The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-12-14

purchase domestic bills Of exchange, and TO supply
checks wherever they may be established pro vided
the States within the jurisdiction Of which they NAV
be, shall not dissent to such transactions Our plan
proposed that the of the States should be first
obtained. which amounts in principle to the same
thing. The Presidents suggestion Is the best, be-
cause Il would enable the agencies to enter upon their
business without the delay attending Legislative ac-
ton.
The country now wants regulator Of the internal
exchanges and circulating mediom that shall be Of
uniform value throughout its whole extent, What
the President proposes will accomplish both. The
notes which may be issued are in the first place 10 be
made redeemable in coin, on demand at such places
as they issued from and besides to be receivable
IN payment Of oil public dues and for public lands,
whenever they may be offered without regard TO their
places OF ISSUE The notes which are at any time In
circulation, will always be represented by something
OF substantial character composed either of specie
and Its equivalent, or Of exchange OF undoubted cha
racter payable at short periods. No one can doub.
but that these notes viii always be on par with gold
and silver, wherever they may be offered, within the
Union. They will not only pass freely, but will be
sought after in the remotest quarters for the purpose Of
making remttances other sections Of the country.
Il may be objected, by some Of the exclusive metal
lic currency advocates that il is contemplated to ap
thorize the dealing in domestic exchanges by the
agency. No constitutional objection can be offered
for that instrument expressly provides that Congress
shall have power to regulate commerce among the
yeral States" The granting Of authority to deal in
domestic exchanges, would only be carrying out that
provision of the Constitution. The power to deal in
inland exchange is the most important feature Of the
whole scheme. II would be through these operations
mainly that the country would be furnished with the
currency which it is contemplated the agent shall sup
ply In efecting the exchanges ofthe country grow
ing out of its productions and transporting them to
Market there is wanted something aid in these oe
rations which shall take the place Of gold and silver
and answer all the purposes Of either BOTH without
the expense and risk attending their transportation.
The notes Of the fiscal agent will do that.
We will illustrate the operation throughout all the
various ramifcations. Trade being but an exchange
Of commodities, all that portion that s carried be-
tween this and foreign countries concentrates in the
Atlantic cities. There the exchanges made; and
consequently such medium as there convertible is
wanted to assist in conveying produce Of the coun
try to those markets. The inhabitants Of the great
valley Of the Mississippi obtain large portion Of their
supply of foreign fabrics from the Atlantic Cities
The produce of that section of the country, however
goes to New Orleans Probably thirty to forty mil
lions of dollars in value Of produce annually is
centrated in that mart A great portion of the sur
plus proceeds eventually finds its way to the northern
cities in payment of purchases made there either in
bills drawn those cities for shipments of produce
made thence, or in foreign bills sent there for sale,
drawn0 on shipments made direct from New Orleans
to foreign markets. In conducting these extensive
commercial operations the grower of the produce the
shipper Of it as well those engaged in trade through
out The whole Of that section of the country
which produces it, want the facilities Of medium
more portable than coin. The notes of the fiscal
agency will supply them A branch Of the agency, if
established, would probably purchase, during each
business season at New Orleans, millions Of dol
lars ofexchange drawn the northern cities. These
bills of exchange would be paid for by the agency in
its own bills, which would be carried up the Mssis
sippi scattered throughout the whole country, the
produce of which descends that river, subsequently
collected by travellers for convenience and sorekeep
ers for remittance and finally be returned to the prn-
cpal agent through the custom houses in the Atlantic
cities. Thus these ten millions Of dollars Of notes
would perform the Office Of paying, probably, eighty
or hundred millions Of debt while making the cir
cult we have described in medium of equal value
with specie, without the trouble and expense Of re-
moving and transporting dollar Of it. and with the
avoidance of the arrangements consequent to such
movements
With such an agency established and in operation
At New Orleans, the banks there would all the
Sa Ia BE m they ever have
presence. The banks Of New Orleans would not a.
any moment experience the least difficulty in resum.
ing specie payments simultaneously with the establish
mont of branch Of fiscal agency in that city.
Operations Of similar character would take place
u other important points at tho South from which
arge quantities of produce are shipped but on far
more limited scale.
ne disbursements of the notes Of the agency by |
ne government, in the various payments which con.
anty have TO be made in almost every section of the
country would be the means of introducing them in |
Q circulation to considerable extent.
II seems to u.s. that il must be sufficiently manifest
Q all, who are acquitted with the subject, that the |
proposed plan capable Of exerting powerful inu-
nee in remedying the evils under which the country
now suffering, and is without the ability Of exercis-
ng the dangerous power that attaches itself to Ma
ional Bank in any and every FORM By the receipt of
he notes Of sound specie paying banks, the agency
would offer strong inducements to those who are still
usPended TO resume, who have it in their power
nd those who have it not would soon be forced 10 20
nto liquidation.