The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-18


induce the use of its credit the basis OF clrcua
ion expressly asserting at the same time the power
Of Government to supply and maintain paper me-
dunn of exchange"
This Bank, then, like its predecessor, furnished a
paper currency declared by law TO be receivable IN
ali payments at the Treasury II was made the hscai
agent and the depository of the Treasury and ap
sorbed in its capital portion of the public debt since
of the thirty-fiye million dollars constituting us
stock only millions were required TO DC III spe
Gle the remaining twenty millions OF private sub
scrption being authorized TO be in stock as also the
seven millions to be subscribed by the Government
In further regulation of the currency, at the same
session, by act in the form OF resolution, passou
on the 30ih OF April 1916 il was provided lha all
duties, taxes debts, or sums OF money acciuin9 o'
becoming PAYABLE TO the United States should be col
lected and paid in nothing hut the legal currency OF
the United States or Treasury notes or notes oil the
United States Bank, the notes of banks payable
and paid on demand in the legal currency of the Unit
ed States.
And by the combined action of the Government,
the United States Bank, and other causes, the bank
currency of the country brought back to aspecle
standard.
On the expiration of the legal term Of the charter
of this Bank in 1886, Ca bill for its rechaer having
been vetoed by President Jackson and the public de
postes Withdrawn from it the business of the Trea
sury again transferred to the banks of the States
and transacted by Them at first under the general au-
thory of the act establishing the Treasury Depart
ment and afterwards, according to the more specIhc
provisions of the act of Congress, passed the 23d OF
June, 1886, to regulate the deposites of the public
money.
Under the system thus organized, the public reve-
niue on hand was deposited in selected banks To be
discounted on by them, with various regulations OF
security the public funds were transferred Ivy Their
agency their notes received and paid out in the
dealings of the Treasury and they We're relied on
to conduct the exchanges of the country and furnish
its paper currency.
At this period the number of banks chartered by
the several States had greatly increased, many beng
created for the alleged purpose Of supplying the anti
cpated vacancy in business by reason of the refusal
of a new charter to the ned States Bank the total
number of banks in operation in the United States
being GIG, with capital of upwards Of 324 OO0O 600
dollars.
This amount of capital was greatly beyond the
true wants of the country much of it was fictitious
the business altogether overdone; excessive bank
issues and overtrading followed hand in hand; and
at length Gin 1884, the whole machinery fell into
pieces, and general suspension of cash payments by
all the banks in the United States occurred
Thereupon, the President Mr.. Van Buren,, consi-
deriDg the incorporation Of National Bank uncon-
sttu,ional and if constitutional yet unwise, and deem
ing the continued use othe State banks either mprac-
tcable or ineYpedient, recommended radical change
in the fiscal operations of the Federal Government,
which with modification Of the original plan)
became The law of the land the 4lh OF July, 1910
by the pass ge of the act to provide for the collection
safe keeping transfer and disbursement of the public
money.
The principle Of this plan was the ultimate total
separation of the Federal Government from all Deepen
dence banks bank paper in the business of the
Treasury. The Treasurer Of the United States, and
various officers Of the Government under him, were
required keep the public moneys in the vaults OF the
Government perform all the duties of transfer as well
deposite; and provision made for exacng imme
diatey one-urh fall public dues be paid in gold
silver and for the addition Of oneiouth TO that requI
ston yearly, that aud after the expiration of
three years all payments to the Government should
be made gold and silver onlv the sole and exclu
syely legal currency of the United States.
This act continued in force only year, being
repealed by the act of 1871, which threw back
the business of the Treasury on the provisions of
the resolution of 1916, and the original act establish
ing the Treasury Department where it stands.
And thus, by the vicisstudes of opinion and OF
party, and the successive reflections of the plan Of
Bank OF the Unite States that of deposite in State
banks and of the independent Treasury Congress is
invited and required to examine the whole subject
anew, free from all impedimen,s of existing law and
settle it the principles of justice and general
pedency, and the letter and spirit of the Constitution
In all times and in all countries under every form OF
institutions and every condition of society the same
common question of the public revenue how best il
shall be collected guarded, and disbursed; in what
form, and on what Objects Of taxation it shall be e-
Wed in what material it shall be received and paid
out its custody in the interval between the time OF
collecting and that of disbursement its transmission
and the description and combination of agents or Off
by whom all these operations shall be perform
ed-has never ceased to be of the most perplcX
ing problems OF Government ~
Every wise Government whatever NAV be the
source or tenure of its power, will, of course in
the solution OF this problem, aim to reconcile its own
interests with those of the community it governs
If it be constitutional Government, established and
existing only by the consent of the governed its func-
fnnQ No h,,fn h..lt,, l..
their advantage. If it be despotic Government
holding its powers by force prescription, still its
own greatness is nseparably connected with the well
fare and prosperity of those whom it rules and the
extent OF its own pecunary resources depends upon
theirs.
The question, therefore, becomes complicated al
once, by the duty Government lies under, of consider
ing not only what is convenient for itself in merely
fiscal point of view, but what, compatiby with that
great exgency, will most promote, or at all events
least impair the productive industry and social we'll
being of the community at large in all, private rea-
tions. TO the combination of these two primary OBJ
ecs it should look in the perception of its revenues
and to the same in their custody, transmission, and
disbursement.
Whatever course of policy Government may choose
to adopt IN these respects it must, of necessity a.
the Indispensable condition precedent of any regular
system of fiscal measures, fix a money standard or
measure OF value, for the regulation Of all dealings
between itself and the community unless it receive
every thing in kind, and pay out the same. Even
then, 1t must have some sort of measure of value.
Otherwise all taxation will be arbitrary unequal and
oppressive 1t is convenient that the standard of va
lue, between itself and the community SHALL if pos
sible be the same that between the individuals of
the community themselves in their own mutual deal
ings 1t is moreover, in other relations a proper
function of Government for the sake of uniformity
for the prevention of disputes and for the execution
of the laws between and man, to prescribe the
measure by which the value of property, the ex-
change OF commodities, and the collection of debts
shall be regulated. Unless there be such fixed
standard of value, the property and the labor of all
will be at the mercy of the Government and of indi-
viduals Hence the universal exercise by all civilized
governments, of the power to coin money, and as
sign to it a standard denomination of value.
If it were possible to discover or devise any sub