The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-03-02
REVIEW OF THE EXCHEQUER
SCHEME,


Although the points connected with the Elk
chequer have been ably argued in the reports oil
the committees in Congress, still we are in
clined TO think a more extended analysis will
be productive of some good, in difIusing among
the people proper notions as regards the prlnci-
Piles upon which this institution rests, and the
benefits likely to result to the community from
its establishment,
Before the original plan, as presented by the
Secretary Of the Treasury, was referred TO the
calculated to produce false impressions in regard
TO its operations and general tendencies. The
speeches made on this occasion were circulated
throughout the country, spreading alarm ana
discomfort; the leaders Of the Opposition were
everywhere active to seize the passions OF the
people, and pre-occupy their minds against the
institution.
We ask, does any man seriously believe, that
in such short time an institution OF this nature
could have been tolerably understood by the
great part of those who were induced to con-
domination of t2 Can this proceeding be con-
ton Of partisan feeling, excited by the wanonness
of party spirit, which had evidently seized
favorable moment to furorze the public opinions
this spirit of precipitation and the intemperance
which accompanied il, prevented greater part
of the most considerate citizens from under
standing its provisions
1t cannot be doubted that the real motive TO
the opposition was the fear Of a discussion OF
its merits by committee; the desire OF exclud-
ing light the adherence 10 a plan Of surprise
and deception. Nor need we desire any better
proof of the spirit Of party, which has stlmu-
lated the opposition to this institution, than is to
be found in the circumstances of that opposi-
ton.
Ii is impossible TO prevent the sad results
which a misguided zeal may lead TO, when 1t
has broken loose from the restraints ofptinciple
when majority in Congress are swept along
by the combination Of few highly gifted and
ambitious spirits welding an immense moral
and political influence. The machinery which
touches and agitates the passions, if not in the
velocity of its career, by the contributing forces
of knowledge and virtue, will PROSTATE the fair
est monument of the industry OF men, and
heave from their foundations the best contrved
fabrics Of human policy.
We contend, in Hmine, that the principle OF
| adopting an exclusive metallic currency, is in
compatible with the general freedom of Republi-
can Governments. This rule has the sanction
of no common observance by civilized nations,
and cannot bear that faithful test which every
fair and righteous principle of an enlightened
policy will abide. Against the soundness OF the
principle itself il is also to be observed, that It's
advocates, instead Of tracing it to an age of re-
| finement and general intelligence, carry us back
to the days of barbarism the era Of its origin
| and instead Of stamping it with validity, by the
concurrence of the civilized world, indicate its
character by labored detail OF its relaxations
underline phases which foreign governments have
| assumed, whilst endeavoring to establish it,
But we are the more alarmed by this attempted
departure from plain and settled rule of polltl-
cal economy, of using paper currency, CONVEX
tible into gold and silver, in favor of involved
the accomplishment of the worst purposes Of
individual and national mischief, because the
| injurious opera ions and vcxatous qualities Of
| an exclusive metallic currency must have been
| known to those who had advocated the ,estab-
| lishment Of such system.
| If the Exchequer should be organized and put
| into operation, and prohibited from receiving
the notes of specie paying banks, either 10 pay
ment Of public dues or on depositc, the very ca
lamity Of non-resumption which now afflicts
society, and its continuation, so much to be de
precated, will be augmented in its severity, ant
| lead to further disasters and embarrassments il
all of the departments of industry, in conse
quence Of the discredit thrown upon the paper
of the banks, by its rejection by the Govern
ment.
But suppose the Exchequer is allowed to re
ceive the notes of banks convertible at will into
the precious metals, what will be the conse
quences of such feature engrafted upon III,
system? Why, to a certain extent, such note
will be elevated to condition OF high credit
owing to their general recevabiity into the ma
tional treasury. Their recevableness, however
will depend altogether on their convertlbilil
into coin. But no man can deny that this coun
tenance and support, given to the banks by tn
Exchequer, will have a powerful tendency t
raise the credit OF State institutions, to bege
confidence, and prevent the withdrawment Of
large amount OF circulation, and at the same tim
check the constant draining the banks of thei
specie.
1t is maxim, universally admitted to be true
in the operations Of banking, that in proportion
as you elevate the value of paper currency an
place it on par with the precious metals, so j
proportion do you lessen the demand for coir
~ G 49,.