Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-03-19


The facilities afforded by this system for
selling and collecting exchange will pro-
mote the interests of the whole country
equally well with the power to purchase,
and al the same time save the Government
from the possibility of loss or hazard.
8. As to the issue of Treasury notes on the
credit Of the Government.
From the view taken of this subject by
the committee, it is unnecessary to discuss
the question as to how far the issue
of Treasury notes, on the credit of the
Government, to circulate as currency, is
obnoxious to the constitutional objection to
bills of credit.
The committe are of opinion that no pa
per should issue on the credit of the Gov
eminent to circulate as currency.
There can be but two motives for the is
sue of such paper. l. To anticipate the
revenue to meet the engagements of the
Government. 2 To aid the currency of
the country by this addition to the circula-
ting medium.
As to the first, the committee hold it
wrong in principle for the Government to
anticipate its revenues by this means. Its
tendency would be to excessive issues, and
to reluctance on the part of the Govern
ment to levy adequate duties for revenue
Either result would be in the highest de-
gree derogatory to our national character.
The revenues of the country should always
be adequate to the economical wants of the
Government, and the Government should
never have occasion to anticipate its reve-
nues. But, if an emergency should happen
hoy tic fl TO nc
engagements, it may get the authority of
Congress, as has often been done before, to
issue Treasury notes, not as currency, but
as means of borrowing; Treasury notes,
bearing an interest, to be taken as an in
vestment by capitalists, and not as a circu-
lating medium for the People.
AS to the second, the committee do not
perceive how a currency issued on the Gre
dit of the Government can make any per-
manent addition to the circulating medium
beyond the business wants of the country.
Such currency, if it could be put in circu-
lation beyond those wants, would displace
and send into retirement an equal amour,
of the local currency. So that the aggre
gate amount remaining would be the same
as before. Any benefit to be derived by
this better currency of the Government, i
perchance a currency issued on its Gredi
should eventually be better, would not com
pensate for violation Of what the commit
tee deem great and fundamental princi
pie, namely, that no paper should issue or
the credit of the Government to circulate as
currency.
The Secretary of the Treasury proposes
to issue $I5,0OO,OOO of Treasury notes
| founded on specie basis of S5,000,000.-
| In other words, to issue paper currency
convertible into specie, in the ratio of three
dollars of paper to one of specie. In ordi
nary banking operations this is deemed &
perfectly safe ratio. In truth, the circua
ton of most banks is not regulated by the
specie in their vaults. Their issues are
sometimes in proportion to capital, anc
sometimes graduated by discounts. The
ratio, however, of three to one has Away:
been deemed safe in banking operations
! But you'd ii be a safe principle for the Gov
ernment TO adopt in regard to any paper i
may issue to circulate as currencyi The
committee think not. The officers Of Gov
ernment cannot provide for contngeneie:
and emergencies as individuals, or as bank:
controlled by individuals, can do. How
ever faithful and honest they may be, anc
however conscientiously they may inteno
to discharge their duties, they have not the
interest nor the means to provide for suct
occasions.
individuals interested in, and concerned
| in, the arrangements of banks, are Away
looking out and providing in advance TO
any sudden demand upon them for specie
And with all their interest, sagacity ant
vigilance, they are not always able to pro
vide against suspension of specie pay
ments. Will the officers of Government
be any better able to provide against it,
There might be a sudden and unexpecte
demand which would drain an agency a
at once of its specie. There might be
systematic operation and combination
from political or other motives, to accumu
late the notes Of an agency, and to presen
them suddenly and Unexpectedly for rt
demption, and for the exp press purpose c
compelling it to suspend specie pay
destroy the credit of the Government, bl
to disgrace it in the eyes of the world. TIL
Government should not be so exposed. L
credit should always be beyond any possib
contingency.
The commlttee, therefore, propose tn
no paper shall be issued on the credit (
the Government to circulate as currenc
but that paper may be issued for that pu
pose, based upon specie on hand, dollar +;
dollar, and that the amount of such pap
in circulation shall not in any case, nor u
der any circumstances, exceed the amou
of specie holden for its redemption,
The paper thus issued is called spec
r notes, as being currency based on spec
2 and as OBSERVATION-DISCLOSURES from Treasu