The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-06
THE EDITOR OF THE ENQUIRER AND
THE FISCAL PLAN.

4
| The venerable editor has at last aroused him
self from his lethargy and springs to the side Of
his old friends Col. Benton, Mr. Buchanan ana
Mr.. Calhoun, and OF his nep associates, Messrs'
Mangum, Huntington, Barrow, &C., &c. IN
condemnlng the plan of Finance proposed oy
the President. Like those learned Senators,
he disposes Of the whole subject at hop, skip
and Jump. He discovers, first, the broad prln-
ciple that the Federal Government has no au-
thority TO tissue bills Of credt-and passngby the
definition Of bill of credit, he most earnedly con
cludes . that all will agree that a Government
paper, as circulating medium for the people,
will come under that designation" we
| would ask the editor when he came 10 this sage
conclusion Did he learn il from Mr. Madison I
or at later day from Gen. Jackson? lfhe viii
turn TO the seventh annual message OF Mr..
Madison TO Congress, he will find this language
at is essential to every modification oil the
finances, that the benefits of uniform national
currency should be restored to the community.
II the operation of the State banks cannot pro-
duce this result, the probable operation OF "a
tional Bank will merit consideration and II
neither of these expedents be deemed eilectual,
il may BE necessary TO ascertain The terms mp
on fohich the notes ofLhe Government Ono long
en- required as an Instrument Of crediD shat
be issued on motires Of general policy as a
common medium Of circulation"
Gen. Jackson, in his message Of 1880, is still
more explicit. He there shadows forth plan
similar TO the Prosident's-andy yet Mr.. Richie
who, but short time ago, was shouting hozannas
to the names of Madison and Jackson, finds now,
after taking quiet nap during the holydays,
that both Mr.. Madison, who assisted in framing
the Constitution, and General Jackson, not TO
quote Mr.. Woodbury. or Mr.. Calhoun for opin
ions uttered as Gospel truth as it were but yes
terday, were both egregiousy wrong, and aimed
at violation of the Constitution.
But we do not stop here. We go back to
the great apostle of republicanism, Mr. Jeffer
son, in order to meet these straightlaced repub-
Leans of these modern times. In letter to
John w. Eppes, dated Gath June, 1911, he holds
the following language:
"a nation, therefore, making its purchases and
payments with bills fitted for circulation, thrusts
equal sum of coin out ofcrculaton. This Is equiva-
lent borrowing that sum, and yet the vender receiv
ing payments in a medium as efectual as coin for
his purchases payments, has no claim t. interest
And the nation may continue to issue its bills as
far wants require, and the limits Of the circula
ton will admit. Those limits understood to ex-
tend with u.s. at present to two hundred millions of
dollars, greater sum than would be necessary for
any war. But this, the only resource which the Co
| vern ment could command with certainty the States
have unfortunately fooled away nay corruptly alien
ated to swinders and shaver, under the of
private banks. Say, to, as an additional evil that
! the disposabe funds of individuals, to this great
amount, have thus been withdrawn from improve
lnent and useful enterprise, and employed in the
useless usurous, and demoralising practices of bank
directors and their accompices In the war of 1850,
State avaied itself of this fund by ISSUING paper
money bottomed a specific tax for It's redemption,
and insure its credit bearing an interest Of five per
cent. Within very short time, not bill of his
emission to he found IN circulation. II was lock-
ed up in the chests Of executors guardians, widows,
farmers &c. We then issued Bills bottomed on a
redeeming tax, but bearing no interest These were
readily received, and never deprecated single fath
| ing In the Revolutionary war, the old Congress
and the States issued bills without interest and with
out tax They occupied the channels Of circulation
very freely till those channels were overlooked by
an excess beyond all the calls of circulation But al
though have improvidently suffered the field Of
circulating medium be lched from by private in
dividuals yet think We may recover in part, and
even in The whole, if the States will cooperate with
/
ted for their redemption in fifteen years and Cto in
sure preference IN the first moments of coletltioD)
bearing interest OF SIX per cent there Is no one
who would not take them in preference to the bank
paper now a1oat, on principle OF patriotism as well
as interest and they would be Withdrawn from cir
culation into private boards TO considerable amount.
Their credit established others might be egit.
ted bottomed also tax but not hearing interest
and il ever their credit aul,ered open public loans,
on wi ch these bills alone should be received spe-
,ir Theer AS n II a.
duce the quantity in circulation as to maintain
that in equilibrium with specie. 1t is not easy to
estimate the obstacles which, in the beginning
we should encounter in oustng the banks from
their Possession the circulation but steady and
judcous altern of emissions and loans, would
duce them in time. But while this is going on
another measure should be pressed to recover ui-
mately our right to the circulation. The States
should be applied to, TO transfer the right Of
circulating paper to Congress exclusively, in perpe
tuum if possible but during the at least with
saving Of charter rights believe hat every State
west and south of Connecticut river except Della
ware would Immediately do 1t and the others would
follow in time. Congress would OF course, begin by
oblsing unchartered banks 10 wind up their affairs
within a short time and the others their charters
expired forbiddng the subsequent circulation of lhe
psper. This they would supply with their own, bot
toned, every emission, an adequate tax, and bear
ing or not bearing interest, the stale of the public
pulse should indicate. Even in the non comply
States these bills would make their way, and sup
plant the unfunded paper of their banks by their
dity by the unveIsality of their currency, and by
their ability for customs and taxes 1t would b,
in their power, too, to curta those banks to the
amount Of their actual specie, by gathering up Their
paper and running it constantly on them. The ma
tona paper might thus take place in the non
complying States In this way, am not without q
hope that this great the sole for loans in
agricultural country, might yet be recovered for tn,
use of the nation during and, if obtained in
perpetuum, il would always be sufficient to carry
through any war provided, that in the interval be
tween and war, all the outstanding paper should
be called in coin be permittedto flow in again ant
TO hold the field of circulation until another wal
should require it's yielding place again to the naona
medium
Now, can any man fail to understand all this
Can Mr.. Richie hope by ascrbng this inancia