The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-02-25
WHOLE NO. 445.

aversion TO paper medium, and after such bold and
perseverng efforts for metallic currency even efforts
which, IN their practical effects, have deranged and
broken up all the great and important relations Of bu-
siness, should at last be content place its own re-
lances on the issues Of that prescribed currency
paper money! But, sir we are now under necessity
not TO be reasoned with Money must now be fur
nshed, or the Government must cease its functions.
we nave now, IN point of time, arrived at the 18th
OF February and from what are you TO pro-
vide pecuniary means for the coming wants of the
Government by the 18th of March Ii is true YOU
nave other modes of raising money than Treasury
LUIS lou may derive revenue by laying additional
duties on imports But that resource would require
tme and detail Of PROVISIONS and, while of somewhat
uouotia result would at any rate be entirely loo late
for the heavy demands which are soon 10 Jeyolye on
your treasury. Or you may resort 10 direct loan
which as measure OF financial policy there can be
but little doubt, when compared with ,be ;ssue IF
treasury notes Of preferable character But that
expedient would also require formaly in ia provisions
as wei as delay IN its accomplishment and in no way
could DC made seasonaty available TO the approach
ing wants OF the Government Besides. the presen,
is not the most proptous time for obtaining loan
the eversh and excited slate of the money market il
against ii. The well-known condition Of your Trea-
sury would be against success Whenever the Dor
rover approaches the money lender for loan under
weLk circumstances Of distress he will moi find
his condition calculated to secure him the most fayo-
rable terms II is said the banks are not able TO fur
nsh loan II will not be necessary that they should
There VIII be no necessity for calling the banks
for any such negotiation. Open substitution in fu
ture for oan when you are not known TO be driven
ny the extremes of want-the stock will soon be taken
up, and on reasonable teIms-not by banks but by
capitalists, by the moneyed OF your country
VINO are always DESTROYS, in ordinary times of vesDg
In Government stocks. | agree with honorable Sena-
tors who say this ought to have been done long ago
loan might doubtless have been easily obtained SIX
months ago Or year past and probably on better terms
than the future will afford But that has not been DONE
and il is of very little avail TO speculate on what mobt
have been done Present relief cannot be effected by
rebuking the policy which has preferred Treasury
notes to loan! Two classes of politicians in this
country have entertained different and opposite OPT
MONS on this subject; each, adherng to their owl
preferences has, as they had good right TO do strong
y urged their own views in favor Of their own sys
tens Of financial policy; and now, sl we are in that
political exigency which must control our action No
matter how this exigency has come, or who has
brought about that ought not to vary our action on
this occasion Il is too late to entertain constitutional
scrues, or to inquire whether the appliances are for
permanent or temporary debt Mr. D. said he should
vote for this bill authorizing the issue of five millions
Of dollars in Treasury notes; and if it was for double
that amount, ne would vote for il, and with his pre-
sent views he should then consider that amount fa
short of What would be required
Mr. KNIGHT expressed his views as follows
Mr.. PREsIDENT:-The Senator from New Hamp-
shire says that the Treasury proposed TO he is
to be considered in the nature Of loan and nothing
but loan. Differing from him in that view of the
matter, will make single remark.
Sir consider the proposed issue Of Treasury notes
not only loan 10 raise funds for the immediate use of
the Government but to circulate as currency-to he
in fact, circulating medium for the country paper
currency and, as SUCH shall vote for the bill These
notes will circulate in the place Of bank paper and
they will be greatly needed for that purpose. The
banks, IN their present embarrassed condition cannot
fttrnt Al
country they are not in situation to do 50, even if
the people would take their paper in their ordinary
of business. 1t is to be presumed that some Of
them, not in the best condition, will withdraw their
paper from circulation in the course Of the present
year, and fso, Treasury notes will be greatly needed
to supply their place. and to considerable extent they
will do So if they issued in sums to meet the ne
cessities of the times or the wants of the people.
Sir, shall go for reliefto the cnnniry and"
- rri. of thar present enha rrassInonts, and 10
give them circulating medium to facilitate trade and
intercourse, and know nothing better that we can
do at this time than to issue Treasury notes be-
lieve it is more expeditions and convenient TO rase
money for the Of the Government than to wait
and raise il by the usual way Of loan
Mr.. President, ! am of opinion that the revenue
from imports the present year has been estimated
From every consideration that can give it, | am in.
cncd To the belief that ii will not amount to nineteen
millions of dollars. The mportatons will not be as
large importaons of the present quarter thus far
Indicate No merchant will import very large
amount more than he can readily sell, with the pros
pect of falling tariff before him. He will not import
more than he has reasonable prospect Of selling be-
fore the reduction Of the tariff shall take effect and
it will be recollected that there il be large reduc
ton Of duties the first of January next and hence
it is inferred that the mportaons of the last quarter
Of the year will be less than those Of the preceding
quarters of the same year, and, consequently, the
amount of receipts of the will be less and the
deficiency must be supplied either by loan Trea-
sury notes.
Mr.. President, the present seems to be time for
Senators up here and confess their sins and TO
ask forgiveness for having voted on a former occasion
in favor of Treasury notes, and do not know but it
would be well for me to do SO too; but sir, my sins
in this particular are sins of OMISSION and not Of
commission did not for the first Treasury note
bill, neither did vote against it. gave vote in
the Of the passage Of that BILL that indicated
my opinion to be in favor Of the measure, and had
voted on the final passage of the BILL it is probAbe
should have voted for II. However that may be- at
this time and in the present condition of the country,
consider Treasury notes to be the best circulating
medium for the whole country that we can have, and
shall vote for the bill.