The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-17

n. Is . totally different power from that which was
exercised by the cautions Gast and other Secretaries
of The Treasury power, by the bye, which, on hpto
than OCCASION has been controyerled, ana wnlen
Infinitely more questionable than the power 70 es'ao
Bank OF the United States The transfer was maue
by them rarely nlarge and were iei1 70 inc u1uas
TO remit When payments were made' my ws Nc,
ed m the notes Of banks with which Tue Pui. mors5
was deposited or 10 which II was transferred, Ing
rates Of exchange regulated ny 'he state " a
Market and under the responsibility Of the BANKS Du'
here is power given TO transfer inc Puoc ho"'ys I
out limit as 10 sum, place. or time, leaving every ,hhs
the discretion Of the Secretary OF the treasury the
receivers general, aud other depositarles What
scope allowed in tho xaton Of The rates oil exchange
whether OF premium or discount, to regulate the whole
domestic exchanges OF the country TO exercise iavo
ism These former transfers were not made FOR dis
bursemen but as preparatory TO disbursement /; aud
when dsbarsed, il was generally IN bank notes. The
transfers OF this bill immediate payments, and pay
ments made not in bank notes, but specie.
Tho last paragraph in the section provides that for
the purpose OF payments the public account shall
be lawful for the Secretary dfdo upon any he sand
repositories, as he may link most Conducive 70 The pub
c interest, TO the convenience OF the public credt-
tors or both. Il will be thai no limit whatever
is imposed upon the form Of the draft as
TO the depositary upon which il is drawn lie is made
the exclusive Judge Of what "most conducive TO the
public interests" Now, let pause moment, and
trace the operation Of the powers thus vested The
Government has of from twenty to thirty mil
hons. The Secretary may draw il to any one or more
points, he plcases. More than moety OF the re-
venue arising from customs isiccelyabe at the port Of
New York, to which point the Secretary may draw all
portions OF H. il he think II conducive to the public In
terest man has TO receive, under appropriation
law $40 000 and applies to Mr. Secretary for payment
Where will you receive il he Is asked. On New
York, How Indraits from G5 to $500 Mr.. Secre
tary will give him these drafts accordingly, upon bank
note paper impressed like and Stimulating bank notes.
having all suitable cmblazonry, signed by my friend the
Treasurer (whose excellent practical sense, and solid
and sound Judgment, If he had been at The head OF the
Treasury, instead Of Mr.. Levi Woodbury., when the
suspension OF specie payments took place. would nave
relieved or mltigated The pecunary ebarassnents OF
the Government and the people) counersigned by the
Comptroller, and filled the usual way OF bank notes
Here is one ofthem, said Mr. Clay [ to here held up
to the gaze Of the Senate, Treasury note, having all
the appearance Of bank note, coiored, engraved, and
executed like any other bank note, for $50 This
continued Mr. Clay, Government post note, put into
circulation paid out money, and prepared and sent
FORTH gradually to accustom the people Of this country
10 Government paper.
have supposed 200 to be received in the mode
stated by person entitled to receive it under APP
preparation law. Now, let suppose what he will do
with H. Anywhere to the South or Yves, it will com
mand premium OF from two 10 five per cent. No
whore in the United States will il be under par. Do
you suppose that the holder OF these drafts would be
fool enough to convert them into specie to be carried
and transported his risk Do you think that he would
not prefer that his money should be the responsible
custody Of the Government rather then in his own in
secure keeping! Do you think he will deny himself
the opportunity Of realizing the premium Of which he
may be perfectly suie The greatest Of the coun-
try Is medium of general circulation, and of uniform
value everywhere. That especially is our want in the
western and interior States Now here exactly such
medium and surprising the Government bank to be
honestly and faithfully administered, will, during such
an administration be the best convertible paper money
IN the world for two reasons The first is that every
dollar OF paper will be the representative OF dollar
OF specie In the hands Of the receivers general or other
deposlaries aud, secondly, if the receivers general
should embczzlc the public money the responsibility Of
the Government pay the drafts issued upon the basis
of that money would remain unmpaired. The paper,
therefore, would be far supeor the paper Of any
private corporation the ability and Of the
Government oil the United States superior TO those
Of such corporations.
The banking capacity may be divided into three ia
cultes depostes, discount Of bills of exchange and
promissory notes, either, and circulation. This Co
yernment bank would combine them ALL except that il
will mol discount private notes, receive private de-
posites. In payments for the public lands, indeed IN.
diylduas allowed 10 make deposies aud to receive
certificates Of their amount TO guard against their
negotiabIhy, clause has been introduced 70 render
them unassignabe. But how will II be possible 10
maintain such announcement restriction, III country
where every description Of paper importing an obga-
ton pay money deliver property is asslgnablc, at
law or in equity, from the commercial nature aud trading
character Of our peoples w y. Il ."....
or all the faculties which have stated of bank,
that which circulation is the mportan, to
the community at large. 1t is that III which thousands
may be interested who never obtained discount,
made dcpositc with bank. Whatever Govern
ment agrees to receive in payment Of the public dues
medium OF circulation, is money, current money,
matter what its form may be. Treasury notes, drafts
drawn at Washington, by the Treasurer the receiver
general at New York, or to the language employed
in various parts Of this BILL such notes. bills paper,
issued under the authority Of the United States -
These various provisions were probably inserted not
only to cover the case of the Treasury notes. but that
OF these drafts IN due season But if there were
press provision of law, that these drafts should be
ceivabe in payment of public dues, they would neces-
sarily be employed from their own intrinsic value,
The want Of the community of general circulation
OF uniform value everywhere in the United States would
occasion vast amounts Of the species Of draft which
have described to remain circulation The appropra
tons this probably fall not much short Of thirty
millions Thirty millions of Treasury drafts on receivers
general, OF every denomination, and 10 any amount may
be issued by the Secretary Of the Treasury. What
amount would remain in circulation be deter
mined prou, | suppose not less than ten fifteen
mllons at the end Of another year. some ten or If
teen millions more they would fill all the channels of
circulation. The war between the Government and
State banks continuing and ibis mammoth Government
bank being in the market, constantly demanding specie
for its varied and ramfed operations confidence would
be lost IN the notes Of the local banks their paper would
gradually TO circulate, and the banks themselves
would be crippled and broken. The paper of the Co
vernment bank would ultimately fill the vacuum, as it
would instantly occupy the place of the notes of the
late Bank Of the United States.
Ito be eoatinRed.)
RAILROAD ADVENTURE A short time since, Young
uppflpn fraye li,,u frn,, h,. oTN ID