Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1842-12-09

poses of general circulation, it necessarily
and unavoidably adopted specie as the exclu-
sive currency for its own use. And this
must ever be the case unless one of the other
kinds be used The choice, in the present
state of public sentiment, lies between an
exclusive specie currency on the one hand,
and Government issues of some kind on the
other. That these issues cannot be made by
a chartered institution, is supposed to be con
clusively settled They must be made, then, !
directly by Government agents. For several
years they have been thus made in the form
of Treasury notes, and have answered avail
liable purpose. Their usefulness has been
limited by their being transient and tempo F,
rary; their ceasing to bear interest at given
periods, necessarily causes their speedy re-
turn, and thus restricts their range of clrcu-
aion, and, being used only in the dlsburse-
ments of Government, they cannot reach
those points where they are most required.
BY rendering their use permanent, to the
moderate extent already mentioned, by Of
fering no inducement for their return, and
by exchanging them for coin and other val
ues, they will constitute to certain extent,
the general currency so much needed to main
!
this is the Exchequer plan, SO far as it may
operate in furnishing currency.
Icanuot forego the occasion to urge its i'm
portance to the credit of the Government in
! financial point of view. The great necessity
Of resorting to every proper and becoming eX-
pedient in order to place the Treasury on
footing of the highest rcspectahility, is entirely
obvious. The credit of the Government may
be regarded as the very soul of the Govern
ment itself-a principle of vitality without
which all its movements are languid and all its
operations embarrassed In the spiritthe EX-
ccutve felt itsefbound by the most imperative
sense of duty to submit TO Congress, at lis last
session, the propriety Of making specific
pledge of the land fund, as the basis for the
negotiation of the loans authorized TO be con-
tracted. then thought that such an appca-
ton OF the public domain would, without doubt,
have placed at the command Of the Govern
ment ample funds to relieve the Treasury from
the temporary embarrassments under which it
labored. American credit has suffered con-
siderable shock in Europe, from the large in
dcbtedness of the States and the temporary in
ability of some of them to meet the interest on
their debts The utter and disastrous prostra-
ton of the United States Bank of Pennsyva-
MIA, had contributed largely to increase the
sentiment of dstrust by reason of the loss and
ruin sustained by the holders OF its stock, a
large portion of whom were foreigners, and
many of whom were alike ignorant of our po-
litical organization, and Of our actual response
: hiities. IL was the anxious desire of the Ex-
ecutive that, in the effort to negotiate the loan
abroad the American negotiator might be able
to point the money lender to the fund mort
gagged for the redemption Of the principal and
interest of any loan he might contract, and
: thereby vindicate the Government from all sus-
$ pcion OF bad faith or inability to meet its en-
gagemcnts. Congress differed from the Exec
utive in this view of the subject. 1t became,
nevertheless, the duty Of the Executive to re-
sort to every expedeht in its power to nego-
i tiate the authorized loan. After n failure 10
5 do 50 in The American market, citizen thigh
/ character and talent was sent to Europe with
: no better success; aud thus the notifying
!; spectacle has been presented OF the inability OF
9 this Government to obtain a loan so small as
not in the whole TO amount TO more than one
), fourth its ordinary annual income; at time
II when the Governments of Europe, although
y involved in debt, and with their subjects heav'
J. lily burdened with taxation, readily obtain loans
l. 'o' any amount at greatly reduced rate of in
o terest. 1t would be Improbable TO look fur
>. ther into this anomalous state of things, but
j, cannot conclude without adding thar, for
VI Government which has paid off its debts Of two
J. wars with the largest maratime power Of Eu
J. rope, and now owing a debt which is amos
IS next to nothing when compared with its bound
d less resources, Government the strongest ii
It the world, because emanaing liom the popula
n will, and firmly rooted in the affections of
great and free people, and whose fidelity TO it
engagements has never been questioned; 70
u such Government to have rendered TO thu
l. capitalists Of other countries an opportunity 70
a small investment of its stock, and yet to have
Y, failed, implies either the most unioundcd dis
d trust in its good faith, or a purpose to Obtain
r. which, the course pursued is the most iata
~ which could have been adopted. 1t has nov
. become obvious to all men that the Govern
Is ment mist look to its own means for supplying
IN its wants, and it is consoling TO know that thes
lie means are altogether adequate for the object
le The Exchequer, if adopted, will greatly aid i
II bringing about this result. Upon what re
/ gard as well-fnundcd suppositon that its bill
- would be readily sought for by the publ
" creditors, and that the issue would in shoT
De time reach the maximum of $1,000 900, it
~ obvious that $4,000, 900 would thereby
ty added to the available means of the Treasur
Id without cost or charge. Nor can fail to urg
n the great and beneficial effects which would b
ar produced in aid Of all the active pursuits of life
y Its effects upon the solvent State banks, Will
IL il would force into liquidation those Of an OF
D. posite character through its weekly settlements
We would be highly beneficial; and with the at
n vantages of a sound currency, the restoratio
rs OF confidence and credlt would lolloW, win
ut numerous train Of blessings. My conviction
80 are most strong that these benefits would ao'
~ from the adoption of this measure; hut if tn
y result should be adverse, there is this securit
'il in connection with it, that the law creating
he may be repealed at the pleasure of the Leg
1t, lature, without the slightest implication Of i
nv good faith
IS recommend to Congress to take into col
So sderation the propriety Of re-imbursing fir
nj imposed on General Jackson at New OreaI
~ L. H. 1nH 10 IL