The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1842-01-06
From the New York Herald.
THE FISCAL AGENT.

The report OF the Secretary OF the Treasury
on the Fiscal Agent we published exclusively,
and our readers are probably familiar with its
details. The projecl has long been looked for
ward 10, by a numerous claSs, as a measure OF
relief, but its appearance has produced gen.
eral feeling of disappointment. The bill en-
braces three objects, expressed as follows:
lst. The safe keeping Of the public moneys.
ID. The furnishing, as we'll for safe and
convenient payments to the Treasury, as for
the use of the country, paper circulation al
ways equivalent to gold and silver, and OF uni
versa credit.
81. A provision for supplying, to some ex-
tent, the means OF cheap and safe exchange
in the commerce between the several States.
The first is comparatively unimPor'ani. The
second is a borrowing project, dangerous IN
lis tendency, as we'll as q very weak Govern"
ment measure of finance. Tue nature Of such
an Is.ue of paper on the credit OF the govern
ment is precisely similar 10 the first issues Of
continental currency in the old war, and for
the same motive, vZ:-tO borrow money tor
the use of The Gyoernmsnt, and like those and
all other government paper money that ever
was issued, must neviiaby end in depreca-
ton and dishonor. It's effect on the currency
of The country must be diametrically opposed
to that intended. This may be illustrated by
looking back a! the events Of the past three
orfour months. During that period to 1000,
600 in silver have left the ports of New York
and Boston for Europe The Baakssin this
city nobly su tanned the drain. AT one time II,
however, nearly reached crisis, and the
banks we're forced violently to cuhall their
L:.L, lid Drnhahlu IN m pY-
tent of2, 900, 900 dolls. within period embra~
cling ten days. AT that critical juncture ths
Merchants Banks stepped forward, and offer
ed sterling bills at such rates es checked The
shipmens of coin until the increasing supply
of Southern bills removed the temporary a.
larm.
These facts are within the knowledge of ev,
cry practical man. Let US now suppose that
the present proposed project had been adopted
at the extra session; and $4,000, 900 OF gov
ernment paper been paid out for debts, and in
the purchase of bills. Those notes would in
the course of trade, and through the opera
uon Of the suspension at The South, have all
centered in New York. Powerfully Initiating
the currency at this leading point, and have
given greater impetus to the specie drain. 10
what condition was the government Treasury
here to sustain a specie drain, even for 1000
600, when it was offering it's credit at per
cent, for sums as low as 5O0 dollars, without
success2 A government suspension would
have been inevitable The banks drained of
their last doIlor, must have gone down with
their vaults stuffed with deprecated governs
ment paper, and the last remnant Of the mer-
camille credit would have been extinguished in
the United States; and such must inevitably
be the result al future time, if such an issue
| is persisted in. We do not object to the mere
| issue of Government notes as substitute for
specie, but we oppose the emission o. paper
money, based solely on the credit of the Gov
ernment,Ia depending upon aGvenliIlous cir
cumstances for its conVertibllIly.
The provision authorizing the discount of
bills of exchange is too monstrous TO be en-
tertained for moment. 1t is neither more nor
less than proposition to exchange the credits
of the governments for those of speculators.
1t throws open the door 10 kitiDg without any
check, and and without the possibility Of de-
lection. Practical bankers who every day
mix personally with their customers, know
how difficult i. is 10 judge of the nature of a
transaction, on which paper offered them fol
discount is predicated; how much moro inn
possible then is it TO detect kiting, done
through the post office. If The proposed sys-
tenn were TO 60 into operation, hundreds oI
merchants in this city could operate in the
most desperate speculations, solely on the cre'
dit of the General Government.
The feature in regard to the issue of certi'
fcates on the actual deposite Of gold and silver
Is not so Objectionable, and with some modi.
fcaon could be very usefully incorporated
with the fiscal agent
The probability is, that The project will 40
pass Congress as it now is; but there is ne
doubt but that some plan will be Immediately
adopted, that will 60 speedily into operation
and, as far as practicable, meet the wants o
the mercantile community,
The BETTER T'M5s The Wings when they
came into power promised US better times, bu
every act Cf ;neir administration has tended Ia