Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1838-03-23

secondly, VI the receivers general should
cmbczzlc the public money, the responsible
NY of the Government TO pay drafts issued
upon the basis Of that money would re-
main unimpnircd. The paper therefore.
would be as far superior to the paper OF
any private corporation as the ability and
resources Of the Government Of the United
States aie superior to those Of such corpo.
raIlons.
The banking capacity may be divided
into three faculties: dcpostcs, discount OF
bills of exchange, and promissorv notes or
either, and circulation. This Government
bank would combine them all, except that
II VII not discount private notes, nor receive
private .deposites. Ia payments for the
public lands, indeed. individuals a;c allowed
10 make dcpos'les, and to receive Ger, ficates
of their amount. TO guard against their
ncgollablly, a clause has been introduced
TO reader them unassjguablc. But how
will i; be possible to maintain such an in.
convenient restriction, in n country where
every description of paper imposing an ob.
legation to pay money or deliver property
is assignablc, at law or in equity. from the
commercial nature and trading character of
our people,
Or all the faculties which I have stated
of bank, that winch creates circulation
is the most important to the country at
large 1t is that in which thousands may
be lntercstcd who never obtained n dis.
count or made dcposite with bank.
Whatever Government agrees to receive
in payment the pubic dues is u medium
of circulation, is money, current money, no
matter what its form may be, Treasury
notes, drafts drawn at Washington, by the
! Treasurer. on the receiver general at New
York, or, to use the language employed in
various parts of This bill, "such note bills
or paper. issued under the auhoriry of the
United States" These various provisions
were probably inserted not only to cover
the case Of Treasury notes, but tina, OF
these drafts in due season. Bat if there
were no express provisions Of law, tina,
these drafts should be receivable in pay
mcni of public dues, they would, necessari
~, be so employed, from their own inlrin-
sic value.
The want Of the community ola general
circulation Of uniform value everywhere in
the United States would occasion vast
amounts of drafts which have described
to remain in circulation. The uppropria,
tons this year will probably fall not much
short Of thirty millions of Treasury drafts
on receivers general, of every denomina-
ton and to any amount, may be issued by
the Secretary of the Treasury. What
amount would remain in circulation cannot
be determined priOri. | suppose not less
than ten or fifteen millions; at the end Of
another year, some ten or fifteen millions
more; they would fill all the channels Of
circulat ion. The war between the Gov.
ernment and State banks continuing, and
this mammoth Government bank beng in
the market, constantly demanding specie
( for its varied and ramified operations, con-
!, tidence would be lost in the notes Of the
local banks, their paper would gradually
cease to circulate, and the banks them
selves would be crippled and broken. The
paper Of the Gcvcrnmo Mt bank would ultl.
mulely fill the vacuum, as it would lnstan~
" occupy the place ofthe note Of the late
Bank of the United States.
| am aware, Mr.. President that by the
25th section Of the bill, in order to disguise
he purpose Of the vast machinery which
we are bout constructing, it is provided
/ that it shal be HE dury of the Sec. Of Treas
ury to issue & publish regulations TO enforce
the speedy presentation of all Government
) drafts for payments at the place where
! payable, &c. Now, what a tremendous
Q mower is here vested in the Secretary -
l. He is to prescribe rules aud regulations tc
, enforce the SPECIFY presentation OF all Gov
Q eminent drafts for payment at the place
d where PAYABLE. The speedy presenla'lon
> In the receiver general at New York;
Il The Secretary is empowered to enact reg
@ ula' ions requiring him speedily to present
d them, and if he do not, the Secretary may
5 order them To be paid at st, Louis. a
= New York they may be worth premium
D of five per cent. on S, Louis they may b'
IS liable to discount of five per cent. Now
e in free Government, who would eve
5. think Of subjectlng the property or none.
n of a citizen to the exercise of such powC
d by any Secretary of the Treasury? Wha
;. opportunity does it not ford to reward
50 partisan, or punish an opponent 1T vii
v, be impOss ble to maintain such al odiou
o and useless restriction for any length q
10 time WHY should the debtor as tn
Government would be in the case of sue
VI drafts as have supposedly require his cred
~ itor las the holder Of the draft would bel I
apply within prescribed time for his pay
H. ment No. sir ; the system would contrt
!, YOU; Won could no. so control the system :
~ But if such a ridiculous restriction conl
. he so continued, the drafts would, neverthC
=, less, whilst they were ont, be the time Ion
~ or short. perform the Office of circulatlo
. and money.
i, Let us trace a little farther the opera'io
-. ofIhis Government bank, add follow 1t OF
~ to its final explosion. ! have suppose
-. the appropriation of some thirty millions
Va dollars annually by the Government, to
n di,burscd in the form of drafts, Issued
oh Washington by the Treasury DepartmeI
Or upon the deposi,aries. OF that amour
como Tan a, 6c nan niIlions wand renal