The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1842-03-11
The following articles will give our readers un-
dsr..auding oflhe new Exchequer plans OfMr Cush-
ing and Mr. Tallmadge.
THE NEW ExCHEQUER PLAN.

THE NEW EXCHEQ U Elk PLAN.
On the outer page Of this paper will he found a
bill reported BY Mr. Gushing, friend Of the pres
ent administration, in the House Of Representatives.
it isa very different project from that laid before
Congress under the signature Of the present Sec
re,ary ofthe Treasury, II oms entirely the au-
thOrity 10 issue treasury notes, and modes the
ihorty to purchase bills Of exchange two features
In which. consisted the principle enormity of that
plan. The agents ofthe Exchequer are permitted
BY Mr. Cushing project TO sell bills of exchange
upon places where they may happen to be funds of
the United States, and they may also purchase bills
Of exchange TO pay its creditors or for public use,
and in no other case whatever The new bill also
empowers the agencies TO receive deposite of gold
and silver, and give in return certificates, which
are TO be paid on presentation, and also to give
certificates Of deposite to the public creditor, who
desires it, to the amount of his debt never permit
ing such certificates, however, TO exceed The guam
lily Of gold and silver on hand.
In other Tespects,the bill is perfect sub-treasury
bill. The issue Of treasury notes, without provis-
ion for their aymen, and the discount Of mercan.
tile paper, are abandoned, either from convic-
ton oftheir inexpedlency, or from the hopeless
ness Of carrying any such measure through Con-
sress. Mr. Cushing's report is drawn up in tone
Of great moderation; and although common place
In some parts, and erroneous in others contains
many just positions 1t admits that " it il no part
Of the business of the general government to carry
on directly or indirectly, the business of discount.
ing notes or bills, or otherwise lending money or
10 furnish funds to be so lent" This is sound
principle: and treasury organized with sric,
regard 10 this doctrine, avoids the great objections,
constitutional, economical and moral to which
national bank is exposed.
Yet itappears to US that there is IN Mr. Cush-
ny's plan one door, at least, left open for mischief
The tenth section allows bills Of exchange to be
purchased, by the Board of Exchequer, or its a
gents, for the purpose Of transmitting the public
funds to pay its creditors for The public use. The
right to draw and sell drafts upon each other is
given to the different agencies, without limitation
This would inevitably exhaust the funds of the u
nied States at many Of the points where agencies
are established, and it would then becpme necessa-
ny 10 transmit funds 10 pay the public creditors
or for public use." A system Of discounts, we
think, might easily be derived by the ingenuity of
trade from this harmless looking clause in Mr. Cush-
ing's project. We heard it, however, suggested
that the danger Of this might be obviated, by d.
rectng that the purchase money for these bills of
exchange shall not be paid by the government to
the seller, until notice is received Of the payment
Of the bills II. the places on which they were drawn.