The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-12-08


The OF the country by those whc have been call
ed to the heads of the different Departments Tie reuc
on IN me annualexpendures OF the Government already
accomplished furnishes sure evidence that economy in
the Application oil the public moneys regarded para
mount duty
At peace with all the world personal liberty of the
citizen sacredly maintained and his rights secured undr
political institutions deriving all their authority from the
direct sanction OF the neople-wth soil fertile almost
Devona example, and country blessed with every di
versity OF climate and pro lucon. what remains to be
done In order to advance the happiness and prosperity of
such people Under ordinary circumstances tn in-
quiry could readily be answered The probably
could De done Tor people inhabiting such country,
would DC 70 ioy their peace and security in the prose
cuon Of their various pursuits by guarding them against
invasion from without, and violence from within The
rest Tor the greater part might be lett to their own ener
gy and enterprise The chief embarrassmens which at
the moment exhibit themselves, have arisen from
action and the most difficult task which remains to be
accomplished that of correcting and overcoming its ef
ects Between the years 1888 and 1888, additions
made to bank capital and bank issues in the form of notes
designed Tor circulation, TO an extent enormously great
The question seemed to be- not how the best currency
could be provided but in what the create
oil bank paper could be put in circulation. Thus
amount OF what was called money-since for the time
oeng, ~ answered the purposes Of money-was thrown
upon the country; issue which attended
necessary consequence by extravaganza increase Of the
prices Of all articles Of property the spread of specua
tive mania all the country and finally ended in
general Indebtedness the part OF States and nd ual
the prostration Of public and private credit,
depreciation in the market value Of real ana
personal estate, and has left large districts
OF country almost entirely without any circulating
note circulation within the United States amounted
but SOL s93 according Treasury statements
and that an addition had been made thereto of the
nous sum OF Sss,oeoo0O in seven years the circulation
the first January, 1887 being stated Sll9 1855 $780,
aided by the great facilities afforded in obtaining loans
from European capitalists who seized with the
same speculative mania which prevailed in the United
Satesand the large importatons OF funds from abroad
result of stock sales and oansno one can be surpris
cd at the apparent but unsubsanal state of prosperity
which every where prevailed the land while Iii
tie of surprise should be e the present posta.
Nanfa aud that hash
many of our fellow citizens in the sudden withdrawal
from circulation OF so large OF bank issues
since lS37-exceedng believed, the amount added
TO the PAPER currency for similar period antecedent
1887 ceases to he matter of aonishment that such
ensive shpwreck should have been made OF private for
tunes, that difficulties should exist in meeting their
gagepents on the part OF the debtor Ssts. Apart IRON
which, If there be taken no the losses
sustained in the dshonor Of numerous banks it is less
matter OF surprise that insolvency should have visited
many of our fellow citizens, than that many should
have escaped the blghting influences of the times
In the solemn conviction OF these truths and with
ardent desire to meet the pressing necessities Of the
try felt to be my duty to be submitted ou
at the commencement OF your late session. the plan
Exchequer, the whole power and duty Of maintaining
which, in purity and vigor, to be exercised by the
Representatives of the People and the States and there
fore, virtually by the People themselves proposed
to place under the control aud direction of Treasury
Board to consist OF three COMMISSIONER whose duty
should be that the law OF its creation was shfu y
executed, and that the great end Of supplying paper
dunn OF exchange, at all tines convertible into gold and
silver, should be attained The Board thus constituted
H. without endagerog the proper share OF responsibility
which should attach 10 all public agents In order
Commissioners TO hold their offices for the pee
tive periods two, four, ana six years thereby securing
at all times in the management OF the Exchequer the
vices of two men OF experience; and to place them in
condition exercise perfect independence OF mind and
action, it provided that their removal should only
take place for actual incapacy or indey to the trust
and to BE- followed by the President with exposition of
the OF such removal, should occur Iwaspo
posed establish suhordnat boards ofthe States
under the same restrictions and mitaans the power
removal which, with the central board should receive
safely keep, and disburse the public moneys; and
The Enshns sound paper medium OF
revenues of the Government q sum not to ex-
coed 900 in specie to be set apart required
by its operations, and to pay the public creditor his
option either in specie Treasury notes. of denom.
nations not less than FIVE exceeding hundred
lars which should be redeemed places
oissue and to be receivable at all every where
in pay ment of Government dues with restraint upon
such issue of bills that the should not exceed the
of COO In order TO guard apans all the
hazards incident fluctuations in trade Secretary of
the Treasury invested with authority issue So 6OO
900 of Government stock should the any time
regarded necessary in order TO place beyond hazard
the prompt redemption OF the bills which might thrown
into circulation. Thus in fact making the Of Si5
0O0 of Exchequer bills rest substantially $4,000
OO and keeping in circulation never than and
half dollars for every dollar in SPECIE When
Is added that the bills not only every where receiva
able in Government Dues hut that the Government itself
would be bound for their ultimate redemption, no rational
doubt exist that the paper which the Exchequer
would furnish, would readily enter into general circua.
ton, and be maintained at all times at above par with
gold and silver thereby realizing tn great of the
age, and fulfilling The wishes the people. In order
reimburse the Government for the expenses of PLAN
was proposed to invest the Exchequer with the limited
authority to deal in bills of exchange unless prohibited
by the State in which agency nigh be situated having
only 30 days resting fair and bona basis
The legislative will on this point might be plainly
uiced as to avoid all preext for Partially avorsm.
1t furthermore proposed invest this Treasury agent
with authority TO receive deposte, TO limited amount
tho specie funds Of vduas and to grant certificates
fhnre tn ha oil
which is believed to be well founded that such
would come in aid Of the Exchequer bills in supplying
safe and ample paper circulation. Or, if in place of
contemplate dealings exchange the Exchequer should
be authorized not only to exchange its bills actual de-
postes Of specie but for specie its equivalents to sell
drafts charging therefor small but reasonable premium
cannot doubt but that the benefits OF the law would be
speedily manifested in the revival of the credit trade and
business of the whole country Entertaining this opinion
it becomes my duty urge its adoption upon Congress
by reference the strongest considerations of the public
with such In its details as Congress
may in its wisdom see fit to make.
i am well aware that this proposed alteration and
Of the laws establishing the Treasury Depart.
men has encountered various objections and that among
others ii has been proclaimed Government Bank fear
full and dangerous import II is proposed confer upon
no extraordinary powers It purpors to do more than
pay the debts OF the Government with the redeemabe
per Of the Government-n which respect il accomplishes
precisely what the Treasury does daily at this time
issuing TO the public creditors the Treasury notes which
under law II is authorized to ISSUE II has no
to ordinary Bank, furnishes profits TO private
stockholders ADD lends capital to individuals If it be
objected 10 Government 6ank and the objection be
avaiabe-then should all the laws in relation to the
Treasury be repealed and the cap ,cy the
collect what is due TO it, pay what it owes be abro
gated
THIS Is the chief purpose ofhe proposed Exchsquer and
surely IT. in the accomplishment OF purpose initial it
lords sound circulating edum 70 the country and ac
es to trade, II should be regarded no slight recon-
mcndaon Of TO public consideration. Properly guarded
by the provisions of law II into dangerous evil
any abuse arise under II but such
itself will be miserable for to be tolerated. since it but
The creature ofhc law susceptible all times of
LITIGATION amendment repeal at the pleasure of Congress
know that hes been objected that the system would be
liable TO be abused by the Legislature, by whom it could
De abused in the party conflicts of the DAY. That such
lbuse would manifest itself in change Of the law which
would authorize an excessive issue of paper for the pur
bose Of initiating prices and winning popular favor To
hat II may be answered. that the ascrption OF such mo
i've to Congress Is altogether gratuous and
rhe theory OF our institutions would lead us TO different
cuson. But perfect security against a proceeding
% reckless would be found to exist in the very nature OF
hinge The nnliticai uh h..