The Madisonian., November 10, 1837, Image 2

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rndmmm, Mt? our prawn* ay atem of selected bantu f
becauae * ?ouM render ibo lyiiw lew convenient, leai
?ocun. aod ?**? couipU*. if not moie axpauaive."
T . . ? ^L'nl.s. ihe Sum ...d U?.
United Statea, should both deem U proper gradually,
and in Um etid entirely, M dispense with the papal sya
tem, and which result is not anticipated, the Govern
ment cannot eaeape occasional loaaea front that quarter,
and can never bopo to escape all loaaea from banka as
fiacal agenta, except by the employment, in their place,
of other and individual agents, who *'11 probably be
found leaa responsible, safe, convenient, or economical."
He coucadea that it would be practicable lo employ
auch agenta, but does not recommend it, for the reasons
stated in the paragraphs of the report which t have rest],
and because it would not, " in the present condition of
* things, be so eligible a system as the present one."
A corporation may be safer than any individual agent,
however responsible bo may lie, because it consists of
an aaaociatwn of individuals who have thrown together
their aggregated wealth, and who are bound iu their
corporate character, lo the extent of their wholo capital
elock, for the depoaite. In addition to Ibis, the Seciela- ,
ry of the Treasury may require aa heavy collateral se
curity, in sddition to their capital paid in from auch a
corporation, aa he could Trout an individual collector or
receiver, which makea the Government depositee safer
in the hands of a bank than it could be wuh an indi
vidual.
It may bo well questioned whether the hesvicst se
curity which the moat wealthy individual could give,
1 could make the public deposits ssfti al the point of large
collection. Iu the city of New York half the revenue
is collected. Several millions of public money may be
in the handa of the receiver at one time ; and if he be
corrupt, or shall engage in speculation or trade, and
meet with a reverse of fortune, the loss sustained by
Govonunent would be inevitsble. With sinplc security
as it waa aupposed, the Government lost a million or
more in the tea cases, a few years sgo. The losses in
three casea alone as already atau-d in 1827 and 18S8,
when it was supposed ample care bad been taken to se
cure the debt, amounted to near two millions. As then
between the responsibility of public receiver snd bsnk
corporation, as bauka do exial, and aro likely to exist,
under State authority, the laUer, upon the ground of
aafety to the public, are to be peefcrred.
Banka, when they arc safe, recommend themselves
to the aervice of the Treasury for olher reasons. _
1. The increased facility they poaeeaa over individual
collector* or receivers, in making transfers of public
money to distant pointa for disbursement, without
charge ti the public. Indeed, this ia a aervice which
individuals, to the extent of our large revenues, could
not perform.
S. It insv happen, in the fluctuation of the amount of
revenue aiid expenditures, that there will be st some
times a considerable surplus in the Treasury ; which,
though it may be tem|>orary, if it be withdrawn from
circulation, and placed in the strong l?ox of a receiver,
the amount of circulation will be injuriously distmbed ;
by hoarding the deiMsite, by wl.ich the value of every
article of merchandise and property would be affected.
So that, inasmuch aa we cannot anticipate or estimste
what the exact amount of revenue or expenditure may
be from year to year, there may occur an, cxcess of re
venue in the Treasury, not immediately called for to be
diabursed, which it would be very inconvenient to ab
stract from trade and circulation. Whilst the depoaile
is in a bank, the bank may use it, keeping itself st the
same time ready to pay when demanded, and it is not
withdrawn from tho general circulation, aa so much
money hoarded and withdrawn* from the use of the
community.
If in the handa of receivers, they must either hoard it,
by keeping it locked up in a atrong box, or use it at
their own riak, iu private speculation or trade, or they
must, for their own security, and on their own respon
sibility, place it at Jast on deposits in banks for safe
keeping, until they are called on by the Government
for it.
This temporary uso of the money on depoaite in a
bank constitutes the only compensstion which the bank
receives for the risk of keeping it, and for the services it
performs. If reciifjrs be employed, ihey can perforin
no olher sen-ice than to keep tho money, and must be
paid a compensation from live Treasury.
The other provision of the amendment proposed lobe
offered by the gentlemen from Virginia, which requires
that the public revenue shall be paid "in the current
coin of the United States" is unnecessary. No public
creditor can'now ho paid in any thing but current coin
bv any of the deposite banks, if he demand coin.?
Nothing but coin, or the paper of specie paying banks,
readily convertible into apecie, is now received in the
payment of the public revenue."
Mr. Patton, of Va., another decided friend of the
administration, in a most able and conclusive speech
in support of the deposite b ink bill, thus exposed the
Sub-Treasury scheme of his colleague:
" The Hank of the United Stales, it is conceded, is to
be dispensed with, and it is believed that there are in
eoperablo objections attending tho only other scheme
which has been brought into competition with the em
ployment of the Slate banks. Tim very decisive vole
by which that scheme (Mr. Gordon's ainendmeni) has
been rejected by the House, shews conclusively that it
ia not likely to receive the sanction of the House or of
the people. However plausible it inav be on its face,
however captivating to the fancy of those who have
prejudices against all banks, and who think any connec
tion between tho Treasury and banks dangerous in a
political point of view, it is easily to be perceived that
these objects arc not to be accomplished by the plan
proposed. It is in these respects wholly delusive. Ad
mitting the existence of the deprecated evils under the
bsnk system, the scheme, as proposed, for disconnecting
the Government and banks dues not go one iota to
wards the accomplishment of the object. The whole
effect of it would be to transfer the power of selecting
the deposite banks from the Secretary of the Trea
sury, and confer it upon the subordinate otllcers of
the Treasury. The money will still be deposited
in the banks ; for it is not proposed to compel the col
lectors and receivers lo keep the public money in specie
in their own houses ; and, if it were, it would only
render the scheme more indefensible; and the whole
matter, therefore, ends in changing the person in whom
you will repose confidence?whether iu a high officer of
the Government, iho elevation of whose position, plac
ing the eyes of tho whole country upon him, furnishes a
guarantee against any improper use of his diacretion, or
whether you will devolve this discretion on a mere
autiordinate, or upon an army of subordinates, whose
livelihood depends upon their retaining their offices,
who are less exposed to the public gaze, and perhaps
less under the restraint of high moral considerations ;
who may be stimulated by a desire to propitiate the
powers that be, to abuse thr.ir discretion; and whoso
situation is such that they may give the worst effect to
this kind of influence when they choose to exert it; and
all this is to be accomplished at a vast increase of ex
pense, a considerable multiplication of officers, and a
great addition lo the patroiiRgo of the Executive. This
scheme, then, in the present state ul things, cannot be
approved. And in truth, in whatever aspect this matter
can be regarded, whether as a political question or as a
mere financial one, it must end m a choice between the
Bank of tho United States and the Stale banks."
Let the reader ponder well the abivc extract from
Mr. Polk's speech, the party leader of the adminis
tration on the occasion, representing tho principles
and policy upon which the whole republican party,
in and out of Congress, had planted themselves?
also the extract from Mr. Patton'.s speech, and then
say, if consistency, integrity, and good faith do not
alike demand thai they should continue to repudiate
the experiment of dispensing with all bank agencies
and b.ink paper in the operations of the Government !
Let him at least hesitate to tttClilp&te my motives and
political integrity for continuing to stand firm and
upright against it.
Tne reader cannot fail to mark well the fact, that
the position the Secretary of the Treasury quoted
and adopted, and so ablv defended by Mr. Polk, and
the whole administration party in Congress, includ
ing the unite* delegation of this State, was, that the
system of Sub-Treasury agents would " probably bs
found less responsible, safe, cnnrcM'nt, and economi
cal" than the local bank agencic, aiul that an ex
clusive metallic system of collection and disburse
ment was " unnecessary," (that is the word) becan-e
" nothing but coin, or the paper of spme paying
banks, readily convertible into sjiecie, is now received
in the payment of the public revenue." Hence, if it
were admitted, tha' subsequent experience lias de
monstrated the local bank agencies to b? irrtsponsi
bit, unsafe, inc*nrtnicnl, and expensive, how would
this experience serve to commend the other system
of Sub-Treasury agencies, which was so forcibly
demonstrated to ba in its nature still less " responsi
ble, safe, convenient, nnd economical" than that
which has thus exploded ! If the system that was of
acknowledged superiority to it, has failed of the de
sign in view, how can this, its acknowledged infe
rior, bs relied upon in any degree of coulidencc ? Is
it the part of wisdom to resort to ii?discredited, de
nounced, repudiated, as it was, bvb >ih the Secretary
of the Treasury, the Chairman of the Ways and
Means, and by an overwhelming majority of all
parties in the House, including /if umit'd lUI'-galion
of the State of Mantel He are, indeed, dscmding
even in the scale of experiments. And no less surely,
madness would seem to be the ruling influence ol' the
day, il'these things can be, and?
" Overcome us like a summer cloud,
Without our apecial wonder '*
And the distich of another poet is to its. letter veri
flUli?
?? The doctrine to d.y th*lfrloy?Uy wuBd,
May bring u? a h<du.rt?i*iotrow '
What honest, wkit cotoisient man '"Y
constituents, who breathes the uir or cherishes the ,
principle# of manly freedom, when
thoughts back upon the past history of this identica
Sub- Treasury uchemc, and recalls the relation it
which thU Slate, and its whole delegation in Con
gress, including myself, and hbown faYor?e admi
nisiration in Washington also, have -food to it will
b- disposed to end*** me for bavin* maintained
lirmlv >ud faithfully?but one set oi v'?ws nnd one
sei of principle*, and for having given but one of
voles upon the subject of it, from the
it, to the present hour, let who might wheal aaa
to accommodate themselves to the puhtiealtrnoe
w inds of the day 1 If there be any such
in frankness say to him, separate, if you desire it,
the political band that has heretofore bound u^ to
gethcr?try your experiments upon the S^TSrii
enterprise, and labor of the country, whileUu y*
possible they may tolerate them, at the
your consistency, and ot all PJJ. 'ci| iS .()U js that I
the worst wish of mine that will attend ? "J 'J,
may have it In my power to Mtend to you aje ptng
i?,r,?rx o?
try?in the universal suspension of e terpri* nna
SSSsilH i
ini? rooms of vour cities?in your _ thc
doned corporations ol every a?d
o"iSS?Poverty'ind of hearts
honestly w?edy& in their opinions upon his
subject, bidding defiance to consequences and dax
inir ihe worst that a once condemned experimen
may bring upon them. Should they do so, and in an
appropriate method instruct me to wheel j
Kt to accord with their new onlnion^i ^
teprtvntative, 1 will obey their tchest. But my
judgment and convictions as a man, and as a pot ti
S will remain unchanged, and as expressed al ke
by my votes in 1835 and 1837; and neither^echarge,
i/t the c >r. sequences, of such glaring inconsistenicy,
and political instability will rest upc? myself,htag
event/ But I have yet to be persuflded that the de
mac racy of Cumberland have, uponJ?? JJJgg'
exhibited such a political somerset on this subject, iu
who will hive recommended such a performs*1 tf .lt
their consideration, and let who may advoca'e it .
this dav. To wheel about in like short order upon
the subject of a National Bank, and to become the
supporters ot such an institution as they and 1 have
?"Rrld, only .. parallel fe?
all 1 one as readily to be anticipated oi them. And
vet had I at the'late session of Congress, without
other notice from them of such a change of their
opinion on the subject ot a national bank, since 183j,
tjlan 1 have had of their change ol opinion since the
same period, on the subject ot Sub-Treasury agen
cies voted in favor of such an institution, instead
continuing to vole against it, as in 1835, what would
have equalled the magnitude ofineons^ency-^
treachery to constituents, that would have been charg
edupon ine!?Why should it be expected, that I
would sooner change my opinion?that opm?on
which was also urged by tne Secretary ot the 1 rea
surv himself upon Congress and the country, relative
to the irresponsibility, unsafely, inconvenience, and
great expense of the proposed Sub-Treasury expe
riment than I would change my opinion in relation
to a national bank i Or that my constituents would
sooner change their acknowledged opinion on the
onejhanon the other scheme ? The vote against
the Sub-Treasury scheme in 1835 was lbl, to only
:J3 in its favor?immensely more decisive and o\er
whelming than any vole ever obtained againsj a na
tional bank. If, then, popular opinion would seem
to have been more firmly settled against either one
measure than against the other, it was obviously
most settled and decisive against the former. Is it to
b > retorted, that forsooth the President has neverthe
less recommended that scheme which has heretofore
found the least favor of all schemes with the repre
sentatives of the people and has not recommended
that which found more tavor, (a national bank,) and
therein is a sufficient consideration lor a change
fronts on the one subject, and not on the other !
I compassionate the man who has so much as tins
of blind sycophancy in his nature. I am not that
man ; I have never professed to be that man to any
party ? and 1 trust in God that 1 can have but tew
constituents who would be pleased,eithei from party
or any other considerations, to see such a man tor
their Representative In the Congress of the United
States, or elsewhere. I am proud ol, as I have been
generously honored by, the people I represent. I
trust I am in all respects devoted to their welfare
and interests, as it becomes me to be. But I could
neither feel pride in, or devotion to, any people, who
are capable of becoming the abject slaves and lol
lowers of any party leader, regardless of principles
and consistency, or ot seeing with approbation, their
official representative bccomea creatuie ol that order.
But ii was not solely for the reasons set out in the
report of the Secretary of the Treasury, as quoted in
Mr. Polk's argument, to which 1 have adverted, n
conjunction with the other reasoning embodied in
the remarks of Messrs. Polk and Paiton, already
copied, that I felt constrained to vole against the
Sub-Treasury bill, recommended recently by the
President: nor was it solely tor the additional rea
son that I had heretolore, to wit, in 183.), thrice re
corded my vote against the same scheme, in conjunc
tion with all the friends ol the administration in the
House of Representatives, including those from this
State, as well as other States. But, superadded to
these considerations, other views presented them
selves to mv mind, which no argument that I could
reach from any source seemed to refute, and con
spired with the warning voice oi the past, to inn i
ence my judgment and decide my vote against the
bill These 1 will proceed to enumerate with as
much brevity as is consistent with a correct under
standing of the subject, and my own relation to it.
But for the convenience of your columns, and ot
your readers, I will placc them in a distinct commu
nication.
Most rcspcc fully, your ob t. serv t,
FRANCIS O. J. SMITH.
Portland, Oct. 29, 1837.
Pt'BLIC OPINION.
Extracts from Administration Journals.
" The policy of the federal party is to break down
the Slate Banks, and to build up a National Bank on
their ruins. It should be no less the policy of the
Democratic party to preserve and regulate the for
mer, for the purpose, if for nothing else, of keeping
the latter out of the field. Call thein both evils, it
you please?it will not alter the fact, that one or the
other must and tpill exist, and that you must choose'
between THEM. The business of Ike country, and the
value of all the property it contains, hare bccoms ad
justed to a crcdit system.founded on a mixed currency,
ami to change the basis, would be to plunge the whole
into inextricable confusion, and to beggar those who
are parties to the-millions upon millions of contracts
which already exist."?Eastern (Me.) Argus.
" It is the case with all parlies, that men are to be
found in their ranks, who are actuated only by selfish
motifts?Who are intent only upon securing to them
selves places of profit; and if they cannot succeed
in this, they are ready to pull down the very party
with which they have b.'en associated. They will
tell you,' If such a man is nominated for such an
office, I will not support him;" which generally
means, 'If 1 am not nominated for such an oifice,"l
will bolt the party.' Their motto is,' rule or ruin.'
Against such men we warn our friends to be on the
watch. Turn a deaf ear to their solicitations?look
to the welfare of your principles first?to Uie interests
of men afterwards. '?\Iorrtiville(N. Y.) Observer.
From the Hartford Patriot <f Democrat.
TO THE HONEST DEMOCRATS Of CONNECTICUT.
UUraism is the leading feature of the age. It shows
itself both in politics and religion. Men of small
judgment and violent passions, who are greedy for
notoriety, seek for the gratification of their vulgar
ambition in the exhibition of extravagant zeal?a
crazy fanaticism which denounces as weak and cor
rupt the truly wise, patriotic and honed. A spirit of
domineering intolerance?a disposition to thrust
their own opinions upon others?an overweening
and unprincipled eagerness for office?the denounc
ing as apostates all more i/uirt men?furious and Ir
raiional attacks, not only upon existing institutions,
b-.it upon private character and public worth?th'se
are some of the m'asnrcs which characterize th'v politi
cal Ian-tics. Every person, everything, must shrink
before their violent dictation, or be blackened by
calumny, undermined by intrigue, or hushed by
korcb. The free exercise ol individual opinion is
attempted to be forbidden-, private citizens, public
officers and legislators who presume, on ditlicult
points, to hold an opinion discordant with that of the
' taction, are denounced in the columns of some scur
rilous newspaper as "traitors, apostates and vil
lain*" thitutvn, prosffiphmii persmtt abuse, putHc
mJ private 4eli>uli,i^Mre ti* meakt by vhuh tkit
mljiih /(Utim h*pes la #111-1 ? p< ?i ic WWriMtM m>
#?uhoim 1W HuUTIUL ManNUpr THBl)r.MOplArY.
lu a large }i?ny united ?rjreat Wading princi
ples, minor differences of npiuion as lu men and
measures must naturally Ulft, and it is the essence
of Democracy that on these, as on all other Questions,
every individual *U*II have the unimpaired right uf
private judgment. To denounce any m..n for the
exercise of this right. even though his seniimenu
may seem to full behind the violent standard of fa
natics and reformer*, is the essence of intolerant
aristocracy.
This spirit of intolerance and dictation has been
largely inttoduced into Connecticut politics within a
few years. Its violeuce was first exhibited and Its
cfleets first felt in Hartford County. Individual de
mocrats were slandered, public meetings of the de
mocracy derided, regular nominations sneered at,
divisions introduced, new standards of democracy
erected, the harmony of the party distuibed, and dic
tation, proscription and abuse carried into every
measure. The same intolerant spirit has nore Ugun
to extend its malignant efforts to other portions oj the
State. Prominent members of the democratic party,
who have grown up in the belief and practice of its
principles, if they chance to stand in the way of
selfish aspirants in Hartford, are suddenly denounc
ed by name, and characterized as apostates and trai
tors. The consequences oi such selfish intolerance
and violence are easily perceived?if it be further
tolerated, DISUNION and POLITICAL HUIN
AWAIT THE DEMOCRACY OF THE
8TATE
It has been the aim of the Patriot and Democrat
ever since it was established to hold a salutary check
over ibis factious and intolerant spirit?to restore the
influence and bring back the policy of libciml Jr.r
rcMONUN Democracy. To this standard we have
endeavored to bring the public mind, not by denounc
ing and traducing men who differ from us, but by
endeavoring to convince and harmonize. Our calm
and independent course, unmixed with selfishness
and untainted by the spirit of office-seeking, ha* ope
rated as a silent but severe reproof of the des|>erale
measures of a few pretended democrat*?and we
have, in consequence, had from them a full share of
wanton and malicious abuse. We have sometimes
been compelled, in self-defence to expose their in
trigue* and reprehend their selfishness. He hare
not bowed the kiu* to public servants who would fain
become dictator*, nor shrunk from exposing corrup
tion and selfishness, though masked beneath extraordi
nary professions of pure democracy. We have sletd
ily sustained the usages of the party?have respected
tlie will of the majority?have aimed to express pub
lic opinion, and promote the reforms called for there
by, and have rut ml v and calmly vindicated Ike great
PllISCIPLES of the democratic faith. Nu a sin
gle sentence in our columns, nor a single act of our
selves or friends can by pointed out, which is not in
strict accordance with these principles.
It is true we have not indulged in. personal abuse,
either against whig* or erring democrats; nor have
we glorified in servile terms a few of the icould le
great men who assume to concentrate in themselves
the purity and wisdom of the whole party. Having
no office to seek or public favor to ask, we have not
thought such a servility excusable, and have much
preferred to endure the gross abuse and cowardly
insinuatsons of an unprincipled paper near us and
its mean spirited echo at a little distance. The ob
vious selfishness of such attacks is the best antidote
against their effects.
The present situation of the Democratic party in
this State is critical. With a large numerical ma
jority, w henever we can rally under the regular
usages of the party and iu support of principle, we
are in danger of being led by demagogues into a
vuarrel about mm. In that event we shall incur tlie
hazard of disunion and defeat. Indeed, it i? far from
improbable that a small party, now engrossing the
benefits of Federal patronage in this State and fear
ful of reform, may earnestly wish for such a division
of the democracy as shall throw the party into a mi
nority, and secure to themselves and their friends for
eight years to comc the offices they hare heldfor Ike eight
years already past.
The present then is a moment when it becomes
every sincere democrat to reflect well upon his re
sponsibilities and dl'tirs, and to make extraordinarv
efforts for the INTEGRITY and PRESERVATION
of the Democratic party. He must now choose be
tween rant, fanaticism, violence and proscription on
one side, which new school politicians are endeavor
ing to Introduce?and the pure, fotbearing and calm
spirit of Jeflersonian democracy on the other. On
this latter side the Patriot and Democrat will con
tinue its exertions?and we call for the active and
zealeus aid and sympathy of all who approve our
course. The warfare of faction is becoming active.
(Quiescence is no protection?it is absolutely neces
sary that those wno would adhere to the ancient
landmarks of the party should now bring forward
their best endeavors to sustain all who labor in the
true cause. Let each reader who approves our
course commend our efforts to his neighbor. It is
by active exertions alone, that the violence of design
ing men can be counteracted. Aided and sustained
by the great body of the honest, democracy, we shall
pursue our way with courage and cheerfulness?for
we feel that we are advocating the cause of the
MANY and the HONEST, against the cause of the
FEW and OPPRESSIVE.
? from the Saratoga Snitinrl.
The editor of the weekly Globe, we regret to learn,
is obliged to discontinue the publication of that sheet,
in consequence of the absence of small bills. The
following is his announcement of the event:
"We shall discontinue the publication of the
H'cekly Globe w hen the present volurfte ends, which
will be the 7th December next. The difficuly of
making collections for it, induces us to stop the pub
lication. Subscribers cannot remit by the mail for
it, in hank notes, the yearly subset ipiion being two
dollars and a hajf; and we cannot afford to send out
collectors for such small sums."
If the Globe, with its extensive official patronage,
cannot sustain a weekly journal, owing to the want
of a circulating medium which can be remitted bv
mail, how can tne country papers be supported, with
no patronage of the kind ! Their prices do not gene
rally exceed $2 per annum, and their proprietors
have less t.bility to send out collectors than tne edi
tor of the Globe. Besides, if the course adopted by
the latter were to be pursued by the weekly journal
ists, every paper in the country would be discon
tinued, and their subscribers deprived of the news
of the day, unless they paid at least $5 per annum to
the city establishments. It will answer very well
for those who are receiving large incomes, or who
seldom have occasion to embark in any thing less
than a transaction, or who are engaged in no bu
siness at all, to repudiate the idea of circulating
small bills; but on those who are dependent on small
sums derived from a scattered and greatly extended
population, the absence of all means for obtaining
any portion in advance, operates with peculiar hard
ship. It is a severe task on editors, it not on litera
ture, and will be the means of reducing the number
of country papers, or of advancing their price to a
sum proportioned to the loss sustained.
We are aware that since the specie system has
been agitated, many who were contented with an
annihilation of bills under $5 have had their desires
very much expanded and without slopping to ascer
tain whether the specie in the country would prove
at all adequate to the convenient transaction oi busi
ness, have dealt in wholesale denunciations against
what they are pleased to term the " rag currency."
Most of these individuals, we are willing to believe,
have been actuated from honest, though mistaken
views. But now that the banks have been com
pelled tosusj>end specie payments, and the very limit
ed amount of specie out of their vaults is rapidly
leaving the country, many have been induced to
paaseand reflect, and distrust a course which islike
ly to lead to disastrous if not ruinous results.?For,
with our specie gone, and bills of credit destroyed, we
may bid adieu to the prosperity which has heretofore
attended every brancn of industry in the country,
and sink into'a state of inertness more befitting the
vassals of a despot than the citizens of an enlighten
ed republic.
But we do not anticipate such a result. A great
proportion of our citizens, and especially the agri
cultural nart, who have b.'cn appropriately styled
the bick oone of the nation, are opposed to ultraisin,
in whatever shape if may come. The loco focoism
or agrarianisrn, so prolific in New York, has never
reached their firesides, nor will it doso. The coun
try, through their exertions, will vet b: saved from
too extensive a paper system on the one hand, and
an entire metallic currency on the other. The war
fare against the banks, 1 ike that waged against ma
sonry, will have its day, and its prominent actors,
like the leaders in all exciting subjects, will soon be
driven to another expedient for the establishment of
their fame, ortheir voices be drowned in the clamors
of a new swarm of seif created patriots who may
succeed them.
All the Republican opposers of the Sub-Treasury
scheme must be put down, or they will put down the
Globe, and there can be no b?tt*r and more expedi
tious method of effecting this than by operating upon
the feeliugs and prejudices of the'members of the
Virginia Legislature, so that at the next session, Mr.
Hires shsilUtc driven from his sent, or, in other words,
instructed to do that which tlivy know he never can
conscientiously perform, viz: to vote for the Sub
Treasury bill.
TO MAHTIN VAN Bl'BEN,
rill|DI?T 91 tmi ?1T" f
f be Miliar cbrfMer of
of the 'Nation, not doubling that he ^CurhiBthe
anoihegm of Solon, thai the mort popular govern
men I, is that " where an
V'llhSce I first entered the arena of P?\ili''*-1 liavc
made one of the Democratic party. it ha?.been my
fortune whether for weal or lor woe, tune alone can
determine to be singled out from among those with
iiom I icted anlbje-t for malignity to aim .is
shafti at; and iut persecution to pour out iut phials
ofwrath upon. Notwithstanding the vicissitudesto
Which I have been subjected from those causes, too
well calculated for the effect designed, not to make
inv path ouwaid somewhat thorny j and to sour, at
times, the feelings of nature; yet 1 have endeavoured
steadfastly to pursue the even tenor ol my wjv, g
intr all the aid and support to the cause in *?'^"h I
was embirked, that the feeble energies with which
nature endowed me, permitted. With what zea aii<l
fidelity they have been exercised, andi witji what re
suits, 1 must leave to those who have b?en witnesses
of my effort!', to determine: venturing, however, to
intimate, that I believe " < have rendered the state
(the party) some service; and they know it.
It has been, my misfortune to differ from a ?arge
number of the democratic party, as well os the Chief
Magistrate, on the exciting topic of the day, the
Sub-Treasury system.
Long before that subject was laid before the repre
sent atives of the people for their deliberation, and
before I knew it was In serious contemplation to do
so: merely from seeing it introduce*! and recom
mended iu a few of the newspapers I was led to be
stow upon it ?ome attention, which resulted in my
expressing a decided objection to it, as bsiftft (even
if practicable) fraught with so many dangers, and
difficulties as to render the adoption of it, in my opi
nion, altogether inexpedient. These views were
publicly expressed.
I was first apprised of the intention of the Execu
tive to recommend that measure to Congress, by the
editor of the Globe, its reputed official organ. I im
mediately thereafter gave the subject another and
more deliberate examination : which served but to
confirm rnc more strongly in the accuracy of the opi
nion the former one had led fb.
While I thus have and do now differ from the fc*x
ecutive, and many others, in the pol icy of that great
and important measure recommended j I can truly
say, that difference has its foundation in purity ol
purpose and honesty of principle.
While I disregarded the intimation, so long as it
was confined to mere report or verb il statement, that
all who did not give an unqualified support to tne
measure, would be looked upon as enemies to the ad
ministration ; it is not without un measurable sur
prise, that 1 have witnessed the spirit of intolerance
manifested through the columns of the official organ
towards, some of those, who must have done violence
to their consciences and sacrificed their principles by
giving it their support,
I cannot, for an instant, entertain the thought, that
the present Chief Magistrate is influenced bv princi
ples less distinguished lor tolerance and liberality,
than those which so eminently characterized his late
predecessor. Therefore, I cannot but conclude, that
the course pursued by the Globe newspaper, does not
ob'ain official sanction.
On a former memorable occasion in relation to a
measure of great national interest and importance,
Ex-President Jackson thus expressed himself. tar
b3 it from him (he said) toeipector require that any
member of his Cabinet, should, at his request, order,
or dictation, do any act he believes unlawful, or in
his conscience conaemns. From them, awl from his
fellow-citizens in general, he desires only that aid and
support, which their reason approves and their coiir
scxence sanctions." , . .
The preceding is taken from the paper read by
General Jackson to his Cabinet, on the 18ih Sentem
ber, 1833, having relation to the measure of the re
moval of the deposites. .
While I frankly acknowledge my inability to sup
port a measure which neither " reason approves nor
* conscience sanctions," 1 am confident in the belief,
tliat the same lenity will bs extended to me and all
who are similarly situated, on the present as on the
former occasion referred to. .
The Glob? of the 2d inst. contains an editorial ar
ticle. relating principally to myself. The causes
which prompted it, as well as the object sought to be
accomplished through it, cannot be mistaken, t rom
that article, I extract the following :
" PAUSE AND PROFIT BY IT."
[.V. Biddle to Mr. Whitney.
The National (Bank) Gazette L from day tp day
dragging up the name of Mr. Whitney in connexion
with that of the editor of the Glob?, evidently suppos
ing that the association of his name with
work us some prejudice. A few days ago Mr. vv nlt
nev was paraded in the bmk journal as the financial
editor of the Globe. In yesterday's Gazette, Mr.
Poinsett is alluded to, and warned that' every man
who is affiliated milk Krndux, Bi.air and Whitntv,
is liable to be morally identified irith that trio. We
doubt exceedingly whether Mr. Poinsett even knows
Mr Whitnev. We know nothing ot his private
character?have had no private intimacy or connec
tion with him whatever, except becoming his bail
when persecuted by ihe opposition. We have known
him only as the general and confidential corrersponJ
dent of the banks, and have allowed him to defend'
their interests from the assaults ol Mr. Biddle and
his friends inthe columns of the Globe. As we stated,
however, in our evidence before Mr. Wise s com
mittee, we were apprised by the Secretary of the
Treasury that the interests he represented were anta
gonist to that of the Treasury, and always scrutiniz
ed his designs, so thai nothing beyond strict justice
should W accorded. Unluckily, the employers of
Mr. Whitney have recently wanted any thing but
justice; and their agent, for months past, has sought
other channels of communication than the Globe to
sain the public ear, and accomplish the objects which
ftie institutions he represents have in view. That he
faithfully and earnestly advocates their interests, is
matter of public notoriety. He is in close correspon
dence with the conservatives, and doubtless they pro
fit by his intelligence. It must, therefore, b? from
the personal pique of Mr. Biddle that his organ still
pursues Mr. Whitney. All Mr. Biddle's bank friends
voted for the project, at the last session, which Mr
Whitney's active zeal was busy in promoting-; and
whv should Mr. Biddle, who was once his bosom as
sociate in managing the greatest and most delicate
trusts of the institution over which he presides, still
persecute him, now that they have a common cause
to advance!"
Whether the nam s of the editor of the Glob? and
mvself bMng associated together in the newspapers,
will work some prejudice to either, and if so to which,
must be determined bv the verdict of public ojiinion.
The editor of the official labors under a slight mis
take in regard to his respecting Mr. Poinsett s
knowledge of me. I apprehend that gentleman was
made acquainted with inr by letter long before he
ever heard of the editor of the Globe. How favora
bly I was made known to him, that letter will show,
addressed to him while Minister at Mexico, by one
for whom, 1 am sure, he at that lime entertained a fa
vorable regard. I have since met Mr. Poinsett in
Philadelphia, and in this city, but have never had
anv business transactions With him, since he has been
at the head of the War Department.
When I first read in the article quoted We know
nothing of his private character?have had no pri
vate intimacy or connection with him whatever, ex
cept becoming his b lil when persecuted by the oppo
sition;" I pau<ed instinctively to inquire who were
the editors of the Globe 1 I turned to the head ot the
paper, nnd was utterly amazed to find standing there
in large capitals, "Edited by Francis P. Blair. I
apprehend there are many who will b? equally
amazed bv the absve declaration of the editor.
I now feel, and ever shall feel, under grateful obli
gations to the editor of the Glob? for the liberal man
ner in which he indulged me with the me of its
columns, which I ever found at my disposal in de
fending myself from June 1891.10 June 1837, against
the assaults of my enemies. The obligations which
he laid me nnjer by kindly becoming my bail, is
vastly augmented, since 1 learn by the statement
quoted, that I was next to an entire stranger to him,
and th'it he knew nothing of my private character.
I It is but seldom favors of that character are asked,
much more so, that they are granted under such cir
camHance*. When they are, they ought assuredly
to b? highly prised. , ...
There was something so peculiar in the declara
tion, " \c? know nothing of his private character," that
it brought to my recollection the lines from Sliak
spcare :
Who steal* my pur*e, steals trash; 'tis somrtliinir, no
thinr:
T'wn* mine,'lis hi*, and ha* lieen slave In thousands ;
But he that filches from nic my good name,
R.iIm mr of that which not enriches him,
But make* mn poor indeed.
It furthermore reminded me of a statement con
tained in the report of Mr. Adams, made by him in
dividually, ou the subject of Ihe B.iuk investigation
?sheing somewhat similar, which fu la
be said, "Oj his
topmqptty,no evidence was
No She can mistake the
!(* ^r" 4<iam,, or what he
T . ,lJS; by thisrsfllof negative expres
sion. Tbote who are much less skilled in the study
of human nature and of m.iukiod, than Mr. Adauw,
know lull well, that man's reptitat^on like female
.virtue is a sensitive plant-that either caa be effec
tually blasted, In the absence of all cause on which to
iuunu direct allegation*. by secret muentioe* - bv a
shake ofthe head: by a turn up of the nose, or by a
shrug oI (be shoulders. )o ^ ueiooriit! which 1 -nd
dressed to the House of Represeuutives, and which
was published in the Globe, I took tbe following no
tice of the passage from Mr. Adam's report s
" Your memorialist has lived, as he has before
stated, in a respectable and intelligent community
for the last sixteen years, and has made no secret of
bia occupation and residence before that period. Id
these sixteen years he has experienced tbe vicissi
tudes of life, has borne the trials of prosperity and
adversity. The member of the minority, in his own
report states, with great pa*icularity, the incidents
he had learned in the life and fortunes of your me
morialist, showing to how rigid a scrutiny be had
been subjected, and that uo charges could be brought
against him, but that be had once lived in Canada,
and had been unfortunate in business, and concludes
his account of him by saving that, " of his present
standing in the community, no evidence was taken
by the Committee." It mav be presumed that those
who were thus curious as to bis past life, would
make some inquiries as to his present standing; and
if any discovery had been made to bis prejudice, if
any person could have been found to aeny that he
was an honest man, entitled to credit, can if be be
lieved that he would not have been produced 1
" Fie did not desire witnesses to be called?none
such could bs needed. The anxiety manifested to
destroy him, and the unfair efforts made to accom
plish the purpose, and his assailants pot venturing to
impeach his character, where it must be known to
them, is stronger for him than the testimony of thou
sands; for it shows his enemies to be themselves
conscious that his present standing is such as cannot
be safely attacked."
As a commentary upon the present position as
sumed by the editor of the Globe, I give the follow
ing extract from an editorial article in that paper of
the 3d of January last, which I know to be the pro
duction of the editor, Mr. Blair. In referring to me,
he said:
" Messrs. Adams and McDufTiie were first em
ployed to destroy him by the weight of their Bank
reports. He was charged with high crimes, to turn
the eye of public opinion from the real culprit. The
ex-President and his nullifying colleague were too
well understood, and the justice of the people too un
yielding to enable them to turn the condemnation de
served by the accused to the accuser. Whitney was
supported, and Biddle convicted. In what a misera
ble predicament do our magniloquent opposition now
reduce themselves by the attempt to carry out the
malice of Biddle, and if they cinnot deprive the ob
ject of his hatred ol reputation, at least gratify him
by depriving the clerk (Whitney) and Ms family of
bread! If it be the will of Congress that the depo
site banks shall employ some other agent than Mr.
Whitney, it is probable they will comply; but we
believe (although we know nothing of Mr." Whitney
except what we have seen of him since he has been
a resident of this District,) that they will not get a
more capable., intelligent, industrious or honest agent
in his place." ?>
It would appear from the foregoing quotation, that
in January last the editor of the Globe did know
something of me. although he now appears to have
never had any Knowledge of me whatever ! At
least none beyond my wing the "corresponding
agent of the banks." It may, 1 think, be fairly sup
posed by those who have a knowledge of the circum
stances as they have existed, that the editor of the
Globe would have acquired some further knowledge,
during the time he has "seen Aim (me) since he (!)
has (hair) been a resident of this District," which is
now bordering upon six years.
I am now lor the first time apprised through the
Globe offiicint, that it was ever considered " that the
interests he (!) represented were antagonist to that of
the "Treasury." Of this I will speak hereafter.
1 he editor of the Globe " always scrutinized his
(my) designs so that nothing bsyond strict justice
should be accorded !" What other construction can
be put upon this declaration, than, that after the Sec
retary of the Treasury made the above stated com
munication to him, the editor of the Globe assumed
the superintendence in chief of the Treasury De
partment, that he might scrutinize my design's ? I
shall have occasion to refer to this hereafter.
Whatever " the employers of Mr. Whitney have
secretly wanted" I apprehend it will be pretty gene
rally acceded that, the columns of the Globe is the
last place to which they might look with a prospect
ol having "justice" accorded to them. They could
hardly expect to obtain that divine attribute tnrough
a channel, which, by the violation of sacred injunc
tions, fulminated against them an allegation con
tained in a "private'* correspondence which stigma
tized them with acts of " perfidy and treachery."
If I have "sought other channels of communication
than the Globe to gain the public ear," it is because
I have been excluded from that channel. The third
and fourth number of " An Ob^rver," I was com
pelled to publish in pamphlet form in June last: be
cause the editor of the Globn refused them a niace
in the columns ol that paper. One of those num
bers was principally occupied in relation to the
banks resuming specie payments?pointing out how
that was done on a former occasion ; and how it
mi?ht be done, in my opinion, on the present, with
safety and without extraordinary inconvcnience to
themselves or to the community.
In laying the two essays referred to, before the
public, in pamphlet form, I introduced them with the
lollowing preface:
In the Globe of the 23d and 25th of May last, were
published two articles over the signature of "An Ob
server." The first article announced the object of the
writer to be "to repel some of the unjust allegations
made against the deposite system, (as originally esta
blished,) the authors and friend* of the measure, and ilie
banks employed as the fiscal agents of the Government,
prior to the act of Congress, regulating the deposite
banks, of June last."
The writer found himself obliged to extend his ex
aminations and inquiries beyond the limits of his first
contemplated undertaking. The cause of the present
embarrassed condition of the country, and the remedy
for tho evil* under which it is now suffering, became
subjects of inquiry and examinalioti. These, so inte
resting and of such deep import to all, he has not hesi
tated to examine and to discuss with that freedom and
unreservedness of expression, which ho believes the
public weal demands, should characterize the discussion
of all subjects which are altogether of a national cha
racter. It is by unrestrained disc-.iasion only, that error
in judgment, if it occurs, may be corrected ; wrong
impressions be removed ; improper prejudices be dissi
pated ; and, so far as the public welfare is conccined,
the public be saved from the evils which the absence of
free discussion would inevitably entail upon it.
Entertaining these views, the writer has resorted to
this mode of laying before the public the two subjoined
articles." '
Nor could I expect subsequently to find a
more favorable reception for articles, having for
their objcct, and urging a resumption of specie
payments by the banks when the whole course of the
editor of the Globe indicates that he is deadly hos
tile to the consummation of that important and salu
tary measure.
flas the editor of the official organ assumed the
guardianship of the post office, nnd established a sys
tem of espionage., that he is enabled so confidently to
say I am " in close correspondence with the Conserva
tives?" It is an honor however I am proud in ac
knowledging. There are to be found amonsf those
who are thus classed, and who have lately been
anathematized by the official organ, because, they
could not give their support to a measure " which
neither their reason approves noriheir conscicnce
sanctions," men as distinguished for their patriotism,
their eminent statesmen-like abilities, and their ttn
deviating support of the general principles of the
late and present administration, as any that can be
found in the land.
? It it were the fact, as the official evidently intends
to insinuate, that Mr. Biddle and mvself now " have
a common cause, to advance" I strongly suspect there
would not be found many to pronounce even that,
quite so novel a spectacle as is presented in the
amalgamation, united in the support of an " antago
nist" "common cause." For ine last si x years the
columns of the Glob;- have teemed with unmeasured
abuse of John C. Calhoun and the conductor of his
organ in this city. Mr. C., among many other
charges made against him has been stigmatized bv
the Globe as a " disorganizer" and " revolutionist "
seeking to cause a revolution, that he might b? the
"Cntaline " Mi. Calhoun in retaliation, has stig
matized the Glob" with being "BASE AND PHOV
TITUTE." As grange as it may seem, we now
b-hold this trio, like a b3nd of brothers, shoulder
to shoulder supporting one and the same " common
cause!
The " project which at the last seision Mr Whit
ney s active zeal was b-isy jn promoting" is one
which originated with General Jackson in 1X13; one
which from that p?rlod, in each of his annual mes
uges Bp as late as December of last year, he be
slowed unqualified poise upon, and which in its
successful operations had more than realized all that
he had ever anticipated. The head of the Treasury
Department was equally profuse in raw>ing his en
coiniums on the *ervic?* performed hv those em
braced under that project, and commending its use
fulness. I trust therefore, if I have manifested un
usual " zeal " in sup|>ort of such a project, 1 shall
have at least accorded to me, the merit of its being
an honest one.
It remains to be seen hereafter, whether all such
as have ever been sincere in their friendship, and
devoted in their support of the administration and
| the most of its leading measures, are to receive the
: anathemas of the " official," and be ostracized from
; the party, because, iu the performance of their duty,
| and in sustaining their principles they are obliged to
express their disapprobation of a proposed measure
which, neither their reason approves, nor their con
1 science sanctions."
Another number will be devoted lo an exposition
j of the supposed causes which induced the feeling,
j which I am now for the first time informed existed,
j that the interests J represented vert antagonist to those
I of the Treasury?to that of the true causes which
have produced the presVnt embarrassments in the
monetary affairs of the country, w ith which it is time
it should be made acquainted, and to a defence of the
banks from some of the guilty acts with which they
stand charged, nothing extenuating, nor setting doun
aught in malice.
With great respect,
Your ubsaient servant,
K. M. WHITNEY.
November 10 h. 1K37.
FOB TUE MADWOMAN.
NATIONAL Cl'RREHCY * STATIC BANKS.
THE MARYLAND PLAN.
No. V.
Abundant proof of the necessity of a Grand Fis
cal iNnrrtmoM, for regulating the monetary con
cerns of the country, having b?en forced upon us by
the anomalous condition of the currency; and, hav
ing essayed to demonstrate the constitutionality and
adct/uacy of the system submitted in the documents,
No. 6, of both branches of Congress, at the late extra
session, the expediency of the ebovc is next presented
for examination. And upon that point it may be per
tinent to repeat, that, as " the pocket nerve" is the
most sensitive of the social (?ystem, sodoes a disorder
in the circulation of the essential fluid of the body
politic directly tend to exasceibation in the public
mind, nnd an alienation of that patriotic affection
which is indispensable to the preservation of a com
pact, based upon principles of equal justice and re
ciprocal benefits. The " expediency of the measure",
therefore, inrolres a question of primaiiy import and
CONSIDERATION.
The propriety of improving the productive prin
ciples in question for the common good of the vhole
tuition, extensively engaged the public attention im
mediately preceding the last re-charter of the Bank of
England, in 1832. And among the number of valu
able essays which appeared in the discussion of that
topic, was an article from the pen of an eminent
writer in the Quarterly Review.
In the prosecution of the subject, he spoke of the
injurious operation of the banking system, on the in
terests of land and labor, from its tendency to accu
mulate the circulating medium in the cities, as con
tradistinguished to a public institution with depart
ments in different sections of the country, as follows:
" Hence," he says, " the productive classes, and
more especially the class engaged in Agriculture,
can no longer command that accommodation which
they have been accustomed to receive. The opera
tions of productive industry are thus impeded by the
withdrawal of that capital which used to feed them.
To this cause must, also, be ascribed the glut of mo
ney in the city market, which has rendered it ex
tremely difficult to employ it to advantage, and has
consequently reduced the rate of interest there, while
money is scarce and dear in the country."
It is considered, then, as quite evident, that the
owners of money are as much interested as the own
ers of land and labor in resisting exclusive privile
ges, which prevent or impede the formation of safe
institutions for the benefit of the Slate, such as would
infuse vigor into the industry of the nation animate
the drooping energies of those engaged in the culti
vation of the soil, and open a wide field for the pro
fitable employment of capital in the country. And
by giving a new direction, as well as a new impulse
to industry, establishments of that nature would also
prove the means of augmenting the public income as
increased production would, necessarily, be followed
by an increased consumption of commodities, which
would open a new source of revenue to the States and
an increased revenue, thus obtained, would enable
the Treasury t a bring into action the latent resources
of the country, and to promote the general prospe
rity.
It would thus appear that there is no class?and,
with the solitary exception of the holders of Bank
stock, there is no individual?who would not be be
nefitted, either directly or indirectly, by the introduc
tion, and discreet extension of the great principle
herein proposed. Such a system of institutions would
cause the prostrate and oppressed of all classes to be
visited by the encouragement of hope?the industri
ous and frugal they would present with, at least, an
opportunity of emancipating themselves from the
thraldom into which they have been thrown by the
vicious principles of the present system, and to the
owners of land and labor, they would be found a
source of improved profit.
The verity of these views, and the forebodings an
ticipated, have been sadly realized on both sides of
the Atlantic ocean, and from knowledge, imparted
by woful experience, it appears by the last financial
expose of the British Chancellor of the Exchequer,
in reference to the money crisis, that " the vhole cir
culation of the country ought not to be placed under the
control of a joint stock company"?and circum
stances have arisen to strengthen an opinion which
has been entertained at the Treasury, for " purchas
ing the interest of the Bank, in the six years of the
charter yet to come, and starting a national institu
tion upon altogether a different plan." In deb.iting
this subjcct in the House of Commons Mr. Clay
said, " he thought that the poicer of making paper
ought not.to be intrusted to any man, or body of men,
irrespective of the control of the Government?and
he had hoped that the committee on joint stock banks
would have been able, before the close of the session,
to present some recommendation on the subject?but
no doubt his right honorr.ble friend had sufficient rea
sons for not urging the committee to make their re
port this session, and he thought himself,that in reft r
ence to such a question, it was more important to
legislate well than rapidly. He would, however, call
on the Government during the recess to mature some
measure on the subjcct."
Mr. Wallace said, " that the budget, which had
been expected with intense interest, had presented
nothing?it showed that the Minister had been in
communication with the Directors of the Bank of
England, who had inflicted on the commercial inter
ests the mischiefs to which so much allusion had been
made. He had already had a motion before the de
struction ofthe charter of the Bank, and he still kept
1 that object in view. That corporation had contrived
t<> elude the scrutiny ot a select committee of the
House, on joint-stock banks, and it was as much a
joint-stock b ink as any other banking estaWishmen1.
He believed that the distresses of the country were
entirely ascribable to the powers "f the Bank of Em'
land, and that it would be the dmy of the House, at
the earliest possible period, to institute ft speciA' m
qtiiry into those powers, teith a view to someeffcctur
reform?pombthino iwihivr mlst be done.
Thus, it appear*, that the situation of things i? pe
culiarly analogous in bith countries, and that the
opinions of statesmen, growing out of the untouar
circumstances of the times, are not less so?and
brings us to the original proposition, and furm- ^ ?
conclusive argument in support of the expediency
J a National CiRRf-Nrr-and that, if banks be necf<
sarv for the promotion of industry, the convenienc
! of commerce, affd the general accommodation
, them belong to the States, and let the revenues^
I ingfrom the voluntary contributions of the bun<j