The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-09

ways convertible into gold and silver and for all To-
cal purposes would form local currency equivalent
to gold and silver This feature (that is, receiving
paper of specie paying banks,) in the Exchequer
scheme somewhat analogous to the celebrated com
pact OF the LIST of January 1917, made by the late
Bank Of the United States and the State Banks This
laid the foundation of the policy that led
to the resumption of cash payments, and sustained
the local banks in their efforts TO return metallic
basis
The adoption of the Exchsquer Board will be fol-
lowed by consequences equally as important to the
country II will give to the country renovated and
improved system Of policy-t will revive and extend
circulation-it will confirm public credit-it will
promote the spirit of commerce-it will be produc-
tive of an augmented amount of currency, andit will
equalze the exchanges between different sections Of
the country, and enlarge public confidence, on which
mercantile transactions principally rest.
The success of some measures and the failure of
Others, landmarks and beacons for direction
we have the eld-notes of those who have gone be-
fore us. The past is the architype of the future
Thus we become gifted with second-sight, about
which there is mystery. We do not set up
history nfallibe standard the guide in every
emergency, and as giving us sure and unerring ca
for our political conduct under all circumstances
1t establishes many principles that indsputable
but we admit there are cases where their application
must be modified, and where they will not fail alto
gether.
The adoption Of this Exchequer Board will tend to
equaze the exchanges and elevate the credit Of the
local currency Superadded to this currency general
currency more known, more confded in, and more
valuable than the local currency will circulate and
be employed in the exchanges between the different
parts Of the countryese oi, be the notes Of the Err
chequer Board These notes will be receivable for The
Government by thousands Of the collectors Of the public
revenue, scattered throughout every part of this vast
and extended confederacy. They will be, in fact in
the of business, paid in gold silver In all
commercial places they will be received in all trans
actions without any reduction in value; and never,
under any circumstances, will the paper from the
'emotea agencies vary beyond small per cent in
their actual exchange for specie Here then is
currency as safe silver, convenient and
valuable than silver; which through the whole
western and southern and interior sections Of the
Union will be eagerly sought in exchange for silver
which in these sections will often bear premium
paid in silver which will be throughout the Union
equal to specie in payment to the Government and
payments to individuals in business; and which
whenever specie is required in any section of the
country, will command it without any reduction BY
means of this currency funds be transmitted at
expense less than in any other country
The merchant may deposite, for instance, his
silver in New Orleans, Mobile, and receive
drafts, which he carry with him to Philadel-
phia, or New York, and there receive an 90 uivaent
amount of silver without any expense whatever, and
in possible event beyond greater reduction than one
per cent. II, however, merchant should be indis
posed to incur the risk of carrying his notes with
him, or to run the hazard of the transportation by
mail he may, instead of them, receive draft payable
to himself or his agent alone, to insure the
ceipt of an equivalent amount, at expense of not
onehaf and frequently not one-fourth, of the actual
cost of transporting the silver.
This seems to present a currency approaching
near to perfection could be desired for this
rency will be issued at twentysx different parts of
the country, obainable by amy citizen oho has money to
purchase draft When in his hands it is equivalent
to silver with the numerous agents of the Govern
ment throughout the-confederacy. In all his pecu-
mary operations with the interior, it will be infinite
u
tons with the commercial cities equal to silver and
if for any purpose, he desires the specie, will be at
his command, without any diminution, and never
more than dminution of small amount.
We contend that Of the most prominent advan-
tages is that the whole financial scheme bears pro-
per relation to the real business and exchanges of
the country being issued only to those whose depo-
sites entitle them to it. augmenting with the wants.
with the active operations of society," and diminish
ing these subside In fine, contend that it will
produce state of currency safe for the community,
and emnenty useful to the Government that it will
improve the present condition of the currency, by
the infusion into the circulating medium large por
ton Of good sound currency, equivalent to silver, in
lieu of that of inferior credit. A currency equally
valuable at every place, and at all times, cannot be
provided for by human contrvance. The nearest
approximation to this end, has been proved to be af
forded by the employment of gold and silver. In
recommending this measure the Executive didnot aim
at perfection. They designed to embrace, with the
convenences of currency, an uniformity of value
equal to that which possessed by the precious me-
tails The difference of exchange between Mar
settles and Paris often ranges from two to three per
cent With all the facilities of intercommunica-
ton possessed by France, with currency consisting
almost exclusively of gold and silver, the variation
in the value of money is three times greater in her
territory than it will be under the operation of the
Exchequer board. This Exchequer board will not
only give uniformity to the exchanges between dfe-
rent commercial cities but it would place them on a
more eligible foundation with England, France, and
Holland.
| From the views advanced by the learned Senators
in regard to the power of the Exchequer to issue
drafts certificates, upon deposites of specie, we
must take the liberty of expressing our unequivoca
dissent far from regarding this function as an ex-
crescence which might be Topped off if not with adj