The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-11-06

and under all the restrictions and with all the adyan-
tages that Congress might have granted except the
branching power alone. When the States should
have given their consent, and branches had been es-
tabshed, then the Bank would have been complete.
Mr. Clay could have obtained Bank in this way, but
he rejected it, and apology for his doing
So but desire to keep the question Open that he might
have the Bank hobby upon which to ride into the
Presidency He has denounced this compromise in
such that to reract now would be to surrender
his hobby and admit that all that he has said about
Mr. Tyler was wlful, deliberate calumny. Will he
joit2 Never. Mr. Clay will not &C ;ePt Mr.. Tyer's
compromise. Mr.. Tyler cannot and he will not approve
such bill as Mr.. Clay will present. No Bank bill
can pass even if Mr. Tyler were to recommend
Bank which Mr. Clay does not approve.
What, then, must the President dos 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. What scheme, then, can the
Pre- ident submit for placing the public moneys, I'M
der the custody of the law that will receive the support
ofso much of both parties 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 Trea-
sury shall be divorced from the Bank, and they viii
support no scheme that does not embody this feature
This may be said to be the foundation which they
build.
On the other hand the Wings demand, first, good
paper currency equal in value every where receivable
in payment of the public dues.
Secondly, That the exchanges shall be equalized
or ed tn fai ri throu
We propose to submit plan which we believe will
accomplish this; and first, as to a good paper cur
rency.
Let there be attached to the Treasury an
ExcHEaUER,
With agencies located at such points the public
wants may indicate. Let persons wanting "gooa
paper currency deposit in the Exchequer their mo-
ney and receive Erchequer 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 obtant There would be no 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
~ W
in specie 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 compensation to the Government for transport
ing The SPECIE to meet the payment Of the draft or 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 in New York. he deposits it in the Exche
quer. He has the option to take Exchequer bills
deemable in New York, which will bear premium
in the South, or he purchase draft on New Or
eans-before he get either, he must deposit the
money which is always ready TO pay the bills if bills
are preerred-or if 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 O.leans and
remain to pay draft for similar amount when
persons in New Orleans may wish to remit to New
York. Thus it will be seen, that by this means the
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 it in New
| Orleans
But, it is objected that the merchants want to
ise bills running to maturity in New Orleans; and
we are asked how merchant in New York, who has
sold goods to merchant in New Orleans, whose note
has six months to run, realise the amount in ad-
vance; or how can he get the amount back when it
comes to maturity
The answer is most obvious. If he takes his not
to the Exchequer in NV York, he is told that the
Government, to use the words of the President do
not discount. He must 90 to bank or a broker to
discount his note if he wants the amount before it is
due If it is payable 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 on New York worth more than specie in New
Orleans, the probability is that Exchequer bills would
be preferred to dras,the course of these would be-
The merchant would deposit specie in New York
and take Exchequer bills. These would be taken to
New Orleans and paid for cotton or else 60 into
the BANS and be substituted by the notes of the local
banks notes Of the local banks could be paid out
for cotton and then Transferred the traders from the
States above-by whom they would Re converted into
Exchequer bills, or draft 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 that this arrangement will give
a good currency at par every where with specie It
will enable the Exchequer always to give drafts or
Bills of Exchange upon any and every part of the
United States the lowest rate at which could be
given under the best organization of bank
1t will enable the merchant in New York, or the
manufa Massachusetts,, to realize at any place
when it may be due, in money, at par the full value
of ndse the that il is maid with the