The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1838-03-30

IN drafts on the receiver gensweTed 70
York. The Secretary isam speedily
enact regulations requirns do not. The
20 present them. an8em 10 be paid II
Secretary may orr York. hey may Be
81. Louis. A. If Eve per cent; on 81.
worth = prsny be liable 10 . discount
Louis, iheenL Nov. in q free govern
of fveIo would ever think Of subject
mere property or money Of . citizen 10
iexercise Of such power by any Sc
.;reIary Of the Treasury! What OppOr-
funity does IL not afford TO reward par
lisan or punish an opponent! IL will be
impossible 10 maintain such an odious
and useless restriction Tor any length ot
time. Why should the debtor las The
government would be in the case Of such
drafts as I have supposed require his
creditor las the holder Of The draft would
bel 10 apply within prescribed time for
his payment! No, sir. The system would
control you: you could not so control the
system. But IL such ridiculous resIrlc-
ton would be so continued, the drafts
would. nevertheless. whilst they were
out. be The lime long or short, perform
The Office OF circulation and money.
Lei Us irace little further the opera.
ton Of this government bank, and fol-
low il out 10 lis final explosion. have
supposed The appropriation Of some shir-
~ millions or dollars annually BY the 60
yernment. 10 be discussed in the form Of
drafts, issued al Washington BY the Frea-
sury Department. upon the deposiIaries.
flhat amount. some ten or fifteen mil
lions would remain, the frs, scar, in cir-
culaIion; at the end OF another year.
similar amount would continue in cir
culaton; and so on, from year 10 year,
until at the end OF series of some five or
six years there would be IN circulation 10
supply the indispensable wants Of COM
lnerce and of a general medium Of uniform
value, not less than some sixty or eighty
millions of drafts issued by the govern
ment. These drafts would be generally
upon the Receiver Generals al New York,
because, on that point. they would be pre-
fenel over oil others. as they would CON-
mani a premium, or be al par, through
on, the whole extent of the United States;
and we have seen that the Secretary Of
the Treasury is invested with ample au-
thority 10 concentrate at that point the
whole revenue Of the United States.
All experience has demonstrated that
in banking operations much larger
amount of paper can be kept on. in cir
cu!alion than the specie which il is ne
cessary TO retain in the vaults TO meet il
when presented for payment. The pro-
portions which the same experience has
ascer,ained TO be entirely safe are one Of
specie to three Of paper. II, therefore,
the executive government had sixty mid
lions Of dollars accumulated at the port of
New York, 10 the hands of the receiver
general, represented by sixty millions Of
government drafts IN circulation, it would
be known that twenty OF that sixty mil
lions would be sufficient 10 retain 20 meet
any amount Of drafts which, in ordinary
times. would be presented for payment.
There would then remain forty millions
in the faults. idle and unproduclive. and
of which no practical use could be made.
Well: grea, election is at hand in the
state of New York, the result Of which
will seal the fate Of an existing admins
tra,ion. Ii The application of ten millions
of tina, dormant capital could save, at
some future day, corrupt executive from
overthrow, can il be doubted that the ten
millions would be applied to preserve it
10 powers Again: lie. US suppose some
great exigency TO arise, a season Of war,
creating severe financial pressure and EN-
barrassment. Would not an issue of pa.
per. founded upon and exceeding the spe.
Gle in the vaults, in some such proportion:
as experience had demonstrated might be
safely emitted, be authorized! Finally,
the whole amount Of specie might be ex.
hausled, and then, as il is easier TO en-.
grave and issue bank notes than to per.
form the unpopular office of imposing
taxes and burdens, the discovery would
be made that the credit OF the government
was sufficient basis whereupon 10 make
emissions Of paper money, 10 be redeem
ed when peace and prosperity returned
Then we should have the days Of CONT
mental money, and Of assignats, restored
Then we should have that government
paper medium which the Senator from
South Carolina (Mr. Calhoun) consider
ed the most perfect Of all currency!
Meantime. and during the progress o
this vast government, machine, The state
banks would be all Frustrated. Working
well, as it may, if honestly administered
in the first period Of its existence, it vii
be utterly impossible for them 10 main.
tain the unequal competition. They
could moi maintain il, even if the govern
ment were sciuaied by no unfrIendly feel.
ings toward them. But when we know
the spirit which animates the present ex'
ecutiye towards them. who can doubt thai
they must fall in the unequal contest!
Their issues will be discredIled and dis.
cnuntanauced. and that system Of bank.