The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-02-28
A REVIEW OF MR.. TALLMADGE'S REPORT
ON THE EXCHEQUER BOARD


/, ON THE EXCHEQUER BOARD.
The objects proposed to be obtained by this instr
! tuition are the most interesting, comprehensive, and
important which could be obtained by any fiscal
agent; aud this accomplishment is absolutely neces-
sary for the regulation and stability of the currency
of the country and for the maintenance of the nte-
rests and honor Of the nation
Turning our attention TO the situation Of the ma
ton, at the present time, with reference to the prin-
cipes laid down in our former review, it is OBJ
yious that the sources of prosperity which flow
ed in one unbroken stream, have ceased to exist.
Hence, also, we find our much contracted,
industry paralyzed, and confidence destroyed great
and numerous failures have been the consequence
securities hitherto negotiable, can longer find dis
count; many of the dscouners themselves are ruin
ed; general suspicion has been awakened, and the
whole Of the monetary system is superstructure,
built upon the basis of an irredeemable paper cur
rency,
And as this is the most unfavorable state in which
nation can find itself placed, il is the duty Of the
statesman in whose hands is confded its direction, to
inquire into the causes which have created these
favorable circumstances. If he finds them to be
merely transient, ecacious remedies, to alleviate
present Distress to enable the community to sus-
tain the shock of passing events should be sought for
and applied but, if found to originate in causes
which cannot be confidently anticipated to disappear
of themselves, it is also his duty to devise new
system of policy, adapted to the new situation of the
nation
I If there be any one truth in political economy
more sacred and rrefragibe than another, it is that
the prosperity of nations bears exact proportion
to the encouragement of its domestic and foreign
/ commerce, and that their decay and decrepitude
commence and proceed with their neglect of it, The
wonderful resources of England, so far beyond her
intrinsic advantages and the PROSTATE state OF Spain
and Portugal, place these great truths on most inn
pregnable grounds.
In wide-extended country like the United States,
where inland navigation is carried on to such won
derfu extent and possessing such great dverses of
interests, well dissmilar institutions, there is
proposition more undenable than that the currency
of such country should be uniform, and placed upon
the most stable foundation.
i National wealth does not consist in land, people,
the precious metals, but in the possession OF pro-
ducts values created by labor. If the producer be
unable to convert his products into money owing to
the deranged condition Of the currency, most assured
ly such state of things must be productive OF ndi
vidual and national distress.
The primary and efficient cause of the present
embarrassments of the United States, to be found
in want of uniformity in our currency, which re-
suits from there being no legal or constitutional re-
strants on its issues This is consequence of our
complex form of Government: In twenty-six States,
each of them assuming and exercising the sovereign
attributes of authorizing the manufacture of money,
to unlimited extent without the smallest check or
control, other effects could possibly have been pre-
dicted than those which have actually occurred
The question very properly recurs, will the Exche-
quer operate a check upon the local banks We
think it will According to the provisions of the
BILL the paper of the State banks is to be received
deposte, If they issue large amount Of paper, it
will rapidly return on them for redemption. This
constant demand on them by the Exchequer, for the
redemption of their paper in specie, will neces-
sary tend to check them in running to any ex-
cess. IT, then, they wish to maintain their
credit among the mercantile part of the community,
and preserve sound circulating medium, they would
be constrained keep their circulation within man,
ageable bounds to be able to redeem il whenever is
required in specie. 1t is thus that the State Banks
would keep then notes equal to gold and silver But
when weny-sx sovereign States undertake to furnish
the country with a circulating medium, unresraned
and unregulated in the management Of their banking
Institutions operated upon 10y different views of poll
cy and controlled in their action by general super
intending power, it matter Of astonishment to be-
hold the country inundated with mass Of rredeema
bic paper yariousy deprecated
! Ifa traveller from distant country, altogether
unacquainted with our banks and paper credit, had
put the question, what the Legislatures of many of
the States were about, when they were 30 busiy en-
poyed for SO long time in the consideration of plans
1 of finance, and been told that they were creating
money, he would doubtless have imagined that they
were engaged in the business Of coinage. The con-
ventona value of gold and silver had been distracted
from the precious metals and transferred to paper,
stamped with promise to pay so that money has
come to be operation of the mind act of faith,
not substantial or material, but metaphysical sort
of thing, and easily multiplied, that bank notes
almos, exceeded calculation.
| If then the Exchequer will exercise restraining
influence over the State Banks and thus prevent
dundant issues by demanding weekly settlements of
any balances that may exist in specie ask, if be
not desirable that an institution capable of working
such important results should be established and en-
dowed with every necessary attribute to enable it to
perform all the objects, which its friends have
guinely contemplated In fine, the Exchequer will
provide for that unity of action and equality of value
that is Indispensable and oviae those fluctuations
in trade that destructive of the public interests
1t is alleged that the provision in the bill allowing the
Exchequer receive the notes of specie paying banks
on deposte, is hostile to pure and sound currency.
This position is clearly untenable We contend thatit
will be productive of consequences of most extensive
and salutary character. The requirement that all
dues to the United States shall be discharged in spe
Gle, we believe would augment the pressure of the