Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-09-11

and making uncertain the worth Of pro.
perry and the price Of labor, and failing TO sub
serve, except at heavy loss, he purposes Of busi
ness. With each succeeding day the metallic cur
rency decreases by some il is boarded in The natu
raj fear that once parted with, 1t cannot be repaccd
while by others 1t is diverted from its more legitimate
uses, for the sake ofgain. Should Congress sane
ton this condition ofihings, by making irredcemablo
paper money receivable in payment Of public dues,
a temporary check to a wise and sautary policy
will in all probability be converted into its absolute
destruction.
1t is true that bank notes actually convcrii
Bile into specie may be received in payment OF
the rcvUnue, without being liable 10 all these
objections, and that such n course may, TO
some extent promote individual convenience;
an object always 10 he considered where it
does moi conflict with the principles Of our
Government, or the general welfare Of the
country. II such notes only were received,
always under circumstances allowing their
early presentation for payment, and if, at
short and fixed periods, they were converted
into specie, to be kept by the officers Of the
Treasury some Of the most serious obstacles
to their reception would be removed. To re-
tain the notes in the Treasury would be to re-
new, under another form, the loans Of public
money 10 the banks, and the evils consequent
thereon.
tits, however, mistaken impression that
any large amount Of specie is required for
public payments. OF the seventy or eighty
millions now estimated TO be in the country,
ten millions would be abnndantly sufficient
for that purpose, provided an accumulation Of
large amount Of revenue, beyond the neccs-
sary wants of the Government, be hereafter
prevented. II 10 these considerations be added
The facilities which will arise from enabling the
Treasury TO satisfy the public creditors, by its
drafts or notes, received in payment Of the
public dues, it may be safely assumed that no
motive OF convenience 10 the citizen requires
the reception Of bank paper.
To say that the refusal of paper money by
the Government, introduces an un Just discrm-
nation between the currency received by it,
and that used by individuals in ordinary al.
fairs, is, in my Judgment to view il in a very
erroneous light. The Constitution prohibits
the States from making any thing but gold
and silver a tender in the payment Of debts, and
thus secures 10 every citizen right 10 demand
payment in the legal currency.
To provide by law that the Government
| will only receive its dues in gold and silver,
is not 10 confer on it any peculiar privilege;
! but merely TO place il on an equality with the
citizen, by rcscrving a right secured TO il by
the Constitution. 1t is doubtless for this rea-
son that the principle has been sanctioned by
successive laws from The time Of the first Con-
gress under the Constitution down 10 the last.
Such prccedcnts, never objected TO and pro-
| ceeding from such sources, afford a decisive
answer to the imputation Of inequality or in
justice.
But in fact, the measure il one OF restriction,
not Of favor To forbid the public agent TO
receive in payment any othe. than certain
kind of money, 10 TO refuse him a discretion
| possessed by every citizen. Ii may be left 10
those who have the management OF their own
| Transactions 10 make their own terms; but no
such discretion should be given 10 hun who
acts merely as an agent Of the people, who is
to collect what the law requires, and TO pay
the appropriations it makes. When the notes
are redeemed on demand, there is then no dis
elimination in reality, for the individual who
receives them may, at his option, substitute the
specie for them he takes them from conven-
fence or choice. When they are not so re-
deemed it will scarcely be contenjej that
their receipt and payment by public officer,
should be permitted, though uone deny that
right 10 an individual; if it were, the effect
would be most injurious to the public, since
their officer could max none of those arrange
ments, to meet or guard against the deprecia-
ton, which an individual is at liberty TO do.--
Nor can inconve nience to the community be
aledged as an objection TO such regulation
Its object and motive are their individual con.
venience and welfare
IF, at moment of Simultaneous and uncx.
pecte1 suspension by the banks, it adds some
thing 10 the many embarrassments OF thai
proceeding, yet those are far overbalanccd by
its direct tendency TO produce n wider circu
ation of gold and silver, to increase the saiet,
Of bank paper, to improve the general curren.
cy, and thus 10 prevent al ogcther such occur
renccs, and the other and far greater evils tina
attend them.
1t may, indeed, be questioned, whether it il
not for the interest of the banks thcmselve
that the Government should not receive tbei
paper. They would he conducted with NOR
caution, and on sounder principles. By usin:
specie only in its transactions, the government
would create demand for it, which would, t,
a great extent, prevent its expectation, ant
by keeping it in circulation, maintain broad
or and safer basis for the paper currency
That the banks would thus be rendered NOR
sound, and the community more safe, canno
admit Of a doubt.
The foregoing views. it seems 10 me, d.
but fairly carry out the principles of the feder
al constitution in relation 10 the currency, a
far as relates TO the public revenue. At tn
time that instrument was framed there wer
but three or four banks in the U. States; AM
had the extension OF The banking system an
the evils growing out OF il been forseen the
would probably have been specially guardc
against. The same policy which led to tn
prohibition Of bills of credit by the state:
would, doubtless, in that event, have intcrdcl
ed their use as a currency in any other iorm
! The constitution, however, contains no sue
prohibitions; and since the States have excl
cised for nearly half century, the power |
regulate the business of banking, il is nc
TO be expected that it will be abandoned. Th
whole matter is under discussion before III
proper lribunal-lhe people OF the States.
Never before has the public mind been s
, thoroughly awakened TO proper sense OF il
importance never has the subject in all il