The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-26

the power of purchasing bills OF exchange with the
view to the transmission of the funds of the Govern
ment to the point Of expenditure. With this power,
it must be apparent to the minds of all dsinteresed
persons that this institution will powerfully tend to
effect an equalization of exchanges, and relieve peo-
pie of currency of uncertain valueto furnish them
with paper medium to be well known TO all and ne
gotiable every where without loss
Again il is urged that the issuance Of specie notes
by the Exchequer would convert it INTO bank. This
is purely visionary. There is not the semblance O.
reality in il. Ii neither could grant loans on dis
counted notes deal in any other banking business
The limited extent of its issues would create to tina,
extent what would answer the necessities and wants
Of the country better than coin. Now, why such I'M
compromising opposition to this kind Of paper on the
part ofthose who much opposed to the exacton
Of specie in liquidation Of the debts Of the Govern
ment, when is most manesty obvious to all reflect
ing men, that il would supersede the employment of
specie at the Treasury? These specie notes would for
ever remain above par long it should be the po-
icy of the Government to collect annually an amount
of revenue sufficient to absorb them.
Such is the plan of financial reform which, atcI
the maturest deliberation Mr. Tamadge has thought
proper propose to Congress- and recommend to the
country and if it be examined with GOODNESS and i'm
Partially, every previous preposscsson being dismissed
from the mind it is apprehended that it will be found
to contain nothing inimca to the spirit and principles
of the Constitution; nothing resembling the wild chi
mercal notions imputed to il by lis opposers nothing
from which the sober and dspassionate friend Of his
country can derive the smallest ground of apprehen-
sion and alarm. This at least, is the impression pro-
duced minds, after the closest examination Of
the plan, and of the means proposed for carrying it
into execution Let il be examined in its relation
the general interests Of the nation and il will not su
fer in comparison with the most fayorte of the
that have been adopted under any of the preceding
administrations SO long therefore principle il
maintained precedent is respected its claim TO the
support of Congress cannot be resisted the ground
ofa want Of authority to establish it,
Now dealing in the purchase and sale Of bills ofex
change is often expressly given to banking corpora
tons and the fact that is expressly given is evil
dence of the general understanding that, without it is
so given bank would have the right power of
dealing in exchange and that is strictly speaking, no
part of the ordinary business of bank, When we
speak Of a bank mean an institute n invested
with the power discount bills notes and other evil
dences of debt receives deposites buys gold and sill
bullion, bills Of exchange, loans money, &c. To
constitute bank il must possess all of these facul-
ties This examination of the Exchequer, it is conf
IDENTITY believed, will show that il does not possess the
powers Of banking institution. and that the prvi-
lege of purchasing bills of exchange is important
feature in this system. Although this appears so
plain and palpable not to admit Of contradiction or
dispute yet on point of such magnitude, it cannot
be time i'll spent to illustrate it by example Fol in
stance, the officers the Government collect half
million Of dollars of revenue in New Orleans in the
local bills of specie paying banks and deposite them
with the agency nthat place There funds are
wanted at Philadelphia or Baltimore City, and as
the notes Of the banks Of New Orleans, although
convertible in specie will there the agency
in New Orleans, instead of mourning the cost Of the
transportation Of the specie purchases bill Of ex
change, of undoub ed solidty founded real mer-
camille transactions and payable at fixed and not dis
tant dates BY this process the wants of the Govern
ment are anticipated and its engagements quidated,
not by draining specie from the point at which the
collection is made, but less expensive, and economi-
cal mode, by the employment of the instrument Of ex-
change. The section of country, thus periodically
ri,y or preserve stable and sound circulating me d.
As well might the blazing orb ofday when sent to
bless with its genial rays, absorb il does, the
moisture of the soil, and the Providentia dews Of
night restore it, and yet the Modification Of the
earth and the gathering Of its fruits be hoped for
to expect banks to retain specie basis whilst under
going such exhausting process.
Let us take another view Of this question. 1t is
said that the power to issue drafts and certificates
one Of the attributes of bank These drafts and cer
Gates are wholly dissimar from the notes issued by
the banks. These drafts not only promises to
pay They promises to pay and receivable in pay
mens of debts and taxes due to and by the Govern
ment This is not an immateria distinction; for the
objections to paper medium are that its value depends
upon mere national faith But this certainly is be;
ter dependence the public debtor who purchases tn en-
NAV tender it in payment They are drafts, drawn
upon specific fund set apart for their redemption
There is material and well known distinction he
tween draft drawn upon a fund, and bank not'
upon credit. A bank note may, therefore, be consi
dered as a note drawn, and resting merely Upon III,
credit of the bank, as contradistinguished from
fund constituted or pledged for the payment or re-
dempton of the draft If the fact of the Excheque
drawing upon Its own funds, to pay It's DEBTS, or TN
debts of the Government, will make it bank, ever,
man is banker. But this ingrafted upon the bill
has powerful tendency to equaize the exchanges.
By means of these drafts certificates Northern
| merchants will be enabled to obtain funds in tn,
! South for the purchase Of the cotton By means o
these drafts and certificates the merchants Of thu
South will be enabled to purchase goods in the North
By means of these drafts or certificates the manufac
turers of the North will be enabled to receive remi
tances from the South, for the articles shipped ant
sold there. These drafts or specie notes would stan'
effectively in the place specie, moderate the deman'
| for it, and by being made payable at different points