The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-12


medium is introduced instead Of it, which is
usually less safe, and often tempts TO ruinous
expansions in issues as well as business, so
as TO cause great fluctuations in prices, unset
tie the value Of properly and contracts, and
sometimes strip from honest industry, in
moment, the hard earnings Of years.
Besides these, a special difficulty, in the
use Of any other substitute for public purposes,
is the procrastination, disappointment, and
embarrassment which, in case OF its depreci-
alton, are sometimes occasioned by IT TO great
national measures, as well as the discredt
thus cast upon the wisdom of the Govern
ment, for regulating its fiscal affairs in such
manner as to be unable to discharge punctual-
ly its engagements, and for the exhibition Of
an example so mischieyous to both individuals
and nations. Another difficulty in this coun-
try is the want of equal value, at different
places, in any other, when compared with the
standard of specie, and the virtual violation
which its receipt for duties may thus cause
of the spirit of that part Of the constitution
requiring all imposts to be uniform" Nor
can these two last difficulties be always en-
tirely overcome by the use Of such paper, or
any other, though redeemed in specie, and on
demand, if il be taken at distance from the
place Of its redemption. But, in the admins
tration Of our fiscal concerns, it has always
been very desirable to avoid the want of uni
| formity, and the delay or expense, and some
times the loss incident TO the receipt for lands
or duties of such notes if redeemabe at dis
lance, and which then would sometimes occur
before they could be converted into specie, or
such money as the public creditor was bound
or willing to accept. In order, therefore, to
prevent those injurious consequences, one
mode has been to accept no State bank notes
whatever for public dues, as is now, and some
times heretofore was, the practice in respect
to lands. Another has been, to permit none
TO be taken except such as, under permission
of the Treasury Department, the collecting
officers or the public repositories were willing
at once TO credit as specie.
In our early operations, for purposes of ia
ciltating remittances to the Treasury, quite as
much as for accommodation to others, collec-
tors were instructed to receive certain State
bank notes, payable near the seat of Govern
ment, and which were to be credited as cash
when forwarded by mall or otherwise to the
Treasurer (See circular, 1889, H.) The
justification offered for this course may be
seen in areport from this department in April
100, Oh ~ The situation of the country,
however, as to ease in communication, facility
in exchanges, and the nearer location of many
points Of collection to those of expenditures,
has since undergone such great Improvements,
as for a long time to have rendered the receipt
of notes to aid in public transfers seldom ne
cessary, and almost entirely dsused. Another
mode adopted by Congress has been, 10 rem
der the receipts of the notes of State banks,
for any purpose less material, by providing
those of bank chartered by the General Co
vernment and making these last, by law, re-
ceivable for all public dues. But this mode
has ceased and the legality as well as sound
policy of the practice to receive the notes of
State banks for any public dues, whether done
with view to fiscal or general convenience,
and though under all the strict limitations be-
fore mentioned, has been questioned by some
Others have considered any limitation what
ever, by either the Executive or this depart
ment, as not justifable since the joint resolu-
ton of 1916. 1t is, therefore, respectfully
suggested, that strong propriety exists for
Congress to legislate more explicitly on the
whole subject.
1t may be proper and useful to add, that,
as most of the duties on imposts have been
discharged in checks on the bank where the
"
own notes, and seldom in those of banks at
any distance, little embarrassment has ever
arisen concerning the payments for duties in
bank notes. But, in taking them for lands, the
remote situation of the purchasers, the re-
ceivers, and the banks, has generally been
such that frequent difficulties and changes in
practice have occurred during the period
while the United States Bank and its branches,
IL Al -
as repositories. In our mixed system of
currency, and one so long and so deeply in
terwoven with the business Of the country, it
was very inconvenient entirely to avoid, and
at the same time occasionally dangerous to
permit, taking the bills of any State bank for
lands and the receipt Of such notes was OBJ
liged to be either so restricted as to prove of
little convenience to the community, or a risk
was incurred of many partial arrangements
being made, and some ultimate injuries sus-
tanned by the Treasury.
Under all these circumstances, the course
least liable to strong objections appears to be
for Congress to prescribe some specific regu-
lations on the whole subject.
This could be effected by directing what
alone appears safe, and what is understood to
be the practice in both England and France.
1t is, that the bills of no local banks be
taken, which shall not, from the near To-
cation of the bank, be equivalent, to specie
be able to be converted into specie at very
short periods by the receivers and collectors,
so as to pay the public creditors legally, if
demanding specie and be thus accounted
for at par, and without expense to the Co
vemment. Another advantage fromthis course
would be, its salutary check on over-issues
by the neighboring banks.
The occasional convenience of sound
paper currency for various purposes, whether
national or individual, such as large pay