The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1842-03-08
TEne Fiscal PLAN.
MIR. TALLMADGE's REPORT THE
SENATE

Presidents Message as relates the Fiscal Agent,
made report 10 the Senate which is quite lengthy.
We take from it the annexed extracts
The runous rates Of exchange result essentially
from deprecated paper circulation Ii the cur
rency can be made sound and uniform, II VIII, OF
itself 30 very far and with the facilities which the
General Government can give, will efiectual'y reg
ulate the exchanges.
The great evil under when the country iaDoIs Is
the want OF uniform currency anc an equaizatioh
of the exchanges. 49,
Can the General Government remedy this evil |?
This Government must have some mode TO col
ect keep and disburse its revenue. This involves
both the question of currency and exchange A
sound currency 10 receive in payment OF puoic
dues g Exchange to transmit to distant points
the revenues OF the Government in payment o. the
public creditor.
Eaecunve Pat onage and Poaocr.
The whole extent Of Presidential patronage I'M
der the plan Of the committees in truth thus re-
duced to the single nomination of three commits
sioners Of The Exchequer subject to the advice and
consent Of the Senate the appointment and reno
val of all the other officers of the Exchequer ,eher
at the seat of Government or the agencies, being
virtually invested in the Board itself made effectu
ally independent of the power of The President by
tbs tenure of Office now proposed.
From this brief view of the appointing and reno
wing power 1t will be that the Executive pat
ronage, by reason Of The appointment to office, is
very little, and the Executive power, by reason OF
the removal from office is still less
The Purchase Of Bills Of Eschange.
To this feature of the plan of the Secretary OF
the Treasury The Committee object: |. That IL
would be exchanging the credit OF the Government
Tor the responsibility of individuas,and consequent
Nv expose the Government to great hazard and
eventual loss; 2. That il might be used for political
purposes and for party avorItisu; ). That il would
lead TO fictitious dealings in exchange, without any
real business basis,
The Committee, however, propose in another
mode to confer substantially the same benefits with
out any of the risks. This can be accomplished
by authorizing the EXchequer and Its agencies to
sell and collect bills ell exchange. In there is no
possible hazard.
/. As to selling This may be done, either by
one agency drawing bill on another, on payment
of the amount and premium IN specie, or Dy accep
ting The bill payable at The agency where drawh,as
as W III best comport with the state of accounts be
tween them, ana best promote the interests OF all
parties This will answer all the purposes of buy
Ing or dlscouning bills of exchange. Buying or
dscounting bills on time SIN other words, mode
OF anticipating funds The Legitimate object OF a
bill ofexchange is not 10 anticipate, ont to remit
funds. These funds may be RENTED without haz
ard on the part of the Government, the purchase
of The bin and at the same time accommodate
equally well the individual 10 whom they belong
For example if merchant in New YORK has funds
in Cincinnati for which he is entitled tn draw al
sixty DAVIS he may direct his correspondent there
at the end of that time TO deposite the amount IN
the agency al that place, and send him bill at
sight on the agency at New York, where he can
receive the amount on presentation of the bill In
tho meantime, If he wishes tn anticipate his funds
he can get his done at ono OF the local banks,
whose bus is To discount and rely upon the
bill of his correspondent at Cincinnati 10 meet II at
maturity. n eF
2 As to collecting tho committee propose TO au-
,horize tho Board of Exchequer aud its agencies,
under regulations be prescribed by the board, to
receive and COLLECT such drafts and bills OF ex
change as may be deposited with them for that
purpose, drawn on any place where an office OF
the Exchequer may be established; but mat no ad'
vance or paymen, shalt be made on such draft or
bill until il shall have been actually collected, and
dvice received of such collection, when the pro
ceeds shall be pald over 10 the person entitled To
receive them, after deduchng reasonable charges
aud commission.
The facilities afforded by this system for selling
and collecting exchange will promote the Interests
of the whole country equally well with The power
to purchase, and at the same time save the Gov.
eminent from the possibility OF loss or hazard.
The issue Of Treasury Notes en- The credit Of the
Government
From the view taken Of this subject by the com
mittee it is unnecessary to discuss the question as
20 how far the issue of Treasury notes, on tho
credit of The Government, TO circulate as currency,
is obnoxious to the constitutional objection bills
of credit
should issue on the credit OF tho Government to
circulate currency. ....
The Committee, therefore, propose that pa
per shall be issued on the credit of the Government
To circulate ms currency; but that paper may be
issued for that purpose, based upon specie hand
dolar for dollar, and that The amount of such pa.
circulation sn0ll not IN any case, nor unuer
any circumstances, exceed the amount Of specie
holden FOR its redemption. a tH
The paper thus ssused is called specie notes, as
being currency based on specie, and conradis. !
distinguished from Treasury notes, which are is
sued on the credit of the Government, not for
rency, bu, means OF borrowing.
These specie notes can, in no sense whatever,be
obnoxious to objection as bills Of credit. They
are not based the credit of the Government but
are issued specie in deposit of an equal amount
for their redemption. They pnss by delivery from
hand TO hand, rs currency, and the possessor of
such note holds il evidence of ownership of
The amount of specie which il represents, and 10
the possession of which he is entitled ut any mo-
ment, on presentation of the note where issued
Until that time, the specie remains in the deposit
tory of the Government, is guarded by It's author
ty and the holder ofthe note has the responsibility
Of the Government for its safe custody,
These specie notes, issued upon the public rev.
enue 10 the public creditor in the disburse of
the Government, ard upon the deposits of indivld-
uals would form currency of the most perfect
character-a currencv combining all the conve
nences of paper with the value of coin. They
would every where be preferred TO coin. They
would be preferred by the public creditor as well
as by Tho whole community, because ono