The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-23
From the Richmond Enquirer.
A REPLY--Gouge Scheme.

A HEPLf--Goags Sehsms
Mr. Editor Your correspondent. "A True Demo-
erst," (whom take TO be Mr. Gouge himself Is right
in supposing that had not read his pamphlet only
had the good fortune TO read such extracts from H.
have appeared in the newspapers II seems that Mr..
Gouges design is. not TO expose all the evils OF pa
per money banking, but endeavor To- show that even
fit shall be deemed best found necessary 10 continue
the system, the fiscal concerns of the U y ought TO
be completely separated hererom" Il further stated
that at does indeed appear from previous Publcs
ton Of Mr. G.s. (the short History Of Banking, to
which you have often reierred that ne (Mr Goueeis
In favor OF course OF measures by which poper money
shall be gradually suppaned by metallic but not IN
favor of an exclusively metallic currency il the word
currency be used in comprehensive sense as TO
include all kinds Of commercial medium. lie draws
marked line Of distinction between circulating nediam
and what he calls commercial medium and, while
he maintains that the standard and measures Of value
in other words, the money Of country should have
intrinsic value, he would leave traders to devise such
other auxiliary MEDIUMS their business may require
in the way is done in Holland and other solid
money countries.
o From these extracts il cannot be doubted, that was
right in supposing that Mr.. Gouges scheme OF Sub
treasures intended reduce the currency TO gold
and silver, except what he calls commercial medium,
which take TO be bills Of exchange his own exPlana
ton Of the scheme makes precisely what Isupposed
it was intended to be- The fiscal concerns OF the
United States ought Che says to be completely separate
ed" from the present Banking System and he would
leave traders devise such other auxiliary mediums as
their business may require" ..EJt
II we contemplate the recklessness OF this scheme,
90 beautifully gded with gold, will have just cause
to wonder that should have been the conception OF
"a irus Democrat" II has always seemed to me that
party power ought to do exactly what as honest
and wise men, they would have others to do they
in power and the former out But the proncness OF men
TO think themselves safe repositories OF power, which
they would the hands OF Others 10 the very
bane of many politicians, and must ever admonish the
fhatti harf only ha nrpSpF
scrupuous waichiuness over their public servants, or
that they will become masters under any name Since
the publication Of my first article, have been informed
that Mr. Gonge is an officer IN one OF the Departments
Washington, but whether his opinions are identical
with those Of the President have means OF knowing
I hope they are not / will appeal to Mr.. Gouge, and
10 every democrat in Virginia. whether any one OF them
would. in case Wing was now President oil the u ,,
and the Wings in full power Of the Government. con-
sent that they should upturn the foundations OF our
financial, banking, and commercial systems, as Mr..
Gouge proposes by his schemel Whatever be the de-
fects Of financial, banking, and commercial systems,
land many. believe, there are) still we have enjoyed
degree Of prosperity under them, entirely unknown to
any other age country. We are people OF such
energy and enterprise az to require far more abundant
circulating medium than can be procured alone from the
precious metals, while maintain any thing lika re-
cprocity Of freedom in trade with other nations nor
indeed can commerce or international law be nsti-
tuted to anable nation to extract from It's neigh
bors undue proportions OF specie without being subject
to refuxes, perhaps not much less mschieSous than
those which occasionally occur under the improper
management OF banks. But 1t is not my intention to
discuss distractions. have neither time, nell
nation, capacity for such discussion My object
merely to call the attention Of the Democrats Of Virgil
MIA the consequences, which necessarily follow
the adoption Of Mr., Gouge's scheme. And while do
not doubt the purity of Mr. Gs motives, nor his sound
ness democrat, cannot believe that the tree he
has planted will produce democratic fruit
The institution and establishment OF sub-trcasuries
Ill InIfa
States would cost the Government several millions OF
dollars Strong houses with vaults, chests, bars, bolts,
and locks would be necessary with regular corps OF
waichmen and additional set OF officers To blind
the public the scheme might be commenced with very
few officers, but they would be increased 10
any number actually necessary For example, in large
town or city, suppose sub-treasury would be sui
fcen hold the funds Of collectors pos,masters, &C.
and that all payments to officers and contractors with
the Government in that vicinity, would be made at II
And hence subtreasurer with proper clerks, would be
requisite keep the custody of the money and pay 1t
out according to the orders Of the Treasury Department
at Washington.
All payments to the Government take it for granted.
be specie and all transfers from sub-treasury
to another to meet payments at the latter, must IN like
manner be made IN specie or IN some paper depifc or
auxiliary The expense, risk and labor OF transporting
specie from places Of collection, where excuses would
be received TO places of payment where Deficiencies
would exist could not fail to lead TO paper device,
which, for convenience to myself the thing would be
to the Treasury Department, will call Treasury
medium This Treasury Medium would at once be-
receivable at the subeasures in place OF specie,
and then should have nothing receivable in payments
to the Government but specie and Treasury medium,
MIR Gouge :" afirms that there is everlasting dis
tfnction between the promise to pay gold or silver,
and actual payment Of gold silver" SO we should
then find everlasting distinction between order to
pay gold or silver. and an actual payment OF gold or
silver. But the lease being altered would alter the
case" The Banks thus beng under the ban Of the
nation, (beeause they Banks,) and their notes only
receivable by the common people and the poor mocha
MICS and merchants because they people and
poor mechanics and merchants and the "comnercal
medium being in nowise suited to the payment Of pub
lie Dues the Treasury medium would instantly become
article of commerce, and be sold in the market for
premium above the price OF gold and silver Thus by
discredting the currency OF the States and creating
Treasury medium for the officers and creditors OF the
United States, distinction more odlous arstocrac
and Federal, than entered into the head OF Aex-
ander Hamilton, when contrving his financial schemes
to accumulate Federal power and overthrow the indie
tendency Of the States by money would be fastened,
perhaps rrevocably, upon the people OF this country
But pause Has 1t come to this, that the officers and
creditors of the United States cannot use the money
used by the people Cannot they subsis. upon the
same kind OF meat, bread, and drink Are they not
content with the dellcaces, luxunes or even ex-
travaganciesl Or, are they OF an entirely superior
orier .nted to excellent moneys, meats breads,
drinks, delcacies uxures and eItrasaganccs! How
isit! Can the Democracy Of Virginia stand this Or
is this phantom Of the Imagination No The notes
of State Banks will bpy at this time Of the
necessities. comforts and Injuries of life lands,
slaves horses cattle than before the suspension Of
specie payments yet find officers and creditors Of
the United States taking advantage of the disesses of
the people and Specie Circular and speculate upon the
Treasury medium recently devised by the Secretary of
the Treasury, and making five to ten per centum
by selling 1t, for such money the common people
use believe the State Banks ought to be fostered
BY the General Government and not injured II could
have any doubt that subject, the mpoten reproaches