Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1842-12-10


same should moi exceed the maximum OF s 81
100000. In order TO guard against all the
hazards incident to fluctuations IN trade, the
Secretary Of the Treasury was invested with
authority to issue S., 900 900 OF Government
stock, should the at any time be regard
ed as necessary, IN order to place beyond
hazard the prompt redemption OF the bills
which might be thrown into circulation
Thus in fact making the issue Of SI5 100000
of Excheuuer bills, rest substantially on S lO,-
100000; and keeping in circulation never
more than one and one.halt dollars for every
dollar in specie. When to this ii is added that
the bills are not only every where receivable
in Government dues, but that the Govern
ment itself would be bound for their ultimate
REDEMPTION, no rational doubt can exist that
the paper which the Exchequer would fur
Dish would readily enter into general circu-
la,ion, and be maintained at all times at
above par with gold and silver; thereby re-
alizing the great want Of the age, and fulfill
ing the wishes OF the people.
In order to reimburse the Government the
expenses Of the plan, 1t was proposed to IN
vest the Exchequsr with the limited authorI-
ty to deal IN bills of exchange, unless prohIb-
lied by the State in which an agency might
be situated. having only thirty days TO run,
and resting a fair and bona tide basis
The Legislative will on this point might be
for partlaIity or savoritIsm. 1t was further
more proposed 10 invest this Treasury agent
with authority to receive on deposite, to a
limited amount, the specie funds of individ-
uals, and 10 grant certificates therefor, to be
redeemed on presentations, under the idea,
which is believed 10 be well founded, that
such certific ites would come IN aid of the Ex-
chequer bills in supply ing safe and ample
paper circulation. Or, If in place of the con-
Ind Il aaII in
uer should be authorized not onl Y to exchange
its bills for actual deposl,es of specie, but
for specie or its equivalent to sell drafts,
charging therefor a small but reasonable pre-
MUM, 1 cannot doubt but that the benefits of
the law would be speedily manifested in the
revival of the credit, trade and business of
the whole country. Entertaining this opln-
ION, it becomes my duty to urge its adoption
upon Congress, by reference to the strong
est considerations of the public interests,
with such alterations in its details as Con-
gress NAV IN its wisdom see fit to make.
am we'll aware that this proposed altera-
ton and amendment OF the laws establishing
the Treasury Department has encountered
various objections, and that among others IT
has been proclaimed a Government Bank of
fearful and dangerous import. 1t is proposed
to confer upon II no extraordinary powers
1t purportS 10 do no more than to pay the
debts Of the Government with the redeema-
be paper of the Governmental which res
pect it accompllshes precisely what the
Treasury does daily at this time, IN issuing to
the public creditors the Treasury notes
which, under law, it is authorized to issue
1t has no resemblance to an ordinary Bank,
it furnishes no profits to private stockhol-
ders, and lends no capital TO individuals. If
ii be objected TO as a Government Bank, and
the objection be avaiIabIe-then should all
m I.,y rpi q be
pealed, and the capacity of the Government
10 collect what is due to il, or pay what it
owes. he abrogated.
This is the chief purpose Of the proposed
Exchequer; and surely If, in the accomplish
ment of a purpose SO essential, 1t affords
sound circulating medium TO the country and
facilities to trade, ii should be regarded no
slight recommendation of it to public consid- /
Grafton. Properly guarded by the provisions
of law, il can run into no dangerous evil, nor
can any abuse arise under 1t but such as the
Legislature itself will be answerable for, if it
be tolerated; since it is but the creature of
the law, and is susceptible at all times of
modification. amendment repeal. at the
pleasure of Congress. | know that it has
been objected that the system would be La
bic 10 be abused by the Legislature, BY whom
alone it could be abused, IN the party con-
fiicts of the day That such abuse would .
manifest itself in a change of the law which .
would authorize All excessive issue of paper
for the purpose of initiating prices and win
ming popular favor.
To that 1t may be answered that the
assumption of such a motive to Congress is
altogether gratuitous and inadmissible. The
theory OF our institutions would lead US to n
different conclusion. But perfect security
against a proceeding reckless, would be
found 10 exist in the very nature of things
The political party which should be so blind
TO the true interests Of the country, as to re.
sor, TO such an expedIent, would inevitably
meet with overthrow in the fact that. the mo-
ment the paper ceased TO be convertible into
specie, or otherwise promptly redeemed. it
would become worthless. and would. IN the
end dShOnOr the Government invoIye tho