The Madisonian., 1840-02-08


we add millions for the quantity imported last
year. and deduct The two from The % millions, 1t
will leave as the amount Of specie in the coun-
try, Goa millions.
l.the preceding estimates (Which admit are conjec
ural MS all such estimates be near the truth
the additional qu nifty Of specie, which your EXPERT
ment will require, will be, instead Of about
tenth part Of The amount now in the country as you
had supposed will be from sirA 10 one-Nird OF that
amount; and, although the mischief will be much
esSened by being extended over several years, as
you propose, yet with this mitigation, The plan, ri
gidly executed, would produce serious distress and
Inconvenience in our principal commercial cities.
Nor woud the increased difficulty OF Obtaining
The requisite specie, The great reduction of bank ac-
comnodaon, and the diminution OF every species
of currency, be The only miSchieiS Of the scheme
Banks have recommended themselves 10 the general
adoption Of our citizens, not merely because they
furnish a cheaper currency but, also, because they
in many respects furnish better currency. They
save time and trouble well as money and this
saving cannot be measured by The mere amount OF
bank paper in circulation, but by the whole sum OF
payments which are made by H. and which may be
FIVE or ten times its whole amount. Thus, although
the average amount in the hands OF the Collector oil
New York, during the last year, may not have ex-
cceded half million of dollars, the amount re-
ceived by him was Is millions, the whole Of which
you would propose should be received and diSbursed
in specie. SuppoSing one-,hird of this amount to
be in silver the weight 10 be thus transported to and
from the Cuslomhouse, would be 100000 lbs, the
COS, Of which transportation would be al least double
that Of ordinary merchandise. The mere business OF
examining, weighing or counting the money, would
require large addition 10 the army OF Custom
house officers which you can already bring into The
field and although this circumstance may constitute
no objection with you, sir, their Gene rasimo; you
will admit tha, il presents very strong one TO those
who are 10 pay Tor them and II adds another item
to the cost Of your experiment. As 10 individuals,
admit that the Inconvenience Of transporting The
precious metals would be small, compared with The
increased difficulty OF Obtaining them; and should
The amount thus Withdrawn from circulation, be con-
siderable, thousands would encourage the Sub
Treasurers 10 use the public money as The smallest
of twoevs; just as The Southern planters are said,
when poultry and eggs particularly scarce, to buy
oil the neighboring slaves, and no questions asked
maugre the heavy penalties which the law has i'm
posed, both on the buyer and seller
| But all these mischiefs, you think, may be mill.
gated by Treasury drafts, which may thus perform
the functions of specie Nothing, would remark,
more clearly illustrates the superior convenience OF
convertible paper over specie than the extensive use
which the Treasury makes of these drafts and BY
Of this superior convenience they would often
be preferred TO specie, but this benefit would have
its counterbaancing evil for in the same proportion
that these drafts suspended in circulation, and
made 10 supply the place Of specie, would the amoun
of specie in the Sub-lreasuries be increased. Thu
lei us suppose two millions TO be in the hands Of
Collector of New York, and that drall is mad
him from Washington of 100000, in drafts Of
dollars EACH for the purpose ofpaying the Office
the Government. II these drafts, instead Of b
forthwith presented, are to pass from hand TO b.
rs a better currency, because they receivabl4
the cus,on-house in New York, il is clear that
Collector has much more money in his keepf
by reason of their suspension. This must be true
all drafts, and whatever is the average amount sa
floating between the officers drawing and the ONO
drawn on, 10 the same amount must the gold
silver in those offices be augmented.
How much Of this better currency could be
kept in circulation nothing but experience could
termine but as The paper thus issued by the Ire
ry, would have all the advantages that paper
rency possesses, and the additional one OF being
only paper received into the Treasury, it wd
probably be in great demand and command
MUM in the market both TO pay the public dues
for distant remittance In this way the Treasu|
drafts remain in circulation year or more, and ~
exceed in amount the whole public revenue.
whether the amount prove lilile or much, 10 that
tent must the amount OF specie, ACCUMULATED ~
Treasury, exceed what it would appear TO be b
state Of its receipts and disbursements The q
withdrawn from circulation would thus be incr
by those Treasury drafts, and this mischief
counteIbaance their merits as better currene
am willing to believe sir, that you did not alte
this consequence Of the Treasury drafts remal
in circulation, and your more practsed az
were the last 10 inform YOU Of il. Should The
to which have here adverled not be frustral
Congress, we should soon behold the Trea9
,be Uni,ed States converted into new
Amsterdam How long il would be before
;n;t,,e ,ba, stunendous machine Of swindItuM
;n,;,,,;,o !, heftre its frauds would be detected
alone could determine
You very Justly remark, for our consoiaH
under the threatened scarcity of specie, that
further supply OF the precious metals may be
pected to keep pace with Tie new demand But
is on the roth Of his.prcposton that the objectic
to /, rests. II we were TO put down our saw mill
and return TO the Of whip saws although therc
might not be enough of these useful implements u
the country, there doubtless would be, but h13
loss by the exchange would be the less on iha1z
further supply Of whpsaws, rather than 10 do with
out the plank, as would be better 10 import specie
rather than to suffer for Of money but il would
be far better 10 procure both plank and money in the
cheaper way. So at least il appears TO
ONE OF MANY.
rr.Ir