The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-01
THE EXCHEQUER BILL.

The debate in the Senate on w ednesday,
on the reference of the Exchequer scheme,
we have read with interest-we may say with
some pride. A discussion bringing forward
the views of such distinguished men as
have enlisted in it, cannot fail in interest
ing-whe the ability exhibited, and above
all TIE statesmanlike frankness manifested,
must create sensations OF sell qualification
in the bosom Of every American, that the dig
nifty even ofopposition in the American Senate,
is such as should exist in the highest legisla-
tive hall Of free people. Difference of OPT
mon with regard to the great measures which
should be adopted for the benefit of the coun-
try, has elected no hostility of feeling with
respect to the projectors OF the Exchequer
schemes opposition, determined opposition, TO
the scheme itself, has been expressed but in a
tone Of dignifed patriotism, becoming the Anne
rican Senate. Though we think that the ex-
preston of the opposition was premature we
are gratified with the form in which it has been
uttered Its tone is moderate and while it
declares dissent, processes readiness, in most
instances, Of meeting the difficulties of the ques-
uOH 10 De Settltu III Tue spun III WHICH tHe re-
port of the Secretary has been written-a spirit
of compromise and forbearance. We should
have preferred, however, that the language Of
denunc I'll on--though coureous-should not
have been so dictatorially positive. The Elk
chequer was declared to be a great Govern
ment Bank, principally on the ground of its IS
suing paper credit. During the debate, the
ground was demonstlat not to be true. Bank
ing and issue were shown to be in their nature,
as they should be keptn practice, distinct in their
operation. 1t is distinct question whether pa
DER circulation will not inevitably exist-and
whether the Government may not constitutions
ally issue paper credit, and whether it will not
consult the interests of the people, and interests
Of the country by so doing. We might adduce
many arguments in favor of the positive form
fthcse propositions, but when we find some of
our own views urged with greater vigor, than we
are capable of infusing into them, and sane
tionedI at the same time, by the authority of a
great name, we prefer to give them through the
medium Of an extract, rather than to indite
reasoning of our own. We are confident that our
reader will be more gratifed by the perusal Of
the following passage from a speech of the
great statesman of South Carolina, TO any ucu
brations of ours. Tie substitute is so far supe
rior to the enlisted soldier, that the exchange
will be readily accepted.
{" It is then, my impression that in the present con
dition Of the world paper currency in some form
if not necessary, is almost Indispensable, in lnancla
and commercial operations of civilized and extensive
communities. In many respects it has vast superi
ory over metallic currency, especially IN great anc
extended transactions, by its greater cheapness, light
ness and the facility of determining the amount
The great desderatum IS, to ascertain what descrip
ton of paper has the requisite qualities OF being free
from huctuaton in value, and liability to abuse in the
greatest perfection have shown, | trust, that the
bank notes do not possess these requisites in degree
sufficiently high for this purpose. go farther, II
appears to me, after bestowing the best reflection
can give the subject that convertible paper thai
is paper whose credit rests upon promise 10 pay
is suitable for currency. 1t is the form of credit pro
per in private transactions between man and man, but
not for a standard of value to perform exchanges
generally, which constitute the appropriate functions
of money or currency. The measure of safety in the
two cases are wholly different. A promissory note
convertible paper is considered safe, long the
drawer has ample means to meet his engagements,
and in passing from hand to hand regard is had only
to his ability and willingness to pay. Very different
is the case in currency The aggregate value of the
currency of country necessarily bears small pro
portion to the aggregate value of its property This
proportion is not well ascertained, and is probably
subject to considerable variation in different coun
tries and at different periods in the same country
1t may be assumed conecturally in order toustratt
what say, at one to thirty. Assuming this proper
ton to be correct which probably not very far from
the truth, 1t follows that in sound condition OF Tho
country where the currency metallic, the aggregate
value of the coin is not than in thirty of the
aggregate value of the property 1t also follows tina
an increase in the amount Of the currency by the adj
dition of paper circulation of intrinsic value, but
increases the nominal value of the aggregate proper
ty of the country in the same proportion that the in
crease bears to the whole amount of currency that
if the currency be doubled, the nominal value of the
property will also be doubled Hence it is, that when
the paper currency of country is in the shape OF
promissory notes. there is constant tendency to
We look for their safety to the ability of the