The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-10-16
FOR THE MADIsoNIAN.
ANOTHER PLAN.


ANOTHER PLAN.
Having long felt the deepest interest about the
mode in which the fiscal operations of the country
should be conducted, and feeling encouraged or en-
boldened by the late of the President o me the
most gratifying he could have performed have de-
termined to submit to you, in concise manner
possible, my views the result of several years re-
fection-on the subject. l cannot but think my
ideas, in the main, harmonic with the Presidents
| al your own and hope those which may be odd,
or new, may, after they have been duly considered,
find favor in your opinions. Think do not deviate
from your views, when l say the main object of the
institution should be for the benefit and convenience
of the U. S. Government and If 1t can, without in
jury to this branch of its duty be made incidentally
serviceabe to the mercantile and other great interests
of the country, by tending materially to regulate
change without encroaching upon the Constitution.
have no doubt this part also would meet your and the
Presidents appreciation. Now, then, for the plan
An appropriate title is very important; and shall
not, therefore, be stckleI for the one l shall now
give it, viz.-The United States Deposite and En-
change Regulator-tob be located at Washington with
subordinate Offices branches wherever convenience
of the Government required them; and in all other
places that Congress might deem advisable, and they
be requested by the people, the States. The whole
to be under the supervision and control Of the Secre
tary of the Treasury, according to such law Con-
gress might pass in establishing the institution. The
branch offices should be required to make very fire.
quen particular, and full returns of their ransac
TONS SO that the Secretary of the Treasury should
have perfect knowledge of their respective cond-
tons, and thus be able to provide against any of
them being drawn on beyond its ability to pay. And
the regulation of balances between the different Offices
in my opinion, should be made whenever practicable
by the Secretary of the Treasury ordering those Of
fees which are flush to box up such portion of their
funds as he may deem necessary, and ship transport
them to such Offices getting short When this
could not be done with more than ordinary expense
and risk considerable less than what sight draft
could be purchased at, the draft might be taken but
under no other circumstances would allow the pur-
chase of bills of exchange. have stated that the
principal object of getting up such institution should
be the convenience and interest of the Government
of the United States. In regard to the mode in which
this part of the business should be done, need say
nothing, that part is well understood already. 1t
therefore only remains for me to show how it can,
without injury risk to the United States prove it.
self of very considerable benefit the community in
the way of exchange and equalizing the same far
appears to me, it possible for any institution to
do have before stated that The institution should
not be allowed to purchase bills of exchange, except
under circumstance. But not so in relation to
selling bills one another-as would have it oblig-
atory ALL aoeneDer specie current bills of specie
paying banks in the vicinity were rendered. and a
draft on any other branch desired to draw said draft
charging such premium Congress shall affix; but
this ought to exceed the Of porting spe-
Gle. So far all regular business is concerned think
there would be necessity to limit the amount of the
drafts, either way, particularly as TO the smallness OF
them, the poor should have chance to pay their
debts or travel through the States. | do not think
Government institution should be required to do any
thing more than this and this much think it could
lie allowed, obligated to do the principles
that the Post Office Department is required to convey
letters from one section Of the country to another
U. S. D. and E. R. to give this benefit to the commu-
nifty it would be necessary to provide the institution
with ten or fifteen millions Gf it ten times as
much, used as would have it, it could do no harm)
of paper for ISSUE in suitable sums but of not less de-
nomination than 800. But this paper should never
be paid out by any of the branches, except when all
the bills of the local banks, and even their specie had
been paid out. 1t really would make difference,
however, when U. S. D. and E. R. paper was paid
OUT nor to what extent provided it was paid for drafts
drawn for the benefit of the community, because the
Office drawing has received the amount, and the
premium in addition But if paid out on account of
the Government, it might be beyond the aggregate
amour, in all the offices to their cred-a thing that
might be allowed in time of great emergency, under
proper restrictions by Congress. And by requiring
the branches to demand the spesie the u S. D. and
E. R. paper, for all erees, over a certain amount, (af
fixed by law,) they may hold of bills of any one
bank, think it would sufficiently tend to keep the To-
cal State banks in wholesome check and to get back
into their own vaults the U. S. d. and E. R. paper
| suppose the average amount of revenue on hand
would not be sufficient without the assistance of 9th
paper, to do the exchange business. The expenses
of such an institution would be small, it would
quire but few persons in any Of the branches and in
some not more than one and the premiums drafts
would no doubt cover the whole expenses. All its
transactions would be perfectly plain and simple, and
its condition capable Of being examined to cent,
by a committee of school-boys. On this plan, see
necessity for any other stakeholder than the Uni
ted States.
For the purpose of better calculating my plan,
give, herewith, the supposed transactions particular
lied for week only for one month, between two
branches. have not thought it necessary to bring
into this example any of tn Government transactions
with it. hope to show by this example that pretty
large business can be carried on with moderate cap
tal, and that tco without the necessity of regulating
the balances between the branches often to make
it Objectionable. think these balances would gene
rally be found to be but little over the natural balance
of trade between any two pacesthus preventing the
necessity of regulating balances among the branches