The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-12-12

been exhibited in this report, sdmonished TO this
course independent Of all other considerations. Not
outstanding all interest had ceased upon more than
two millions of the outstanding Treasury notes IN
consequence Of the notice gwen Of readiness 10
deem The whole amount, yet II was perceived thai
they were not pIes' ned for redemption bat
tanned by The people for The purpose Of REMIT Ia
the Transaction of heir business This fact indicated
thai the whole amount could probably be re ISSUED
the outstanding notes should be redeemed In 9TH
ers of low denomination, without any OF al a nomi-
nal interest," and that they would be received with
asidy by The public creditors, If made convertible in
To com demand.
In this stale OF things and for these reasons II was
determined, with the sanction Of the President to s-
sue notes OF the denomination offny dollars with in
tefest at the rate OF one mill per upon hun
dfed do lars, and TO exercise the authority given by
HE D. section OF the act OF 1887 by purchasing these
notes at par whenever presented for that purI ose
tue repositories OF the Treasury in The city OF New
York where twohrds Of our revenue and means are
Collected and deposited, and TO give notice Of such de-
| termil alien by an enjorsemonl upon the notes 1t
was doubted whether the bonds CURED by law to
be given by collectors, any other officers, would
tend To Responsibility for funds that might lie placed
IN their hands TO make such purchases AID hence
was deemed impraciicabe to employ them for that
purpose, If II had otherwise been considered eIpedi-
The note are made payable in one year, rather in
conformity 10 the construction heretofore gwen TO
the act of 1887, Than from a cons lotion OF It's being
seems to be to prevent them from running bearing
interest longer Than year. II is silent respecting
any shorter peiod, apparently With the view Of .eav
| ing some discretion. The notice that they will be
p.rcha ed is endorsed them, distinct f m the body
Of the notes. 50 that, IT any extraordinary emergency
should occur to produce any difficulty in their pur-
chase, or Tor any othei reason II should be deemed
pedien the enforcement may be omitted, and the notes
permit ed tocrculute without interest thry may be
altered TO sp, cy rate. They not w receivable
for all Dubl M he n nj
par, the custom houses and lind Offices, To the
amount 1t one malt the coin they may respectively
! have on hand. Less than two hundred and seveniy
thousand dollars of the notes have been issued
The efort had been made by former Secretary TO
substi ute notes with .mina rates OF interest aud
also notes with the low rate Of two per cent, but it
had not succeeded in consequence of their not being
convertible into coin demand. For as the present
value Of post note is diminished in exact proportion
TO the time It has TO before maturity, discount
| upon II can only be prevented by allowing interest
| equivalent 10 that time, The question of convert
biy, therefore, was Ia truth qaes ton whether inte
resi- should or shou not be saved as the permit ing
the notes 10 be at discount TO be tolerated.
| No opprehen ion or is entertained of the per-
feet ability of the Department TO purchase all hat may
be presented for the purpose There is and ally avs
mus, he surplus N The Treasury beyond the lmme-
date calls upon it. This, with a revenue more than
hree times the amount of the ties constantly accru-
ing, would be adequate, as lis place could always be
supplied with other notes. with without interest as
circumstances required, with which por ion of the
public expenditures could be mlde La the pos b!e
event OF large accumulation, Treasury notes beaI
ing UGH interest as would ensure loans, not exceed
Ing the prescribed rate resort to the authority
issue stick, would e ther of them be sufficient To
provide the necessary funds to meet such accumula
| ZION.
The exgencies of the Treasury demanded that The
effort should be made to relieve from such weight
of inteIest especially as il would not preclude lei III
to The system which invites Banks to hoard Treasury
notes, by ao Wing their interest while they borrow
ofthe community withou, interest to the extent ofthe
| circulation.
The authority given by the Constitution to bor-
low money the redt of the United States in its
terms coprehends every form OF loan which Congress
may think proper to prescribe; and ii is easy to
perceive how This express and unqualified grant of
power can be limited or curtaed Certain it is tina,
the most distinguished among those who cont, nj for
a srct construction OF the Constitution have given
their sanction to The existence of this POWER the
! form of bills of credit or Treasury notes.
! Well founded objections exist in born wing with
out urgent necessity in the form either of perma-
nent loans, oI those Of temporary chaiac er. That
necessity must also influence the ternis and cond :
tons of either mode The former by putting oT the
| day of payment TO "a more convenient season." 70
moves the mos, effectual check TO proJigaty ard of
iers temptation If difficult stance Ii has accord-
ingy proved the baGe of all Governments The policy
OF The Treasury note stem have been
to guard against this by bringing the day of
ment close upon that of exp, nditure and II would
seem that the more ImmedIie the liability to paw the
more would that policy be promoted. A postpone
ment even for year invites tn profusion, and no
check can be elIectual instant responsibility
Every loan thus made directly from the people in
fact made not IN consideration of the interest agreed
TO be paid by the Government but literally and solely
upon THE credit of the United States"
IT, after such notes have answered the purpose of
Government IN promoting convenience security and
economy in the public d sbuIsements they should in
consequence Of heir uniform value be kept in circu.
laton to any considerable extent by our ellow-citi.
Iens Tor their own convenience in maintaining inter
nal trade and keeping down the fluctuations of e1
change between different, parts OF the country avis ny
from disorJered currency, IL is not perceived how
such result affords ground for objection 10 system
constitutional in itself and adopted for legitimate and
constitutional objects IL IS submitted tina, the Gov.
ernmon is respon ibe only for the use VIII oh It makes
OF The power 10 incur d bt and not for the use OF
abuse by the people Of the evid of that debt which
II may issue. Their application 10y the community 10
the purpose mentioned IS oof that they want
ed for that purpose end that 1.-THE credit Of the United
II States has taken the place Of local, chaItrred or
State credr. Those Who object to such a conse-
r quence IN tie present state Of finances which
nre loan IN some form, must, however, choose be-
The evils Off at result if they are evils and the
+ 'ieni permanent national debt which must either
directly must follow al no remote pri-
so '.s ~ securities which may be issued in the
,o,ui W PNreted promise IT, pay. For in this,
"o",. 'a'ei " are not allowed the Of mean.
shu,'p Hoe IRON vi ction but are compelI.d to Sc.
: Objectionable " '' ''''
Treasury notes that may b. ,ss,''d ~. 1850
laws ess than one third Of III, animal recen,s and
less ihan one-ourh of the ANIMAL public expendi.
iures) cannot create any very Dungeons % ,ner cur
rency" And 1t IS supposed that the objections re-
+ rrea 70 are not so much to the issue of such an
amount as temporary expedent but ar. founded
raper upon an apprehension that these notes will he
so useiui 10 The Government and so beneficial W the
people that their issue may hereafter be carried 10
excess IL Is lair question whether the danger of
excess 10 'his mode OF borrowing money is equal TO
that arising from loans upon deferred. i;n,s " 80,
mebtf Nhie The wisdom ntt,,,.-. -