The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-03-03
REVIEW OF THE EXCHEQUER
SCHEME


chequer have been ably argued in the reports of
| the committees in Congress, still we are in
clined to think more extended analysis will
be productive of some good, in diffusng among
the people proper notions as regards the prlnci-
| pies upon which this institution rests, and the
benefits likely to result to the community from
| its establishment.
| Before the original plan, as presented by the
| Secretary of the Treasury, was referred to the
committees in Congress. debate took place
calculated to produce false impressions in regard
| to its operations and general tendencies. The
speeches made on this occasion were circulated
throughout the country, spreading alarm and
discomfort; the leaders of the Opposition were
everywhere active to seize the passions of the
people, and pre-occupy their minds against the
institution.
! We ask, does any man seriously believe, that
in such short time an institution Of this nature
| could have been tolerably understood by the
! great part of those who were induced to a con-
domination of it? Can this proceeding be con-
sidered as any thing more than violent ebulll-
ton partisan feeling, excited by the wantonness
of party spirit, which had evidently seized a
| favorable moment to furorize the public opinion
this spirit of precipitation and the intemperance
which accompanied it, prevented greater part
| of the most considerate citizens from under
standing its provisions.
| 1t cannot be doubted that the real motive to
the opposition was the fear of a discussion OF
| its merits by committee; the desire OF exclud-
| ing light the adherence to plan of surprise
and deception. Nor need we desire any better
proof of the spirit of party, which has stimu-
lated the opposition to this institution, than is to
be found in the circumstances of that opposi-
| ton.
| 1t is impossible to prevent the sad results
which misguided zeal may lead to, when it
has broken loose from the restraints of principle
when majority in Congress are swept along
| by the combination of few highly gifted and
ambitious spirits welding immense moral
and political influence. The machinery which
| touches and agitates the passions, if not in the
velocity Of its career, by the contributing forces
of knowledge and virtue, will PROSTATE the fair
est monument of the industry of men, and
| heave from their foundations the best contrved
| fabrics of human policy.
| We contend, IN In,i,ae, that the principle of
adopting an exclusive metallic currency, is in
compatible with the gen eral freedom of Republi-
can Governments This rule has the sanction
of no common observance by civilized nations,
and cannot bear that faithful test which every
fair and righteous principle of an enlightened
policy will abide. Against the soundness Of the
principle itself it is also to be observed, that its
advocates, instead of tracing it to an age of re-
finement and general intelligence, carry us back
to the days of barbarsm as the era of its origin;
and instead of stamping it with validity, by the
concurrence of the civilized world, indicate its
character by labored detail Of its relaxations
under the phases which foreign governments have
| assumed, whilst endeavorlng to establish It,
| But we are the more alarmed by this attempted
departure from plain and settled rule of poti-
cal economy, of using paper currency, CONVEX
tibe into gold and silver, in favor of an involved
and repudiated doctrine, so eminently suited to
| the accomplishment of the worst purposes of
individual and national mischief, because the
| injurious operations and vexatious qualities OF
an exclusive metallic currency must have been
known to those who had advocated the esab
| lishment of such system.
If the Exchequer should be organized and put
into operation, and prohibited from receiving
the notes of specie paying banks, either in pay
ment of public dues or on depositc, the very ca
lamity of non-resumption which now af1cts
society, and its continuation, so much to be de-
precated will be augmented in its severity, and
lead to further disasters and embarrassments in
all of the departments of industry, in conse-
quence of the discredit thrown upon the paper
of the banks, by it's rejection by the Govern
ment.
But suppose the Exchequer is allowed to re-
ceive the notes of banks convertible at will into
the precious metals, what will be the conse-
quences of such feature engrafted upon the
system? Why, to a certain extent, such notes
will be elevated to condition of high credit,
owing to their general receivability into the ma
tional treasury. Their receivableness, however,
will depend altogether on their convertibillty
into coin. But no man can deny that this coun-
tenance and support given to the banks by the
Exchequer, will have a powerful tendency to
raise the credit of State institutions, TO beget
confidence, and prevent the wihdrawment of
large amount OF circulation, and at the same time
check the constant draining the banks of their
: specie.