The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-02-24
1. As TO Erseutire Patronage and Popsr

The patronage under this system consists in the APP
pointment to Office and the power in the removal from
Office. These objections will lie, to greater or less
extent, to any system which can be adopted But the
committee think, under the notifications proposed,
they will be substantially obviated The President,
with the advice and consent of the Senate appoints
three commissioners, who form the Board of Exche-
quer. These commissioners removable only with
the of the Senate and for physical ina
bliIy, lncompctency, neglect violation OF duty
They are therefore, independent of any improper Elk
ecutive influence, if any should be attempted to be
exercised over them. The number of agencies is to
be determined by the Board of Exchequer; but to he
limited to as few the exgences of the service will
admit, and In no to exceed two IN any State or
Territory The probability is, that, with the excep-
ton of one or two States there would be no necessy
for more than one agency 10 each, and In many in
stances even that might be dispensed with and these
agencies may be the sound specie paying banks OF the
States where would not be desirable for the agency
receive deposites, to accept sell bills drafts
account ofthe Board of Exchequer which banks, act
ing agents, prohibited to do In all these
there would be no officers to he appointed an the Sc
lection OF the specie-payng banks, agents, would
be made by the Board of Exchequer who, it has been
already shown, are independent of Executive IN
huence The only officers, then, to be appointed
would be at the agencies established at some of the
most important commercial points. these are to be
appointed by the Secretary of the Treasury, on the
recommendation of the Board of Exchequer, and the
mendation such inferior officers of the board 10 the
judgment of the board the transaction of its business
may require.
Any ofthe officers of the agencies may be removed
by the Secretary of the Treasury the recommends
ton of the board for physical inability or incompetent
cy, or neglect violation Of duty; but he must state
his for the removal of any principal officer OF
any agency in his general annual report of the trans
actions Of the Exchequer.
The whole extent of Presidential patronage under
the plan of the committee, is in truth thus reduced to
the simple nomination of three commissioners OF the
Exchequer subject to the advice and consent of the
Senate; the appointment and removal of all the other
officers of the Exchequer, either at the seat of Gov
eminent or the agencies, being virtually vested in the
board itself made effectualy independent of The pow
er of the President by the tenure of Office pro-
posed
From this brief view of the appointing and re-
moving power it will be that the Executive pat
onage by of the appointment to office, is very
little, and the Executive power, by of the re-
moval from office, is still less.
2. As to the purchase Of bills Of Exchange.
To the feature of the plan of the Secretary of the
Treasury the committee object: L. That it would be
exchanging the credit of the Government for the
responsibility Of individuals and consequently expose
the Government to great hazard and eventual loss ;
2. That it might be used for political purposes, and
for party favorsm: g. That it would lead to fct
,ious dealings in exchange, without any real bust
ness basis.
The evils which would flow from all these sources
need not be enlarged upon They will al strike
the mind of every rejecting man.
But, aside from these objections, there others
which would induce the committee To reject this pow
to purchase exchange. To exercise it discreey
and safely three things necessary, namely, ndi-
vidua int crest individual sagacity, and individual
vigilance: interest," to proper attention; saga
city, to distinguish real from fictitious operations vigil
lance to watch the transactions from inception to
maturity and payment These qualities from the ma
ture of things cannot be combined to the desired ex-
tent in public officer however faithful and honest
he may be. He may intend conscientiously, to dis
charge his duty; but in business operations of this de
scription he cannot discharge it individual
would transact his own business 1t would, there
FORE be dangerous to give this power, without incor
poratng the interests of individuals into the SYSTEM
which is not proposed to be done.
The committee, however, propose in another mode
to confer substantially the same benefits without any
of the risks. This be accomplished by autoriz-
ing the E1chequer and its agencies sell and collect
bills Of exchange In this there possible hazard
l. As to selling. This may be done, either by one
agency drawing bill another, on payment of the
amount and premium in specie, or by accepting the
bill payable at the agency where drawn, will best
comport with the state of accounts between them and
best promote the interests of all parties This will
answer all the purposes of buying discountng bills
of exchange. Buying discounting bills time
is, in other words, mode of anticipating funds The
legitimate object of bill of exchange is not to antic
pate but to remit funds. These funds may be remit
ted, without the hazard the part of the Govern
men of the purchase of the BILL and at the time
accommodate equally well the individual to whom
they belong. For example, if merchant in New
York has funds in Cincinnati, for which he is entitled
to draw at sixty days he may direct his correspondent
there, at the end of that time, to deposite the amount
in the agency at that place. and send him bill al
sight on the agency at New York, where he re-
ceive the amount presentation of the bill In the
mean tme if he shes to anticipate his funds, he can
get his note done at of the local banks whose bu
sincss it is to discount and rely upon the bill of his
correspond ent at Cincinnati to meet it at maturity.
9. As to collecting, the committee propose to au
thorze the Board of Exchequer and its agencies I'M
der regulations to be prescribed by the board,
ceve and collect such drafts and bills Of exchange
may be deposited with them for that purpose, drawn
on any place where an office Of the EXchequer may
be established but that advance or payment shall
be made on such draft bill until it shall have beer
actually collected, and advice received of such col
lection when the proceeds shall be paid to the
person entitled to receive them, after deducting
sonable charges and commission.
The facilities afforded by this system for selling
and collecting exchange will promote the interests OF
the whole country equally well with the power to
purchase, and at the same time save the Government
from the possibility of loss or hazard.
g. As to the issue of Treasury notes the credit Of tn
Government.
From the view taken of this subject by the com
mee, it is unnecessary to discuss the question t.
how far the issue Of Treasury notes. the credit o.
the Government, to circulate currency, is OBJ
noxious to the constitutional objection to bills o
credit.
The committee are of opinion that no paper should
issue the credit of the Government to circulate
currency
There can be but two motives for the issue of such
paper l. To anticipate the to meet the en-
gagements of the Government. 2. To aid the cur
rency of the country by this addition to the crcuat
ing medium.
AS to the first the committee hold it wrong in prin-
ciple for the Government to anticipate its revenues
by this means. Its tendency would be to excessive
issues, and to a reluctance the part of the Govern
ment to levy adequate duties for revenue Either
suit would be in the highest degree derogaory to