The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-27

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tai "a the goyernmentofthe Exchequer Board 3D. the
privileges and duties of the Exchequer; 4th the or
ganization and operation of the Exchequer Board;
9th the safeguards and guarantees thrown around IT,
! Sth That it will produce an entire separation be-
tween the purse and sword and will place the whole
control OF the revenue as well the operation of
the Exchange Board, in the hands Of the Represen-
tatives of the people.
Wewiilnow proceed to show whathas been the prac-
ice OF the Government in assuming controlling in
fuence over the currency, and then we will demon
strate the conformity of that practice with the theo-
ny OF The Constitution and with the fair and legitimate
rule OF construction that be applied to that great
effort of wisdom and foresight
In presenting our views this subject we will not
go back to the early existence of the country to
certain the action of the National Legislature over
the question of regulating and establishing pure and
unauthorized circulating medium. 1t will be suf-
cien for purpose present, to refer to the do
| cuments which have emanated from the Treasury
Department during the Jackson and Van Buren, admin
rations in support of the proposition which started
with. We presume that the testimony will be re-
ceiyed as conclusive Of the question: and will be
sidered as complete reutation of the arguments of
Messrs Benton and Buchanan upon the point of the
consttutionalty Of the measure as proposed by the
Secretary of the Treasury.
Fortunately for us these documents do not leave us
entirely in the dark, consequently we shall not be
properly chargeable with drawing incorrect illogical
differences, from the vuws maintained by the Ell Secre
ary and his friends AS if with prophetic eye they had
peePed into uturty and oresaw this controversy they
are not content with showing the absolute necessity
Of exercising the power Of regulating the currency,
but they proceed to show how they can extend the
powers of the Government in stimulating mercantile
credit and regulating "the general con venience" Of
| the public.
We believe il is in the order of Providence that ma
tons should be- in degree comp ensated for the
mischiefs of msgovernment by the establishment of
sound preccdents; or, on the other hand, vrtuous
or unpretending rulers often give rise 10 dangerous
precedents We will not attempt to add our feeble
Il powers of illustration to tie lucid and powerful de-
monstrations of the authors Of these reports. We
will extract such portions of them may be neces-
sary to enable US to investigate and analyze with the
utmost care and fix with the greatest precision the ex
tent and boundaries Of the National Legislature over
the question of the circulating medium ofthe country
| In the Presidents message of December, 1888 Ge-
neral Jackson says 4" entirely concur in the view
he he Secretary of the Treasury "has taken of the
subject (the removal of the deposites.') Now let
examine the views of the Secretary.
The report of Mr.. fancy, then Secretary of tie
Treasury, IN 1888, says
"The State Banks can, have no doubt furnish a
| general circulating medium, quite uniform in
| paiue as that which had been afforded by the Bank
of the United States"
| Again, in speaking OF contemplated change in
the fiscal affairs of the Government, he says
" 1t is ESSENTIAL that the change should be gradual,
and sufficient time be allowed to suffer it make its
way by the ordinary operations of commerce, with
out requiring hasty and violent effort. See Exc
cutive documents, lS33-'34 p. H.
| This view supported by the Jackson party in
the House Of Representatives The Chairman of the
Committee of Ways and Means, sustained the report,
and held the following language, in 1888 34 upon
the removal Of the depostes;
The question then arises whether the State Banks
should be continued as the fiscal agents of the Go
vernment. The committee satisfied that the
State Banks fully competent to perform all the
| services which the General Government ought to
require in the collection and disbursement of the
venue, and to afford all the facilities to the Internal
and exchanges Of the country which have been de-
rived from the Bank of the United States.r
| Again. elf it should be urged as an objection to
State Banks that they cannot afford general currency
the answer is obvious If it deemed necessary
create paper currency possessing equal credit with
that of the present Bank Of the United States the OBJ
ject can or will be accomplished with the State.
Banks well with the Bank of the United States
| President Jackson, in his Message to Congress- De-
cember, 1885, says:
By the use of the State Banks, it is ascertaned
that the moneys of the States can be collected and
dlsbursed without loss inconvenience, and that all
the acdnS OF the community, in relation 10 exchanges and
currency, are supplied they have been before .
/ Again
"lt is also ascertained that instead of being ne
cessariy made to promote the evils of unchecked
paper system, the management Of the revenue be
made auxiliary 10 the reform which the Legislatures of
the several States have already commenced in regard
to the suppression of small bills"
Mr.. Woodbury's report of the same date, informs
us that the payments to creditors, officers and pen
soners, have been punctual and convenient; and the
whole fiscal operations through the State Banks, as
yet, proved highly satisfactory Incidental to this the
facilities that hare been furnished to The commercial COM
mty domestic exchanges ,cere probably neuer great
| en-, on at so moderate rates"
| On the I'D of February, 1886, the following
issued to receivers of public moneys, &c. &c.
"TREAsURY DEPARTMENT
"Eebruary 22d, 1886
| "Thc established policy Of the Treasury Depart
ment so far as it may be practicable under its present.
powers over the collection keeping and disbursement
of the public money, is 10 diminish the circulation OF
small bank notes, and to substitute specie and espe
caly gold for such notes Nth the rie,o Of rendering
the currency Of the country through which its fiscal
operations are performed, safe, sound, and uni
FORM.
Mr.. Woodbury. in his report of September 9th,
1887 says that "under the proposed arrangements