The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1842-12-15


funds from abroad aud the result Of stock sales aud
loans no one can be surprised tho apparent, but nm
substantial state Of prosperity which every where pres
vailed over the lands while as little cause or su PRISE
should be tell at the present PFos'raon o every u1s,
and the ruin that has befaen so many OF our fellow
cuz,ns in the sudden withdrawal from circulation ct so
large an amount OF bank issues, since 1886 exceeding,
as i, believed the amount added to The paper curren
ay for similar Eerod anteceGent to 1887 ceases 10 Oe
matter of astonishmen that such extensive shpwrecR
should have been made of private fortunes, or lhal d>
fcutes should exist meeting Their engagements on
the part Of the debtor States Apart ron "h'cn,
there be taken Into account The immense losses oy e
dshonor of numerous banks, Is less mi'er oil sur
priso that insolvency should have have visited so many
of our feow.cit than that so many shouId nave
escaned The bghting influences Of the times.
In ,be solemn conviction Of these truths, ana win
an ardent desire meet the pressing hecesslues 81 e
counry felt it to be my duty to cause to be submitted
IN Won at the com nencement of yUu lae session. the
plan Of an Exchequer, the whole power and duty OF
maintaining which, in purity and visor was to be eS-
ercsed by lhs Representatives Of the people, ana the
States, and. therefore, virtually by the people them
selves. II was proposed to place under tne Con"o'
and direction of Treasury Board, 10 consist OF u'Iee
commissioners whose duty It would bo 10 see lha' !he
laws of its creation were faithfully executed and that
the great end ofsuppying paper medium OF exchange
at all times convertible into specie, shcud De aaIheu
The Board thus constituted, was gwen as much Petnd>
nency as could be impared to IT. wl'houl ehud"s7rs
~'
agents. " ou r,,,,r-
In order to irsure all the advantages Off well ma'ur-
experience the Commissioners were TO hOu thelf oi'
6ces for The respective periods OF two, Jour- ana Six
years. thereby securing at all times in the management
of the Excheuuer, the services OF men OF experience;
and TO place them in condition TO exercise perfect IN
dependenco of mind and action it was provided That
their removal should onytake place for actual lncapa
city or n6deity the truE and to be followed oy lhe
President with an exposition oil lne causes vi Suc" Ie'
,lo 4
# was proposed to establish subordinate boards in
each of the States under the restrictions and Inn
ation of the power Of removal, which, wuh the cen
trail board should receive safely keep and Glshuse The
public moneys and in order 10 furnish sound paper
medium of exchange, the Exchequer should retain OF
the revenues of the Government sum not TO exceed
rs 900 600 in s1ecie 10 be set apart as required by
its operations and TO pay the public creditor al ms own
option, either in specie Treasury notes. Of denoml-
nations not less than five, nor exceeding one hundred
dollars which nntes should be redeemed at the several
paces of ISSUE and to be receivable at all times and
eyery where in payment of Government dues; with
restraint upon snch issue of bills that the same should
not exceed the rrarmum of $l5 600 ,OO0 In order to
guard against all the hazards incident 10 huctuallohs IN
trade the Secretary of the Treasury was invested with
authority 10 issue S., 900 900 of Government stock,
should the same at any time, be regarded as necessary
in order to place yond hazard the prompt redemption
of the bills which might be thrown INTO circulation
Thus in fact making the issue OF $50 ouO OOO OF TX,
CheQuer DIS, rest PiOiO"OiOooi "''"
keepng in circulation and one-half dollars for every
dollar in specie When to this is added that the bills
ere not only every where receivable IN Government
dues but that the Government itself would he bound
for their ultimate redemption, no rational doubt can
exist that the paper which the Exche9uer would urns
would readily enter into general circulation, and bo
maintained at all times at above par with gold and
silver thereby realizing the great want OF the age and
fulfilling the wishes of the People. In order to relm-
burse the Government the expenses OF The plan, II was
Al. To-, rtxtfh tha nIfad
authority to deal in bills of exchange. unless prohibited
BY the State in which any agency might be situated
having only thirty days to and resting on fair
and bona .fdc basis The Legislative will on this point
might be plainly announced, as to avoid all PreteSi
for paraIity or favorsm. 1t furthermore proposed
10 invest this Treasury agent with authority to receive
on deposit to a limited amount, the specie funds oil
individuals and to grant certificates therefor, to be
redeemed on presentation under the idea, which Is
believed 10 be well founded that such certificates would
come in aid of the Exchsquer olls IN supplying asais
aud ample paper currency.
Or II in place of the contemplated dealings IN EX-
change the Exchequer should be authorized not only to
exchange its bills for actual depostes OF specie, but toT
specie or it's equivalents to sell drafts charging therefor
a small but reasonable premium, cannot doubt but
that The benefits of the law would be speedily manifest
ed in the revival of the credit, trade and business o.
the whole country. Entertaining this opinion 1t be-
comes my duly to urge its adoption upon Congress- by
reference TO the strongest considerations OF the public
interests with such alterations in its details as Congress
NAV in its wisdom see fit TO make
/ am well aware that this proposed alteration and a.
nendment of the laws establishing the Treasury Gepa
ment has encountered various objections, and that a
lnong Others it has been proclaimed government bank
Of fearful and dangerous import II is proposed to con
fer upon it no extraordinary powers. II puports to dc
no more than pay the debts Of the Government witt
tn, redeemable paper Of the Government,-in whicl
respesl il aCcompshes precisely what the Treasury
does daily this time in issuing TO the public creditors
the Treasury notes which under law is authorized t
issue. /. has no resemblance to an ordinary bank al
it furnishes no profits private stockholders, and lend
no capital 10 individuals. IF he objected to as gov
eminent bank, and The objection be available -ther
ahoud the laws iE relation the Treasury be repealed
and the capacity Of the Gov ernmenk 10 collect what
due to it, or pay what it owes be abrogaled, ..
This is the chief purpose ofthe proposed Exchcquer
and surely if in the accomplishment ofa purpose 20 Ell
sental, il affords sound circulating medium to the
country and facilities 10 rade it should be regarded al
no slight recommendation ofto public consideration
Properly guarded by The provisions of law, it can
into no dangerous evil, nor any abuse arise under
it but such as the Legislature Itself will be answerabe
for fit be tolerated. since it is but the creature of the
law and is susceptible at all times ofmodfcalion, a.
mendment or repeal, at the pleasure Of Congress.
know that it has been objected that The system would
be liable be abused by the legislature by whom alone
it could be abused in the party conflicts Of the day.
That such abuse would manifest itself in change o
the law which would auhorise excessive issue opa
per for the purpose of initiating prices and winning pub
lie favor. To that may be answered, that the des