The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-06-14

no purpose Of yindieaiing them, but to expose
in lis true and proper light, the relations lately
subsisting belweenthe Government and these
Institutions and having so said, will only
add, that, for one, believe il is not the inte-
rest of either Of The parties that the connexion
should he renewed, ON the terms and TO The
extent Of that recently dissolved. Although
well satisfied that the agency of these insii-
| tulions is the best within our reach for the
custody and disbursement Of the public mo-
4 ney yet that agency ought To be coupled, as
believe il well may, with restricted use by
Government OF the bank paper, founded on
system Of periodical settlement with the
banks, and periodical conversion Of their
paper into coin; and the custody and dis
buTsement Of this last may be efectually and
simply provided by special deposie in their
vaults. When the proper time comes, should
none other do so, may present bill having
these ends in view.
Having thus shown, as | bumbly submit
| has appeared in proof, that this debt already
created cannot be paid off from the accruing
revenue in shorter period than four years;
lha, the nancy can be raised by loan in open
market, on terms far better than periodical
emissions of Treasury paper and that, how
/
! Cling under impaired credit, the Government
al one period was driven TO this resort, the
opinion of our best and ablest fnanciers has
condemned the practice, it becomes the most
| remarkable that this measure, TO the exclusion
of any other, should now be pressed upon us
with the zeal and pertinaoiiy amounting to ac-
,ual intolerance which has distinguished its
| advocates.
In this view cannot but consider that it
is treated by them as part and parcel of that
great Treasury machinery already adverted
10, which has been given to the country at
various times under the imposing name Of the
Divorce BILL the Reform bill, and last, the In
dependent Treasury
We know that Government paper was look
ed TO as favorite auxiliary by the original
founder and chief propagandist of the new
school of finance; and in looking back to the
report Of the Secretary at the special session,
we find that he, in recommending Treasury
issue then, had far other views in its favor
than the single and legitimate one Of supply
ing the Treasury with means.
After asking authotity TO issue Treasury
notes, coupled with the power to invest any
occasional surplusses in the Treasury in State
stocks, and TO sell such investments when the
Treasury was low, he adds:
IAN additional consideration in favor of these mea-
s that since the payment of the public debt which
absorbed any occasional surpusse Of receipts is inn
possible, according the views expressed in pre-
yous reports from the undersigned that, with sources
Of revenue fuetuatng ours, and dependent on
commercial prosperity, any fiscal operations should be
long continued with vgor and uniformity, without
some such REGULATION as power TO issue and redeem
Treasury notes, or 10 invest and sell the Of
surplusses."
+. Now, sir, the power to deal at the Treasury
in the State stocks, to raise or depress them in
the market, either as the will Of the Secretary
or the wants Of the Treasury might prompt, is
one that few will be found to advocate. 1t has
certainly received but lille countenance, SO
far, from any quarter and our Committee of
Ways and Means has given it but slight en-
couragement in their report to this se5sion;E-
which the Secretary asks, is permanent au-
thority, at his will to g issue, and redeem Trea-
sury notes. Sir, have a right TO call it
permanent authority, because its prescribed
function is that Of regulation. And no power
can regulate thing that is not permanent and
abiding.
Now, sir, ask, where is the constitutional
sanction for this '.regrlahon?" This perma-
nent authority to " issue and redeem Treasury
notes" either in anticipation of the accruing
revenue" or to meet ;. occasional emergen-
cies," as the Secretary exresses it? The pow
er to levy money is, by the Constitution, given
to Congress, and to Congress alone. Its
words are:
THE Congress shall have power to lay and collect
taxes, duties, nposts and excises," &c. and to Dor
row money on the crdt OF the United States
The power is here given exclusively none
other than Congress itself can borrow money
on the credit ofthe United States. This pow
er is the most important one granted; and it
is delegated in the most special and circum-
scribed manner. A part of the trust is, the
amount OF revenue to be raised, but il is part
only another and equally important portion
is. the mode Of doing it, whether by taxation
or loan. Neither the one portion Of this trust
more than the other can be delegated by those
to whom it is conided. The Secretary re-
commends that this power be delegated to
him, that he be autht rized TO borrow on the
credit of the United States" by Treasury
issue, whenever he may Judge it expedient,
either in anticipation of taxes levied, or to
meet occasional emergencies"
Our revenue is derived altogether from i'm
ports and sales of public land What these
will amount to from year TO year, and whether
equal to the authorized expenditure, is neces-
sarily conjectural. If they be not, if in any
one year the revenue falls short of the es,i-
mate, it is the duty of Congress alone TO de-
eide whether IL shall be augmented, or the
expenditure cut down: and If augmented,
whether by new taxes or by loan of money,
/ -, a..