Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1842-04-05
INDIANA STATE SENTINEL
THE EXcHEQUER PROJECTS.

Mr 'u-hing plan reported 10 the House, and tina
% Nr. Tslmadge IN the Senate. Tbs last - III
same as that reported by the Secretary as the Pre-
sldent's plan. with few alterations. which We 81
point out. The general features ofthesc three bill
ere that an exehequcr board shlll be established a
W Washington, with branches IN all the States. Tn
hoard and branches 10 receive aud pay out the pub
isc moneys, 90 receive individual deposites draw
aud accep; b IL of exchange, and 10 govern
nncut paper money. These the features com
mon % all three. The distinctions consist in ,h,
manner o. PARTING them into execution. All thes.
bills have ~ them an expansive feature or mean:
Of ulstirg the p-per currency that of the Secre
tary be NJ the most and that OF Mr. Cushing the
less, I've first grea. distinction Is IN the man
nor of issuing the government paper.
The plan ofthe Secretary provides FOR Two kinds
certificates Of deposte and Treasury notes. The
fret 10 be issued dollar for dollar for specie deposit
ed to az amount not exceeding $1,000 600 chirge
70 be made not exceeding per cent. The second
- be issued government creditors limited to three
tImcs the amount Of specie on hand.
Tie plan OF Nr Islmldge Of the Senate author
the Of description of paper. both on
deposites and IN payment OF government cred tors.
That issued depos ties al a charge of per cent.
and limited to sI5.oOo,00o. The amount issued n
payment 20 the government creditors 10 be limited
- the amour. &c specie on hand for redemption
The plan of Mr.. Cushing of the House commit
tee authorizes the Issue OF SO coo 600 only with
charge TO depositors and TO the public creditors
redeem IL.
These are the three plans for issuing govern
rnent paper for the object of obtaining uniform ma
:ionsl currency The plan of the Secretary utter
~ cut OF the question. No distinction seems 10 be
made between tho specie received on depOsite and
that which is to represent the government paper
ahoa,; consequently, If. say S.0O00,O00 Of specie
were received on deposite. II would become the ba-
of 10 900 900 cf certificates issued dollar for
dollar. and al Of s3o,o0O,OGO of Treasury notes,
making issue Of S400 900 900, three fourths of
which purely credit currency, pable of good
bat Of InflclIng n6nitude OF evil upon the com
inunlty. IL would indeed supply the pressing wants
If the Treasury for moment, but speedily a
total explosion. The two descriptions of paper
could not circulate together. The certificates would
always be at premium above the notes for obvious
II the plan could be got into operation. an
event scarcely pOss bic for reasons, first because
deP0sIiors VIII not pay premium 10 place their
money with the government And secondly they
would not do II, knowing that it would become the
basis Of the other notes issued and liable to b. PAID
out IN their redemption IN moment of pressure,
leaving the ceFrfcates uncovered. The dep0sie
part OF Mr. Talmadges oil similar to that Of the
Secretary and equaIiy imprlcticable. distinc-
ton seems, however. 10 exist but not very clearly
between the deposite specie and the government
specie, forming tine basis of the issues the public
creditor, aud to which these ISSUES confined doll
lar for dollar: thus cuttn NJ of the credit is-ues of
the Sccretsry's plan. Mr. Cu>hing's plan is still
better. because charge IS made for the deposites
and therefore. bar raised the reception Of de-
P'sites with the exception that they confined to
mn aggregate Of SlO,O0}.0J0 a restriction common
II all three plans. ami for which no rca-
son but the jealousy of The banks. The issues 10
the government creditors ire Ike Mr. Tainadge's
bill confued 10 the amount of specie on hand. The
features OF the three bills may be summed up as
follows:
Secrefary's pion.-Deposites. l5OC0 coo. at
prem. Treasury notes. So for of specie on hand
Capable of emitting, "a. OuO,OO0.
TaIniad ge's.-Ds postes. II, GOO 600, IA prem.
Treasury notes dollar for dollar. Capable of emit
ting. 20.0OO,OOo
Gushing Deposites. 10 900 900 at par Urea
sury notes, dollar for dollar. Capable OF emitting
$4,000, 600
The capacity to issue is calculated on the sup
position that in each ease ) 600 900 Of the public
revenue Will be retained IN the Treasury To repre-
sent tn. notes issued to the Government creditors
This NE think represents pretty clearly the provi-
SONS 1T me three bills in relation 10 the issues Of
currency. The plan of Mr. Gushing is the only
practicable an this respect. 1t is the only
that of rs any InGucement TO deposltors 10 place
their funds with the government officers and with
cut which. the whole fabric falls to the ground
The feature of the bill that relating to bills
Of exchange. In THIS respect the provisions. COM
mon TO all the bills that the board and agencies
may draw and redraw upon each other and accept
drafts. The charge for drawing and accepting not
10 exceed per cent. The Secretary's plan author
Uses the purchase of bills unlimited IN amount but
restricted IN regard To distance, time and local.
which restrictions are prcposerOuS IL any prac.
teal purpose. Mr. ramldge's plan excludes pur-
chase altogether. Mr. Cu~hing's plan permits pur-
chase restricted 10 the actul necessities Of the
sury for the transmission Of It's funds The purchase
81 bills Il really the lOaning Of the government
funds upon individual promises. WHAT necessity
there possibly exist under any circumstances
cannet see. II the government wishes to dis
bnrse al any point where it has funds. the sale
Of It's bills at that point on New York where two
thirds of It's funds collected better for all par
tres. The government may wish 10 transmit TO-
0nuOOO per annum IN this manner. and by buying
instead Of selling bills would the risk Of loan
iEg ,s funds on kites to the extent. The lea-
lures OF the three bills may be summed up as fol-
lows:
Secretary's plan draw, accept and unlimited pur-
chase at per
Talmadge's plan: draw, accept and collect at >
per CT.
Cushing's plan draw, accept and limited purchase
at per cent.
In this respect Mr. Talmadge's plan is undoubt-
.dly the best.
All three bills strictly preclude the opening Of
any accounts with ind iv dnals In all the transac-
tons full and prompt payment is TO be made on both
sides.
The sixteenth section Of the Secretary's plan and
the fifteenth of Mr. Talmadgs's both authorize the
employ ment Of q bank an agent. This highly
Objectionable feature is excluded from Mr. Cushlngs
bill, and justly IL IL TO the full as inlnic OIL,
the author sing the issue of paper on credit II
no; more go. because using bank the dcposl,o-
" for government funds. will make them the basis
OF the ISSUES Of that bank. which more rrespon-
sible. and wouli prove more INJURIOUS than would
be ne direct issues of the government paper
All the bills concur IN making s'ecle. govern
ment paper and the notes OF specie paying banks