The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-19

lands For the rest, the People of the United States
who also the People Of the States, have the re-
medy for this evil in their own hands by the better
regulation Of their finances, and the imposition
of taxes to pay the interest OF their public debts.
Ii cannot command and compel the State Legsla-
lures to to authorize the suspension of cash
payments by their banks, prevent those banks
from issuing bills of credit TO accommodate the pre-
sent wants and postpone the final payday OF indiv-
dual debtors of the States 1t cannot, by its own
direct act retire from circulation their deprecated
bills, the currency Of which the greatest eV OF te
times But il act on the subect-matter by the
refusal to receive any thing but coin or equi-
valent paper in its own dealings, and If It receive
bank bills, by exacting payment oil them at frequent
specified periods And IN the opinion oil many, who
are conyersant with the subject, and whose expe-
rience and Judgment are entitled to consideration,
can, to some degree, remedy the disorders of the
currency by applying to legal or artificial persons
the same laws for the Immediate distribution of their
assets and discharge of their debts, which apply to
natural persons
1t cannot give to the country paper currency in
the bills of Incorporated jointstock bank OF pri
vate stockholders for the constitutional opinions of
the President and of considerable part of the mem
bers of the two Houses, and of the People at large
constitute at present an nsuperabe impeachment to
the incorporation of National Bank and if it could
be Incorporated it would be impossible, apd if pos
sible, would aggravae rather than tighten existing
evils, TO collect the stock of such institution. 1t
can, however, provide national paper currency of
means.
1t cannot equalize the exchanges throughout the
country, SO long the currency of most parts of il
consist of rredeemabe bank bills in various degrees
and stages Of depreciation and the business of buy
ing and selling transacted in part OF the
try by of specie values, and in another by pa
per values Most of the existing rate of exchange
between different parts of the country not the diff
ference in price between legal coin in place and
legal coin in another of the Of transporting it
to settle balances, but the difference between the
price of the coin currency and OF the paper currency
at the same place. This Congress cannot prevent
But il may provide safe and economical medium of
exchanges, correspondent to the true value of ex-
change as regulated by the course of business, ac-
cordng to supply and demand in specie medium of
payment.
1t cannot by any act of its whatever, proceed
Immediately to fill the channels of commerce with
paper currency equal in of value gold and sill
YER neither by means of National Bank nor by any
other fundamentally whatever. For the same rea-
son that, in the market of deprecated paper
rency coin cannot be kept in circulation, but becomes
at once an article of merchandise, and is bought up
as SUCH and disappears just will it always be with
a specie value paper currency alongside of depre-
ciated paper currency. Until State Governments
to authorize sanction the issue of rredeema
BILE bank paper in given community, that communi-
ty cannot have any better currency. But the Fede-
raj Government can adopt the means to furnish pa
per currency of par value, to be ready to take the
place of the deprecated paper currency, as
that shall be driven or WltndraWn from circulation by
the direct action of the State Governments or by the
indirect action Of the Federal Government.
What, then, shall Congress do What ought il do
To reach the to these questions let us cons-
der the advantages and the disadvantages Of the plans
heretofore used in the fiscal business of the Trea-
sury.
Leaving of the case all debateable constitutions
al questions involved in it, and regarding it prac
teal matter only, the considerations alleged in favor
of National Bank, are
L. Its convenience in the collection, safe-keeping
and disbursement of the revenue.
3 Its utility Ito certain degree) as an agent OF
exchange.
g. Its being the means Of furnishing paper cur
rency to circulate in all parts of the United States
A. Its fundamentally, by the periodical settlement
of balances in regulating the paper currency of the
States
S. Its being the of utilizing the public depo-
| sites nv dsn~~nt..s them.
On the other hand, the practical objections to it
are, IN substance
l. The peril to the public welfare Of taking from
the Government ITSELF appointed by the people and
responsible to them, all this vast power the pub
lie funds and the currency and exchanges and pac-
ing it for long period of years in the hands of
private corporation, and of bank directors, having
interests OF their own and irresponsible and inacces
| sble to the people themselves.
| 2. The chances Of mismanagement and corruption
on the part of such corporation, in the ratio of its
power.
g. The possibility that it may itself make excessive
issues, or suspend payments in specie and instead of
aiding to regulate the currency of the States become
| itself the great cause of arrangement
That IT is no part of the proper business of the
Federal Government to carry directly Indirect
w the business of discountlng notes bills,
otherwise lending money, to furnish funds to be so
! lent
| Concerning the adoption of The State banks as the
fiscal agents and repositories of the Federal Govern
ment, the main consideration for it is
That, it there be no National Bank il is necessary
IN ha nka Of
| meni choose to discard all bank agency.
And the main considerations against il are
| l. That the Federal Government ought not to be
dependent the legislation of the State Govern
ments for the means of conducting the business OF the
| Treasury.
q The perpetual liability of the State banks to
cess of issues and to suspension of specie payments
s. The difficulty of giving national unity of ac-
ton to institutions which are essentially local in their
nature and uses, and in THEN currency.
| a. The liability Of the system to political abuse.
| The system of an independent Treasury is recon-
mended--
L. Because of its independence of all agency not
the Governments, and especially because indepen-
| dent of banks
2 Because it holds the public funds for the public
| use only.
3. Because, by the of coin only in the dealings
of the Treasury it tends to bring back the country
the money standard of the Constitution.
And it is opposed
L. Because, by the exclusive use of coin, it rejects
the tme-saving and abor-saving instrumentality of
paper, which, so it be of specie value is in many
spects preferable in use to coin.
q Because 1t locks up the public funds from all en-
poymen either directly the basis OF paper issues
3. Because, under it, the United States has pa
per currency of national circulation.
a Because it separates the Government from the
People, aud disavows all incidental duty towards the
latter in the business of the Treasury
| Which Of these three systems is the cheapest and
safest that is, involves the least expense and loss to
the Treasury, is no otherwise important than as it
may be question of charge the revenue; and
which of them is most convenient in fiscal point OF
view, matter of ointees except to the Govern
ment.
! The Committee do not believe that the wit of man
can devise any scheme of finance which will satisfy