Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1837-09-21

from making any thing but gold and silver Il
. legal tender in payment Of debts and the
first Congress directed, by positive law, that
the revenue should be received in nothing
but gold and silver
\ Public exigcncy at the outset of the Gov
ernment without direct legislative authority,
led to the use of banks as fiscal aids to the
Treasury. In admitted deviation from. the
law, at the same period and under the same
exigency, the Secretary of the Treasury re-
ceived their notes in payment of dutics.-
The sole ground Oh which the practice, thus
commenced, was then, or has since, been
justified, is the certain, immediate, and con-
venient exchange of such notes for specie
The Government did indeed receive the in
convertible notes of State banks during the
difficulties of war; and the community sub
mitted without murinur to the unequal tax
alton and multiplied evils of which such n
course was productive. With the war, this
indulgence ceased and the banks were oblig-
ed again to redeem their notes in gold and
silver. The Treasury, in accordance with
previous practice, continued 10 dispense with
the currency required by the act of 1889, and
took the notes of banks in full confidence Of
their being paid in specie on demand and
Congress, to guard against the slightest
violation of this principle. have declared, by
law, that if notes are paid in the transactions
of the Government, it must be under such
circumstances as to enable the holder to con-
vert them into specie without depreciation or
delay.
Of my own duties under the existing laws,
when the banks suspended specie payments,
I could not doubt. Directions were immedi-
atey given 20 prevent the reception into the
Treasury Of any thing but gold and silver or
its equivalent; and every practicable arrange
ment was made to preserve the public faith,
by similar or equivalent payments to the pub
lie creditors. The revenue from lands had
been for some time substantially so collected,
under the order issued by the direction of my
predecessor. The effects of that order had
been so salutary, and its forecast in regard to /!
the increasing insecurity Of bank paper had
become so apparent, that, even before the
catastrophe, had resolved not to interfere
with its operation. Congress is now to de- !,
eide whether the revenue shall continue to
be so collected or not.
The receipt into the Treasury Of bank
notes, s,not redeemed in specie on dsmand,will
not, presume, be sanctioned 1t would de-
stroy, without the excuse Of war or public
distress, that equality imports, and identity of
commercial regulation, which lie at the fonn
daton of our Confederacy, and would offer
to each State direct temptation to increase
its foreign trade, by depreciating the curron
cy received for duties in its ports.
Such proceeding would also, in great
degree, Illustrate the policy, so highly cher
ished, of infusing into our circulation larg
er proportion of the precious metals, policy,
the wisdom Of which none can doubt, though
there may be different opinions as to the ex-
tent to which it should be carried. Its re-
suits have been already too auspcous. and
its success is too closely interviewer with the
future prosperity of the country, to permit us
for moment to contemplate its abandonment.
We have seen, under its influence, our spe-
Gle augmented beyond eighty millions; our
coinage increased so as to make that of gold
amount, between August 1884 and December
1886, to ten millions of dollars; exceeding
the whole coinage at the Mint during the
thirty-onc previous years. The prospect of
further improvement continued without a
batement, 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 conflict
ing theories, one position is undeniable: the
precious metals will invariably disappear
when there ceases 10 be necessity for their
use as circulating medium. 4
1t was in strict accordance with this truth,
that whilst, in the month of May last, they
were every where seen, and were current for i
all ordinary purposes they disappeared from
circulation the moment the payment of specie
was refused by the banks, and the copmuni-
ty tacitly agreed to dispense with its employ
ment. Their place was supplied by cur
rency exclusively of paper, and, in many ca
ses, of the worst description. Already are
the bank notes, now in circulation greatly de-
preciated, and they fluctuate in value between
one place and another, thus diminishing and
making uncertain the worth OF property and
the price of labor, and falling to subserve ex-
cept at heavy loss,the purposes of business.
With each succeeding day the metallic cur
rency decreases; by some it is boarded in the
natural fear, that, once parted with, it cannot I
be replaced; while by others it is diverted J
from It's more legitimate uses, for the sake OF
gam. Should Congress sanction this condi
ton of things, by making rredcelnable paper
money receivable IN payment ofpublic dues,
a temporary check to a wise and salutary po- {
Icy will, in all probability, be converted into I
its absolute destruction. G
1t is true that bank notes actually converti- '
bic into specie may bo received in payment
Of the revenue, without being liable to all a
Ihese objections, and that such course may, c
10 some extent, promote individual convent {
cncc; an object always to be considered S
where It does not conflict with the principles p
IF our Government or the general welfare of c
he country. II such notes only were receiv- o
ID, and always under circumstances allowing II
helr.eorly presentation for payment, and ",
It short and fixed periods they were convert. o
ID into specie, 10 be kept by the officers oi u
he Treasury, some Of the most serious OBJ I"
tacles 10 their reception would perhaps be a
e,noved. TO retain the notes in the 1'rea-