Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1842-03-05

/ consequently expose the Government TO grea'
hazard and eventual loss: :. That II might be
used for political purposes. and tor party favorit
ism: 3. That ii would lead 10 fictitious dealings
in exchange, without any real business basis.
The evils which would flow from all these
sources need not be enlarged upon. They Will al
once strike the mind of every rejecting man.
But, aside from these objections, there are 9th
es which :nduce the committee to reJec. this
power to purchase exchange. 10 exercise II DIS
cretely and safely, three things are necessary,
namely, individual interest, individual sagacity,
and individual vigilance: interest, TO secure prop
or attention; sagacIty, to Distinguish real from
fictitious operations; vigilance 10 watch over the
transactions from inception to maturity and pay
ment. These qIallties, lrot. The na,ure OF thugs,
cannot be combined 10 the desired cxten, in a
public officer, however faithful and honest he may
be. He may intend, couscIcntIously, TO DIS
charge his duty but IN business operations OF
this description he cannot discharge IL as an indi'
vidual would transac. his own business. itwould,
therefore, be dangerous TO give this power, with
out Incorporating tho interests OF individuals into
the system, which is no, proposed 10 be done.
The committee, however, propose IN another
m0de 10 confer substantially tho came benefits
wi,hou, any of the risks. This can he acconp-
!ished By authorizing the Exchcquer and It's agon
cies 10 sell aud collect bills OF exchange. IL .his
there is 40 possible hazard.
|. AS to selling. This may DO done, either by
one AGENCY drawing a bill on e%nothor, OIL pay
meni of the amour! end premium IN spccin, or
by accepting The hiI! payable al tho agency where
drawn, as will best coDport With the state OF &C
counts between them, and best promote tho in
terests Of ell parties. This will answer all the
purposes of buying or discoun'ing bills OF ex-
change. Buying or discounting bills on time is,
III o;hor words, n mode Of anticipating funds.
Tho Legitimate object ela bill of exchange is net
10 anticipate, bat to remit funds. These funds
may be romilted, without hazasd, on the pnrt OF
d. ~F H. - tho hTfi a-i
Mt tho same time accommodate equally we'll the
individual TO whom lhev belong. For example,
if a merchant IN New York has funds in C,ncin-
natl, for which he Is entitled 10 draw at six.y days,
he may direct his correspondent there, at the
end Of that time, to deposit the amount in te
agency at thai place, and send him a blll at sight
on the agency al New York, where be can receive
the amount on prostitution Of the bill. In the
mean time, Il he wishes 20 anticipate hts funds,
he can get his noto done atone Of tho local banks,
whose business it is to discount, and rely upon
the bill Of his correspondent at Cincinnati 10
meet i, at maturity.
= Is to collecting, tho "ufnrnittco purpose 10
authorize the Board Of txcheguer and It's ngon-
cIes, under regulations To be prescribed by tho
Board, 10 receive and collect such drafts aud bills
of exchange as may be deposited with them for
that purpose. drawn on my place where an Of
Of the ExchcqueT may be established; but
that 10 advance or payment shall DO made on
such draft or bill until il shall have been actual
ly collected, and advice received of such colloc-
ton, when the proceeds shall be paid over TO the
person cntitlod TO receive them, after doducting
reasonable charges and commission.
The facilities afforded by this system for sci
ling and collecting exchanges will promote the
of the whole country equally well with
tho power 10 purchase, aud at the same time save
the Government from the possibility Of loss or
3. As 10 the issue of Treasury notes on the cred
it Of the Government.
From the view taken Of this subject by the
committee, it Is unnecessary 10 discuss the quos-
ion as to how far the Issue of Treasury notes, on
he credit Of the Government 10 circulate as cur
-ency, Is obnoxious to the constitutional ohiec-
ion TO bills ofcredit.
The committee are Of opinion that no paper
issue on the credit OF the Government to
circulate as currency.
There can be but two motives for the issue of
such paper; /. To anticipate the revenue 70 meet
he engagements OF the Government. ,. To aid
he currency Of tho countryby this add ion 10
he circulating medium.
As 20 the first, tho committee hold it wrong in
principle for The Government 10 anticipate its
evenues by this means. lis tendency would be
0 excessive issues, and 10 . reluctance on the
OF the Government to levy adequate duties
or revenue. Either result would be IN the high.
lst degree derogatory TO orr national character.
The revenues of the country should always be
to the economical wants of the Govern
nent, and the Government should never have
TO anticipate its revenues. But, If m
should happen when its means are
lot Sufficient to meet lis engagements. II may
yet the authority of Congress, as has often been
before, to ISSUE Treasury notes. not as q
bet as a means of Borrowing; Treasury
totes, bearing an interest. TO DO taken as an in
'esitnent Of capitals, and not rs a circulating
Medium for the People. L
AS to tho second, The committee do not per
'eivo how a curreacv issued on the credit 81 the &
Government can make any permanent addition
0 the circulating medium beyond the business {
wants of the country. Such a currency. if it {
ould be put in circulation beyond those wants,
would d~Isplace and send into retirement an equal c
lInount Of The local currency. So that the ar
amount veraininr would ia tha = arca n :