The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-02-19

than the third, the Secretary of the Treasury put his
decision simply on the point that there ado
quats motive" that is, no Government exigency TO
induce the of its credit rs the basis of circula
ton; expressly asserting At the time the power
OF Government to supply and maintain paper me-
dunn of exchange"
This Bank, them like ito predecessor, furnished
paper currency declared by law TO be receivable In
all payments at the Treasury il was made the fiscal
agent and the depository of the Treasury; and 1t abb
sorbed in its capital portion OF the public debt since
of the thirty-fve million dollars constituting IT'S
stock only millions required to be In spe
Gle, the remaining twenty millions OF private sub
scrpton being authorized to be in stock as also the
seven millions to be subscribed by the Government
In further regulation of the currency at the same
session. by act in the form of resolution, passed
| on the 30lh of April 1916, it was provided that ali
duties, taxes, debts, sums of money accruing OF
becoming pay able to the United States should be col
ected and paid in nothing hut the legal currency of
the United States or Treasury notes, notes of the
| United States Bank the notes of banks payable
and paid on demand in the legal currency of the Unit
| ed States.
| And by the combined action of the Government
the United States Bank, and other causes the bank
currency of the country brought back to specie
| standard.
On the expiration of the legal term of the charter
Of this Bank in 1885, Ca bill for its recharter having
been vetoed by President Jackson and the public de
posltes Withdrawn from it) the business of the Trea-
sury again transferred to the banks Of the States,
and transacted by them, first under the general
thorty of the act establishing the Treasury Depart
| ment and afterwards, according to the specific
provisions of the act of Congress- passed the 23d Of
June, 1886 to regulate the depostes of the public
| money.
| Under the system thus organized the public reve-
nue. hand was deposited in selected banks, to be
| discounted on by them with various regulations of
| security the public funds transferred Ivy their
agency their notes received and paid out IN the
dealings of the Treasury; and they were relied on
conduct the exchanges of the country and furnish
| its paper currency
| At this period the number of banks chartered by
the several States had greatly increased many being
created for the alleged purpose of supplying the anti
clpated vacancy in business by of the refusal
of charter to the U nited States Bank; the total
number of banks in operation in the United States
being 676, with capital Of upwards of 1874 900 600
dollars
This amount Of capital greatly beyond the
true wants of the country much of it fictitious
the business altogether overdone excessive bank
issues and overtrading followed hand in hand and
at length Gin 1879 the whole machinery fell into
pieces, and general suspension of cash payments by
all the banks In the United States occurred.
Thereupon, the President (Mr. Van Buren, consi-
derng the Incorporation Of q National Bank uncon-
| stitu'lona and If constitutional yet unwse and deem
ing the continued use OF the State banks either mprac
ticable inexpedient recommended radical change
| in the fiscal operations of the Federal Government
which with modification of the original plan
became The law of the land on the 4th of July 1910
by the passage of the provide for the collection
keeping transfer and disbursement Of the public
money
The principle of this plan the ultimate tota
separation of the Federal Government from all Deepen
dence banks or bank paper in the business Of the
Treasury. The Treasurer of the United States, and
various officers of the Government under him, were
required to keep the public moneys the vaults of the
Government, perform all the duties of transfer, well
deposte; and provision was made for exacting mme
datey fourth of all public dues to be paid in gold
silver and for the addition of onefoulth that requi-
sition yearly, that and after the expiration of
three years. all payments to the Government should
be made IN gold and silver only, the sole and exclu-
sively legal currency of the United States.
This act continued in force only one year, being
repealed by the act of l84i which threw back
the business of the Treasury on the provisions of
the resolution of 1916, and the original act establish
ing the Treasury Department, where it stands
And thus, by the vcisstudes of opinion and of
party, and the successive reflections Of the plan of
Bank of the Unite States that of deposte in State
banks and of the Independent Treasury, Congress is
invited aud required to examine the whole subject
anew, free from all mpediments of existing law, and
to settle it on the principles of justice and general
pediency and the letter and spirit of the Constitution
In all times and in all countries under every form OF
institutions and every condition of society," the same
common question of the public revenue,-how best il
shall be collected, guarded, and dsbursed; in what
form, and on what Objects of taxation it shall be le
out its custody in the interval between the time Of
collecting and that of disbursement its transmission
and the description and combination of agents or Off
GERS by whom all these operations shall be perfo m
ed has never ceased to be one of the most perpleX
ing problems of Government
Every wise Government, whatever may be the
source or tenure of its power, WILL of course, ii
the solution OF this problem, aim to reconcile its owl
interests with those of the community it governs
If it be constitutional Government, established anc
py ICfI nnIy hu
tons nothing but high trust to be exercised fol-
their advantage. If it be despotic Government
holding Its powers by force prescription, still it
own greatness is nseparabIy connected with the vel
fare and prosperity of those whom it rules and the
extent of its own pecuniary resources depends upor
theirs.
The question, therefore, becomes complicated a
once, by the duty Government lies under of consider
ing, not only what is convenient for itself in merely
fiscal point OF view, but what, compatbly with tina
great exgency, will most PROMOTE or at all events
least impair the productive industry and social well
being OF the community at large in all private rela
tons. TO the combination of these two primary OBJ
ects it should look in the perception of its revenues
and to the same in their custody, transmission, ant
disbursement.
! Whatever course of policy Government may choos
to adopt IN these respects, it must, of necessity
the indispensable condition precedent of any regula
system of fiscal measures, fix money standard, O
measure OF value, for the regulation Of all dealing
oe'"oen iseli ahu Tie community, unless IL receive
every thing IN KIND, and pay out the same. Ever
then, 1t must have some sort of measure of value
Otherwise al taxation will be arbitrary unequal ant
oppressive 1t is convenient that the standard of va
lue between itself and the community SHALL if pos
sible, be the same that between the individuals
the community themselves in their own mutual deal
ings. 1t is moreover, in other relations, proper
function of Government, for the sake of uniformity
for the prevention of disputes and for the execution
OF the laws between man and man, to prescribe the
measure by which the value Of property, the ex
change OF commodities, and the collection of debts
shall be regulated. Unless there be such fixed
standard of value the property and the labor of al
VIII be at the mercy of the Government and of indi
vduas. Hence the universal exercise by all civilized