The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-10-12
FOR THE MADIsoNIAN.
ANOTHER PLAN.

should be conducted and feeling encouraged or en-
boldened by the late acts OF the President o the
most gratifying he could have performed have de-
ternlned to submit 10 you, in as concise a manner
possible my views the result of several years re-
heciion-on the subject. ! cannot but think my
ideas, in the main, harmonic with the Presidents
aid 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 say the main object Of the
institution should be for the benefit and convenience
OF the U. 5. Government and IL 1t can without in
Jury this branch of its duty be made incidentally
servceabe to the mercantile and other great interests
of the country, by tending materially to regulate
change without encroachng upon the Constitution
have 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 stickleI for the l shall now
give il, vz.-1he United States Opposite and Err
change Regulator-to be located at Washington with
subordinate offices branches wherever convenience
of the Government required ,hem 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 10 make very fie-
quent, particular and full returns of their
tons, that the Secretary of the Treasury should
have perfect knowledge Of their respective condi-
tlons and thus be able provide against any one 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
htch An hay oh aft n
funds he may deem necessary, and ship transport
them to such offices getting short. When this
could not be done with than ordinary expense
and risk, considerable less than what sight dra
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 an 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 to the community in
the way of exchange, and equazing the same as far
appears to me- it is possible for any institution to
do. have before stated that :he institution should
not be allowed to purchase bills Of exchange, except
under circumstance. But not SO In felallon 70
selling bills on one another-as would have it obtig
atory all 1rhenerer specie current bills of specie
paying banks in the vicinity were rendered, and
draft on any other branch desired to draw said draN,
charging such premium Congress shall afiix hut
This never ought to exceed the cost Of exporting spe
So far all regular business is concerned, think
there would be necessity to limit the amount of the
drafts, either way, particularly to the smalness 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 than this and this much think it could
be allowed, obligated to do, the same principles
that the Post Office Department is required to conpey
letters from section of the country 10 another.
u S. D. and Z. r. to give this benefit to the commu
nifty, it would be necessary to provide the institution
with ten or fifteen millions (if il ten times
much, used as would have it, il could do no harm)
Of paper for ISSUE in suitable sums, but of not less de-
nomination than $40. But this paper should never
be paid by any of the branches, except when all
the bills of the local banks and their SPECIE had
been paid out. 1t really would make difference,
however, when U. S. d. and E. X. paper was paid
out 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 account Of
the Government, it might be beyond the aggregate
amount, 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 s. d. and
+. r. paper, for all 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 heck and to get back
into their vaults the u S. ID. and E. X. 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 institution would be small as it would re-
qure but few persons In any of the branches and IN
some not than one and the premiums on drafts
would doubt cover the whole expenses. All its
transactions would be perfectly plain and simple, and
its condition capable of being examined, to one cent,
by a committee of school-boys On this plan | see
no necessity for any other stakeholder than the Uni
ted States.
For the purpos, of better calculating my plan,
give herewith the supposed transactions (particuiar
ised for a 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 show by this example that pretty
large business can be carried with moderate cap
al, and that, too without the necessity of regulating
the balances between the branches often to make
II Objectionable. think these balances would gene
rally be found to be but little the natural balance
OF trade between any two paces-thus preventing the
necessity Of regulating balances among the branches
ottencr than once year In this example have
caused the branch at New York to sell drafts tn,
Charleston branch only to the amount of $46,665 TO
the six DAYS particulaIized; which the Charleston