The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-04
THE EXCHEQUER BILL

eyince the expediency, nay, the necessity, oi
The issue by the Government Of safe paper
circulation, equivalent TO gold and silver, which
will furnish to the country currency OF uni
versal credit. In the words of the same authority,
we may be permitted to add; why should not
the Government use its own credit TO the amount
Of It's own transactions Why should il not
be safe in its own hands, while II shall be con-
sdered safe in the hands Of eight hundred phi
yate institutions, scattered all over the country
and which have no other object but their private
profit, to increase which they almost constantly
extend their business to the most dangerous ex-
,remes2 II is time the com
munity, which has so deepan interest in sound
and cheap currency, should reflect seriously on
these things not for the purpose OF expressing
auy interest, but to correct gradually disorders
Of dangerous character, which have insensl'
bly, in the long course of years, without being
perceived by any one, crept into the State. The
question is not between credit and no credit, as
some would have us believe, but in what form
credit can best perform the functions of sound
and safe currency"
But it is argued that, whatever may be the
probability that the issue of Treasury notes will
tend to form currency both sound and uni
form, it is a banking operation, and its perform
ance by the General Government is dangerous
Federal Government has resorted to the use OF
PAPER resting on its own credit, always with
manifest advantage and in former times II has
been deemed, in making such issues, to have
performed a function purely fiscal. OF this form
of credit, there was no more jealous and en-
lghtened advocate than Mr.. Gallatin, He pro-
posed it when Secretary of the Treasury, as the
cheapest and most available shape which II could
assume His example and authority have been
frequently since followed, and Treasury notes
have been issued in many cases OF emergency.
True. it is objected, they were measure forced
on the Government by necessity, in cases of
emergency they always however, retained
the simple form of mere credit bonds, as they
were issued bearing interest, and did not pass
the limits of the Constitution by appearing as
bills of credit and circulating a currency.
Have they always, we ask, been so issued as
to bear an actual bona ide interest? We do
not wish to extend this article, by multiplying
authorities to manifest that an affirmative answer
cannot be given to the question. We shall
rest satisfied with quoting Mr.. Woodbury.
"Most of the first issue,9 he says, in his report
of 1889, "yet unredeemed, are supposed TO bear
the lowest rate of inerest-one mill-and most
of the second issue not over two per cent.
None of either Of these issues, however bear
any interest on their face, otherwise, after the
expiration Of one year, from the time Of their is
sue, and those bearing large interest being
usually held by capitalists, will, doubtless, be
paid in for duties on lands, or presented for re-
demption as soon as they fall due" Can it be
asserted that notes bearing an interest of only
one mill per annum, and that the first year only
after their issue were credit bonds, and not in
tended for circulation2 The question needs NO
reply. We appeal to the honest consistency Of
those who assail the Exchequer scheme as a
Government Bank, because it projects the ere
alton of paper currency, based on the funds in
the public Treasury-we ask them if they could
conscientiously advocate and support notes
bearing an interest merely nominal, and conse-
quently intended to be incorporated in the crcu-
lation how they can now feel themselves justifa-
bic in denouncing the proposal in the Exche-
the former, by what perverseness of ingenuity
can it be distorted into condemnation of the
latter With the reasoning of one of our great
statesman, we have endeavored to show that
private banking institutions are insufficient for
the task of furnishing sound and uniform
currency, and that 'a safe paper currency,
founded on the credit of the Government exclu-
svely, may be established." Very lately he did
not believe Treasury notes, without interest, to
lie impolitic or unconstitutional. In proof OF
our assertion, we shall make one other extract,
but a short one from him. 81 am of the i'm
presslon," he says, 81 hat the sum necessary
for the present wants Of the Treasury, should be
raised by paper, which should, at the same
time have the requisite qualities to enable it to
perform the functions Of a paper circulation.
Under this impression, object to the interest
to be allowed on Treasury notes, which this
bill authorizes to be issued" The quotations
we give, are made with the highest respect for
the eminent sources from which they proceed !;
and we respectfully ask how that can be wrong
now, which two years since, was deemed db-
strdctediy right. These doctrines were not IN
culcated as the offspring Of temporary expedl-
ency superinduced by pressing necessity bul
were put forth as a sound theory applicable, as
shown by experience and reason, to the gene
raj and permanent condition Of the country
We then ask again, will those who then advo-
Gated openly or tacitly supported the issue of
Treasury notes for circulation, condemn their
present use for the same purpose, merely be-
cause the proposition did not emanate from
them We feel confident they can be actuated
by no such motive. Will they say that they for