The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-03-01
REVIEW OF MIR. TALLMADGE'S REPORT
ON THE EXCHEQUER BOARD.

YIN lf1E bOARD.
The objects proposed to be obtained by this nst-
tuition the most interesting, comprehensive and
important, which could be obtained by any fiscal
agent and this accomplishment is absolutely neces-
sary for the regulation and stability of the currency
OF the country and for the maintenance of the inte-
| rests and honor of the nation
Turning attention to the situation of the ma
tion at the present time, with reference to the prn-
cples laid down in our former review, it is OBJ
vlous that the sources Of prosperity which flow
ed in one unbroken stream, have ceased to exist
Hence, also, find our much contracted,
industry paralyzed and confidence destroyed; great
and numerous failures have been the consequence !;
securities hitherto negotiable, longer find dis
count; many of the dscounters themselves ruin
ed; general suspicion has been awakened, and the
whole of the monetary system is superstructure,
built upon the basis of an irredeemable paper
rency.
And as this is the most unfavorabe state in which
nation find itself placed, it is the duty of the
statesman, in whose hands is confded its direction to
inquire into the which have created these
favorable circumstances. If he finds them to be
merely transient efcacious remedies, to alleviate
present distress, to enable the community to
tain the shock of passing events should be sought for
and applied; but, if found to originate in causes
which cannot be confidently anticipated to disappear
of themselves, it is also his duty to devise
system of policy adapted to the situation of the
nation.
If there be any truth in political economy
more sacred and irreragible than another it is that
the prosperity of nations bears exact proportion
to the encouragement Of its domestic and foreign
commerce, and that their decay and decrepitude
commence and proceed with their neglect of it. The
wonderful resources of England far beyond her
intrinsic advantages and the PROSTATE state of Spain
and Portugal, place these great truths most i'm
pregnable grounds
| In wide-extended country like the United States
where inland navigation is carried on to such Won
derful extent and possessing such great dverstes of
interests as well dissmilar institutions there
proposition undeniable than that the currency
of such country should be uniform, and placed upon
the most stable foundation.
National wealth does not consist in land, people,
the precious metals, but in the possession Of pro-
ducts values created by labor If the producer be
unable to convert his products into money owing to
the deranged condition of the currency most assured
ly such state of things must be productive of ndi
yidual and national distress
The primary and efficient cause of the present
embarrassments of the United States is to be found
in want Of uniformity in currency, which re-
suits from there being no legal or constitutional re-
strants on its issues This is consequence of our
complex form of Government In twenty-six States,
each of them assuming and exercising the sovereign
attributes of authorizing the manufacture Of money,
to unlimited extent, without the smallest check or
CONTROL other effects could possibly have been pre-
dicted than those which have actually occurred
The question very properly recurs, will the Exchc-
quer operate as a check upon the local banks +? We
think it will. According to the provisions of the
BILL the paper of the State banks is to be received
deposite If they issue large amount of paper it
will rapidly return them for redemption. This
constant demand on them, by the Exchequer for the
redemption of their paper in specie, will necsae
sarily tend to check them in running to any ex-
cess. If, then, they wish to maintain their
credit among the mercantile part of the community,
and preserve sound circulating medium, they would
be constrained to keep their circulation within
ageabe bounds to be able redeem it whenever it is
required in specie 1t is thus that the State Banks
would keep their notes equal to gold and silver. But
when twenty-sx sovereign States undertake to furnish
|
and unregulated in the management of their banking
institutions operated upon by different views of poll
cy, and controlled in their action by general super
intending power, is it matter of asonishment to be-
hold the country inundated with of irredeema-
BILE paper, varously deprecated 2
Ifa traveller from distant country, altogether
unacquanted with our banks and paper credit, had
put the question: what the Legislatures of many of
the States about, when they so busly
ployed for long time in the consideration of plans
of finance, and been told that they were creating
money, he would doubtless have imagined that they
were engaged in the business of coinage. The
vcnona value of gold and silver had been distracted
from the precious metals and transferred to paper,
stamped with a promise to pay so that money has
come TO be operation of the mind, act of faith,
not substantial or material, but metaphysical sort
of thing, and SO easily multiplied that bank notes
almost exceeded calculation.
If then, the Exchequer will exercise restraining
influence the State Banks and thus prevent
dundant issues, by demanding weekly settlements of
any balances that may exist in SPECIE ask, if be
not desirable that institution capable of working
such important results should be established and
dowed with every necessary attribute to enable it to
perform all the objects, which its friends have
guinely contemplated In fine, the Exchequer will
provide for that unity of action and equality of value
hat is Indispensable and obviae those fluctuations
in trade that destructive of the public interests
1t is alleged that the provision in the bill allowing the
Exchequer to receive the notes of specie paying banks
on depose, is hostile to pure and sound currency
This position is clearly untenable We contend that 1t
will be productive of consequences of most extensive
and salutary character. The. requirement that all