Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1842-03-07

would these
chuse the products the West 1t The committee
that the West would have abundant share of this Government
currency, and in tSon with the benefits which would de-
rive from exchanges that its interests would be peculiarly pro-
NOTED by the establishment Of this system.
will add to the circulating medium of the country. The
heretofore shown that il ought not to add
has advantages over SPECIE Among these advantages
It will he tho Of drawing forth from its hiding places
specie that has been boarded the esmucd
millions and which, its present condition. of its
uas aud banks safe repositories which caused this retirement
of species will yield the unboundod confdenc nspr-
ed bte Exceguer where specie notes are issued deposit
of specie, md the safe custody of the deposit by
O. In the ratio of the velocity and economy which
affords specie, and which may be added the high
effectiveness to the circulating medium
L. 1t win prevent depreciation of specie by abrasion while
s. It will prevent total loss the country and the
ny s 70 H,, and other casualties. &C. ,,
T. 1t will be the best sat remittance by mall from one
end Union 10 the Other for the payment OF newspapers and
periodicals. md other things requiring small without tho
T. II will tend TO regulate the banks, and, by frequent
ting Of balances, to bring them up to sound circulation
o. 1t will do much toward regulating exchanges by of
its favorable action on the local currency
plan Of Fiscal Agent submitted by the Secretary of tho Treas
ny they have suggested certain Important moddcuo and
ihe SYSTEM aS they propose to modify IT, they How
board to be established in thotcusury Depor,tncnt Mt
the Seat of Government to be called the Exchcquor Of the Uni
be appointed by President with the ayr and consent Of
the Senate, and to be removed from office only like
neglect or violation Of day 1hs President to
o Senate the particular Of tho proposed removal For
Ike causes the President suspend commissioner and
point temporary substitute, and within the first week Of the
ensuing session of the Senate lay before that body the
of such suspensions and thc concur commissioner
to be removed, If not to be restored.
H. The Board of Excheque establish agencies, may
deem necessary and cSpedien for the public service limiting tho
number to as few as the cNgcncics ofhc service will ndn aud
IN no ease TO exceed ivy IN any state or Territory
III INC Secretary of the Treasury appoint the inferior Of
fce of the board, also tho officers agcncics,
recommendation of the board and 10 them for physical
lnaoy, ineompeenoy, neglect violation OF duty on ko
~ The Exchequc and its officers to he the general agents Of
the Government for receiving, Keeping and Disturbing the
ed paid into the Eachcquc and it. agencies
" The Exchequer and agencies to receive on depoc gold
or silver coin, bullion and to issue specie Tor the some
TO he redeemed at tho agency where issued said notes be
urer and councrsgned by the President Of the Board of Ex
choue nnd made payable tho order Of the principal AGENT
and endorsed by him when issued at such agency.
W. The Exchequer and agencies the depose Of gold
silver coin bull draw and accept bills Of exchange, and
collect drafts bills but mako advance payment iii
sed Of the collection and to charge reasonable commission
VII All specie notes issued either in payment Of the public
actual amount of specie on hand for their redempon dollar for
VIII Dues the United stntcs to be paid gold or silver
COIN specie notes. in the Of banks Immediately
vortbc into pce the place where The
and agencies TO settle weekly ohenc the balance with tho
banks.
* The Exchcquor agencies keep separate
nct sets books enter ind record in set all transactions
respecting the collection, keeping and discussing Of the public
revenue and transmitting the public moneys from place to place.
for the service of tho Governments and in another oil uansa
,ons and accounts arising from the operations exchange and
other transactions Government account.
X Inc EseheqnG may appoint as agent any 'Poeepayng
ties or to accept or sell bills or drafts on account OF the La
loans and pension agents. generally TO render a facilities in
transferring and dsburns tho public funds Ft and exact nc
of the board and agencies he furnished to the SocIo
~ OF the Treasury and he to report to Congress- Necessary
The details of the above plan fully carried cut in the bill
which accompanies this report.
The committee them propose system free from all risk and
of perfect SAFETY system in which 'hot not the
IN the kepng oil the public money This IS risk which must
arabic from which be proposed adopted FIT
be h ss e BY that Oh s PSs Gae yo%
depose system, the committee have already shosn that
those modes OF keeping II are utterly out Of the question: hy
therefore adopt at the principal agences the only ono e name
~ the custody of individuals appointed for tho purpose
BY the Government with ample suetios and under such pen
attic! T as the law Is capable OF Provldng; c t and
disbursement of the public and through its operations
furnish uniform currency and to equaize exchanges
ns uniform cueny and they have doubt that the specie
notes which would be pu, in circulation ny i would N amount
The average circulation of that institution during the existence
specie on hand short of s6OOOOO In year. specie
equaed Others exceeded circulation And but for its
plnsons commencing in 1929 and continued to the expiration
Of its charter, average circulation would have much
coode its average specie hand 1t cannot be doubted then
that of of United States. And the Bank of the
viii be capable Of doing the same and that too without any
risk the community uzord the credit Of the iovernmen
This when accomplished, will do much towards equl1in9
exchanges The Of exchange between remote
ons of the country result essentially from the depreciation
If paper circulation of New York and New Orleans
both of the value of specie and the balance trade
two places, by of the Interchange Of commodities
were merely nominal, exchange between those distant points
of New York then bin drawn at New Orleans New
York would command premium equal to freight insurance. IN
teet and other necessary charges for RENTING specie But
whilst the paper circulation of New York. by of its con
yeIb of the value of Specie and that Of New Orleans
deprecated because of the suspension of It's banks, bill drawn
at the latter place the orme aud paid for in deprecated pa
per- would command premium equal the cost and chage
omtns specie added to the aaount of the depreciation OF th
local below tho value of specie The would be
Orleans No regular business without great
ce sustain itself under such of exchange
of the Exchequer will do much towards curing this great evil
But there is another feature in this ystem by which the eN
sell and collect exchange The committee have heretofore I'D
verified to this and this whole subject have consulted som
of the nblcs most PRACTICAL experienced and the
views fully confirmed by the information derived from
such high They cannot way, well illustrate
this branch of it, and its beneficial effects the sound oca
banks together with other advantages by briefly mbodyn
the following views which have thus been communicated
bill drawn by one agency on another in any remote part
ca sphere of the emporium where the agency socHed Wc
payment is to be made, and generally be negocrd abo
par by holder within that sphere and 1t rate IN some meas
proportioned his distance from commercial Il
for instance merchant in Cincinnati wishes remit
Cincinnati where the deposto made the agency New
York, would be worth half cent than specie to tn
Exchanges through the agencies will all tho eXgcnce
of the markets 1t unfoquenty happens that New Oean
indebted Ohio for agricultural products Ohio New YOr
for manufactured goods domestic imported and New York;
Orleans Every well informed merchant in thOs
several SECTIONS will advised OF lie s.,c o. Ae
New Orleans merchant wishes remit 10 Ohio lie doposte
his specie in the agency New Orleans and the
fee accept his bill of exchange for 81 go payable to tn
order Of his Ohio correspondent and transmits accordingly
This will be above the Ohio market because
remittance for New York where bills New Orleans ommnn
premium. II is bought by Ohio merchant. who RENTS it
New York in payment for goods and from New York is
New Orleans pay for coton Upon its arrival it present
I'D
redemption. The holder however, willing he bu
dened with the specie, will generally prefer the specie
the agency. Thus this 81 900 in Specie after paying
premium the agency, will have paid than
remote markets safe and convenient currency
81 900 channels of commerce. and still sustain
ing this amount Of circulation.
The OF bills exchange will be superseded by III
specie of tho Exchequer The former have twals bee
preferred, and extensively used under the Naton
BANKS their paper, sound credit had every
which this will possess of being made such substitute Th
proof from experience conclusive. One ground preference
which has appreciated here and in Europe thu
bills Of exchange safe than bank notes. they offer