The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-12-08

the Government 10 collect what IL uue 10 IL, VI P"J
what il owes, be abrogaed
This is the chief purpose OF the proposed EAche'
quer; and surely If, in the accomplishment Oh Pur'
pose so essential il affords sound circulating nred
UNI to the country and facilities TO trade should DC
regarded as slight recommendation OF u TO puollo
consideration Properly guarded by the provisions OF
law il can run into no dangerous evil, nor can any
abuse arise il but such the Legislature itself
will be answerable for II II be tolerated since it Is
lint The creature Of the law and Is susceptible at all
times Of modification, amendm snt or repeal, at the
Measure Of Congress. i know TIN II has been OBJ
ected that the system would be liable TO be abused
by the Leg stature, by whom alone il could be abused
in the party conflicts of the day. That such abuse
would manifest itself in a change of the law which
would authorize an excessive issue OF paper for the
purpose of initiating prices and winning popular favor
10 that 1t may be answered, that the ascrIp,on of
such motive to Congress is altogether graluitous and
inadmissble The theory of our inslii utions would
lead us to different conclusion. But perfect
ry against proceeding 30 reckless, would be found
10 exist in the very nature of things. The political
party which should be blind TO the true interests of
The country, to resort to such expedient, would
inevitably meet with final overthrow in the fact that
the moment the paper ceased 10 be convertible into
specie, otherwise promptly redeemed it would be-
co worthless, and would, the end, dshonor the
Government, involve the people in run. and
such political party in hopeless disgrace. Al the
time, such involves the utter lmpossbiliy
of furnishing any currency other than that ofthe pre-
cious metals, for, it the Government itself cannot
orego the temptation of excessive paper issues, what
reliance be placed in corporations upon whom the
temptations OF individual ACKNOWLEDGEMENT would most
strongly uperate2 The People would bave to blame
no ne but them selves for any injury that might arise
from reckless, since their agents would De
the wrong doeIs, and they the passive spectators.
There can be but three kinds of public currency
ist Gold and silver 81. The paper OF State instiiu-
tons or, Sd. A representative of the precious me-
tails pro vided by the General Government, or under
its authority The Sub Treasury system rejected the
last in any form and as it believed that no re-
lance could be placed the issues Of local institu
TONS for the purposes of general circulation 1t ne
cessariy and unavodaby adopted specie as the cx-
elusive currency for its And this must ever
be the case unless of the other kinds be used -
The choice in the present state OF pubic sentiment,
lies between an exclusive specie currency on the one
hand and Government issues of some kind on the
other That these issues cannot be made by char
tered institution, supposed to be concusveiy SET
tied They NUT be made, then, directly by Govern
ment agents. For several years past they have been
thus made in the form of Treasury notes and have
answered valuable purpose. Their usefulness has
been limited by their being transient and temporary ;
their ceasng to bear interest at given periods neces
sary causes their speedy return and thus restricts
their range of circulation and being used only In the
disbursements of Government, they cannot reach
those points where they most required. BY rem
dcring their permanent, to the moderate extent
already mentioned, by offering no inducement for
tnelr return, ana DV exchanging tueu lot Coln anu
other values they will constitute, to certain extent
the general currency much needed to maintain the
internal trade of the country And this is the Ex-
chequer plan, far 1t may operate in furnishing
currency.
cannot forego the occasion to urge its Importance
to the credit Of the Government in financial p, int
of view The great necessity of resortlng to every
proper and becoming expedent in order to place the
Treasury on footing Of the highest responsibility is
entirely obvious The credit OF the Government may
be regarded the very soul of the Government IT.
sel'-a principle of vitality without which all its
movements are languid and all its operations en-
barrassed. In this spirit the Executive felt itself
bound by the most imperative sense OF duty to sub
nit Congress at its last session, the propriety OF
making specific pledge of the land fund, as the
basis for the negotiation of the loans authorized to be
contracted. l then thought that such an application
of the public domain would, without doubt, have
placed at the command of the Government ample
funds to relieve the Treasury from the temporary
embarrassments under which it labored American
credit has suffered considerable shock in Europe,
from the large indebtedness of the States and the
temporary inability of of them to meet the in
terest on their debts The utter and disastrous pros
tratlon of the Untel States Bank of Pennsy lvania
had contributed largely to increase the sentiment OF
dsrust by reason of the loss and ruin sustained by
the holders of its stock, large portion Of whom
were foreigners, and many of whom were alike Ig-
norant of political organization, and OF our actual
responsibilities. 1t the anxious desire OF the
Executive that, in the effort to negotiate the loan
abroad, the American negotiator might be able TO
point the money lender to the fund mortgaged for
the redemption of the principal and interest OF any
loan he might contract and thereby vindicale the
Government from all suspicion of bad faith or inability
to meet its engagements Congress differed IRON the
Executive in this view of the subject 1t became,
nevertheless, the duty of the Executive to resort to
every expedien in its power to negotiate the author
lied loan After failure to do so In the American
market, citizen of high character and talent was
sent to Europe with no better success and thu' the
notifying spectacle has been presented OF the ina
bty of this Govern ment to obtain loan so small as
not in the whole to amount TO more than oneiourth
of its ordinary annual income at time when the
Governments of Europe, although involved In debt,
and with their subjects heavily burdened with taxa
tion readily obtain loans OF any amount at greatly
reduced rate of interest 1t would be Improbable
to look further into this anomalous state OF things,
but cannot conclude without adding that, Tor Go
vernment which has paid off its debts OF two wars
with the largest maritime power OF Europe and now
owing debt which is almost next to nothing when
compared with its boundless resources, Govern
ment the strongest in the world, because eman =
ting from the popular will, and firmly rooted in tie
affections Of great and free Peep and whose hdel-
ity to its engagements has never been questioned
for such Government to have rendered to the capl
talists of other countries opportunity for small
investment Of its stock, and yet to have failed, i'm
plies either the most unfounded distr,ist IN Its good
faith or purpose, to obtain which, the course pur-
sued is the most fatal which could have been adopted
has now become obvious to all men that the Gov
eminent must look to its own means for supplying Its
wants. and it is consoling to know that these means
are altogether adequate for the object. The Exche-
quer, if adopted will greatly aid in bringing about
this result. Upon what regard well-founded
supposton that its bills would be readily sought fol
by the public creditors and that the issue would in
short time reach the maximum of Sl5000000, it is
obvious that $40 5000 0 would thereby be added &c
the available means of the Treasury without cost oil
charge. Nor fail to urge the great and benefi
cal effects which would be produc in aid of all the
active pursuits of life. is effects upon the solvent
State banks while it would force into liquidation
those of an opposite character through its weekly set
Elements, would be highly beneficial; and with thu
advantages of sound currency, the restoration o
confidence and credit would follow, with numer "
train of blessings. My convictions are most strong
81 Al A. tba nflp n