Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-02-24
RICHMOND, VIRGINIA, THURSDAY, FEBRUARY 81. Is42

FINANCIAL REPORT.

w EN- SEVENTH CONUItESS.s~u oessioi
e FINANCIAL REPORT.
: Mr.. CUSHING read the report as follows:
The Select Committee, TO rchom referred much
the Message Of the President relates to the plan
finance therein recommended 10 Congress, as also
Letter from the Secretary Of the Treasury, aecompa
MED bya draught Of bill far tie establishment Of
Board Of Erchequer al The seat Of Government
in part:
The Committee have bestowed, on the subjects com
mtted 10 them u the deliberate and anxious considea
ton which the importance of those subjects demand.
1t became their duty 10 inquire TO the wsest
best method Of keeping the public moneys of the u S.
the material in which the should be collected ant
discussed; and the power and obligations of the Fedora
Government in regard 10 the currency and exchange
| of the Union.
They entered upon the discharge of this duty at ,
period when, in consequence Of the magnitude nnt
pressure Of the public debts Of many of the States
the Union, the condition of their banking institutions
and other causes the currency and exchanges of large
part OF the United States were involved calamitous
disorder; at period when the pecunary disasters o
the country, the extreme differences long existing
among eminent statesmen as TO the nature and causes
Of those disasters and the proper remedy for hem
the uncertainty and instability Of the financial policy
the Federal Government, had conspred to render sor
Of anarchy Of opinion characteristic of the times.
Under these circumstances, the committee felt them
selves called by the highest claims Of patriotism and
of honor TO endeavor 10 look steadily and calmly al
the facts surrounding them to enancipae their minds
l
opinions; TO bring TO the solution of the great questions
before them the benefit at least of uncommit,ed judy
menis and unshacked freedom of decision; 10 inquire
not merely what might be best in the past present
view Of ench but also what the best Of things
practicable; and having thus without fear or favor, full
y discharged their duty 10 their country and them
selves, 10 submit unhestangly the result Of their deli
berations 10 The candor and wisdom Of the House.
They were The more strongly impelled 10 The odop-
ton OF these principles Of action in consideration that
the duty they to perform imposed on
them by the command of the House, not sought nor
desired by themselves; and that, under subsistng polt
cal relations, for the success Of any measure they
might propose, they must of necessity rely its in
trlnsic Proprety and the impartial sense Of the Legs
lature.
The Constitution Of the United States empowers
Congress to lay and collect taxes, dues imposts and
excuses, TO pay the debts ard to provide for the
defence and general welfare Of the United States,
it being requisite that call such duties, imposis and
excses sal! be uniform Throughout the United States
And recognises the existence of "the Treasury OF
the United States. But II does not prescribe the
organization Of that Treasury, set forth the
mode in which its PERSONAL shall be constituted or
its business transacted, otherwise than il pro-
vides that the President, with the advice and con
sent of the Senate shall appoint the principal officers
of the u. S. But the Constitution further provides
that Congress shall have power to make all laws ''nc
cessary and proper for carrying into execution" all
other powers vested by il in The Federal Government
ANA unQer tnese ~ the irel
sury Of the IT, S to be organised By legislation and its
concerns conducted; the President being empowered
and enoined "to take that the laws be faithfully
executed"
Besides this, Congress has power "to regulate CON-
merce with foreign nations and among the several
States; power "to coin money, regulate the value
thereof, and of foreign coin, and Tx the standard OF
weights and measures and power "to borrow money
the credit Of the U. s.
And, on the other hand, while comforting these pow.
ers on the Federal Government, the States have ex-
pressly forbidden :, 10 make any thing but gold and
silver coin tender in payment debts or 10 pass any
ID " impairing the obligation of contracts.
By the act to establish the Treasury Department
passed the Cd of September. 1889, il was provided
that shall be the duty Of the Treasurer TO receive and
keep the moneys of the w. ST. and 10 dsburse the same,
npon warrants drawn By the Secretary ofhe Treasury
but the plan and mode of keeping the moneys ofihe
u. S. not specifically prescribed unlimited scope
of choice being left to the Treasurer in this respect sub
ect always the authority Of the PRESIDENT To see to
the due execution Of the laws, and in his executive
pacty to guard the interest of the Government.
Under these provisions Of law, the fiscal operations of
the Federal Government, as now constituted, COM
menced and proceeded until the 18th of February,
1901 when the Bank Of u s was incorporated for pc
riod of twenty years.
Prior TO which, there existed in the United States
three incorporated banks, namely, that of North Anne
rica in Phade phia-that of New York, in the city OF
New York-and that of Massachusetts,, in Boston-all
them established before the ADOPTION oil Consll-
tuition. Each Of these banks State corporation
for though the Bank Of North America originally
established by Congress, in l7el, yet it had since &C
cepted and acted under charter from Pennsyl-
yania
These banks il was thought, were unfit or incompe.
tent 10 perform the fiscal business of the Government
besides which, they could not absorb any amonnt of the
public debt be relied for advances of money to
the United States
The incorporation of the Bank of the United States
81 r1n IF nn9 IN thp So
creary of the Treasury, to prepare and report proper
plan for establishing the public credit. In obedience
TO which, the Secretary presented two reports; IN one
of them recommending that the public debt be funded,
and additional taxes raised to pay the interest on
and in the other recommending the incorporation OF
national bank as being OF" primary Importance TO lie
prosperous administration of the finances and 1.-THE
greatest utility in the operations connected with the
support of the public credit or, as set forth IN The
preamble of the act tending 10 give facility TO the
obtaining of loans for the use of the Government TO
which, in the same preamble, was added the further
reason Of advantages 10 trade and industry
This Bank answered Immediately three purposes OF
the Government, viz: J. Of its capital of ten millions
of dollars three fourts composed OF funded debit
O. 1t was made the fiscal agent of the u s; j. It's
notes become legazed currency, being declared re-
ceivable in all payments at the Treasury.
And the system of the Government was completed
by The ac, ofthe I'd Of April 1892, esabshinga mint,
and regulating the coins of the H. S. upon The basis OF
mental Congress.
The incorporation of this Bank was resisted. in the
outset on considerations of expedency and OF consl
uonalty; which considerations led TO the refusal Of
Conaress 10 renew its charter On the expiration OF
its charter does not appear to have been deemed ne
cessary or expedent to egislate further either as 10
the means of collecting the mode of keeping ,he
public moneys; but this was left TO stand on me au'o
rty vested in the Treasurer by the act OF 1857 10 re-
ceive and keep The moneys Of the United States.
Meanwhile, the number of banks, incorporated ny
the several States had increased previous to- or at this
time, to one hundred and in 1872 about twenty more
were incorporated, with an aggregate capital, IN ,he
whole, of upwards of seventy millions OF aoi
in their notes. and by deposites with them In the pro-
gress of the war with Great Britain, all the State banks
south of New England ceased to pay coin for their bills
n 1s4 the United States Bank would IN all pro- te
baby, have done, if it had continued to exist as The
| SUSPENSION was chiefly in consequence Of advances
made BY them to the Government but notwthstnnd-