1
-PRESIDENT TYLER'S PROPOSED
'.Iie'iaii''
'. Pulfc.curidsU
.. tod these ;wo wetks lor. a lull view oi.im
Fiscal Age nt of vl(1ch"a n outline was sketch.
VJed In the Presid;nfV Message to Congress,
' is at length gratified. Jost before iho uouse
. ..oflteprescntatives.adjouniod on Tuesday,
. rf witn InA nmnmriftnvinif ttiil , ;riivt will
' .uo .found in tho. following Columns, was ro-
ceived j and wo have lost no tufViu spread
4." ing it before our readers. 1 In tins lloport
nnJ, 0;U tha rcudef will' find in all it de.
Jails-the plan pf.RJPj.lInstU'lpnto
tinder thd direction of t' o Hoard of Exche.
nuerT'i,ttiiIi oscrtcie in the several States
'o nd Territories. - ': '.; " ' V ''. '
v tir. ir . . .tr.. ...J i .... .t. .
I r. .... n:ui... :
' marks of (Wrs.H'lTie Report Is of achafac
Icr to command universal attention ; and
' the whole scheme, considering the circuth
' , stances under which it now presents itself,
is entitled to calm and dispassionate const.
.. ?i . ."the report. - - v-
The Secretary of ihoPrcnsury, in.com.
' pliance vith . tjie resolution of the House of
ileprescntatives ot The J 3th Instant, has the
'. honor of submitting 'the draught of n bill for
-thd establishment of a Biard of Exchequer
' at tlie scat of Government, with agencies in
tiic several States snd-Tenitoiioa. . ' .
T r 'tention to keep - warm:, and to fill !up, ihe
-. general Outline of the moasuijejris proposed
' in tho'niessoge of tho President at the ope.
iiing ofthe' session j hut ho does not flutter
V'-1 himself that It wilt bo found so perfect in its
v careful revision by tho two' Houses of the
Legislatoro: -'-Cs-r:-'
- Asjnra jiiealurli)as, necessarily, been
- ""for some time tinder the consideration of (ho
President and Ids constitutional, advisers,
tho undersigned is directed by him lo ac.
.company the bill with a general exposition
of tho yleWa'tsntcrtaiiied by him, aud con.
" -currcd In by tnem, tespcenng it..
At S In what roanaer and under what sccuri-
tics the public rrionoy shall be kept ; in what
manner, or whether in any manner, this
v Government -shall attempt to supply a sound
paper medium 'for payments to tlie Tiensu.
' in wiiat manner, or whether in any manner,
it shall attempt t6 bsncii tho gcucfal busi-
5 ness of the country, by ' furnishing facilities
, of exchange, ajo aestions which hav not
ceased to ngilaie the-community for eight
tion of opinion lias; prevailed, and ardent
;"' and intense political controversies and strug.
tgles liavo been founded. It is limo that
this state of thinga were brought to an end.
' li Is, time that such provisions were made
J -j; .u .Kit. it u
peonld may fcel.that the public treasures are
i. currency and exchange, individuals may
" know what they have to expect, r whether
' thov mnv exnect anvt'hincr i'rom the niea.
. sures-tof, Government: Doybt and tincer-
tainty in this respect constitute the worst of
alt conditions. ; They alTct. every man's
"means of -living, and, instead oi giving
ncoursgemont, and applying a stimulus to
- ludividuQi.exisrtioniniLcilorx-chccKlae
Jiand of industry, suppress t'uc spirit of en-
; tcrprisc, and briDg stagnation and paralysis
upon tho productive powers of tho country.
On subjects so vitally connected with man's
personal Rnd domestic welfare, tho people
have a right to reqitiro that what is tobe
done should bo done without urtheijlelay.
selves to. tho- policy vL tho Government,
whatever that policy may be, and be prei
pared to give a c6rrc25ponding direction to
their own industry and business. - The great
want oXthccQuntryiii l!icwant of .conn
' dence; Confidence . in the steadiness and
filabiuty ot the policy oi inc oovernment f
confidence in that which regulates the value
.of property and tho-wngc oflaborj and
confidence in , the establishment and pre.
- Bcrvation of thcar.cces3ary and ordinary
means of. exchanging' production against
production, and of buying and selling with
security, so that the intercourse between
u. different par's of tho country'may ba car
". ricd on with its forrder cctivity usefulness
- Tho object of tho plan suggested to Con
grcsskia the President's message and now
presented for its consideration in the form
Til till! !b-v-I-iH1I! ltii! rnnfii!r!pn nnrl I
to give ine country tranqumiy. it is ue-
signed to tcrminntOi contentions of Jong
htandins?. ana to restore mat peace,
nnd "imtislaction with the state -of public
tffairs, without 'which men cannot pursue
their vocations cit!iitlijcheerAilness or
r with bocccss. Amidbt tho conflict of widely
ecom.
mended which avoids extremes on uotn
think it desirable that Government should
' do, or attempt to do,' nnd at the same time
- far more than . others a re ready to recom.
. mend. It aims at a just medium a common
ground, oh - which those- may consistently
; stop who might yet wish to go further, and
to which they may advance without sfilf."
- 1 -..- .' I I .U .. . 1 J - "
sired to fall short of it. Itdoes not'fittcmpt
; to collect a capital by private subscription,
for the general purposes of loans ana dis
counts and therefore does not propose to
perform the ordinary functions of a bank.
. On thoolhei; hand, it does-not propose to
lock-up the public moneys from the time of
collection to the time of disbursement, nor
, to demand specie payment for every debt
" duo to the Government ; making no ottempt
at the same -time, to furnish tho country
withilhet currency or( exchange, and en
tircly contenting itself with securing specie
payments into the Treasury- f lb these re.
specti it differs from the system established
by the few, now repealed, generally called
tb aub-Treasury act.
' It is not intended here to discuss the re.
. tpectire merits of these two system3,wbich
tnayilicrcganled aa estrcma opponents 'of
each-other. Hut It rnay be proper to say
in regard to a Bank of the United States,
that if there wetc In ho quarter any consti
tutlonal objection to the creation of such an
institution, it would nevertheless not have
been recommended to Congress ill tbcrpre
sent condition of things, as a tnoasure likoly
to atFord relief tp the country .j Such is the
condition of the currency ia rqanyfo
States,' such tho'; dcplorablo depressionbf
general credit produced by that condition
of tho currency, nnd by other-causes, and
such the existing-- pressure ' in the money
market, arising, as ii believed ,:ift a j;reat
degree from wuut of. confidence, that thcr
talittlc' probability that private subscriptions
pnyabloln specie, would be obtained to any
bank4iMth .ordiDniyhartiS.vwTh opt
ion is strcugthoned by tho fact,lhat six per
cent, stocks ol tho United States, now in
tho market , go slowly and heavily into pri
vate hands ; and although this Is doubtless
partlyattributable to Uio short period with.
m wnicn inose biocks ore mauq reoecma
blc, yet the general fact concurs with other
reasons in producing a full conviction tha:
it would bo useless, at the present moment
to attempt the creation of n bank with a
Capital to be furnished principally "by private
subscriptions, and intended to discount
through its brauches, bills nnd notes in al
parts of theTcouhtryTevch if constitutiona
objections were out of tho way. And in
regard, td the sub.Tfeasury system, it i3
perlinps enough to s'ay that it is supposed a
return to that system at any time hereafter
is an $vk?nt hij'hly improbable,
Botween these a Bank on tho one hand
nnd"tTiesy1slc on the
other the present plan is offered, seeking
to avow the objections winch exist to each
and to accomplish to somo extent, the goo;
designed by both. The plan, such as it Is
will be received and considered, it is not
doubted, in n spirit of candor and concilia
tion, and withn disposition, not so much to
pvioisi. tutne pursuit pi jyliat-nvsjt Jm, uut-
tninawe, as to turn to the crcatest uractica
ble advantage of the country the use of aW
those moans tho employment of which may
ho expected to meet the general concur.
rcnec. , - . " '
; ;. i be bill now submitted may bo consid
crcd as having three principal objects in
view
'1st. Tho safo keeping of the public mo.
ncys,
5JJ. The furnishing, as well for safe and
convenient payments to the Treasury as
tor tho Uso ot the country, a paper circula
tion always equivalent to cold and silver.
and ol universal credit,
3d. A provision for supplying, to some
extent, the mcsns of a cheap and safe ex
change in tho commerce between the seve
ral Stales. .
l the High importance ot the hrst ot
theso objects, no one can entertain a doubt
The public monevs are received by Govern.
ment, from the people, for the necessary
uses of Ihe country, according to the Con
stitution, and ought ever to be esteemed a
sacred trust. 1 hey are earned bv the in
duMryfo-pcopk ; nnd,,..wialeusaMy
guarded, and applied only to really noccs.
sary and Constitutional purposes, will be
cheerfully contributed by a patriotic com-
enmity, ine people hao a rignt to bo as
safe as good laws and a laittiful administra
tion can make them, against both waste and
loss. It wag the remarK ot tho iato f rcsi.
dent, striking by its brevity as well as its
truth, JhnUcycry dollar lost by unfaitliful-
ncss in olnco tends to creato a upwcharge
upon tho people ; and this truth cannot be
kept too fully or too constantly in view.
Debts and dues accruing to the XL States
are paid, iu the first place, "into the hands
of . the appropriate collectors and receivers,
lnjhcsjjj
"po3o'dto be secured by tho integrity aud
care of tho officer, nnd the sufficiency of
his oflicial bonds, and by the enforcement
of a strict of a strict system of frequent
accounting. In tho early history of the
Government, and sometimes at more recent
periods. When public monevs were to be
ustTfor their proper purposes, the drafts of
tho Treasury have been made directly on
these first rceipientsAtothor tunes, and
when there has been a bank of the United
States in existence, the law has required
that those moneys should bo dcposi'cd in
such bonk.
' By the net of June, 1838, it was provided
that public moneys should be deposited in
certain State banks called deposite banks ;
and, finally, by the. sub-Treasury net they
were to be kept by tho mint and its branch-
cs, and by certain officers called receivers-
irpnrrhl.
In all these modes of securing, or at
tempting to "secure the safety of the public
ouieu-iireasuros, ins oovioua iiiai me main reii-
tegrity and honesty of public officers ;
there being superadded, however, in the
f-caso of depositcs with banks, tho guaranty
supposed to be atlorded try thefr capital
ana, in me case or .inaiviauais, a security
bv the executiarhW-officiai Iwnds. with re
sponsible WfctieJs. But in none of these
modes, any more than in any tiling ejse
which becomes tho subject of human trust
in human hands, could it be affirmed thai
the funds were absolutely secured, and safe
beyond all possibility of loss or danger.
Committed to the enro of the deposite banks
to the skill of their officers and the pledge
of their capital, wo know from experience
Xbat.the public money was not safe. Depo
sited with a Bank of the United States,
although no loss ever actually . happened
from such deposite, we now see enough to
know that there was danger, and that the
safety of the public money depended upon
a degree tof discretion in the management
of tlie institution , of the existence and con.
tinuance of which we had not , and could not
have, perfect assurance. Andunder the
operation of the sub-Treasury law every
thing resolved jtseir, at lastinto confidence
in the honesty and integrity of agents, and
the,8ufficiency of their bonds. There erc,
it is true, chambers and vauks, with thick
walls and strong locks ; but human hands
held tho keys; Under that system of pub- j
lie custody, the same .temptations existed
which turround men of doubtful principles
or of wavering integrity in xper situations
of public trust 5 and , if the system had con.
tinucd, theso temptations were nsiikeJy to
have shown their power over tljose employ,
edunder itns they have done in other cases,
'": It i3 t;onfidenlly believed that the present
bill contains all that is practicablei and can
be useful, towards establishing a aafa custo
dy or place of keeping of the funds of Go
yernment. The systona which it proposes
Villi evidently possess some! eminent advati.
tageqf' safety over a bank. In banks, ex
cessiye ioans,,3 and a 'disposition . oAen
prompted by.,their own ink-rest to carry
their accommoaations td quite urircasonhble
lengths, aro a greatrpe of danger. The
Board of Exchequgr wWjbe free from this,
It isteWakc no loans andigiye no accom.
mddations. Opcrationsia cxchange,wben
founded in real husihess transactions, are
usually safe ' in well-conducted banksJ-
deed, regulardealing jn cxchnngo il th.
satcst of all banlufig transactions, and, in
this respect p'ui. present measure promises
stiirgreateKsufuty, jhau attends the same
business in banks, from tfio strict limita-
tions imposed on it, and the absence of all
motive to run into oxecss. Banks, too, as
.we- havo seen are sometimes induced to
depart altogether from their proper sphere
of business, nnd to entangle themselves
with commercial speculations. But into no
such speculations will the., Board of Exche.
quer enter. ..
Thcro is plainly, therefore, less danger
in the system now proposed than in a Bank
so far as danger arises from the manner in
which tho public funds may bo used ; whilo
ti'MiroWer
,io those oi the best-conaucted Dunking in
stitutions. It may be said that it is hoz"rdou ia all
cases, 'to.. sutler tho. public funds to bo em
ployed in any degree, hi exchange or other
dealing. If it bo admitted that thhrobjec
tion is not without its force, it muHt ae ac
Unuu lentil, or ttic surrrstimc, .on the other
liand, that tiies funds would bo used, not
only for purposes of exchange, but iagqnc
ral accommodation loans, and to a great
and often dangerous extent, by any bank in
which they should bo depositi.d . But if,
after oil, it be regarded as possible that oc
casional losses may happen from dealing in
exchange, with the limitations provided in
tho bill, it will then bo for Congress to de
cide, whether a dungcr so contingent shall
in !ucc it to reject the bill, and to prefer a
system which locks up from all usojevery
dallar of the public money , from its receipt
to its disbursement. As the evil of thus
withholding so largo a portion of tbecircu
latioh from tho general uses of society, by
retaining it until wanted for disbursement,
is manifestly n great cvilspeciallyif tho
funds thus withdrawn be in the precious
metals, it ought not to Uo uiftrrd to exist,
unless the danger from the adoption of ano
ther system be equally manifest. ....
A pTaiir, practical, and important public
good ought not to give way to dangers of
doubtful occurrence, or likely to ho slight
in degree, if they should occur. Some risks
wu4w-ruT wiw4wvfjey UwHg wttwrtuu
isnttcmti in regard to revenue, and h
nance. tfs wll as in other business of.h'fe ;
and the true question must always be, whe.
Uhcr the danger of loss bo ro clear and so
great as to overbalance the evident and ccr.
tain benefits. And it is to be . borne in
mind ,tbatalthough tbe present measure
has not profit to Government, or nugmcnta
tian of revenue for its object, yet that the
operations of the Exchequer are expected
to result in some amount of earnings ; so
that , if occasional losses should occur, such
earnings may make them good. , v.-
1 he Board of bxcliequer, it is to be pre-
surncd, will be composed of men of high
character, knoAyp.toJhC-COUntry f . and 41.9s. .
sessin" its confidence.
It will be their duty to superintend and
watch over the conduct of those who pay
out and receive moneys from day to day,
and to demand from all such agents proper
bonds,, with- responsible-suicties ; ana.it
will bo their duty, also, to prescribe and en-
fdrco a system of regular and prompt ac-
counting, which shall know neither indul.
gence nor delay. .. Atlho principal Board
and at cach-ogcncy, tho business of every
day may be closed, and each subordinate
officer coiled on to account for his receipts,
before the day itself closes. Over this Board
the Secretary of the Treasury willexerciso
a superintending power, by the right of
calling for all nccountSy-gennrnl nnd paijvbtLhallHiveJts bills circulation through
tieular, as often as he pleases. And, final-
ly, the absolute authority of Congress will
exist over the whole. Congress will have
created nq;cprpg ration; it will have con-
ferrcd no privileges- or4enciits, except on
the public; it will have granted po vested
rights to individuals; it will have parted
with no'rtlo"nbf'itsown power (jjullts
authority will remain to amend, to super.
vise throughout, or to abolish altogether tho
system, at all times, ficfiording to its own
pleasure.
If entire trust may iiot.be. reposed in an
nstitution thus guarded, it can only bebo-
causo human beings can nevcrbe the objects
of absolute confidence, nor human skill al-
ways adequate to the accomplishment of its
objects. "
Nor is the plan justly 1 Able to Uieobjec.
tion, that it creates n union-of the purse
and the sword, by giving to the Executive
the custody or control of the public money.
arotherwise, 1 he I'resident cannot touch
a dollar of the public money, by his own
authority, nor change its . custody. - The
Secretary of the Treasury cannot touch a
dollar, nor change its custodyi except to
meet ihe occasions of the public service,
and bv a public official act. - Whoever shall
come -to the Exchequer for money, must
show the law of Congress under which he
comes; and no payment can be made but in
compliance with such law. Until appropri.
atlons are made by law, the President will
have tu .more authority thanany other in
dividual in the ' country to take a farthing
from tlw Exchequer. . .
' The purse, then, is effectually severed
'rom the sword tlie executive power is
confined to its proper function of .executing
tho laws of Cougrcss j and discharging its
other high 'constitutional duties f and the
public funds will be in "their f roper place,
entirely oeyona his reach or control, tmtn
Congress shall appropriate them to their
destineo purposes. From that time they
Will go into the hands of disbursing agents,
its tlie public service rnoy require, protected
still by official responsibility -andadequate
bonds, and still beyond any interference Jjy.
the Executive power, Ialie. Exchequer j
therefore, the publics, treasure will bo safe
safe against the usual causes of loss and
danger, and safo from Executivo. control. 7
But tho Exchequer is expected to do more
than merely to keep t safely the public mo
ney." ' :,' ' - "v ' - -
- Its second object is to furnish n sound
paper circulation, in which debts to the Go.
vcrnment may be paid, and which may also
bo useful to the commerce and general bu
sincss of the country '" The first of these
functions is -purely-fiscal j- and the instru-
ftincxisencies of tho country, may become
indispensable to the exercise of the highest
duties of Government. , .
' In ' s6"rcaso.ning upon this subject,- as to
comoto any practical conclusions, it is ne
cessary to consideKeome things as settled
and certain.' Among these, one of primary
. importance is, that a papennreulation exists
in the country," and that tnereis not the
least probability of its ceasing uKcxist.
The States posss tho power of cretding
banks of circulation : they exercise X
power ; many of them derive pot unimport
ant revenues from its exercise, and some of
them even have established biuks, c f which
they are themselves proprietors. No man
capT-eTstt
they- will relinquish this power, or refrain
from its exercise.
In the next place,' cxperienco has con.
firmed the truth,. beyond, tho possibility of
doubt or question, that paper of State banks
cannot bo of universal circulation and cre
dit; there never has been, and there is not
nowjany one State baiikwhoso notes pass
readily from hand to, hand, as equivalent to
specie, over all parts of Ihe country. Many
of these local institutions aro perfectly
sound, are well administered, and their cre
dit in their own neighborhood entirely good
and unquestioned. But, from tho very na.
lure of tlvngs, their credit is" and must be
local only It can never be universal.
Tha peopi 1 are acquainted with the insti
tutions of their own respective Statca, and
generally understand the ground of the
claims of such institutions to confidence and
respect. They pay attention also to what
ever is established by tho General Govern
ment, because they have an interest in the
laws which it passes. But the people, that
is to say, the great mass of productive
earners- of -ono-Statc-cannoligcne rally
speaking, be acquainted with tho moneyed
institutions of other and distant Slates. - In
they do not even know such
institutions by name. How, then, can they
give them their confidence ? Wo sec they
do not give it, even where it might be most
safely bestowed. They prefer tho raper
of their own banks, because they have con
fidenee-iiihe-mstittitiom
and because they know tho amount of de.
preciation on tho paper of such banks,
whereas of tho value of a note of a distant
bank they are wholly ignorant. But this
knowledge, which, the great mass of tho
community docs not possess, brokers and
. -i i 1 11 .1 ---- - rfr.-nnr.Tr:
money ueaiers ao, unu iney use 11 SKiuuny
to their own advantasc. A farmer of Vir
ginia will hesitate to receive in payment a
New York note. He will prefer Virginia
paper, although he knows it is not equiva
lent to specie, because ho can form some
opinion of its value, whilo of the New ork
note he knows no'hing. But the holder of
tho Yew York noteat.lhe samo time, is
ableto dispose of it at tho first broker's
office at a large premium.
Every man in tho habit of observing what
passes around him must seevery day the
existence of this state of things; and its in.
evitable consequence is, to throw the loss if
depreciation on the laborious and productive
classes.; Wherever bad paper circulates,
it is the industrious and the hard.workinf'
who suffer firsthand suffer longest, and suf-
for most. But it is not intended to pursue
this part of the subject farther than to illus
trate and coufirm'thc truth, that no State
bank, founded on whatever capital, admin
istercd by whatever degree of fidelity and
skill, con obtain that familiar character, and
that established and well-known credit,
all classes, in any amounts, and in all parts
of tlie country.-
Now, another most important truth.
equallyvell settled by experience, is,' that
paper-;Usucu for circulation, under the au
thority or with the sanction of tho Govern
ment of the United StatcsiloesjquircJUid,
retain this advantago of known ahu un
questioned character and universal confi.
dence, No matter whcjtjier the note or
bill present itself in Maryland or Missouri,
.Maine or ueorgia, if it promise payment
in specie, on demand, and that promise be
supposed to bo guarantiedTy the charae.
tcr andcre,dif of tlie Government, it springs
immediately to a value equivalent to specie.
The impress of the National Government,
connected with the fact of its immediate
convertibility, stamps the paper with a
mark of perfect and universal reliance, be.
cause all tho People, in all the Slates, are
alike interested io the Gcnerol Government
alike aequainted with its proceedings, and
have like faith in paper to which it gives its
sanction. Wc seem to be called upon
therefore, to acton this subject with three
important truths made clear bcfoWus : first,
that w paper circulation will continue among
us; second, that no paper-circulation- of
universal credit can ever be furnished by
State banks ; third, that such a paper can
bo furnished under the authority of tho Go
vernment of the United States,, :. :
It is under the' influence of these real!.
tics that it is now proposed to issue, to some
extent, a paper currency, according to the
provisions of this bill, its uses are ex.
peeled to be two-fold..; In lbs first place,
as already stated, it wm furnish a safe pa
per medium, in which payments roay .be
made to Government of all dcbti and taxes. '
Pew persons, pcrhopsy arc. sufficiently im
pressed with vhat would bo tlie value .of
this, m certain emergencies.
I Debts to Government aro now to be paid
it) specie, or--the notes ot specie-paying
banfc Let us suppose that some exigency
should Come suddenly upon the country, re.
quiringtfie immediate assessment of heavy
taxes, and that tho same exigency should
compel all the State banks to suspend spe.
cio payments. In such a posture of affairs
how could taxes be paid T Of specie there
would be little to be had of tho bills of
specie-paying banks none. Government
would be driven by absolutc'v,necessity to
the use of paper resting on its owp crcdit,
and created for the occasion. It. wouldhave
no other resource. All must see how vast."
ly useful the system now-proposed-would
bo, upon thohapponingof 8ucli Tan emer
gency. tThe Exchequer would be found,iri
operationand iq possession of a-ccrtaio
quantity of specie ? its notes would Imve
become familiar to the public; It woulcUiave
in addition to its specie and its own estab
fished character, the amount of revenue,
whatever that amount might be, to sustain
its circulation. "It would furnish notes for
disbursement, and receive them for taxes.
With these means, and by faithful and skill,
ful management, . though it might bo em.
barrassed by tho prostration of other insti-4ble
unions around it, it would still retain its own
credit; and that credit would be a vivify
ing and fructifying germ amidst general
blight and barrenness. - ... -
BuMhis part of the bill has another pur.
pose equally or still more important. , Ilie
measure is intended for the People as well
as for 4heGCTBsGnU
Treasury notes always redeemable in gold
or silver, and the use ofxthem in payments
from the Treasury and irribe purchase ol
exchange, cannot but bo beneficial, ' it is
conceived, lit a high degree, to the whole
commerce and all the business concerns of
tho country. ' .
In this part pf its operation too system
presents itself as boneficetit and productivo
of essential good. It seeks not; Govern
ment emolument or Government , conven
ience only, but the public good", the good of
.1- r 1 . -1 . I . - J 7
tlie t'eopie, 111 '.110 largest anu most com
prehensive sense. Its effect is to give to the
People, to their labor, and their internal
trade, the activity of funds which would
otherwise be locked op, and to give them,
at the same time good money. It employs
those funds to sustain credit, to supply a
sound currency, and to favor useful inter,
course between the States. And it does
this without assuming undelegated powers,
without olarming the jealousy or wounding
the pride of the Suites.
, Yct-It cannot with any justice or propric.
tv be called a Government bank. The i
scntial element's of abaiik "are stilt wantiug
to it. Government seeks not to fill its own
coffers by discounts, or to make gains hy
ik. m oC ita own credit, or to nmke the is
sues pf tho Exchequer a substitute for re.
vtnucs in order to meet its own necessities
Nor does it propose to inflict on the People
the evils and the scourge of an irredeema-4frense
is to bo issued which is not payable 4n gold
or silver on demand all paper thus rest,
ing on the double basis of immediate ton,
vjrtibility and 1 lie public fuith. It is not
easy to convcivo how any paper intendedJwill be continually lending to excess, must
foi circulation could be more safe or more &e manifest to every reflecting mind. It is
useful for the purpof es of commerce ; and
it is behoved that it is just such a paper as
the wants of the country loudly demand.
Tlw extent to which this paper may bo
issued and circulated is, it must be confess.
ed, in some decree uncertain. This must
depend on the amount of revenues collected
and disbursed, and on tho degree of success
which may attend the operations provided
forby another part of the bill. But who
"tficr th'e circulation oTlTi&Kofes ofthTrExT
chequer be large or smallerjjt must, sofar
as that circulation thai) extcnfcL be rjjyora.
ble to all interests. - It cannot ouTconduce
to the public welfare that there thould be,
in eycrypartof Jhocountry, some one in.
stitutionj or some one agency, which shalL
be of undoubted credit ; and whose issues,
be they great or small, shall be equivalent
to coin.- 1
If tho circulation of the notes of the Ex.
chequer from hand to hand, in the'fc&fcimon
business of life, should be found to bo small
that fact will arise from one or the other of
two causes, or from the combined effect of
both. If tho amount issued should be small
then of course it can only fill the channels
of circulation to a limited extent, An'd
while the paper of the State banks shall
continue depreciated and yet remain iffl
circulation, Treasury notes, it is highly
probabiewill often be taken outof the cir.
cufationand used for tho purposoof remit
tance. This limited circulation in such a
cascrwoald arise from their superior valuer)
in comparison with tho value of other pa
per. It would not be owing to want of
confidence in them, but to their, possessing
the highest degree of confidence.
But if such use of Treasury notes should
take place, and should diminish ihe amount
circulated in daily transactions- from hand
to hand, yet that use itself would confer a
general benefit of great importance, inas.
much cs all such remittances perform the
office of furnishing safe and cheap exchange
and co-operate direc,tly with the results
hojied to be produced by another provision
of the bill. But if the exchequer and its
agencies bo allowed to deal in exchange,
this use of its notes, although it might exist
to ?onie extent would be far less considerable.
Among possible objections to the issue of
redeemable Treasury notes, one may be,
that they will be returned on the Exche.
quer for specie for exportation. . - - : .
Slates and companies, it is known,- owe
heavy debts in Europe, and these States
and companies it may be fancied, will ob
tain Treasury notes, harass the Treasury
by demands for specie, and send the specie
thus obtained abroad in discharge of their
own obligations A few words may dispel
such imaginations. . , ,. ;
In the first place, theargnment, if it prove
any thing, proves too much; for it proves
that for the same reason all specie paying
banks ought to cease specie payments. But
llie truth probably is ,-limt these States and
companies nnd less diaiculty-ln lighting on
some convenieBljjKjde of remittance ' than
on commandicg at the present moment the
means of making rcmiuauccs iuany form
The general depression wUh tlie co-opcra-
tion doubtless 01 oilier causes, has suspend
ed the power ; of obtaining atch means..
We must continue to hope that,'; under a
better state of things and in better times,
this power.will revive j Aoii when it shall ,
we must look to our crops,' to eair freights,
and to the general oarnings of our industry
to enable ai to meet, the claims of credit,
ors abroad; ; Jn the rnean time, since neither
States nor companies can .obtain loans of
Treasury notes, nor other wiee possess them,
selves of them than by buying and paying
for them weioccd- not .disUess: ourselves
with apprehensions of runs on the Exche.
qiter frim that quarter. . ,-.!, :.
:U remains to say something upon that
part of the bill Which authorizes the Ex
chequer antl its ogencies to buy and ncll do
mestic exchange, under certain limitations
and restriction. . -
-That nn institution founded on a more
extensive plan, with a larger moneyed cap.
ital, which should deal in exchanges on a
broad scale, buying bills at long dates or
accepting bills on security, in order to enn.
drawers to anticipate their means, and
ihus afford capital and credit, as well as ex
change, strictly speaking, -mighty but for
the duDgcrsf attending itproduce more
benefit than that now proposed, may bo
safely admitted. ; But such a 'scheme in
volvcs tho idea of making loans and ad.
vanccs of venturing largely on tho strength
fiersoqalsecyrityAAnd cnterihg Jn no
small degree into the hazards of commerce.
No such purpose is intended by . presenting
the presont bill to theconsiderationofCon.
gress. On tho contrary,, the almost con
cern has been felt to; guard the proposed
measuro agninsr nil tendencies to such a
system of exchange operations;
In all its purposes, it totjks to currency
ancRp exclmDgo, nut to lending or toTdis.
count.sAnd it may well be 0 matter of sc.
nous consioerntKjn,- wtieuipr, sucn utrgo
powers of disca.ui;t can bo safely Jodgcd in
private institutions iih tho power of inak.
ing such discounts by the use of their own
notes. -v-'
;Tlic supervision and regulation of cur
rency belong to Government ;' tiife4)uiness
of cemmerco and the borrowing amNend.
ins of money to individuals. -; And pciha
no conviction is more rapidly taking posses-
sion oftberoiodof ettlightencd men, than
tint Government sliould not commit the
high and important function of superintend,
ing and regulating the currency of a coun.
try to tho hands of those whose occupation
consists in making" loans.'' and discounts,
whetlicr on promisory notes or bills on time.
Whenever a bank makes n loiin, or a dis
count, by the issue of its bills, it adds so
muclito the circulating roodiuin of tho
country i and, in tho abseneo cf all other
regulation or restraint, several hundred
banks, whose palpable interest it ia to in-
tlie amount of circulationraro to de-
cjdcjCnch in the exercise of its ova disorr-
lion, 10 vuui tsieiiijuiiu iitiyntviiuiiiuii mi.jii
be carried. j That tohch a Vystcm .there
must ba some clicck, or that, in the"ata( ncc
of all such check," tho emission of piper
not proposed to enter fully into this subject
at present; but us it lias already in other
countries, so it must necessarily ere long in
this, command the most serious attention of
Government. : V : ; .,' ; ; ; ; . ;
It is hoped that the measure now propos
ed to Congress will have some effect, ut
least, in counteracting the tendency to ex
cess in bank issues. While ( it may not
accomplish all that is to be desired, it is be
lieved it wTireficct something, fo the ex
tent of its means employed, its operations
will be calculated to restrain issues and to
Correct excesses ; because, in the first place
every accession of good currency .to the
general mass tends either to render tho bad
wortuiess, so uim in lime ji sunn uii gm;
way to a betteror to compel those who is.
sue such bad currency to raise its value by
prcporing for its redemption. ; If good cur-
rency could be put into circulation in such
quantity as to meet the uses of, the country
it must of couriO expel tho bad, or bring
about a changef Its character; although
it is equally true that, while the great mrto
be bad,' and -while it yet circulates, not hav.
1 -1 it 1 !.
ing uocome entirely woruness, 11 is ouucun
for a small amount of good currency to
share in the general circulation since it is
liable to be selected from the mass tor pur
poMs which hat mass wilLnot answer.
And,' in the second place, tho Exchequer
?ll . t - ! .L. . 1 111
win uci uencuciauy in inis respect, uy huiu
ing all State banks with which it tnav have
Bvuuugn iu a puneiuui pcriormiiii;u hu m
j 1: 1 e : .. T..,:-
obligations, and bringing them loan irnmc
diato settlement for such Of theirtilhr as
may find tbeir way jnto it, or into any of
its agencies.- - ,
.. It is not intended to say that the proposed
measure will of itself be able to arrest" the
progress of the great evil "of excessive bank
issues rorthat Government may not he
obliged,, hereafter, to adopt other measures.
On the contrary, as already suggested, it is
apprehended that these evils may yet im
peratvely call for other remedies. . But it
isjwlieved lhat it will have a considerable
effect, should its operations be as successful
as is anticipated, In checking and limiting
what it may not be able entirely to suppress.
But there Is another very important con
slderation connected with . this pa rt of the
subject. On great object of the whole
measure Is to furnish, a BoundiCurrency in
the form of T'eosury riotcs, redeemable on
demand fn specie. .These; notes can get
into circulation , nnd be kept in it, only in
two ways! first, by payment in such notes
of debts and deminds on thgTrenstiry ; and
second, by' Buying domestic', exchange,
And it is the last o( these modes which i
most confidently looked toas furowbing an
active and continual circulation of this pa
per. When issued iri Government py
mcnts, at distant points, the general leaden.
cy of the notes will be from those p"n1u
the great Atlantic cities, according to th