public good are brought to bear
both on the Executive and Legislative depart
ments, and selfish combinations, leading to spe-
cial Legislation, are formed. 1t is made the in
terest of banking institutions and their stockhol-
ders throughout the Union to use their exertions
for the increase of taxation and the accumula-
ton of a surplus revenue and, while an excuse


is afforded, the means are furnished for those ex-
cesslve issues which lead to extravagant trading
and speculation. and are the forerunners of
vas! debt abroad, and a suspension of the banks
at home.


Impressed, therefore, as l am, with the pro-
priety of the funds of the Government being
Withdrawn from the private use of either banks or
individuals and the public money kept by duly
appointed public agents; and believing, as do.
that such also is the judgment which discus
sion, reflection and experience have produced on
the public mind, l leave the subject with you.
1t is at all events, essential to the interests of
the community and the business of the Govern
ment, that decision should be made.


Most of the arguments that dissuade from
employing banks in the custody and disburse-
ment of the public money, apply with equal
force, to the receipt of their notes for public
dues. The difference is only in form. In one
instance the Government is a creditor for its de-
posites, and in the other for the notes it holds.
! They afford the same opportunity for using the
public moneys. and equally lead to all the evils
attendant upon it, SINCE bank can as safely ex-
tend its discounts on deposite of its notes in
the hands off public officer as on one made in its
own vaults. On the other hand it would give to
the Government no greater security for in case
of failure, the claim of the noteholder would be
no better than that of depositor.


lam aware that the danger of Inconvenience
to the public and unreasonable pressure upon
sound banks have been urged as objections to re.
quiring the payment of the revenue in gold and
silver. These objections have been greatly ex-
aggerated From the best estimates we may
safely fix the amount OF specie in the country at
