The Madisonian., 1840-02-20

| Chief Magistrate and the present Secretary
of the Treasury have, also, repeatedly, in lam
| guage, in their messages and reports, charac-
teristically ambiguous, il is true, but sufi-
clently Ineligible, intimated the facilities
which the commerce and business OF the
| country would derive from the drafts issued
| by the Treasury in virtue of this bill The
party, lis press, and It's leaders, have constant
| ly pu this SUBJ Treasury scheme in competl-
tion with Bank of the United States, and
contended that the issue was sub Treasury or
Bank OF the United States But how can
they be compared or come in competition
with each other, il the most important func-
ton of Bank of the United States, that Of
supplying a medium Of general circulation
and uniform value, is not to be performed un-
der this bill 7
| pass to the more important, and, think,
conclusive proof, supplied by the provisions
themselves of the bill After providing that
all money paid to Governm mt for duties, pub
lie lands, and other dues, shall be deposited
with the Treasurer of the United States, the
receivers-g, neral and the mints, the tenth
section enacts:
"That It shall b. lawful for the Secretary Of the
Treasury 10 transfer the moneys in the hands OF any
deposi AIRY hereby constituted 10 the Treasury OF
The United States TO The MINI al Fnllautlpnld; 10
the branch Mint al New Orleaps or 10 the Offices
Of either of the receiversgeneral of public moneys
BY this act directed TO be appoiniedi to be there
safely kept according 10 The provisions Of this act;
and also 10 transfer moneys In the hands OF any
deposiary constituted BY this act any other depo
silary constituted by the satne al his discretion, and
as The SAFETY Of the public moneys and the conve-
nence Of the public service shall seem to him TO re-
quire; which authority 10 transfer the moneys be-
longing to the Post Office Department is also hereby
conferred upon the Post Master General far its
exercise by him may be consistent with The provi-
sions of existing laws and every depositary con-
stituted by this act shall keep his account Of the mo-
ney paid TO or deposited with him, belonging TO the
Post Office Department, separate and distinct from
the account kept by him OF other public moneys
paid or deposited And tor the purpose OF paw
menls on the public account, il shall be lawful for
the Treasurer Of the Bnited States 10 draw upon
anyof the said deposi,aries, as he may think most
conducive TO The public interests, or to the convent
ence of the public creditors, or both"
Thus is the Secretary invested with unli-
mited authority to transfer the public money
from one deposltary to another, and to concen-
centrae it all, if he pleases, at single point.
But, without this provision, the city of New
York necessarily must be the place at which
the largest portion Of the public money will
be constantly in deposite. 1t collects alone
about two-thrds Of the daies on imports, and
is becoming, if it be not already, the money
centre of the United States. 1t is not indis-
pensabe to create bank of issues, that the
place Of issue and the place Of payment should
be identical. The issue of the paper may be
at one city, and the place of payment may be
different and even distant city. Nor is the
form of the paper material, so as TO carry it
into the general circulation of the money Of
the country. Whether it be III the shape of
bank notes, bank checks, post notes, or Trea,
sury drafts, is of no consequence. If there
be confidence in it, and the paper be of con-
venient amount, passes by delivery, and enti-
ties the holder 10 demand the specie upon its
face, at his pleasure, it will enter into the gen.
eral circulation and the extent Of its circu-
lation will be governed by the amount issued,
and the confidence which it enjoys.
presume that no one VIII contest
these principles. Let us apply them to the
provisions Of this bill The last clause of tho
tenth section, already cited, declares:
~ And for the purpose Of payments on the public
count it shall be lawful for the Treasurer of The United
States 10 draw upon any OF the said depositares he
may think most condueioe TO the public interests or to
the Of the public creditors or both
Here is no restriction whatever as TO the
amount or form of the draft There is nothing
to prevent his making il for 500. or $50 or
$40. There is nothingto TO prevent the use OF
bank paper and the draft will have the num-
Der of signatures usual to bank paper It will
or may be signed by the Treasurer, Register,
and Comptroller.
Now, sir, let me suppose that citizen has
demand upon the Government for $4,000.
and applies to the Treasurer for payment.
On what receiver general will you, he will be
asked, have the amount : On the receiver
general at New York? In what sum? One
half of the sum in drafts Of 500, and the
other in drafts of $50 The Treasurer can
not lawfully decline furnishing the. required
drafts He is bound by the law to consult
the convenience of the public creditor. The
drafts are given to him. What will he do
with them There is not spot in the whole
circumference of the United States, in which
these drafts will not command premium or
be at par Every where to the south and
west Of New York they will command pre-
MUM of from "A to 2 - per cent Every
where, east and north, they will be at par.
What, | again ASK will the holder do with
them! Will he commit the ind,scretion or
folly Of cashing these drafts, and expose him
self to the hazard and Inconvenience OF los
ing or carrying the specie about him NO
such thing Being every where better than
or equal 10 specie he will retain the drafts
and carry them with him to hrs home, and use
them in his business. What have supposed
likely TO be done by one, will be done by eve
nv creditor Of the Government. These drafts,
to considerable extent, will remain ont, en-
ter the general circulation, and compose
part of the common currency OF the country,
commanding, at particular places, as notes OF
the bank of the United States have done, and
now do nremium hnt any whore being GER