The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-11-04

and under all the restrictions, and with all the aosah
tsaes that Congress might have granted exeep' inc
brane hing power alone. When the States should
have given their consent and branches had been es-
tabiisheJ, then the Bank would have been complete
Mr. Clay could have obtained Bank in this way, bui
he rejected IT, and apology for his doing
So but desire keep the question OPEN that De mgh
have the Bank hobby upon which to ride INTO me
Presidency. He has denounced this compromise IN
such terms that TO retract now would be 10 surrender
his hobby and admit that all that he has said about
Mr.. Tyler was wilful, deliberate calumny. VIII he
10 IN Never Mr. Clay will not nc ,ept Mr.. Tyler's
compromise Mr. Tyler cannot and he will not approve
such bill as Mr.. Clay will present No Bank Dill
can pass even if Mr. Tyler were TO recommend
Bank which Mr. Clay does not approve.
What, then, must the President dol BY the re-
peal Of the Sub-treasury BILL Mr.. Clay has united the
purse and the sword The public money Is said TO be
at the discretion of the Executive 1t should be placed
under the custody Of the law. In this the wings
and Democrats concur w hat scheme, then, can the
Pre- ident submit for placing the public moneys un-
der the custody OF the law that will receive the support
Of much OF both stes will be necessary TO carry
it through both Houses Of Congress
The Democratic party demand that the public mo-
ney shall be placed in the Treasury--that the IIea-
sury shall be diroreed from the Bank and they vii
support no scheme that does embody this feature
This may be said to be the foundation which they
build
paper currency equal value every where receivable
in payment Of the public dues
Secondly, That the exchanges shall be equalized,
or reduced to fair standard throughout the country
We propose to submit plan which we believe Will
acco npish this and first as to good paper cur
rsncy.
| Let there be attached to the Treasury an
ExcaEauER,
| With agencies located at such points as the pubic
wants may Indicate Let persons wanting good
paper currency deposit in the EIchequer their mo-
ney, and receive Erehequer bills payable on presenta
ton in specie and receivable every where in payment
of public dues
| The result would be, that any one in New York
New Orleans, st. Louis wanting good paper
equal in value every where, who had the means OF
getting IT. could obtainit There would be fear Of
bank failures There would be no risk. The paper
would represent actual deposit of specie and also
the faith of the United States who would be bound to
receive it in payment of all dues and also to redeem
in specie on presentation. Next
EXCHANGES.
Let those wishing exchange, deposit the money in
the Exchequer and receive bills payable at sight, or at
short dates, at the point indicated Let the charge
for such drafts be such experience would show to
be fair compen the Government for transport
ing the specie to the payment of the draft bill
of exchange.
ILLUSTRATION.
Say that merchant in Liverpool or Havre wishes
to purchase one hundred thousand dollars worth OF
cotton. He sends the money to New York, or having
the money New York, he deposits it in the Exche-
quer. de has the option to take Exche4uer bills Ie
deemable in New York, which will bear premium
in the South, or he can purchase draft New Or
leans,before he get either, he must deposit the
money, which is always ready to pay the bills, if bills
preerred-or if a draft is TAKEN then the money
paid for it in New York is fund on which the Ex-
chequer in New Orleans can draw, SO that the depo-
sit in New York will command the money in New
Orleans to pay the draft drawn New Q. leans, and
remain to pay draft for similar amount when
persons in New Orleans may wish to remi, to New
York. Thus it will be seen, that by this means the
expense and risk of transmitting specie to and from
New Orleans is saved because specie in New York
is worth more than specie in New Orleans, and the
deposit in New York will always command ii in New
Orleans.
But it is objected, that the merchants want to rea-
lise bills running to maturity in New Orleans; and
we are asked how merchant in New York who has
sold goods to a merchant in New Orleans, whose note
has six months to run, realise the in adj
vance or how he yet the amount back when it
| comes to maturity
The answer is most obvious. If he takes his noe
to the Exchequer in Nsw York, he is told that the
Government, to use the words of the President, do
not discount. He must go to a bank or a broker TO
discount his note if he wants the amount before il is
due, Ii il is able in New Orleans, and he wishes
to collect it, he RENTS the note to New Orleans and
his correspondent goes with the proceeds to the Ex
chequer in New Orleans and buys bill on New
York.
| As the credit Of the Government would make the
bills New York worth more than specie in New
Orleans the probability is, that Exchequer bills would
be preferred to drafts the course of these would be-
! The merchant would deposit specie in New York
and take Exchequer bills These would be taken te
New Orleans and paid out tor cotton, or else go into
the bans and be substituted by the notes of The local
banks the notes of the local banks could be paid
for cotton and then transferred The traders from the
States above-by whom they would lie converted into
E1chequer bills, or draft on New York, which would
be taken to Kentucky Ohio and other States trading
to New Orleans, and there furnish remittance to New
York
1t will thus be seen that this arrangement will give
a good currency at par every where with specie. II
] will enable the Exchcquer always To give drafts or