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Jackson had himself proposed in his first message that, after the general public debt was paid, the surplus revenue of the federal government needs to be distributed to the States. State Bank; no stay of execution on judgments against it; it might receive federal deposits; lowest denomination $5, and, the Legislature may forbid notes for $10; the Legislature to elect a president for 5 years, and 4 directors, all removable by joint decision; every branch to elect annually one member of the Central Board; the Central Board to regulate the branches, look at and examine them, and distribute the capital. In England, after 1825, the manufacturing unit system, which had been rising up for fifty years, had reached a stage of completeness. Within the flood of pamphlets which was produced in the dialogue of the following years, this rule was proven to be nugatory. Inasmuch because the details in this connection will demand our attention ceaselessly as we pursue the history of this interval, the following statistics of the production, in million pounds, and of the annual common price, in cents, might be found helpful for reference. There were fixed expansions and contractions of the circulation, and the writers on financial subjects directed their consideration to these fluctuations as the controlling causes of the phenomena which have been noticed.
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The subsequent consequence was a multiplication of banks, both as institutions for drawing the capital from elsewhere, or as paper-cash machines underneath the constant delusion which attends such circumstances. The multiplication of joint inventory banks, upon which the entire subsequent mischief was charged by an ideal many English writers, was incidental to this. If any department turns into insolvent or disobedient or acts in opposition to the curiosity of the whole or of the State, the Central Board may appoint a receiver for it. It's properly worthy of notice that the whole of the great surplus which was presently piled up within the treasury, that is, in the deposit banks, could be accounted for by the elevated income from the sale of public lands. On this form the bill handed, 155 to 38. It offered, at the same time, for the regulation of the deposit banks, for which as much as this time there had been no law, in respect to the reception and use of the public cash sooner or later, and also for the distribution of the great treasury surplus then in their arms. An identical circular had been issued in 1828; as there was then no lively hypothesis, very little notice was taken of it. No transfers were to be made from bank to financial institution by the Secretary, besides as the comfort of the treasury should require, and then he was to switch from one deposit financial institution to the subsequent nearest, and so forth.
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