Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-15

count or made a deposte with bank. Whatever q
Government agrees 10 receive IN payment OF INC pun
lie dues medium OF circulation, 10 money, CULLEN
money no matter what It's form may be- treasury
notes. drafts drawn at Washington by the treasurer,
on the receiver general at New York. or TO use the
language employed in various parts OF tins bill such
notes bills OF were
baby inserted only to cover the case OF Treasury
notes. but that of these drafts in due season But II
there were no express provision of law that these
drafts should be receiv payment ofpubc dues,
they would necessarily be so employed, from their
own intrinsic value.
The want ofthe community Of general circulation
Of uniform value every where in the United States,
would occasion amounts of the species OF draft
which have described, 10 remain in circulation The
appropriations this year will probably fall not much
short of thirty millions. Thirty millions of Treasury
drafts receivers general Cfevery denomination, and
any amount, may be issued by the Secretary of the
Treasury. What amount would remain IN circulation
cannot be determined prior suppose not less than
ten or fifteen mlllons at the end of another year,
some ten or fifteen they would fill all thechan-
nels of circulation. The war between the Govern
men and State Banks continuing, and this mammoth
Government bank being in the market, constantly
demanding specie for its varied and ramlfled opera
tons, confidence would be lost the notes oil the To-
cal banks their paper would gradually cease to crcu-
late, and the banks themselves would be crippled ana
broken. The paper of the Government bank would
ultimately fill the vacuum, 1t woald instantly occu-
by the place of the notes of tho late Bank oil the MI
ted States.
am aware Mr. President, that by the 18th section
of the BILL in order to disguise the purpose of the vast
machinery which we are about constructing, 1t IS pro-
vded that it shall be the duty of the Secretary o. the
Treasury 10 and publish regulations to enforce
the speedy presentation of all Government drafts for
payments at the place where payable &c. Now,
what tremendous power is here vested In the Secre-
tary He to prescribe rules and regulations to en-
force the speedy presentation OF all Government drafts
at the place where payable. The speedy presenta-
ton! In the case have supposed, a man has his
$40 900 IN drafts the receiver general al ~. ork
The Secretary is empowered TO enact regulations re-
curing him speedily 10 present them, and he DO not
the Secretary may order them to be paid at ST. L9sis
AT New York, they may be worth premium OF hve
per cent on ST. LOUIS, they may be liable 10 dis
count of per cent Now, in free government whe
would think Of subjecting the property or money
of citizen 10 the exercise of such power by any Sc
cretary of the Treasury? What opportunity does 1t
not afford to reward partizan punish an oppo
nent? l, will be impossible to maintain such an edl-
and useless restriction for any length OF time.
Why should the debtor las the Government would be
in the Of sush drafts have supposed) require
his creditor (as the helder of the draft would beg
apply within prescribed time for his payment NO,
sir, the system would control you; you would not SO
control the system. But if such ridiculous rcsrlc-
ton could be continued the drafts would, neverthe
less whilst they out be the time long or short
perform the Office Of circulation and money.
Let us trace little further the operation OF this Co.
vernment bank, and follow il out to its final explo-
sion. | have supposed the appropriation OF some
thirty millions Of dollars annually by the Government
20 be dsbsrsed in the form Of drafts issued Wash
ington by the Treasury Department. upon the deposit
Sories. Of that amount, some ten or fifteen mlions
would remain, the first year, In circuation at the END
Of another year, similar amount would continue in
circulation; and on from year year, until at the
end OK series of some five or six years there would
be in circulation to supply the Indispensable wants OF
commerce and OF general medium OF uniform value,
net less than some sixty eighty millions OF drafts,
issued by the Government. These drafts would be
generally upon the recevergenera at New York, be,
cause, on that point, they would be preferred, and
they would command a premium, or be at par,
throu ghout the whole extent of the United States;
and we have that the Secretary Of the Treasury
is invested with ample authority to concentrate at that
point the whee revenue Of the United States.
All experience has demonstrated that in banking OPP
eratlons much larger amount OF paper can be kept
out of circulation than the specie which 1t IS necessary
the vaults TO meet II when presented Tor
payment. The proportions which the same expert
encc has ascertaned be entirely safe OF spe
Gle three of paper If therefore, the Executive Go.
vernment had sixty millions of dollars accumulated
at the port Of New York. in the hands Of the receiver
general represented by sixty millions Of Government
drafts in clrculausn II would be known that twenty
OF that sixty millions would be sufficient TO retain TO
any amount of drafts, which, in ordinary times
would be presented for payment. There would then
remain forty millions the vaults idle and unproduc-
tive aud Of which no practical use could be made
Well great election Is al hand in the State Of New
York, the result OF which will seal the fate Of an ex-
listing administration. II the application Of ten mil
ture day. corrupt Executive from overthrow, can II
be doubted that the ten millions would be applied TO
preserve il in power1 Again; let US suppose some
great oxgency TO arse, season OF war; creating Sc
we're financial pressure and embarrassment. Would
not an issue Of paper founded upon and exceeding
fhe specie in the vaults, in such proportions
experience had demonstrated might be safely emitted
be autnorized7 Finally, the whole amount Of specie
mis- ht be exhausted. and then, as IL is easier TO en-
Qrayeand issue bank notes. than perform the uHpopu
lar oce Of imposing and burdens, the discovery
wo1I1 be made that the credit of the Government was
a sufficient basis whereupen TO make emissions OF pa
per money, to be redeemed when peace and prosperity
returned Then we should have the days of CONT
men al money and of assigna,s, rcstoredl Then we
should have that Government circulating medium
whica the Senator frsm South Carolina (Mr. Cal
houn) considers the most perfect Of all currency!
Meantime and during the progress Of this vast GO
vernment machine, the State banks would be prosra-
tel. Working well, as il may, il honestly ad minis
tered in the first period OF its existence II will be ut
terly impossible for them to maintain the unequal
competition. They could not maintain it. IL
the government we're ac,uated by no unrendy feel
ing towards them. But when we know the spirit
which animates the present Executive towards them,
who can doubt that they must fall in tho unequal
contests Their issues will be discredted and dis
-ceuntenanced, and that system of bankruptcy which
the PRESIDENT would even now put into operation
against them, will, in the sequel be passed and en-
forced without difficulty.