Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-06-20


amcthod ri piopelling somewhat faster our money
power. whilst All things else in such rapid pro
ctess oi improvement The. unsettled condition Of
the cash concerns ofhc United States is, IN my
pln'on. 10 he attributed to three causes
lst. The want ola National Bank 81 Government
paper 10 equalze the exchanges, and protect and reg
ulate the numerous banking insrilu'ons through.
oni the Union ID. the Withdrawal oi M immense
amount OF capital from tho cities Tor the ronstruc
ton oi internal Improvements. yet incomplete, aud
hence unptoduetive we have greatly transcribed
our ability IN such undertakings, the cost OF which
has 50 lat exceeded our own means that We must
eilhc, proceed with more caution Tor the inintr,
on be involved IN much pccnn,ary embarrassment :;
3D. and last, bni not least. Is the excessive impnia
ton oi foreign merchandise beyond the amount OF
our exports, which, but lor the SIZE oi our State
bonds aud other public sccn,''es in the Eo'ope
markets. would have drained from Us our entire spe-
Gle CatniAl.
nal,ona paper Ms asubslnue ior a bank, III The
shape ii Treasury notes, blended with the credits Of
existing Banks, believe, will be accorded 10 by
Congress and When our great works oi internal
improvement now Ia ptogrcss shall have been oom-
pletcd, Then revenues. III most eases, will advance
their stocks To par aud restore Ia ejaculation the
capital thai has been temporarily Withdrawn. AN
confident that II plan mas be dgcsiedhy which the
paper OF the National Treasury can be used 10
considerable extent To relieve tho industry aud en-.
leflrlse Of the nation from the excessive aud ,nlnous
ttcs OF interest demanded lot the of capital
credit.
My idea IS. that Congress should aulhoiize the
issue al twenty millions ri Treasury not tre o in
iercst 10 be pa,d oui w The Treasury lor tie public
appropriations. and received every where ~ pay.
mcnts and on deposlte by tie banks; aud that the
revenue shall he collected formerly, by the hanks.
No fixed nerlod lof The redemption II the Treasury
notes need be stipulated. then face they should
he made receivable when aud whcresOeyet presented.
for dues Ia the Government; and The banks should
possess the ,ighi 10 tissue ihcm their pleasure.
gener, agreement could DO entered into BY the
banks the Treasury mites az cash and. IN
elect, the whole amount OF twenty millinns would
be considered by them ny basis and kept ~ such IN
their vaults except when wanted Tor the purpose Of
remittance.
1t mould also be rxpedieni for The States TO au..
ihorlle the banks within then limits 10 Is,ue large
notes. alter gwen period, payable al tbcr option.
ellher N goht0d slver OF United States Treasury
bills. And the banks should likewise enter INTO
slipulaiiJns with ther depostors. both public and
private, 10 pay IN like manner. But as hisnot con
Iomplalcd by this arrangement th,t the Treasury
issues SHAH be III sums less than one hundred dol
lars, the bank could not iheu To avoid the pay
meut vi small demands III coin, could the lrca
sury mites conflict with OF diminish the ordinary cir
cnlNtIon oi bank paper. The Treasury notes are
sale, IN POM 0i security, our Government, aud
soon no person would desire or conceive that. as
money, any thing could be bcler; aud they could
certainly be, Ia many cases, substituted tJl coin
could be more securely and conveniently kept
han specie, and as neither yield any interest
10 the nosscssor, the former would be pttleir-
ed because Of Their portable quality aud con
veilihny uto bank paper orspcc,c, AT The pleasure
OF The holder; they can never be worth less HAN
their par value. while they received deposue
by The hanks, independently OF their intrinsic metn
every where IN payments To the Government they
would be OF great value 10 cngrants 10 tie western
and Southern States, and quite rs good there ms
specie, in the purchase Of public lands or merchan-
disc, and always request for remittance eastward.
They would be valuable also IN Withdrawing iiom
the interior and distant sections OF country the
specie conveyed thliler from the seaboad FOR the
want Of u national paper ~ which the people could
repose equal confidence, aud III arresting HE contlnu
ed demand for coin for such objects, and IN retaining
II in the cities where II wanted for commercial pur
poses.
As the amount of twenty millions of Treasury oils
~ incopsdrrnbe when distributed dllfusely, IT
would be, no inconvenience could arse nom Their
10 accumulate where the greater proper
ton of the revenues collected, as al such points
thcre must always be demand for remittance TO
The South and West for lands, aud IN the purchase
Of cotton and other productions; and as they would
be extensively used by The banks az substitute Tor
coin there will be seldom any where greater a
mount than will he wanted.
nallonal bank having been bone Of political
for forty years p,sl, II is not likely that
sucb an institution will be established shortly and,
therefore, II is highly probable lhata measure similar
in character the here proposed will 81 nccessl
~ be adopted by the next Congress The use OF lrea
sury paper free Of interest, IS precisely III dccof-
a,nre with Mr.. CALuouN's views. lie believed
ht they might be extensively and benclicllly sub
sti,uied for coin AS basis oil Other issues but he
did not contemplate Their intimate association with
bank credits. by which they would be made iGslru-
ments of protection 10 the banks and not OF desfnc-
ton, as they certainly would be il an antagonist use
were made Of them, by requiring the payment OF the
revenues only in Them com, and suth pay
mcnts to be separated from the banks, and made
and held IA private hands. Mr.. CALHOUN has, Tor
many wears. advocated twisely IN my oplnloD,) the
employment of Government securities as basis OF
bank issues He introduced proposition 10 thai
eff, CT prior TO the establishment Of the late Bank OF
The United States and hope he may be induced 10
digest a plan by which they can be made extensive
~ useful 10 The Government and To the commerce
Of the country without disturbing existing Inslltu-
lions or iheir relations 10 society, The sum propos-
ed to be issued will never exceed the annual revenue
Of the United States. And why should not the Gov
eminent use It's credit 10 an amount so lnconsdera-
BILE for the accomplishment Of great national de
sideiaIum. such as the regulation vi ITS currency
upon a solid aud permanent basis !!
am aware that there would be Obj ections to the
enployment OF the banks for The collection and dis
bursement of the revenues on the score OF their IN
sufficient security; but am quite rs conhdeat that
YOU will agree with me that such objections are not
wellounded and that here could Ne made such selec
ton OF banks for the OF the Treasury, would
DEFY the possibility OF rIsk-and would include the
bank over which you preside among the number 1t
is not likely that shall have redundancy oi money
in the Treasury, both political parties opposed
TO such accumulatons OF the public treasure but, IL
there should be such tendency, Congress can east