The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1841-12-23

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does not possess brokers and money dealers do, and
IL use il skillully TO their own advantage A far
mer of Virginia will hesitate To receive in payment
New York note. He will prefer Virgins paper, al
though he knows II is not equivalent To SPECIE be,
cause e can form some opinion OF its value while oil
the New York note he knows nothing. But the hol-
der of the New York note al the time, is able
to dispose of il at the first brokers' office al large
premium.
Every man in the habit Of observing what passes
around him must every day the istence of his
state of things; and its inevitable consequence Is, To
throw the loss Of depreciation the laborIOus and
productive classes. Wherever bad paper cIrculaies,
II Is the industrious and te hard wording who
suffer first and suffer longest, and suffer most. But
il is not intended pursue this part of the subject fur
ther than TO illustrate and corirm the truth that no
State bank, founded on whatever capital, administered
by whatever degree of fidelity aud skill, can obtain
that familiar character and that established and we'll
known credit, which shall gre its bills circulation
through all classes, IN any amoints, and IN all parts
the country
Now, another most imporan truth, equally well
settled by experience, Is that PAPER issued for circula
ton, under the authority or with the sanction OF the
Government of the United Stats does acquire and re-
tain This advantage of known nd unquestloned char
acter and universal confidence. No matter whether
the bill present its If IN Maryland or Missouri,
Maine Georgia if ii promisepayment in specie on
demand and that promise be supposed 10 be guaran-
tied by the character and crediof the Government II
springs Immediately to value equivalent TO specie
The impress of the National Ge,ernment, connected
with the fact of it, immediate c(lvenlbity, stamps
the paper with mark OF perfect and universal re-
ance because all the People in athe States, are ake
Interested in the General Government, alike acquan-
ed with It's proceedings and have like faith in paper
which it gives its sanction. We seem to be called
upon, therefore, TO act on tbs subject with three i'm
porani truths made clear before US. first that pa
percirculation will continue among us second, that
no paper circulation of universal credit ever be
ly bird nj a Id
be furnished under the authority of the Govern
ment Of the United States.
1t is under the influence of these realities that it is
now proposed To issue, TO extent paper cur-en
cy, according TO the provisions 4 this bill Its uses
expected to be two-folJ lnihe first place, al
ready stated, it will furnish a tae paper medium, in
which payments may be made o Government of all
debts and taxes. Few persons, pehaps, sufficiently
impressed with what would be he value of this, IN
certain emergencies,
Debts TO Government are nov 10 be paid in specie,
or the notes of specie paying banks. Let us sup
p sc that some exlgency should come suddenly upon
the country, requiring the Immediate assessment OF
heavy taxes, and that the same e,igency should COM
pei all the State Banks to suspend specie payments
In such posture of affairs how could taxes be paid
OF specie there would be little to be had; of the bills
OF specle-paylng banks, none. Government would he
driven 10 absolute necessity TO tie of paper rest
ing on It's own credit and created fo the occasion II
would have no other resource All must see how
vastly useful the system now proposed would be, up
on the happening ofsuch emergency The tx
chequer would be found in operation, and IN posses
sion OF a certain quantity OF Specie is notes would
have become familiar to the public it would have in
addition 10 It's specie and It's established character
the amount ufreyenue whatever that amount might
be, to sustain its ciIcu tion. 1t would furnish notes
for disbursements and receive then for taxes with
these means, and by faithful and skilful management,
though il might be emba 10y the proslratlon OF
other institutions around il, it would sill retain its
avn NIL tl.tr anil hp kINf n
fruclliyng germ amidst general blight and barren
But this part ofthe bill has another purpose equal
~ or still more important The measure is intended
TOR the PeQI lie as well as for the Government The
issue Of Treasury notes always redcemable in gold
and silver and lheuse Of them in payments from the
Tleasury' and III the purchase Of exchange, cannot
but be beneficial ii Is conceived in high degree To
the whole commerce and all the business con
Germs of the country. la this part Of its Of Grafton
the system presents itself as benefccnt and pro
ductlNe of essential good 1t seeks not Govern
mcnt emolument or Government convenience on
y, but the public good, the good OF the people,
effect is to give to the people, their labor, and
their internal trade the activity of funds which would
otherwise he locked up, and to give them, at the same
time good money, 1t employs those funds to sustain
credit TO supply sound currency, and to favor use
iul intercourse between the States And II does this
without assuming undelegaled powers without
alarming the jealousy or wounding the pride of the
States.
Yet il canno. with any justice or propreiy be call
ed Government Bank. The essential clements of a
bank still wanting to it, Government seeks not
TO I'll It's Golfers by DISCOUNTS or to make gains
by the of its credit, to make the issue of
the Exchc quer substitute for revenue IN Older to
meet lis own nece sites. Nor dots 1t propose to Is
1ct the People the evils and the scourge of an I'M
redeemabe Government par err because paper Is TO
be issued which is not payable in gold or silver on
demand-al paper thus csng on the double bass OF
mmt date convertlby and tie public faith. tis
not easy to conceive how any paper intend ID Tor CIR
rulation could be more safe useful for the
purposes of commerce. and il believed that II IS just
such paper the wants OF the country now loudly
demand.
The extent to which this paper may be issued AND
circulated is must be confessed some degree un
certain This must depend the amount OF reve- /
nues col ected and dsbursed, and on the degree OF
success which may attend the operations provided
for by another part of the bill, Bal, whether the
the notes Of the Exchtqucr be larger CT
smaller far that cir. uatloD shall extend II uusi
be favorable all interests. 1t cannot bn conduce TO
he public welfare that there should be, IN every part
Of the country some one institution, or some one
agency, which shall be Of undoubtcd credit; and
hose issues, be they great or small shall be equva-
ent TO coin
Ii the circulation of the notes OF the Exchequer
from hand to hand in the common business OF life, !
should I've found 10 be snail that fact will arse
from the other of two causes, or from tie com
Dined effect of both If the amount issued should be
small, then of il only ill the channels OF
,irc uatlon to limited extent. And while the paper
the State banks shall continue deprecated and yet
remain in CIRCULATION Treasury notes 1t IS highly pro-
,abe will often be taten out of the general crcula
ION and used for purposes OF remittance. Their IL I
N ted circulation IN such would arse from their
superior value in comparison with the value OF other
laper. 1t would not he owing to want OF confidence
n them but TO their possessing the highct degree OF
confidence,
But if such use Of Treasury notes should take
)lace and should diminish tho amount circulated in |
lay transactions from hand to hand, yet that it.
self would confer a general benefit of great mpor-
ancc inasmuch as all such remlttances perform the
office of furnishing safe and cheap exchange, and
20 operate drcc y with the results hoped to be pro-
iuctd by another provision OF the bill. But if the |
Exchequer and its agencies be alowedto deal in eX-
change, this OF lts notes, although 1t might exist
TO some extent would be far less con 'iderable