The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-23
i. A. to E4seuttpe Patronage and Pouer


with the advice and consent Of the Senate appoints
three commissioners, who form the Board OF Excho-
quer These commissioners are removable only win
the concurrence of the Senate, and for physical ina
bility, ncompetency neglect OF violation OF duty.
They are therefore independent of any improper IA
ecutiye influence if any should be attempted TO be
exercised over them. The number Of agencies Is TO
be determined by the Board of Exchequer but to ne
limited tn few the exigencies OF the service WIN
admit and in case 10 exceed TWO IN any olaie OF
Territory The probability is, that with the excep-
lion of one or two States there would be necessi y
for more than one agency 10 each, and in many in
stances even that might be dispensed with and these
agencies may be the sound specie paying banks OF the
States where would not be desirable for the agency to
receive deposes to accept or sell bills drafts on
account olhe Board Of Exchequer which banks, act
inc as agents are prohibited do. In all these ses
there would he officers to be appointed an the
lection OF the specie-payng banks, as agents, would
be made by the Board OF Exchequer who il has been
already shown are independent Of Executive in,
auence The only officers, then, to be appointed,
would be at the agencies established some OF the
most important commercial points. hee are to be
appointed blythe Secretary of the Treasury, the
recommendation of the Board OF Exchequer and the
Secretary of the Treasury appoints ON like recon-.
mendation such inferior officers of the board the
julgm mt of the board the transaction OF its business
may require.
Any ofthe officers ofthe agencies may b. removed
by the Secretary Of the Treasury on the recommends
Cyl neglect Violations of duty bnt he must state
his for the removal of any principal officer of
any agency, in his general annual report of the trans
actions of the Exchequcr,
The whole extent of Presidential patronage, under
the plan of the committee in ruth thus reduced to
the simple nomination of three commissioners OF the
Exchequer, subject to the advice and consent of the
Senate; the appointment and removal of all the other
officers of the Exchequer either at the seat Of Gov
ernment the agencies, being virtually vested in the
hnhr nf tHa
or of the President by the tenure of office pro.
posed.
From this brief view of the appointing and re.
moving power, it will be seen that the Executive pat
ronage, by reason OF the appointment to office is yery
little, and the Executive power by reason of the
oval from Office, is still less.
,. As TO The purchase Of bills Of Exchange
To this feature OF the plan of the Secretary Of the
Treasury the committee object /. That it would be
exchanging the credit of the Government for the
responsibility of individuals and consequently expose
the Government TO great hazard and eventual loss
2. That II might be used for political purposes and
for party favoritism 3. That it would lead to ictl-
.ious dealings in exchange, without any real bust
ness basis
The evils which would flow from all these sources
need not he enlarged upon. They will al once strike
he mind of every rejecting man.
But, aside from these objections there are others
which would induce the committee u reject this pow
and safely three things necessary namely, ind
vidual nerest, individual sagacty, and individual
vigilance interest, to secure proper attention saga
city, to distinguish real from fictitious operations g
lance TO watch the transactions from pton to
maturity and payment. These qualities from the ma
ture of things, cannot be combined to The desired ex
tent in public officer, however faithful and honest
be may be. he may intend, conscienously, 10 dis
charge his duty but in business operations of this de
scrlpton he cannot discharge it individual
a 4 . H.. II. a..
fore, be dangerous to give this power without incor
porating the interests of individuals into the system
which is not proposed TO be done.
The committee however, propose in another mode
to confer substantially the same benefits without any
of the risks This can be accomplished by autorlz
ing the Exchequer and its agencies TO sell and collect
bills OF exchange. In this there is possible hazard
l. As to selling. This may be done, either by one
agency drawing bill on another on payment of the
amount and premium in specie, orby accepting the
bill payable at the agency where drawn, as will best
comport with the state of accounts between them and
best promote the interests Of all parties. This will
answer all the purposes of buying dscounting bills
OF exchange, Buying or dscountlng bills on time
is, in other words mode Of anticipating funds The
leg itlmae object of bill of exchange not to antic-
pate, but to remit funds. These funds may be remit
ted, without the hazard on the part of the Govern
ment, of the purchase of the bill and at the time
accommodate equally well the ind vidua to whom
they belong. For example, if a merchant in New
to draw at sixty days he may direct his correspondent
there, at the end Of that time depose the amount
in the agency at that place, and send him bill at
sight on the agency at New York where he can re-
mean time, if he wishes to anticipate his funds he
get his note done at of the local banks whose bu
slness it is to discount, and rely upon the bill of his
correspond ent at Cincinnati to meet il at maturity
2. AS to collecting, the committee propose to au-
thorize the Board of Exchequer and its agencies UNI
tn he nod by he na to
ceiye and collect such drafts and bills of exchange
may be deposited with them for that purpose drawn
on any place where an office of the EXchequer may
be established but that no advance payment shall
be made on such draft or bill until it shall have been
actually collected, and advice received of such col
lection when the proceeds shall be paid to the
person entitled to receive them, after deducting
sonable charges and commission.
The facilities afforded by this system for selling
and collecting exchange will promote the interests Of
the whole country equally well with the power to
purchase, and at the same time the Government
from the possibility of loss or hazard.
IFS 10 the issue Of Treasury notes on The credit Of the
Government.
From the view taken of this subject by the COM
mee, it is unnecessary to discuss the question to
how far the issue of Treasury notes. on the credit of
the Government to circulate as currency, is OBJ
noxious to the constitutional objection to bills Of
credit.
The committee are of opinion that no paper should
issue the credit Of the Government to circulate as
currency.
There can be but two motives for the issue of such
paper. |. To anticipate the revenue to meet the en-
gagements of the Government. 2. To aid the cur
rency of the country by this addition to the crcuat
ing medium.
As to the first the committee hold it wrong in prin-
ciple for the Government to anticipate its revenues
by this means. Its tendency would be to excessive
issues and to a reluctance the part of the Govern
ment to levy adequate duties forr revenue Either re-
suit would be in the highest degree derogaory to
national character. The revenues of the country
should always be adequate to the economical wants
of the Government, and the Government should ne
yer have occasion to anticipate its revenues But, if
an emergency should happen when its means are not
sufficient to meet its engagements may get the au-
tlory of Congress has often been done before to
issue Treasury notes, not as currency, but
means of borrowing Treasury notes. bearing an in
terest, to be taken as an investment by capitalists,