The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-06

T.be few public officers required by the proposed plan
viii the public money! when in their hands, be neces-
.sry exposed to any improper ntsrersnes on the Pan
az The Executive May not be hoped that prudent
bar OF public jealousy and Misrepresentation IN matter
40 peculiarly exposed to them will deter him RON any
.uch interference even il higher motives be found IN
eperave May not Congress so regulate, by law, the
duty of those officers and subject 70 such supervision
and publicity as to prevent the possibility Of any serious
abuse on the part Of the Executive And is there equal
room for such supervision and publicity in connection
with banks acting under the shied Of corporate immu-
mites and conducted by persons irresponsible to the
Government and the peoplei I, is believed that con-
sderate and candid investigation Of these questions will
result the conviction that the proposed plan is far less
liable to objection the oil Executive patronage
and CONTROL than any bank agency that has been or can
be devised
With these views, leave to Congress the measures
necessary to regulate, in tho present emergency the
safekeeping and transfer OF the public moneys ID
the performance Of constitutional duty, have stated
them, without reserve the result Of my own refec-
tons The subject is Of great Importance and one on
which we can scarcely expect to be united IN senti-
ment as We are in interest II deserves full and free
discussion, and cannot fail to be benefited by dispas-
sonate comparison Of opinions Well aware myself
of the duty Of reciprocal concession among tho eo-or
dinate branches OF the Government, can prNnise
reasonable spirit Of cooperation far as II eau be In
duged in without the surrender Of constitutional obec-
tons which believe 10 be well founded Any system
that may be adopted, should DO subjected to the fullest
legal provision, to leave nothing 10 the Executive
but what is necessary the discharge OF the duties i'm
4 posed on him and whatever plan may be ultimately
established, my part shall be discharged TO
give it fair trial and the best prospect Of success
The character of the funds 10 be received and dis
bursed in the transactions OF the Government, likewise
demand your most careful consideration.
There can be no doubt that those who framed and
adopted the constitution, having in immediate view the
deprecated paper Of the confederacy,of which hye
hundred dollars in paper were, at times, only equal to
~ 49, AZ.
dollar In coinlntended to prevent the recurrence
of similar evils far at least related TO the trans
actions Of the government. They gave to Con-
gress express power coin money and regulate the
value thereof and Of foreign coin; they refused to give
power establish corporatons-the agents them as
now chiefly employed to create paper currency they
prohibited the States from making any thing but gold
and silver legal tender in payment Of debts and the
first Congress directed by positive law, that the reve
should be received in nothing but gold and silver
Public exigency. at the outset Of the Government
without direct legislative authority, led TO the oil
banks as fiscal aid to the Treasury In admitted de-
Walton from the law, at the period and under the
exgency the Secretary OF the Treasury received
their notes in payment for duties The sole ground on
which the practice, thus commenced then, or has
since been justified, the certain, immediate, and con-
venient exchange Of such notes for specie. The CO.
vernment did, indeed receive the inconverble notes
of State Banks during the difficulties Of war; and the
community submitted without murmcr to the unequal
taxation and multiplied evils Of which such was
and the banks obliged again redeem their notes
in gold aud silver The Treasury in accordance with
previous practice continued to dispense with the
rency required by the act Of 1889, and took the notes
of banks, full confidence Of their being paid in specie
on demand and Congress- to guard against the slight
est violation Of this principle, have declared, by law
that notes paid in the transactions Of the Govern
ment must be under such circumstances to enable
the holder TO convert them into specie without depre
citation or delay.
nv duta under tha laws thn
banks suspended specie payments, could not doubt
Directions Immediately given TO prevent the re-
cepon into the Treasury Of any thing but gold and
silver or its equivalent and every practicable arrange
men was made to preserve the public fslth by similar
or equivalent payments to the public creditors. The
revenue from lands had been for time substan
TALLY collected under the order issued by direction
of my predecessor The effects Of that order had been
sautary and its forecast in regard to the increasing
insecurity Of bank paper had become apparent, that
before the catastrophe, had resolved not to in
tefere with its operation. Congress is to decide
whether the revenue shall continue TO be so collected
or not
The receipt into the Treasury Of bank notes not re-
deemed in specie demand, will not, presume, be
sanctioned. il would destroy, without the excuse Of
public distress that equality imposts and identity
Of commercial regulation which lie at the foundation Of
confederacy, and would offer to each State direct
temptation to increase its foreign trade, by depreciang
the currency received for duties in its ports Such
proceeding would also, in great degree, Illustrate the
policy, highly cherished Of infusing into crcu
laon larger portion Of the precious metals policy,
the wisdom Of which doubt, though there may
be different opinions the extent which should
be carried Its results have been already too suspi-
cious, and its too closely interviewer with
the future prosperity Of the country, permit for
moment to contemplate its abandonment. We have
seen, under its influence, specie augmented beyond
eighty millions our coinage increased so as to make
that Of gold amount between August, 1884, and Decem-
Der, 1886, to ten millions Of Misunderstanding the
whole coinage at the mint during the thry-one previ-
Gus years
The prospect Of further improvement continued with
out abatement until the moment of the suspension OF
specie payments. This policy has now, indeed, been
suddenly checked, but is still far from being
thrown. Amidst all conflicting theories, one position
is undenabe the precious metals will invariably dis
appear when there be necessity for their
circulating medium II was in strict accordance
with this truth, that whilst, in the month of May last,
they were every where SEEM and were current Tor all
ordinary purposes, they disappeared from circulation
the moment the payment of specie was refused by the
banks and the community tacitly agreed to dispense
with its employment Their place supplied by
currency exclusively Of paper, and in many cases, OF the
worst description. Already are the bank in
circulation greatly deprecated, and they Auctuate in
value between one place and another thus diminish
ing and making the worth OF property and the
price Of labor and failing subserve except at heavy
loss the purposes OF business With each succeeding
day, the metallic currency decreases; by some 1t is
boarded i'll the natural fear that parted with, 1t
not be replaced; while, by Others it is diverted
from its more legitimate uses for the sake of gain
Should Congress sanction this condition Of things by
making irredeemable paper money receivable in pay
ment for public dues, temporary check to wise and
saluary policy WILL in all probability, be converted
into its absolute destruction.
1t is that bank notes, actually convertible into
specie, may be received in payment Of the revenue,
without being liable to all these objections and that
such course may, to some extent promote individual
convenence-an object always to be considered where
does not conflict with the principles Of our Govern
ment or the general welfare Of the country. II snch