The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-02-24

amount adequate 10 the disbursement OF so large
sum , and which amount. with that which would be
issued on private deposites, and in connexion with
the selling and collecting OF exchange would be iuly
adequate, with sound local circulation, to furnish
uniform currency throughout the country
There would be no difficulty in keeping sufficient
amount in circulation to answer all the purposes Tor
which they intended Although two-hrds or three
hths of the from customs IS collected In The
city of New York, still there is but comparatively
small portion of it disbursed there. The large DIS
bursements of the Government are made In the west
for Indian treaties Indian annuites for the army for
military roads, Notifications and forts, for the inn
proyement of lakes harbors and the channels OF III
vers, Tor the great variety OF expenses Tor pubic
buildings, internal Improvements, and the civil ad-
mnistration of the Territories, with thousands of
other disbursements which cannot be enumerated.
All these would undoubtedly be paid in the specie
notes of the Exchequer. And although they are re-
ceivable for public dues, and the natural tendency
would be to follow the of trade to the Attain
tic cities still there would be counteracting to
retain them there.
A large amount would be retained for land-office
money and the smaller denominations, having enter
ed into circulation amongst the people, would be re-
tanned IN circulation by reason OF its convenience
and undoubted credit and even the amount which
should find its way to the Atlantic cities in payment
of public dues, would at once be thrown back upon
the West, in payment of the public creditors The
West would also receive very large amount OF this
circulation from the emigrants of New England,
well as from the vast influx of foreigners from the
continent of Europe. All would deposite their spe
Gle IN the Atlantic agencies, and take, In lieu OF 1t,
the specie notes of the Exchequer. On their arrival
in the West, they would pay them into the land Off
ces, instead of being subjected to the expense and
risk OF carrying SPECIE or any local currency on
which they might be compelled to pay large dis
count to procure specie They would also these
specie notes in all their disbursements for the pur
chase of stock and for the improvement of their
| co,I
these specie notes to pay their purchases of the pro-
ducts of the West. 1t seems to the committee that
the West would have an abundant share of this Go
vernmen currency, and in connection with the bene-
fits which it would derive from exchanges, that its
interests would be peculiarly promoted by the estab-
lishment of this system.
This paper circulation, based upon specie, dollar
for dollar, will not add to the circulating medium Of
the country. The committee have heretofore shown
that it ought not to add to it. But it has many ad-
vantages specie: amongst those advantages
the following
l. 1t will be the means of drawing forth from its
hiding places specie that has been boarded to the
timated amount of several millions, and which, in
its present condition, is of to its possessor nor
to the country. The lack of confidence in indivdu-
ais and banks safe repositories which caused this
retirement of specie, will yield at once to the UNI
bounded confidence inspired by the Exchequer,
where specie notes issued on depose of specie,
and the safe custody of the deposte is guaranteed by
2. In the ratio of the increased velocity and
omy which paper affords specie, and to which
may be added the high credit of this paper it will i'm
part great activity and consequently effectiveness to
the circulating medium.
3. The local banks may be induced, to great ex-
tent, to substitute this paper for their own
4. 1t will prevent the depreciation of specie, by
abrasion, whilst in circulation.
S. 1t will prevent its total loss to the country and
to the world by shipwreck and other casualties.
fprl Tho, ,,o1{c fo n,,l
liable currency for travel.
T. 1t will be the best and safest remittance by mail,
from end of the Union to the other for the payment
of newspapers and periodicals, and other things re-
quiring small sums, without the possibility of loss by
depreciation to those who receive it.
8. 1t will tend to regulate the banks and by FREE
quent settling of Balances to bring them up to sound
circulation.
9. 1t will do much towards regulating exchanges,
by means Of its favorable action on the local cur
rency.
In the view which the committee have thus far
taken of the plan of Fiscal Agent submitted by the
Secretary of the Treasury they have suggested GER
tain important notifications and in order to give
the Senate more concise and connected view of the
system, as they propose to modify it, they submit the
following
PLAN.
|. board to be established in the Treasury Depart
ment, at the Seat of Government to be called the
Exchequer of the United States. The board to
be composed of three commissioners, to be APP
pointed by the President with the advice and
consent Of the Senate, and to be removed from
office only with the like concurrence of the Sc
nate, and for physical inability, incompetcncy
neglect, or violation of duty. The President to
communicate to the Senate the particular reasons
of the proposed removal. For like causes the
President may suspend commissioner and ap-
point temporary substitute, and within the first
week of the ensuing session of the Senate lay be-
fore that body the reasons of such suspension,
and, if the Senate concur, the commissioner to be
removed, if not to be restored.
Ii. The Board of Exchequer to establish agencies
it may deem necessary and expedient for the pub
lie service, limiting the number to few the
igencles of the service will admit and in
case to exceed two in any State or Territory.
ILL., The Secretary of the Treasury to appoint the
inferior officers of the board, and also the officers
of the agencies, on the recommendation of the
! board, and to remove them for physical inability
incompetency, neglect, violation of duty,
like recommendation.
w. The Exchequer and its officers to be the general
agents of the Government for receiving safe
keeping and disbursng the public moneys. The
public moneys from all sources received to be paid
into the Exchequer and its agencies.
V. The Exchequer and agencies to receive on depo
| site gold silver coin or bullion, and to issue
specie notes for the same, to be redeemed at the
agency where issued. Said notes to be prepared
| by the Secretary of the Treasury, signed by the
Treasurer and countersigned by the President
ofthe Board of Exchequer, and made payable to
| the order of the principal agent and endorsed by
him when issued at such agency
vi. The Exchequer and agencies, on the deposte of
gold or silver coin, bullion, to draw and accept
| bills of exchange, and to receive premium not
exceeding two per centum. Also, to collect drafts
! or bills, but to make no advance or payment till
advised of the collection, and to charge
bic commission for collection and exchange.
VII All specie notes issued, either in payment Of the
public creditor, or the deposites of individuals
to exceed the actual amount of specie
hand for their redemption, dollar for dollar.
VIII Dues to the United States to be paid in gold or
silver .con, in specie notes, or in the notes of
banks Immediately convertible into specie at the
place where received. The Exchequer and agen-
cies to settle weekly oftener, the balances with