Whether the
selection and control be trusted to Congress or to the Executive, either
will be subjected to appeals made in every form which the sagacity of
interest can suggest. The banks under such a system are stimulated to
make the most of their fortunate acquisition; the deposits are treated
as an increase of capital; loans and circulation are rashly augmented,
and when the public exigencies require a return it is attended with
embarrassments not provided for nor foreseen. Thus banks that thought
themselves most fortunate when the public funds were received find
themselves most embarrassed when the season of payment suddenly arrives.
Unfortunately, too, the evils of the system are not limited to the
banks. It stimulates a general rashness of enterprise and aggravates the
fluctuations of commerce and the currency. This result was strikingly
exhibited during the operations of the late deposit system, and
especially in the purchases of public lands. The order which ultimately
directed the payment of gold and silver in such purchases greatly
checked, but could not altogether prevent, the evil.
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