The Madisonian., 1840-02-20

Who will question the honor and gooa iai'n
Of the United States in their rernP'io"
The bankers Of Europe-the hoinebhu, a"u
the Barings receive them ~Nhou' nu9
tsiion, and prefer them TO me speeie ~n'1n
th.y renreseni, whenever the rate oi eAchanss
is no, decidedly against this country, because
thew can be moro safely and conveniently
kent than specie itself And, with respeci 10
our State banks, these Treasury drafts Will
form the basis OF their operations. They WIZ
be preferred 10 specie, because they VIII be
more convenient and free from the hazards IN
cident 10 the possession of specie. The
banks will require no more specie than the
wants OF the community for change make ne
cessary
Thus, sir, will these Government drafts, or
bank notes, as they may be called, remain out
in circulation. The issues OF the FIRST year,
under appropriations OF the public revenue,
will be followed by The issues of succeeding
wears. More and more will II be perceived
10 be needless and indiscreet TO cash them;
and more and more will the specie OF the
country accumulate in the custody Of the re-
ceivers-gcneral, until after few years, the
greater part of the specie of the country will
be found in the vaults of the depositaries. re-
presented by an equal amount Of Government
paper in circulation. can conceive OF no
case or motive but one for Withdrawing the.
specie from the vaults OF the depostaries,
and that is, when, from an uniayorable state
Of our foreign trade, the course OF foreign ex-
change is much against us and then this
system will furnish great facilities 10 the ex-
port OF the precious metals.
In process of time, ii will be seen, was
observed with respect 10 the Bank OF Amster-
dam, that there IS a much larger amount of
specie in deposile with the receivers general
than is likely to be called for by the paper
representing it in circulation, in the common.
transactions of the business and commerce Of
the country. And what has been done be-
fore vii be done again. Government, in a
time OF necessity, will be tempted to increase
its paper issues upon the credit Of this dor;
mant specie capital. IL will be tempted again
and again to resort 10 this expedient, since It
is easier 10 make emissions of paper than TO
lay the burden of taxation on the People
The history Of American paper money, du-
ring the Revolution. of French assignals and
OF Government banks, throughout the world,
tells the whole tale, and gives you the de-
nouement.
But we shall be informed as has been in
sisted, that this bill cautiously guards against
the degeneracy OF the system'inlo a Govern
ment bank, by the provision, contained IN the
23d section, enjoinng the Secretary of the
Treasury ito issue and publish regulations
to enforce the speedy presentation Of all CO.
vernment drafts for payment at the places
where payable and TO prescribe the time,
according TO the different distances of The de-
positaries from The Seat Of Government, with
IN which all drafts upon them, respectively,
shall be presented for payment and in de-
fault OF such presentation, to direct any other
mode and place OF payment which he may
deem proper"
Then ii is to depend upon the Secretary Of
the Treasury whether we have Government
bank or not! We are delivered over TO the
tender merces Of his legislation III the form
of the regulations which he may choose to
issue and publish And the extraordinary
power is vested in him, if any dare violate
his regulations, Of denouncing the severe
penalty OF receiving payment "in any other
mode and place which he may deem proper"
Now, sir, between draft on the receiver
general at ST. Louis and at New York there
will be difference at all times Of at least
two per cent; and at some periods a much
greater difference. Is it fting-is it in ac-
cordance with the genius Of free ins,itu-
tons, with the spirit OF 4 country of laws, 10
contide such a power TO mere Secretary of
the Treasury What power is it not to re-
ward political friends or punish political ene-
mics
T71 be continued L,