The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-18
CURRENCY REPORT.

The Select Soihmittcet W Whom was io"''N-
much of the Message of the President as relates 10
The plan Of finance therein recommended TO Cong'ee''
as also the letter from the Secretary Of the treasury
accompanied by draft of bill for the es'ao'sh''"
of Board Of Exchequer at the seat OF "o'u'"-
mem, report, in part -
The Committee have bestowed on the SUBJECTS com |
mitted 10 them all the delberaion ana ANXIOUS con
;d,a,ion which the importance OF those subjects de-
mands. Il
II hec,me their duty to inquire to the wisest and
has, meboJ of keeping the public moneys Of the Uni
ted States the material in which the same should I've
collected and disbursed and the power and obliga-
tion of the Federal Governmentn regard to the cur
rency and exchanges of the Union.
They entered upon the discharge of this duty at
period when, in consequence of the magnitude and
pressure OF The public debts of many of the States OF
the Union the condition OF their banking institu-
tons and other causes the currency and Exchanges
of large par, of the United States were involved IN
calamitous disorder; at PERIOD when the pecuniary
disasters of the countryside extreme differences 50
long existing among eminent statesmen as 10 the ma
tuIe and of those disasters and the proper re-
medy for them-and the uncertainty and lnstaoiii'y
of the financial policy Of the Federal Government
had conspred TO render sort of anarchy OF opinion
characteristic of the times.
Under these circumstances, the Committee felt them
selves called on by the highest claims OF PATRIOTISM
and of honor to endeavor TO look steadily and calmly at
the facts surrounding them,-to emancipate their
minds far possible from the dominion OF all pre-
conceived opinions Ito bring to the solution of the
great questions before them the benefit at least OF un
committed judgments and unshacked freedom of de-
cision,-to inquire, not merely what might be best IN
the past present view of each, but also what was
the best of things now practicable; and having thus,
without fear favor, fully discharged their own duty
TO their country and themselves to submit unhesta-
tingy the result Of their deliberations to the candor
and wisdom of the House.
They were the more strongly impeled to the adop-
ton Of these principles OF action, in consideration,
that the duty they TO perform one imposed
on them by the command of the House, not sought
nor desi ed by themselves and that, under subsisng
political relations for the Of any measure they
might PROPOSE they must, Of necessity, rely on Its
intrinsic proprety and the impartial sense Of the Lee
gslature.
The Constitution of the United States empowers
Congress " to lay and collect taxes, duties and inn
posts and excuses, to pay the debts and provide for
the common defence and general welfare OF the Uni
ted States" And it recognises the existence of the
Treasury of the United States But it does not pre-
scribe the organization Of that Treasury, nor set
forth the mode in which its personnel shall be const
ted or its business transacted otherwise than as it
provides that the President with the advice and con-
of the Senate shall appoint the principal officers
of the United States. But the Constitution further
provides that Congress shall have power to make all
laws " necessary and proper for carrying into exc
cuton" all other powers vested by il in the Federal
Government. And under these constitutional proyi-
sions is the Treasury of the United States to be Or
ganized by legislation, and its concerns conducted .
the President being empowered and enjoined to ''take
that the laws be faithfully executed
Besides this, Congress has power " to regulate
commerce with foreign nations and among the seve-
raj States y powerto 'con money regulate the value
thereof and Of foreign coin, and to fix the standard
of weights and measures, and power "o borrow mo-
ney the credit of the United States.p
And, on the other hand, while comforting these
powers on the Federal Government the States have
expressly forbidden to themselves and to each other
to emit bills Of credit to make any thing but gold
and silver coin a tender in payment Of debts to
pass any law mpairing the obligation of contracts.
BY the act to establish the Treasury Department,
passed on the second day of September, 1882 it was
provided that shall be the duty of the Treasurer to
receive and keep the moneys of the United States,
and to disburse the same upon warrants drawn by
the Secretary of the Treasury; but the plan and
mode of SO keeping the moneys of the United States
were rot specifically prescribed unlimited scope of
choice being left to the Treasurer in this respect,
subject always to the authority of the President, to
to the due execution of the laws and in his exc
cutive capacity to guard the interests of the Govern
ment,
Under these provisions of law the fiscal opera
tons Of the Federal Government, now constituted,
commenced and so proceeded until the 25tl OF Feb
aruary, 1871, when the Bank of the United States
was Incorporated for period of twenty years
Prior to which, there existed in the United States
three Incorporated banks, namely-that OF North
America in PHILADELPHIA that of New York in the
City of New York and that of Massachusetts, in
Boston; all of them established before the adoption
of the Constitution. Each of these banks was State
corporation; for, though the Bank of North Ameri-
ca origin lily established by Congress in 1871, yet
it had since accepted and now acted under char
ter from Pennsylvania.
These banks it was thought were unfit or ncom-
petent to perform the fiscal business of the Govern
nent; besides which, they could not absorb any
amount of the public debt, be relied on for adj
Sances of money to the United States,
The incorporation of the Bank Of the United
States originated in order of Congress calling on
the Secretary of the Treasury to prepare and report
a proper plan for establishing the public credit in
obedience to which, the Secretary presented two re-
ports in one of them, recommending that the public
debt be funded and additional taxes raised to pay the
interest on it and, in the other, recommending the
incorporation of National Bank as being of prima-
ry importance to the prosperous administration OF the
finances, and Of " the greatest utility in the operations
connected with the support of public credit Or set
forth in the preamble of the act, as tending to give
facility TO the obtaining of loans for the of the
Governments to which, in the same preamble was
added the further of advantages to trade and
industry"
This bank answered Immediately three purposes of
the Government, namely !. OF its capital of ten
million dollars three-fourths composed of fund
ed debt g Ii was made the fiscal agent of the Uni
ted States; and 3 Its notes were legazed curren-
cy being receivable in all payments at the Treasury.
And the system of the Government was completed
by the act Of the second of April 1892 establishing
Regulating thc Cou VI TIC puitcu cldtSs,
upon the basis of the dollar-unit previously pre-
scrbed by the Continental Congress-
The incorporation of this bank was resisted in the
outset ON considerations Of expedcncy and of const-
tutionalty; which considerations led to the refusal Of
Congress to renew its charter On the expiration of
its charter it does not appear to have been deemed
necessary expedent to egislate further, either as
the means Of collecting the mode of keeping the
public moneys; but this left to stand on the
thorty vested in the Treasury by the act of 1885, to
receive and keep the moneys of the United States.
Meanwhile, the number of banks, incorporated by
the several States had been increased previous to- or