The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-02-26
THE EXCHEQUER-T HOUSE RE-
PORT.


port on the currency by the House Committee,
we observed that the fiscal plan which accompa-
MED it presented platform broad enough in ex-
tent, and deep enough in foundation, for the pa
triotic of all parties to gather upon in safety
We return to this modification of the scheme
submitted by the Secretary of the Treasury.
for the simple reason that it originated in the po-
pular branch Of Congress. That every detail
is such as will meet the full and unreluctant APP
probation of all, could not be anticipated. But
that it has attempted to combine the prin-
cpal elements of usefulness belonging to the
two great antagonist systems OF finance, as lar
as they could be made TO accord and endeavored
to eliminate, as far as practicable, the dlsadvan
tages of each, will be made evident by perusal
of the bill and report. With such character it
presents strong claims for impartial investiga-
ton, and with but very few alterations which
the wisdom Of the House may think proper to
suggest, will merit, we trust, ultimate adoption.
The Wings have contended that fiscal agent
established by the Government should not be
confined to the selfish duty of providing for the
safe-keeping and honest disbursement of the
public money, but should be made an instrument
for furnishing sound and uniform currency OF
universal acceptance. This object, in our OPT
Mon, is obtained by the provisions in the bill Of
the committee. 1t furnishes currency of uni
versal credit founded upon much 6rmel basis
than any that could issue from a corporation,
dealing and frequently specializing in money.
All the arguments which could be urged against
this issue are equally available against bank
circulation while it is impregnable against the
most forcible objections to which bank paper is
liable.
1t the creation of a uniform currency is mo-
tive for advocating bank it is equally reason
for approving the Exchequer scheme.
Secondly, they contend for the necessity of
paramount fiscal agent, with power sufficient to
regulate, as far as practicable, the State Banks.
This power they insist was possessed, in an
eminent degree, by the late United States
Bank. But that institution, framed and gov
erned like the local institutions, liable to
simil;r indiscretons ITSELF and under the drec-
ton of individuals, whose private interests
were amalgamated with those Of the bank, ii
might easily be induced, in the exercise of their
power of regulation, to disregard the interests
of other banks, provided their own should be
promoted. In the Exchequer scheme, the same
power of regulation exists as far as we think 1t
can be judiciously granted. The agencies are
permitted to receive the notes of specie-paying
hanks for public dues, but are not allowed to
pass them to the public creditors and must make
settlements with the banks whose notes they
hold at short intervals. The consequence must
be, that while the banks are not crippled in their
operations, which are prudent and honest, they
are deferred from the folly and danger of excess
sive issues.
When we add that the Exchequer, proposed
by the House Committee, is made an agent for
exchanges, and collections, and depository of
the specie funds of individuals, we have men
toned the most important attributes which even
the Wings should claim from Fiscal Agent
of the Government. To ask more from it,
would destroy the simplicity Of its character as
a mere Government institution, for carrying on
its own fiscal operations, and for merely regu-
lating the currency as far as is compatible with
its character. The powers that are refused to
it, are such as belong to a bank, in the pure and
proper sense Of the term, and should not be de-
legated to any institution, which is the depo-
STORY of the public money.
From an Exchequer, having these characte
ristics, we trust no moderate Wing will be
found to withhold his assent To the ultras,
aware argument and appeal are both
useless. But we trust the number of the latter
;c e,,,ll opd tbot q nerfoct uninn IN this mes
ton will be formed by those who look to the
good Of the country, and who are unwilling to
return to the people with the stigma upon them,
that the present session has resulted in pro-
ducing nothing.