The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-09-13
A BANK AND THE ExCHEQUER.

In INV last number I succeeded in showing
the Effects Of the Exchequer on the finances oil
the country. IL remains TO be seen what infiu-
ence il is calculated 10 have on commercial ope-
rations.
As preliminary 10 this, II may be said tha'
nothing is SO essentially important 10 the con-
Germs of individuals as steady and uniform
supply of a currency. BY ii the business Of
life moves on At an agreeable pace the pulse oil
the body polite, like that Of the human system
indicates the greatest degree Of health, when
neither over-stimuated nor depressed. To
tain il in that condition is the great and YET dit
ficut task of the political doctor. II, by various
Quackery, it has been raised TO tevef-heat by
ver-stimulation, he will reduce IT by degrees,
so as far as possible TO produce no unnecessary
waste of the physical or moral energies aud so,
when under previous prescriptions,th the currency,
which is the blood OF the political system, shall
have been reduced too low, he will, by all pro-
per applications restore II 10 ITS proper quantity
This last is the great cure now to be effected
in this country. BY the great redundancy OF
bank issues from 1884 TO 1896, the body polite
was thrown into the most excited action Ex-
cessve speculation was the necessary conse-
quence, and as the result Of that universal in
debledness, property of all sorts was trebled
in value. Ii was the old game of deprecated
currency, which (until men ascertain the fraud
which is always somewhere) seems fair and
real on the surface. A plain statement will suf-
fee to illustrate IT. 1t is supposed that eighty
millions amply sufficient for all purposes Of
the People of this Union ; but there was an addi-
ton of from $50 to S 10000, 900, and prices ne
cessarily rose in geometrical ratio. No wonder,
then, at the ruin of individuals and Indebtedness
Of the States. The revulsion wa, obliged to
come, and come il did, attended by conse-
quences the most disastrous The stimulanis
were excessive, and the depression sudden, and
overwhelming. The pendulum which had vi
brated so violently 10 disturb the running OF
the machine, has now scarcely any vibration at
ALL The object of the Exchequer plan is TO set
it in healthful motion. This it will inevitably
do; LIST, by furnishing an unquestionably sound
paper currency, and, 2ndIy, by its action on the
State Banks.
1t has been demonstrated, in previous mum
Der, that, while the issue of the Exchequer Is
nomnally three for one, yet, that aided by the
reserved stock of $1,000, 900 and the daily ac-
cruing revenue, its issues of $l5,000,0 900, would
be quite equal, if not actually SUPERIOR to an Is
sue from an ordinary Bank of dollar for dollar
But, while such would be the case in fact, 1T
would act upon the State Banks in precisely
the same way as if its issues were three for one
This, with FIVE millions of specie, would issue
$l5, 100000 Of bills. In its weekly settlements
with the Banks the effects of this would he
seen upon commerce and trade.
In comparing the plan of the Executive with
either of the plans submitted by Mr.. Tallm adge
or Mr. Gushing, confess myself TO be strongly
impressed with its superiority in the above re-
spect lam not banker enough SAY what would
be the effect of weekly settlements with the
State Banks, on the part Of the Exchequer is
suing dollar in paper for every dollar IN specie
and no more. But | am strongly impressed
with the belief that it might prove disastrous 10
the State Banks. If their issues were equal
now to two for one, ii would seem to follow that
weekly settlements with the Exchequer, and
payment Of balances in specie would inevitably
have the effect of reducing the circulation Of the
State Banks. But not so with the plan
of the Executive. Issuing itself three
for one it would enable the State Banks
to enlarge their discounts, and increase
their issues with perfect safety, to do which
would give new spring 10 all individual
pursuits-unfurl once more the sail OF com
merce, and cause JOY and prosperity once more
TO re visit our land-no flful state of prosperity
is that of which l speak-but that which arises
from good laws well administered No nfiaed
bladder is it proposed 10 blow up, but gentle
and steady breeze, which would fiji the sail OF
bring the noble ship back again TO bless the
land
Who can object to this, be he Wing or be he
Democrat Who shall keep back the tide OF
returning prosperity, because the proposed mea-
sure does not originate with him or his party
If the objector be Wing, say to such an one,
redeem now the promises which you made SO
profusely to the country in 1910. Here is
measure which will enable you to do it worth,
for the purpose, more than all the u. ). Banks
that ever fitted across the brain Of the vision
ary. The relief begins from the day OF the pas
SAGE of The law, anu goes ON incr asing until
the addition of SIS, 100000 is made to the cur
rency. The plan invokes the aid of no corpora
tons, no large capitalists, no money lenders, no
gamblers in stocks, no briblng Of politicians or
presses, no Partially, no favorilism. The crea-
ture of law in the custody of law,-repealable by
law. Will nothing do with hig but a
Bank2 Is not the country sick Of the Bank,