The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-07

"a al
degree 81 incidental benefit in just proportion to the
amo5nt Of capital by them employed N trade, and no
i, r. 49,. 4;
avery commercial country, that some place, or lew
nlaces should 20 ahead OF others IN commercial bus-
ness importance This must be So until all places
possess precisely equal natural advantages And sup
pose TOO that Instead Of being mscheyous Il Is rather
for the good OF all, that there should be some
commercial emporium, some central point, for the ex-
changes of trade Government certainly should not
seek 10 produce this result by the hcsows OF unequal
privileges but surely, sir it would be strange and IN
defensibe policy which should lead the Government TO
withhold any portion OF the capital OF the country rom
useful employment merely because that, il employed,
while all enjoyed the benefit prQporonatcly, all would
not enjoy with the same absolute mathematical equa-
lty.
So mlch sir for concentration arising from deposit
ing the revenues in banks. Let US now look TO the
oheI art OF the conuexion viz the receiving Of bank
notes Tor duties How the world does this central
xe" the commercial system, The whole tendency and
effect, !, me- directly the other way, 1t
counteracts Capitalization Il gives all possible adyan-
tage to local currency and local payments, aud thereby
encourages both imports and exports II tends TO make
local money good everywhere. If goods be imported
into Charleston, the duties paid in Charleston
notes. New York notes not demanded. Nothing
certainly can be farer equal than this, aud
nothing more favorable 10 the Charleston importers
But how would that system work, which the gentle
man himself proposesi
II his plan could prevail he would have the duties
collected either in specie, or in Government paper
10 be issued from the Treasury. He would reject
all bank notes whatever ii the gentleman, sir, fears
Capitalization, am asonished that he does not
Capitalization in all its terrors in this very PROPOSE
ton of his own Pray, allow me to ask, sir, where
will this Government paper, in the course OF its issue
and circulation, naturally centred To what points
will it tend Certainly most certainly, TO the great
est points OF collection and expenditure the very
heart of the metropolitan city, wherever thai city
NAV be- This is as inevitable as the fall of water or
the results of attraction. II two-thirds Of the duties
be collected in New York, II will follow, OF course,
that two- birds of any Government paper received
for duties will be there received and will be more
valuable there than elsewhere. The value of such
paper would consist in its recevability, and nothing
else. II would always tend, therefore directly to the
spot where the greatest demand should exist for it
for that purpose Is it not so at this moment with
the outstanding Treasury notes Z Are they album
daut in Georgia, in Mississippi, in Illinois, in
New Hampshirel No sooner issued than they
commence their march toward the place where they
are most valued and most in demand: that is 10 the
place of the greatest public receipt Ii you
cenraon, sir and enough of it-ifyou desire 10 dry
up the small streams OF commerce and fill more full
the deep and already swollen great channels, you
will acl very wisely to that end if you keep out of
the receipt ofthe Treasury all money but such paper
as the Government may furnish, and which shall be
no otherwise redeemabe than in receipt for debts TO
Government while al the same time you depTess the
character of the local circulation. ~.. '."
Such is the scheme of the honorable member in its
probable commercial effect. Let us look at it in a
political point OF view
The honorable member says he belongs to the
Saterights party; that party Processes something Of
an uncommon love of liberty; an extraordinary sen
sibty to all its Dangers and of those dangers, it
most breads the union OF the political and money
power. This we learn from the authentic declara-
ton OF the gentleman himself And now oh, trans
cendental consistency oh, most wonderful conform
ity OF means and ends! OH exquisite mode of graft
flying high desires behold, the honorable member
proposes that the political power Of the State shall
take to itself the whole function Of supplying the
tire paper circulation of the country by notes or bills
of its own, issued at its own discretion, to be paid
out or advanced to whomsoever it pieases, in dis
charging the obligations OF Government bearing no
promise to pay, and to be kept in circulation merely
by being made receivable at the Treasury The
whole circulation of the country, excepting only that
which is metallic, and which must always be small,
will thus be made up of mere Government paper,
issued for Government purposes, and redeemable
only in payment OF Government debts In other
words, the entire means OF carrying on the whole
commerce of the country will be held by Govern
ment in its own hands, and made commensurate ex-
actly with It's own wants, purposes, and opinions
the whole commercial business of the country being
thus made mere appendage to revenue.
But, sir in order that may not nsrepresent the
honorable member, let me show you a little more
distinctly what his opinions respecting this Go
vernnent paper.
The honorable member says, sir, that TO make this
Sub-TreaSury measure successful, and 10 secure il
against reaction some safe and stable medium o.
circulation, 10 take the place Of bank notes in the
fiscal operations Of the Government ought be issu
ed" that, in the present condition of the world
paper currency, in some form, il not necessary is
almost indispensable, in financial and commercial
operations OF civilized and extensive communities
that 'lhe great desideralum is ascertain whatd de-
scrpon paper has the requisite qualities of being
free from tuctuaon in value and liability to abuse
in the greatest perfection = that bank notes do not
possess these requisites in degree sufficiently high
for this purpose. And then he says, go farther.
1t appears 10 me, after besowing the best reflection
can give the subject that no convertible paper that
is no paper whose credit rests upon promise 10 pay
is suitable for currency" On what then Che asks0
ought paper currency to rest 2" a. would say" he
answers, , on demand and supply simply which
regulate the value Of every thing else-the constant
demand which Government has for its necessary
supplies" He then proceeds to observe, that there
might be sound and safe paper currency, founded
on the credit of Government exclusively" That
such paper only to be issued those who had claims
on the Government, would, in its habitua state, be
at or above par with gold and silver; that ''nohing
but experience can determine what amount and OF
what denominations, might safely be issued but that
it might be safely assumed that the country would
absorb an amount greatly exceeding its annual in
come. Much of its exchanges which amount to a
vast sum, as well as its banking business would
volve about it and many millions would thus be
kept in circulation beyond the demands of the Go
vernment."
BY this scheme sir, Government in its disburse-
mens, is not to pay money but to issue paper This
paper sho olherwlSe payable or redecmabe than as
may be received at the Treasury. Ii is expected
tobe let out much faster than it comes in so that
many millions Will be kept in circulation; and its
habual character Will be at or above par with gold
and silver. NJw sir, if there is TO be found any
where a more plain and obvious project of paper
money, in all its delormity should not know where
TO look for 1t.
In the first place, sir, | have suggested the COM
pete union which it would form, if it were, in
ITSELF practicable, between the political and the
ney power