The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-15
From the Philadelphia North .9n.e'iean.
MONEY AND CURRENCY.


ability to supply currency Of uniform value, and to
equalize the exchanges to the extent that even
the Bank of the United States did in its most pros
porous days, we think the evidence we adduced yes
terday must be sufficient to convince the most scep-
teal ''
In some respects, the plan partakes Of the charac-
ter OF the Sub-Treasury. The Exchequer is to col
lec and disburse the public revenue and TO receive
in payment only gold and silver or their equivalent
and TO pay out gold and silver TO public creditors.
Not even the Treasury notes, which it may be autho-
rzed to issue, can be rendered in payment, unless
they shall be equally acceptable TO those present.
ing demands on the Exchequer, gold and silver
Notes of sound specie paying banks may be received
in payments TO the Exchequer, provided they are inn
mediately convertible into specie. This was the
practice under the Sub-Treasury system The plan
OF the Exchequer contains every provision to secure
solid specie basis for the fiscal operations OF the
Government that could be found in the Sub Trea-
sury.
The Exchequer makes provision for the wants OF
the people as well as for those Of the Government
The Sub Treasury passed over the people, and was
machine for the of the Government only. This
was carrying out the principle asserted in high
place, that the people apt 10 look to the Government
or too much This ability to make provision for the
exigences of the people well for those Of the
Government, is what in great degree, constitutes
the excellence of the Exchequer plan
In the debate that has taken place, find side
of the Senate chamber urging the Sub-Treasury
again, as the only true plan that be devised and
IN nearly the same breath condemnng the EXche-
quer, uniting in the hands of the President the
purse and the sword, and increasing to vast extent
the patronage of the Executive We noticed the
first objection in former article. As to the second,
the patronage of the Executive will be diminished
under the Exchequer from what ii under the
Sub Treasury Under the former plan it is proposed
TO have three individuals appointed by the President,
with the consent Of the Senate, who shall constitute
the Board of Control All the officers necessary to
Al
pointed by that Board, to be accountable to them,
and TO be removable at their discretion Here then
but three individuals to be appointed by the Presi-
dent and the Senate, and their removal can be made
subject to the consent Of the latter power.
How was il with the Sub-Treasury There were
four Receivers General then about hundred
and fifty collectors, land receivers and registers, who
all recipients and custodians of the public
ney. These officers were all nominated by the
President and all removable at his pleasure.
Thus the whole Of the public money brought
within the immediate control of the Executive under
the Sub Treasury system added to which, all the
agents employed, as above enumerated, would be
to study to please the President for the purpose
ofsecuring their Offices
1t is objected to the Exchequer BY Mr.. Woodbury.,
that II Will lead to an alarming increase of Govern
ment patronage, by its having one two hundred of
hces and agenct Ia every State Where has it
ever been suggested that It was in contemplation to
have one hflh,pan of the smallest number OF agencies
seen. We have supposed that the agencies that
would be established would be limited to the promi-
nent points where the revenue is collected and with
the sole view OF facilitating the operations of the Go
vernment These do not exceed twelve urteen
in number. In place Of having agencies established
at the points where the smaller amounts of revenue
collected the plan proposes tiiat banks may be
employed by the Exchequer, to receive the revenue
under directions The first object in establi shinq
agencies of the Exchequer, should suppose would
Ina tai he of
the collection and disbursement of the revenue
Where there Is not any revenue collected or
where the amount is small branches of the Eek
chequer would be required. We have been inform
ed That under the deposiie bank syst M when the
amount of revenue collected in year amounted to
nearly fifty millions OF dears the most important
portion OF the whole business was performed by not
exceeding twelve or fourteen of the banks employed
that SO faI as the Government business was con
cerned that number OF banks capable OF extend
ing all tht facilities that required The number
of banks, were, however, increased by Mr. Woodbu-
ny, then Secretary Of the Treasury TO nearly one
hundred, of which his own State had we believe no
less than seven. This enlargement of the number OF
banks employed, probably, did much towards weigh
ing down the system.
Ailths imaginary danger from the establishment
of a great number OF unnecessary branches be
avoided by Congress fixing the number that shall
be estab she'd as well the places where they shall
be located.
1t is asserted by some Of the opponents ofthe plan
that the dealing in exchang by the Excaequer, viii
beneht only the Spectator and not the producer.
The opposite will be the fact 1t the producer that
is to be benefited by these operations because they
will aid him in Transporting his produce to market
without the additional charge and risk of transport
ing specie Tor lis proceeds
The advocates of the Sub Treasury and opponents
of the Exchequer assert that it is, necessary that
the power to deal xchange ouId be given to the
latter, because the settlement of all balances can be
made in specie, and aey-reer to the cheapness with
which 1t can now be ranspor cd from section Of
the country to another. Mr. Woodbury. stated thai
the expense of transporting specie from New Orleans
to New York does not exceed per cent which, he
SAID IS one quarter OF per cent less than in 1887
and he added that when he was at the head of the
Treasury Department he had twenty or thirty thou
sand dollars in gold brought in trunks from Indiana
without any expense.
Now here is political economist and statesman,
who was at the head of the Treasury Department
seven years, bringing his mind down to quarter of
per cent. expense in matter of great national
Germ Is not the expense of transporting specie that
should be looked at in this subject at all There is
something of higher Importance that should engage
the attention Of statesmen and that is, to avoid
constant transportation OF specie from section of
the Union to another for the settlement of balances
Specie is the foundation of sound currer CIV eyerv
where As that foundation is displaced by specie be-
ing taken from one place and carried to another, it
operates directly TO derange the currency of the place
from whence II may be drawn In the displacement
OF specie which must be constantly going on und,
the system of settling all balances by its use, the c-
culating medium of the country would become CON
yused throughout the country and could not ever be
free from 1t. 1t is that which the interests of all
classes require should be avoided. The exchange
dealings of the exchequer and the notes it may issue
will furnish substitute for specie with which to iqui
date all balances
We have neither space nor inclination to expose all
me iaacous Arguments that have been urged against
the Exchequer We will, however, notice one Of Mi
Woodburys. That gentleman, among the many
dangers which he thought he discovered in the plan
points TO the power three dollars in paper for
every dollar of money that may be received on depo-
site, and be owing to individuals in specie This,
like most of the arguments used against the Exche
quer, is destitute of any foundation whatever. The
amo"nt of notes proposed to be issued by the EXche