Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-03-24

cmbarra.s,ucnts O.! the Government and the pee
pie countersi.ned bv the CunPiroer, aud hcd
up in the usual way oil bank notes Here Is one
OF them, said Mr. Clay. lie here held np u the
gaze Of the Senate. Treasury note. having all
the appearance of bank note, cnlcrcd, cnyra' cd
and executed like any other bank note. tor sou
This. continued Mr.. Clay, IS a Government post
note put into circulation, paid on, money. aud
prepared and sent forth, gradually To aeeus'om
tho people Of this country to government paper
1 have supposed 4lO,O 900 to be received i" tho
mode stated bv a person entitled 10 receive un-
der an appropriation law. Now, let us suppose
what nc will do with it. Any where TO the
South or West il will comn1lnd premium OF
from to fivc per cent. No where III INC u
ni,cd States will it be under par Do yoa sup
nose that the holder of these drafts would be fool
enough 10 convert them into specie. to be car
ried and transported at his risk Do you think
that he would not prefer that his money should
be in the responsible custody Of the Government,
rather than in his own insecure keeping! ID
YOU think he will deny to himself the opportuni-
" of realizing the premium Of which he my DO
perfectly sure? The greatest want Of the coun-
try is a medium If general circulation, and OF
uniform value every where. That, especially,
is our wants in the western and interior states.
Now, here is exactly such II MEDIUM, and sup
posing the government bank 10 be honestly aud
faithfully administered, It will, during such an ad-
ministration, be the best convertible paper mon
ev in the world, Tor TWO reasons: The irst IS,
that every dollar of paper out will be the repre-
sentative uf Il dollar Of specie in the hands oil
the receivers general, or other repositories; ana
secondly, If .hc receivers general should embcZ-
gle the public money, the responsibility OF the
government to paw the drafts issued upon the
basis OF that money would remlin unimpat'cd.
The papcf therefore, would be as tar superior to
the paper Of priv corporation as the ability
and resources Of tho government OF tho United
States arc superior to those Of such corpora
tions.
The banking capacity may be divided into three
faculties: depositcs, discount Of bills of exchange,
and promissory notes, either, then cir. ulat'on
This Government bank would combine thom all,
except that it will not discount private notes. nor
receive private deposi,es. In payments Tor the
public lands indeed individuals arc allowed TO
make ccposites and receive certificates OF their
amount. To guard against their negot'ab'ity,
clause has been introduced 10 render them unas-
sienablc. But how will it be possible to maintain
such an announcement restriction, IN country
where every description Of paper importing an
obligation to pay money deliver property -
sssignable, at law in equity, from the CONNER
cial nature and trading character Of our people.
OF all the faculties which | have stated OF .
bank. that which creates q circulation is the most
important to the community At large. II IS that
in which thousands my be interested. who ncv-
er obtained discount, or made deposite with
bank. Whatever a government agrees to re-
ccive in payment Of tho public dues Is a medium
OF circulation, is money, curren; money, no mat
ter what its form may be, Treasury notes, Or ifs
drawn at Washington, by the Treasurer or re-
ceiycr general at New York, to use the Ian
euagc employed in various parts OF the bill, such
bills, paper, issued under the authority OF
the United States' These various provisions
were probably inserted not only to cover the
case Of Treasury notes. but that Of these drafts,
in due season. Bat IL there were No expressed
prov isions Of law. that their drafts should be re-
ceivable in payment OF public dues they would
necessarily be employed, from their own IN |
trinsic value.
The want Of the community Of a general cir
culation Of uniform value every where in the u
uitcd States would occasion vast amounts OF the
species of draft which have described to remain |
in circulation. The appropriation this year will
fall not much short Of thirty millions.
Thirty millions Of Treasury drafts on receivers |
general, Of every denomination, and to any a.
mount NAV be issued by the Secretary OF the !
Treasury What amount would remain ia cir
culatioo cannot DO determined Priori, suppose I
not loss than fifteen millions; at the end at
another wear, some ten fifteen millions more |
they would 6ll all tho channels Of circulation.
Tho war between the Government and State /
Bank lcontinuing, and his mammoth Government
bank being in the market, constantly demand
inc specie for its varied and ramifed operations
confidence would be lost in the notes Of the local
banks thei1 paper would gradually cease to cir
cuiate and the banks themselves would be Grip /
pied and broken. Tho paper Of the Government
bank would ultimately fill the vacuum, as it would
instantly occupy tho place ofthe notes Ut the late
Bank Of the United States.
am aware, Mr.. President, that by the 18th
section Of the b in order to disguise the purpose
Of the vast machinery which We are about con-
,,ructing it is prov that il shall be the duty OF
the Secretary Of the Treasury issue and publish
regulations to enforce the speedy presentation Of
hi Government drafts for payments at the place
where payable, Sc. Now, what . tremendous
power 10 here vested in the Secretary! He - to
prescribe rules and regulations to enforce the spec
dv presentation of all Government drafts at the
place where payable. The speedy Presen tation!
Ia the ease have supposcd,a man has his $1,000
in drafts on the receiver general at New York
The Secretary is empowered to enact regulations
requiring him speedily to present them and If he
do not the Secretary may order them to be PAD
It ST. Louis At New York they NAV be worth
4 premium Of FIVE per cent; on st. LOUIS tney
NAV DO liable to . discount Of 1--WE per cent
Now, in . free government, who would ever 'h'nk
Of subieetine the property or money OF citizen
to the exercise of such power by any Secretary
Of the Treasury What opportunity does it not az
ford to reward a partizan or punish an oP2onents