Iowa news. [volume] (Dubuque, Upper Mississippi Lead Mines, Wisconsin Territory) 1837-1841, 1837-09-23
n. revenue, should be received in nothing but gold

Public EFFICIENCY at the outset Of the government.
without direct legislative authority, led 10 the uss
of banks as fiscal aids to the Treasury. In ad-
nt,ed deviation from the law, at the same perloo,
and under the same exigency, the Secretary OF tins
Treasury received their notes iii payment OF au-
ties The sole ground on which the practice, mus
commenced, was then, OF has since, been as.'nsa,
ia the certain immediate, and convenient exchange
of such notes for specie. The Government aia IN
deed receive the iEcchtrcyertable notes Oh Tue
State banks during the dticuities OF war; ah' tue
community submitted without a murmur to the I'M
es,,.al ..xatiaa and multiplied evils OF which
such a course was productive. With the war, this
indulgence ceased, and this banks were obliged "a
rain 10 redeem their notes in gold and silver. The
Treasury, in accordance with previous practice.
continued to dispense with the currency required by
the act of 1899, and took the notes of banks in
full confidence of their being paid in specie on de-
mand; and Congress, to guard against the slight
EST violation of this principle, have declared, by
law that if notes are paid i'll the transactions of
Government, it must be under such circumstances
as 10 enable the holder TO them into specie
without depreciation or delay.
OF my own duties under the existing laws when
the banks suspended specie payments, could not
doubt. Directions were Immediately given TO
prevent the reception into the Treasury of any
hing but gold and silver or its equivalent; and ev-
cry practical arrangement was made 10 preserve
the public faith, by similar equivalent payments
10 the public creditors. The revenue from, lands
had been for some time substantially SO collected,
under the order issued by the directions Of my pre-
decessor The effects of that order had been so
salutary and its forecast i'll regard TO the ncreas-
ing insecurity of bank paper had become so
apparent, that even before the catastrophe, had
resolved not to interfere with its operation. Con-
gress is now to decide whether the revenue shall
continue to be so collected or not.
The receipt into the Treasury, of bank notes,
-
sume be sanctioned. 1t would destroy, without
the excuse Of public distress, that equality
Of imports, ard identity of commercial regulation,
which lie at the foundation of our confederacy,
and would offer to each state a direct temptation
to increase its foreign trade, by deprecating the
curie ncy received for duties in its ports. Such a
proceeding would also, in great degree, Illustrate
the policy SO highly cherished, OF intuslng into our
circulation larger portion of the precious metals;
n policy, the wisdom of which doubt,
though there may be different opinions as to the
tent TO which it should be carried. Its results have
been already too suspicious and its success is too
closely interviewer with the future prosperity Of
the country, to permit us for moment 10 contem-
plate its abandonment. We have seen, under its
influence, specie augmented beyond eighty
millions; our coinage increased so as 10 make
that of gold amount, between August, 1884, and
December, 1886, TO ten millions of dollars; exceed
ing the whole coinage at the mint during the thirty
one previous years. The prospect of further inn
provement continued without abatement, until the
moment of the suspension of specie payments-
This policy has now indeed been suddenly checked,
but is still far from being overthrow. Amidst all
conflicting theories, one position is undeniable-
the precious metals will invariably disappear when
there ceases to be necessity for their cir
culating medium. 1t was in strict accordance with
this truth, that whilst, in the month Of May last.
they were every where seen, and were current fol
all ordinary purposes, they disappeared from cir
cuation the moment the payment of specie was
refused by the banks, and the community tacitly
greed to dispense with its employment. Their
place was supplied by currency exclusively Of pa
per, and in many cases, of the worst description.
Already are the bank notes now in circulation
greatly deprecated, and they fuctuate in value be-
tween one place and another; thus diminishing
and making uncertain the worth of property and
the price of abof and falling to subssrve except
a heavy loss, the purposes of busness.-With
each succeeding day the metallic currency decreas-
es; ny some it is boarded in the natural fear, that
once parted with it cannot be replaced: while by
others it is diverted from its legitimate uses
for the sake of gain. Should Congress sanction
this condition of things, by making irredeemable
paper money receivable i'll payment of public dues,
temporary check to wise and salutary policy
will, in all probability, be converted into its abso
lutte destruction.
1t is:rue that bank notes actually convertible in
to specie may be received in payment of the rove
nue., without being liable TO all these objections.
and that such course may, to some extent, pro-
mote individual convenience; an object always 10
be considered when it does not conflict with the
principles of our government, or the general well
fare of our country. If such noies only were re-
ceived, and always under circumstances allowing
their early presentation for payment, and it,
at short and fxe periods, they were converted in
10 specie, to be kept by the officers of the Treasu
ry, some Of the most serious obstacles their re-
ceptiOn would perhaps be removed. 10 retain the
notes in the Treasury would be to renew, under
another form, the loans of public money TO the
banks and the evils consequent thereon.
Its, however, mistaken impression, that any
large amount of specie is required for public pay
meats. OF tho seventy or eighty millions now es-
timated 10 be in the country, ten millions would be
abundantly sufficient for that purpose, provided
an accumulation Of large amount Of revenue,
beyond the necessary wants of the Government,
be hereafter prevented. If to these considerations
be added the facilities which will arise from en-
abliag the Treasury to satisfy the public creditors
by it, drafts Or notes received in payment of the
public dues, il may be safely assumed that no mo-
tive Of convenience to the citizen requires the re-
ception Of bank paper.
To say that the refusal of paper money by the
Government, introduces an unjust discrimination
between this currency received by il, and that used
by individuals in their ordinary affairs, is in my
judgment, to view il in very erroneous light. The
Constitutions prohibits the states from making any
thing but gold and silver tender in the payment
OF debts. and thus secures to every citizen right
70 demand payment in the legal currency To
provide by law thai the Government will only re-
ccve fts dues in gold and silver, is not to confer on
i any peculiar privilege; hut merely to place il
4 on an equality with the citizen, by reserving
% il the right secured to him by tho Constitution.
II is doubles for this reason that the principle has
k~~~s NNf inn hue n
the first Congress under the Constitution down n.
the last Such precedents, never objected 10. and