The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-05-10
ISSUE OF TREASURY NOTES.

The Globe Of Tuesday night has a semi
official Treasury article, on the condition
Of the Treasury" After speaking Of the de-
lays that have occurred in the House Of Re-
representatives., in acting on the bill reported by
Mr. Cambreleng,
"To remedy the difficulty pointed out in the last an
nua report Of the Treasury Department. likely 10 hap
pen from the existing prohibition against reissuing the
Treasury notes paid in before they are due"
1t then says,
" No new taxes OF loans are said 10 be needed.
" We understand that the revenue paid IN has not
been less than expected this OF the year
but that near FIVE and half millions Of have been IN
Treasury notes. which cannot be issued again by the
late law and which. fmerey allowed to be employed,
or others in en stead would obyate every difficulty
We notice this subject in part, TO show
the perfect imbecility and want Of financial
knowledge and skill with which the affairs
of the Treasury Department Of this Govern
ment are managed.
In October last an application was made to
Congress to authorize the issue Of ten million
dollars Of Treasury notes, payable in one year;
and receivable in payment Of all public dues.
That was to silence all the wants OF the
Treasury. Now, we are told, from the small
amount Of Treasury notes, " left to be issued
as well as the small amount Of other means on
hand" that unless a seasonable remedy"
be provided, the public works will be stopped,
the public service suspended, and the public
faith violated.
| And what is the cause alleged, that has
! led to this dscreditable condition OF the pub
lie Treasury Is it that the revenue has
been " less than was eapected al this SEASON Of
the year 2" No. We are told that it has not.
But, that, +" near fue and half millions Of it
has been paid in Treasury notes. Why, the
very terms on which the Treasury notes
were issued, contemplated and made provision
for such payments. And it required no great
sagacity to foresec that, in place Of the re-
venue being paid in cash, and becoming avala-
BILE in public payments, it would be paid in
Treasury notes which have invariably been
at discount; and are so still, at the great
emporum, where more than one half of the .
revenue from imports is collected. But for
such receivability we have the most abundant
proof that these Treasury notes would have
been far below bank rags, though carrying
with them interest
We are now told that if those deprecated
Treasury notes, which have been returned,
are merely allo,ued to be employed, or Others
in their stead it pouid o6Uiate every difficulty"
Why, this is schoolboy talk. The Treasury
would be aground again before sixty days
rolled over. 1t would be providing means to
the amount of five millions and a half only,
of deprecated Treasury notes to be substi-
tuted in place Of those which have been paid
back to the Government The moment the
Army and Navy appropriation bills are pass
ed, which have been held back by the FL
nance Committee of the Senate for weeks,
this sum- or nearly the whole Of it, would be
Immediately swallowedup. Then there would
be no means to meet the public demands on
the Treasury, but to issue Treasury notes in
place of such as may be paid back on account
of public dues from debtors. So long as
Treasury notes are issued and received in
payment Of the revenue, so long little else but
those notes will be paid. There will be no
auailablerevenue collected.
Such miserable resort to scheming and
palliatives, in conducting the financial affairs
of the nation, can but excite disgust at home
and bring ridicule upon us abroad.
II is fraud upon the public creditors to
pay them in deprecated Government paper.
If it were otherwise, the authority asked for,
to reissue the Treasury notes returned, or
others in their stead, will not, if granted, sob
piate any difficulty" That, would but partial
Ia relieve the wants Of the Treasury.
Besides doing rank injustice to the public
creditors, by giving them deprecated Treasu-
ny notes for their dues, it is discreditable, in
our opinion, to the nation, longer to continue
the issue of such notes. What the credit Of
the nation deprecated and below the credit of
individual states, six or eight per cent, and the
Government not to take the necessary steps
to remedy such stain upon the character of
the nation
The issue Of Treasury notes has heretofore
been condemned by all our Secretaries at the
head of the Treasury Department, gifted with
financial knowledge. In 1919, when there
appeared deficiency of the revenue for the I
service of 1920, Mr.. Crawford considered it
inexpedicnt to provide for that deficiency by
issuinr Treasury notes. unless it should ap-