Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-03-10

nns,es and in payment Of Government creditors nat
issued on dcpositcs at charge OF per cert, ana IL
,nea n Sl.l GEO 600 Tie amonnt issued III payment
:be Government, creditors 10 be limited 10 the amount
If soecie on hand fcr It's redemption.
The plan Of Mr. Gushing, g! the House Committee
authorizes the OF U00a000 only, without charge
u dcposilors, and 10 The public creditors 10 amount
not xceedng ihe specie on hand to redeem ii.
| These nrc tie !hree plans 10! issuing Government
paper for The oiec, ofobtanlnr uniform national cut
rencv. The plan Of the Secretary utterly out OF ihe
question No distinction be made between HE
specie received drposle, and that which Is to repre-
the Government paper aioat; consequently, rs say
900 zoo ofspece received on deposile, 1t would
become the bass of 10000 eco of certificates issued
dollar Tor dollar and also ci S3O,00O,OuO OF lreasn
re- notes making Of $4,000, 900, three-lourhs
of which is purely credit currency, capable OIL
no good but Of inhicng an inin'tude OF evil upon
the community II would indeed supply the press
inc wants of the Treasury for Il moment, but
speedlly cause a total explosion. The two descr'p
tons of paper could not circulate together Inc
ceri; icates would always be at premium above the
notes for obvious reasons. II The plan could he got
into operaton event scarcely possible Tor two rea
sons first, because depostors Will not pay premium
| to place their money with the Government And Sc
condIv they wonld not do it, knowing that 1t would
become the basis of the other notes issued, and liable
to be paid out in their redemption IN moment OF pres
sure leaving the certificates uncovered The deposlle
part of Mr.. 1almadges bill is similar to that OF the
|
seems however to exist, but not very clearly between
the deposite specie and the Government specie, form
ing basis OF the issues to the pubc creditor, ana
to which these issues confined dollar for dollar
thus cutting off the credit issues Of the Secretary $
plan Mr. Cushings plan is still better, because no
CHARGE is made for the deposites and therefore, no
bar raised TO the reception OF deposiles, with the tx
cep,on that they confined TO an aggregate OF STU
uOO O00 a restriction common TO all three plans, ana
for which we can see but the jealousy OF the
/ ia h. xnu
like Mr. Tallmadges bill, confined TO the amount oil
specie on hand The features OF the three bills may be
summed up follows
Secretarg's Plan Deposites, ST. 900 900, al prem
Treasury notes, SIS Tor I'll specie on manu. SaPaoIe
of emitting, S75,000,000
Taiimadge' s. Deposites, Sl5, 100000, n prem.
Treasury notes. dollar for dollar. Capable OF emit
ting, S20,0000oO. o.
shing's.-Dsposites, Sl0,OOo,oOo at par. Trea-
surv notes dollar for dollar. Capable of emitting, Sl5,-
100000
The CAPACITY to issue is calculated on the suppos.
ton that each 600 OF The pubic revenue
will he retained in the Treasury to represent the notes
| issued to the Government creditors
| THIS we think represents pretty clearly the pro-
visions of the three bills relation 10 the issues OF cur
rency The plan of Mr. Gushing is The only prac-
cable this respect as is the only one that o.
fers any nducement deposofs 10 place their funds
with the Government officers, and without whlch, the
whole fabric falls to the ground.
The next feature of the bill is that relating TO bills OF
exchange In this respect the provisions, common TO
all the bills are that the board and agencies may draw
and redraw upon each other and accept drafts. The
charge for drawing and accepting not 10 exceed two
per cent The Secretary plan aulhorses the purchase
of bills unlimited in amount, but restricted IN regard
to distance time and locality, which restrictions are
preposcrous as to any practical purpose AIR. la'
madye plan excludes purchase altogether Mr. Cush-
inr plan permits purchase restricted To the actual ne
cesses of the Treasury for the TRANSMISSION Of lis
funds The purchase Of bills IS really the oanng OF
the Government funds upon Individual promises W nat
necessity there can possibly exist under any cTcum
stances, cannot see II the Government WISHES 10
dsburse at any point where il has funds the sale o
lis bills at that point, New York where twoihds
Of it's funds cole cted is better for all parties The
Government may wish to transmit SlOooU,'oO per an
mum in this manner and by buying instead OF selling
bills, would the risk of loanng lis funds on kites
To the same The features oilhc three bills may
! be summed up follows
Secretary plan: draw accept and unlimited purchase
at per cent.
Tallmadge's plan: draw, accept and collect at per CT
Cushing plan: draw, accept and limited purchase al
> per cent
I In THIS respect Mr.. Tallmadge plan is undoubtedly
the best;
All three bills strictly preclude the opening of any
accounts with individuals In all the transactions full
ard pro,npt paymen, IS 10 he made on both SIDES.
The sixteenth section OF the Secretary plan and the
fifteenth of MIR Tallmadges both authorize the employ
ncnt ola bank agent. This highly Objectionable
feature is excluded from MIR. Cushngs bill, and justly
so Il is To the full nludIcous as the authorizing
the issue Of paper OIL credit, If not so, because
using ank US the depository for Government funds,
will make them the basis of the issues oil that bank,
which are more Irresponsible, and would prove more
INJURIOUS than would be the direct issues OF the Go
vernment paper
All the bills concur in making specie, Government pa
per and the Of srecie paying banks receivable Tor
public dues This beng The case, coupled WIN Tie TACT
that the Government short O0O,GUO per
annum least is not apparent how these or any plan
can 90 into successful operation. IL was doubt with
a view tn deficiency that the Secrr,arys plan EN-
braced the scheme Of credit issues because II such
currency could be sustained II would immediately place
the Government in command of $50 900. The sure
result OF such an issue would be deprec, OF the pa
per- which case, nothing else would be paid into the
Treasury and the Government would fail The embar.
arising from such state oil things are now
felt daily, for Treasury notes bearing per cent
are discount and their absorption through the Chs
tom House keeps the Treasury empty. Assuming, how
ever that Congress intends to pursue judlcnns
course and raise the revenue sufficiently to meet The
out goes the plan OF Mr. Gushing seems 10 be The most
susceptible OF being made useful TO the community,
and the real of business require that the
chief board should be situated at New York, the centre
of trade that power 10 purchase bills, or any other
borrowing lending power should exist that the re-
sricons the deposiles should be removed, order
that the demands Of trade should alone regulate the cur
rency, precisely ii it entirely composed Of sPe-
Gle. As We hinted before the only case for limiting de-
postes under such circumstances TO arise from
the fears OF the bank interest," that the plan may become
so popular deprive the banks of their chief source
of profit. Surely not just place arbitrary
law between the public and that which they conceive
to be their interest. With these exceptions, we con-
that the bill is the germ Of the system Of finance,
winch may be matnrcd into machine Of great bcnett
to the mercantile community. 1t presents a feasible
plan of wedding out that corrupt banking system that
has become interviewer with the trade of the coun.
try. 1t viii then prevent that constant luctuatinn OF
the currency which throws the industrious into the
power of designing spectators, and induces that mis-
application Of capital, which Giverng 1t from its legi-
ta:e OF developing the OF the country,
turns il into bank speculatons, and when revulson
over,akcs the fictitious prosperity, leaves the country
poorer than il steady of industry had been pur
sued.
We copy the following article Treasury Notes,
from Gouge's Journal Of Banking: