The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-11-13

Both the bonds and the coupons to be made receiv-
able in all public payments The latter not to bear
interest. &.f
Surprising the revenue to be estimated at twenty-five
millions, the operation would throw into circulation
$3.50 600 quarterly equal to million in the year
And, having seen that corporation had issued near
ly million and half in small orders, mainly for
the uses of single State, embracing not fortieth
part ofthe entire federal whom they wore
found convenient facilities and passed freely until the
supply exceeded the demand it may be- thence fairly
assumed that the amount Of coupons would be pro-
gressve until the public convenience, for travelling,
or otherwise, should be fully satisfied. And they
could remain in because Of their receivable
ty for all public dues. And containing they should
the essential elements Of national currency in their
uniformity of value, and their ssidity Of foundation,
they would justly inspire universal confidence.
SO much for the coupons, now for the principal Of
the fiscal bonds a
They are Der Sc rredeemabe, constituting fee sim
pie lien upon the wealth ncred ofthe whole nation,
of which the bearer only be divsted at his volt
ton either by sale, by payment for public dues.
And towards their redemption by purchases, on the
public account all the surplusses of the revenue should
be applied under such supply it would not be ne
cessary any balance in the Treasury as the
fiscal bonds" would always be available resource.
And the redeeming effect Of all surplusses applied,
would be as financial lever, to enhance their market
value, that the rate of interest might be practi-
cay reduced, by the substitution of issues at lesser
charge upon the Treasury-say to three and perhaps
eventually to two per centum per annum.
Is it not marvellous my esteemed philosopher, that
the inhabitants of island whose terrene supercies
is less than that Of several Of the States of the Re-
public with debt of nearly four thousand millions of
dollars, amount in fact, greater than the aggregate
valuation of all the real and personal property Of the
whole Union, (Which may be said to owe nothing,)
should be able to augment her Indebtedness by ennis
sions of s'consos," irredeemable bonds at &c. be-
ing equivalent to borrowing at l-3 per cenum per
annum whilst the requistion for our mere temporary
supplies tardy taken at nearly the double Of that
rate Is it not because the arrogant English in their
pride Of purse, in their bank paror, and stock
change, have determined to disgrace this great
nation Or is it not by reason of the operation of
/" financial lever" applied in purchases Of their public
securities Yes, most truly, may be ascrbed in
preat decree the actual effect of such purchases in
The enhancement Of the national credit mainly repre-
scented in their consolidated debt, vulgarly called the
f" consols."
Then why should not we, in the majesty of our
vast incaculable resources, create capital upon the
faith and wealth Of all our people and property, with
redeemng appropriation to elevate its price common
surately with its obvious sodity and productiveness
The practicability is apparent, and its expediency
would seem to be no less So
Philo Sop--Most sage economist, thou rcasonest
weIl-but why impose debt upon the people, whilst,
in the exubennce Of resources the evil OF accu-
INFLATED surplusses in the Treasury is more to be APP
pretended than deficiency
Stat--Such is the fact; but specializing politicians
have essayed their eloquence and ingenuity to prove
the necessity of national debt of considerable mag
ni,ude. And as they have succeeded in authorizing
an hypothecation Of the public credit 10 the extent Of
twelve millions at six per cent the nterposton OF
measure which would reduce the charge BY onethird
could not fairly be objected 10. And the further ex-
tension could not transcend the popular will as repre-
sented in Congress- and the application of surpusses
would tend to the reduction Of the rate of interest,"
and the consequent promotion Of the general haPpi-
ness and prosperity.
PhiIo. Sop-What are the advantages Of the pecu-
liar evidences of public debit such as you have detail
ed so distinctly
Stat.-They mainly consist in the avoidance OF
trouble in transfers. and in collecting the interest," as
they would be pocket security to accompany the per-
son of the owner in all his movements and the inte
rest would be available in any section of the country
by merely clipping the coupons as they should arrive
al maturity. And from their accretive PRINCIPLE they
would attract the reserved moneys of many prudent
individuals and uns.oeking large amount OF boarded
treasure.
Philo. Sop.-Do you esteem the project as the most
eligible for raising means, and supplying currency
for the country2 ..a.
Stat.-Fo raising means il certainly possesses pc
cuiar advantages; but the system OF the Maryland
financier which has been frequently printed BY order
ofeither House of Congress, presents principles which,
from their homopeny with the political institutions
Of the country, and their adaptation TO the wants OF
the Treasury the facilities of commerce, and the ac
and promotion Of all interests, would
seem to be more generally useful and, consequently,
entitled to preference all others which have APP
peared.
Iohilo Sop.--Your information is replete with all
important considerations will digest 1t, and endea-
vor to turn II to good account. q
Nov. 10, 1s4l.