Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1842-12-09

safely keep, and disburse the public moneys; !
and in order to furnish sound paper medi-
nm of exchange, the Exchequer should re-
tain of the revenue of the Government a
sum not to exceed IS 900, 600 in specie, to
be set apart as required by its operations,
and TO pay the public creditor at his own
option, either in specie or Treasury notes,
of denominations not less than five, nor eX-
ceeding one hundred dollars, which notes
should be redeemed at the several places OF
issue, and to be receivable at all times and
every where in payment OF Government dues
with restraint upon such issue OF bIilS
that the same should not exceed the mdrtmHW
of one hundred and fifty thousand dollars
In order to guard against all the hazards inci-
dent TO fluctuations in trade the Secretary
of the Treasury was invested with authority
10 issue 50 000,0 900 of Government stock,
should the same at any time be regarded as
necessary, in order to place beyond hazard
the prompt redemption of the bills which
might be thrown into circulation. Thus in
fact making the issue of 1900, 00O OF I'm
chequer bills, rest substantially on 9l0,0O0,-
900; and keeping i'll circulation never more
than one and one half dollars for every dot
lar in specie. When to this it is added that
the bills are not only every where receivable
in Government dues, but that the Govern
ment itself would be bound for their ultl-
mate redemption, no rational doubt can eX-
jst that the paper which the EXchequer would
furnish, would readily enter into general cir
culaton, and would be maintained at all
times at or above par with gold or silver ;
thereby realizing the great want of the age,
and fulfilling the wishes of the People.
In order to reimburse the Government the
expenses of the plan, it was proposed to IN
vest the Exchequer with the limited authori-
" to deal in bills Of exchange, unless pro-
hlbited by the State in which an agency might
be situated, having only thirty days 10 run,
and resting on fair and bona fdc basis
The Legislative will on this point might be
so plainly announced as to avoid all pretext
for partially or favoriteism. 1t was further
more proposed to invest this Treasury agent
with authority to receive on deposit to a linn
tied amount, the specie funds of individuals
and to grant certificates therefor, to be re-
deemed on presentation, under the idea,
which is believed to be well founded, that
such certificates would come in aid of Ex-
chequer bills in supplying safe and ample
4 paper circulation. Or, if in place olthe con-
templated dealings in exchange, the Exche
4 Quer should be authorized not only to ex.
change its bills for actual deposits of spe.
Gle, but for specie or its equivalent to sell
drafts, charging therefor small but reason
able premium, cannot doubt but that the
benefits of the law would be speedily mani
tested in the revival of the credit, trade and
business Of the whole country. Entertaining
this opinion it becomes my duty to urge it:
adoption upon Congress, by reference to The
strongest considerations Of the public int
rests, with such alterations in its details al
n Congress may in its wisdom see fit to make
am well aware that this proposed altera
ton and amendment of the laws establishing
q the Treasury Department, has encountered
various objections, and among others it ha
been proclaimed a Government Bank, o
fearful and dangerous import 1t is propos
ed to confer upon it no extraordinary powers
1t purports to do no more than pay the debt
Of the Government with the redeemable pa
per of the Government-in which respect
accomplshes precisely what the Treasur
does daily at this time, in issuing to the put
lie creditors the Treasury notes which, vi
der law, it is authorized to issue 1t has II
resemblance to an ordinary Bank, as it ful
nishes no profits to private stockholders, an
a lends no capital to individuals If it be OF
iecied to as Government Bank. and the oil
Nj lection be available-then should all the law
4 in relation to the Treasury be repealed, an
W the capacity of the Government to coec
what is due to it, or pay what it owes, b
abrogated
This is the chief purpose Of the propose
EXchequer; and surely if, in the accomplish
ment of a purpose SO essential, it affords
n sound circulating medium to the countr,
and facilities to trade, il should be regarde
as no slight recommendation of it to publ
w consideration. Properly guarded by the pr'
visions of law, it can run into no dangerot
evil, nor can any abuse rise under it but sue
as the Legislature itself will be answerab
for, if it be tolerated; since it is but ii
creature of the law, and is susceptible at a
times of modification, amendment or repea
at the pleasure of Congress. know that
has been objected that the system would
liable to be abused by the Legislature, |
whom alone it could be abused, in the par
Il conflicts of the day. That such abuse won
manifest itself in change of the law whlc
would authorize an excessive Issue OF pap
Tor the purpose of initiating prices and WI
Il ming popular favor. To this it may be a
II swered, that the ascrption Of such a moth
to Congress is altogether gratuitous and i
L admissible. The theory of our institution
X would lead us to a different conclusion, B
Il perfect security against proceeding
L reckless, would be found to exist in the We
/ nature of things. The political party whic
\ should be so blind to the true interests of Il
L country. as To resort to such an cXnedleI