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

to the market of medium of equal amount and value
win that which is Withdrawn, will enable thoAe III
sututions at any time to command the specie winch
they require. As ju>t price to be paid Tor eA-
changes, II Is believed that all the expenses Oh con
Quoting the business of the Exchequer and It's agen
ces will be betrayed from that source and pooaoly
much larger sum may be realized. Inc ioss1s VI
the currency by fire. shpwreck, and other casuae'
as shown in the experience of banks, would not DC
an inconsderable item of gain. A small premium
say half quarter of per cent, might Ieasona
bly, be exaced of depositors, if hereafter deemeo ne
cessary, upon notes issued in exchange for specie
While this system will furnish the desired means for
the collecting saekeeping and dsbu sement, OF the
public revenue and all the requisite faclles iot eA
changes between different sections OF the country,
| well sound and convenient currency, II
is exempt from the objectionable features OF other
modes of efecting in part in whole the same OBJ
jects, heretofore presented for consideration au-
thorzes no banks other corporations no discounts,
no lending on credit in any form whatever no expah-
sion OF the currency by public drafts otherwise, no
paper resting the credit of the Government
and depending on accluing revenues for redemption
II conters no extent of Executive patronage or lnhu
ence. No officer can be either appointed or removed
by the President without the concurrence OF the De-
nate, and only for certain specified causes. 1t con-
iers no discretionary powers by which paralities may
be duged In behalf of personal or political iavo-
rite Whoever presents his spece-noes or bills OF
exchange at maturity is entitled to his specie and
whoever presents his specie is entitled TO the paper
defined by law and his transactions at the agency
of the simplest character. The laws of trade, and
not any experimenting board public agent decide
the amount of depostes bills Of exchange and paper
currency The wants and means of individuals com
posing the community will best regulate the proper
tons OF paper and specie. in the absence of all art
fetal restraint and supervision of the Government.
Another important consideration which the COM
mittee would add to these views is, that while the
operations of the Exehequer would tend to promote
al he
time tend to drive into liquidation the unsound
ones. Banking cap1h which has so enormously in
creased within a few years past, would be reduced
There would, eventually, only enough remain to an
swer the commercial and other business wants of the
country The large surplus of capital which sought
investment in banks for the exorbtan profits of those
Institutions under inflated and unnatural state of
the currency would retire. and perform the more le-
gtlmate office Of permanent loans bond and mort
gage TO the agricultural interest of the community.
One great evil which the country has experienced,
has been from the withdrawal of capital from the
farming interest to invest it in banking operations.
That interest," from the very nature of their business
ought not to be driven to bank accommodation they
should be able to command permanent instead of
temporary loans Any system, therefore, which
should aid the retirement of the surplus banking cap
ital would greatly benefit the substantial producing
classes of the country.
From what has been said it will be seen that the
Exchequer will furnish uniform currency, and eff
fectually equalize exchanges. 1t has discounting
power like that of the late Bank of the United States
"a power which was the principal source of all the
difficulties and Of the subsequent disasters of that in
stutlon. In order to make dividends, it neces
sary to employ its enormous capital in the shape of
discounts The great portion of those discounts was
not based upon legitimate business paper. They
long loans, stock loans accommodation loans, perma
nent loans And one reason for this was, that with
IN the sphere of the operations of the bank there
not enough of legitimate business paper to employ the
capital There was, therefore, kind of necessity of
employing 1t otherwise; and that apparent necessity,
IN the otherwise disastrous state of the times has led
to its final overthrow.
The Exchequer will possess all the benefits of a
Bank of the United States, without its attendant evils
1t is powerful to do good, but poweress to do harm
The immediate effect of the adoption of the
will be once more to restore the confidence of the
country. That confidence is every where impaired.
1t is impaired in individuals it is impaired in banks
it is impaired in State Governments, and even
shaken in the General Government. The people re-
quire action the part OF Congress which shall
restore it. That only be done by the adoption of
system like the one proposed; system which, in
its leading features perfectly unassailabe. II will
lay the foundation Of public confidence so broad and
so deep that it cannot be shaken. That confidence,
once restored, will extend itself throughout the
country, and peace and plenty will follow in its
train.
But, if any suppose this system will not accom-
plish all that its friends anticipate it will certainly
accomplish much and, inasmuch can do
thing else, and we know there is possible danger
in it. why should we hesitate to try it We shall at
all events have established great and fundamental
principle-a principle which lies at the bottom Of
this currency question, namely that it is the right
and duty of this Government in the collection safe
keeping and disbursement of the public revenue, to
aid in furnishing uniform currency, and equaizing
the exchanges Of the country. And if in the judg-
ment of any, the measure does not go far enough
shall have a stock on which engraft here
after such farther provisions shall come within
the constitutional power of Congress--withn the
great principles which have been laid down-and
such as shall be deemed expedent, and justified by
public sentiment.
The system can be tried without risk and during
period when there can be no hope ofadopng another
favorite IT, trial, it shall be found to an
swer the purposes for which it is intended then the
necessity of National Bank will be superseded, and
its friends will have desire to urge it.
If it should not answer those purposes, then the
opponents of a National Bank may become satisfied
that such an institution is the only remedy for the
evils of deranged and disordered currency. But
until some such system be adopted, it may well be
doubted whether, in the present aspect and past can
perience Of our banking institutions, the people ex
be brought into the support of National Bank.
Shall we then fold arms, and deliberately re-
solve to do nothing Can the friends of National
Bank as well the friends of the Sub Treasury JUS
tify themselves to their constituents the country in
such courses These are questions for grave con-
sideration Both these systems, in shape and
another, have been dscredited; and with present
prospect of either of them being re-established
What them remains to be done' The people expect
and require action at our hands. The committee
present the Exchequer plan, free from the objections
which urged against 1t on its original introduce
tion--a plan which, in their judgment, unites the
benefits without the evils of the Others and ask for it
that consideration which it is justly entitled to
ceve.
In proposing the bill which the committee now
submit to the Senate, an attempt has been made, as
far as possible, to consult the views and avoid the OBJ
ections Of all parties disclosed in the history and
discussions Of the several plans heretofore suggested
for accomplishing the same objects, and it is submit
ted in the hope that the attempt will prove success
full.