Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-02-20

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.s-v convenient medium Of q real loan The purcIa,
aer Immediately sells the bill he has bought, realizes
ia money the of which h. enjoys Tor the s.Pua'e
period and then returns it with The rate OF pt'n'
upon in the nominal purchase. The transaction ~ "
every loan; and s.de bs
conversant with the devices practised 10 eVuus e
statutes against usury, will tell you that nothing
common than to make real loan under TINS very o'n
Of selling bill of exchange. We see, men, wa.
officers Of the Treasury under the organiza'1n pioe
bv ,h. hin. would not only be engaged in buying and
selling bills Of exchange, but they would nave te pow
or of dscounting mercantile paper ana ahne req.
Thus the bill creates in effect ocm. H. OIL,
II von,d moreover be q bank OF depose, Tor the 2flh
secon of The bill expressly auhorises individuals 10
d,posi. money in the "Tensury or at such other pants
.s the Treasurer may designate the receip's 10. "nch'
Il, declared shall be current in the several lana oises
~ .,.b This. am aware, is but special and limited
nrovision confined at present TO payments IN ADVANCE
for public lands But the principle being once intro
duced will from time 10 time, be extended 70 other cases
shall hereafter hive occasion to show that president
Jackson. when he suggested the idea Of Government
Bank Of which this bill 10 be the dese"pemen''
expressly recommended that should be based upon en-
uieidual, as well as the public drpositcs.
The organization Instituted by this bill wou'o also VI
bank of circulation for the drafts, receipts ana ones
p,per authorized be issued by the officers n Inc 'ea
sury under the provisions Of the bill! would form part
of the actual currency and circulation OF Inc
Tha. it is designed, through the medium OF tns i'.'
nerv TO issue permanently Government paper curen-
CIV under some form other, is sufficiently eVinceo oy
the alternative clause Of the bill relating TO aho
payments BY the Government, which requires that a.,
inch receipts and payments after certain PERIOD shall
be in gold or silver notes bills or paper issued I'M
der the authority Of the United States The senator
from South Carolina, (Mr. CahounD the patton and
ch.muiop of this BILL and the author OF the provision
JUS, referred to- known to advocate paper currency
Of that description issued and resting exclusively on
the credi. of the Government The Secretary OF Tue
Treasury oo in his report on the finances ~ ue COM
e a..
ask Congress for the permanent grant OF an authority 10
issue Treasury notes. (a his discretion, within certain
lim,) according the varying wants OF the Treasury.
Blu. the design Of supplying paper medium, '"I gene
raj circulation through the fiscal action OF the Govern.
men, is more fully developed in the annual report OF
that officer the last session. and from that document
beg leave 10 read 10 the Senate few significant e1'
tracts:
"Should Congress-" says the Secretary "datermins
that il is proper to furnish by its authority and for
the purposes before mentioned some paper medium 81
higher character, and other than what now exsls IN
private bills of exchange, or notes 81 stafs BANKS no
doubt exists that any benefits which may occasionally
be derived frnn its employment be readily secured
without ,reading the debaeabe ground OF either the
power or the policy Of charlerng NatonH! BANK
Certificates interest," but payable IN specie TO near
er or order as well being receivable for all public dues
could be authorized to be given in payment to the puoc
creditor whenever preferred by him. and sufficient spe
Gle existed in line Treasury This KIND ~ p"per %oulo
be very convenient in fo.m and would differ little IRON
the drafts in banks except being drawn on
known specie fund and expressing on It's lace mol only
this but its being receivable in the first lnslhnce Tor all
public dues IL would possess the highest cred sitan
able in society,". "The common drafts OF this Depart.
ment in the present convenient FORM possess one ad
van,age which could be impaired to the cetthcales-
When used al places against which the balance OF ade
exists but drawn places in whose favor IL s Tue i"
mer do now and may hereafter not only facilitate essen
talu the domestic s1eangfs but at the same tme super
sede Numerous bank transfers, and the more expensive
transportation Of specie itself"
"The Mint certificate, heretofore gwen on Inc aeo
site of bullion and specie for coinage, nigh. be easily
made running TO bearer or Order and receivable tor all
public dues; and in that way, would contribute 10 the
same desirable ends"
Il must be obvious that the paper of any bank would
be less safe and useful in being received for public dues
in proportion may want such solid securities and
foundations as The certificates before described
Ny purpose is not now TO discuss the supposed advan.
tsges Of this Government paper currency, so much
lsuded BY the Secretary The great Of
it, 10 his eyes, that would rest upon specie basis
co-exensive with the issues. Blu, as the certificates
would be rarely returned for redemption, nothing would
be more likely 10 happen than what occurred in the case
Of the bank Of Amsterdam-that, in the mean time,
large portions Of the specie would be Withdrawn and d.
verted to other purposes But my intention was simply
show that issue Of Government paper currency,
in some form other is Of the main objects of this
new financial scheme In looking at the passages above
quoted and others Of similar import in the Report ohe
Secretary Of the Treasury, is impossible to wink SO
hard not to that the design is to supply paper
ment which, it is hoped, would ultimately suPersede
the State eurreneies; and the organization proposed in
this BILL is the instrument by which that design is 10 be
accomplished That it would be bank of circulation,
Is unauestionabe; and have already shewn that it
would be bank both Of discount and deposits
The Secretary Of the Treasury, however, seems to
think there there would be Bank in all this because
there would be no incorporation But Incorporation Is
not necessary to constitute bank which derives It's cha
racter wholly from the nature Of its business and func
tons The Government Bank Of Russa is not lncorpo
ra,ed-Neither is the Government Bank Of Austria
They are both constituted Of and managed By, officers
OF the Government, precisely the machinery created
in regard TO The private and Joint stock banks Of England
They are not porated; but nobody ever supposed
them 10 be the less banks that account Some thir
teen or fourteen years ago the celebrated Mr. Ricar
do proposed the plan Of 81 National Bank in Eng
land, which, among other things, was 10 have the
exclusive privilege Of Issuing the whole paper cur
.ency Of the kingdom. 1t WINS 10 be Govern
siding in London, to be appointed by the Crown and re-
movable by Parliament and 10 be assisted by agents nd
officers established in the leading country towns. The
plan Of this bill beurs respects. SO close re-
semblance to that Of Mr. Ricardo that it is difficult to
resist the impression that the must have suggested
the other The organization proposed by Mr. Ricarco
consisted like thnl of this BILL Of public officers, having
certain duties and functions assigned to them, connect
ed with the collection and management OF the public re-
venue "a we'll with the issue of paper currency
No act Of Incorporation proposed or deemed ncces
sary but he did not that account the less consider
his scheme "National Bank, under which name it was
expressly presented to his cnuntrymen.
Ito DO continued in our ncrt)
Thursday. Feb. Is, 1888.
IN SENATE.
On motion of MIR Knight, the Committee on Com:
,.tnlto ipfof no. oH,enru of