Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-12-21

danger from The residue The great plenty Of MONEY!
which might be temporary also invited 10 such course
as al all events SAVING cons raj! lie amount Of ncr.
est lite state OF thaGs aoti1ily EXISTING conteG-
plated 10y the third section o: the referred to- loan
was accordingly made under the direction OF the L. s.
"f millions of d liars uroa ten wears stock
bearing an interest of five per cent pr annum p1ya-
bic se;n annually II the 1T hundred and one
dollars and ore cent or every hundred dollars Of stock,
tor nearly the Whole; small portion having been taken
m terms s more favorable The persons tn whom,
and The terms which The stock awarded and The
names and proposals Of tiose whose Offers not
accepted, given q statement (Gnarked FL
panyiDg ihlS report.
by tie funds thus provided, Treasury notes, bearing
SIX PER cent interest, 10 the amount oil millions,
have been redeemed There then remained, OF tie out
standing notes, S4,G5G3o7 10 These notes, also,
bore IN interest OF SIX per cent, winch consider
ally above the value of money. /: seemed very o6
viors duty u exercise the authority given by the first
section OF the act OF lSs3-of issuing other notes, IN
such form, ard such terms, would promote the
convenience OF the Treasury, and avoid The dangers
and expense OF renting con 10 the public agents tor
disbursement and, at the time, 10 the
try the greatest amount Of interest Tie certain pros
pect Of The condition Of The Treasury, which has been
exhibited in this report, admonsh to this course
dependent OF oil other considerations. Nowtlhstand-
ing all interest had ceased upon more than two mil
linns OF the outstanding Treasury notes, in
Guence Of tie notice gwen, Of readiness tn redeem
The whole amount, get 1t perceived, t!g, hsy
not presented Tor redemption, hui retained by the
people, for the purpose Of remittance in the Transaction
of their business. This fact Indicated tina; the whole
amount could probably be ssued, a The outstanding
notes should be redeemed, in others Of lower dero
mnatou, without any, or at q nominal interest, and
that they would he received with avidy. by the public
creditors, If made conrovertibe into com, on demand.
In tins OF things and for these reasons, 1t
determined, with the SANCTION o! the President, TO rs
sue notes o.. the denomination Of fifty dollars, with in
terest n the rate oi NIL. per upon one hun
bred dollars and the authority given by the
eighth of the act Of lS37, by purchasing thes"
notes par whenever presented for that purpose,
the depost1ries Of the Treasury in the city of New
York where two thirds OF revenue and means
collected and deposited and to give notice of such de-
termination ey an endorsement upon the notes. TWAS
doubted whether the tonds required By law 10 be given
by collect RS, any other officers would extend TO
esponsbilIiy for funds tna might be placed i'll their
hands 10 make such purchases, and hence it deem
ed mpractcaole II employ them for iat purpose, ii it
had otherwise been considered cxpedent.
The notes made payable in one year, rather in
conformity the construction heretofore given 10 the
act Of 1897, than from 4 conviction of lis being
CURED by that act. the oh ec OF the second section
TO be ID prevent them from running or bearing
interest longer than year. IL IS silent respecting any
shorter period, apparently with the vlew o. LEAVING
some discretion. The notice that they viii be rur-
chased endorsed them, distinct from The body OF
the nctes 80 that, VI any extraordinary emergency
should occur 10 produce any difficulty III their pur-
chase or any other reason it should be deemed
oedieni the endorsement may be omitted, and the notes
It'd 10 circulate without ntsres', they may 5a
altered specify rate They not only receivable
for all public dues but may be exchanged for specie e.
par at the custom houses and land offices, TO the
amount of ore half the coin they may respectively
have on hand. Less than two hundred and seventy
thousand dollars of the notes have been issued.
The effort had been made By former Secretary 10
substitute notes with nominal rates OF interest," and
also notes with the lIw rate Of wo per cent, but II
had not succeeded in consequence of thei. not being
80 + can onlS s" BE- OF Ssnand For as tho
equivalent TO that time. The question of converit.
| btv, therefore, was, in truth, question whether
interest should should not be saved, the per
hitting the notes TO be at discount was not TO be
tolerated.
No apprehension was or is entertained of the PEI!
feet ability of The Department 10 purchase all that
may be presented for the purpose. There IS and al
ways must be 4 surplus in the Treasury beyond the
immediate calls upon it This, with revenue more
than three times the amount of the notes constantly
occruing would be adequate, lis place could 81!
mays be supplied with ctle not.s, with or without
Interest circumstances required, with which por-
ton Of the public expenditures could be made. In the
possible event Of large accumulation, Treasury
notes bearing such interest would ensure leans, not
exceeding the prescribed ra4, resort 10 the authcr-
" 10 issue stock, would either Of them be su'Ii-
Gent provide the necessary funds to meet suc &C
emulation.
The exigencies of The Treasury demanded that the
effort should be made 10 relieve ii from such weight
of interest especially it would preclude return TO
Tho svs,em winch invites Baa TO hoard Treasury
notes, by allowing them Al interest while they Dor
row the community without interest 10 the extent oil
their circulation
The authority given by the Constitution 10 "borrow
money on the credit OF the United States, in it's terms
comprehends every form Of lean which Congress may
think nroper 10 prescrbe and rot 10 perceive
how this express and unqualified giant OF power can bc
limited or curailed. CcFtln 49, that the most dIsr-
oushpd among those who contend for street construc
ton of the Constitution, hc:e gwen their sanction 10
..l.. ,Dtl .t1a rpdf
the existence oil this power III Inc FORM OF os VI eeu
or Treasury notes.
Well founded nhjection exist 10 bo!rowin. without
Al urgent necessity, the form either uf permanent
loans o, those of temporary character mt neces
= sity must also influence the terms and conditions Oh
either mode. The former, by putting on me Gay %
M mant to ia NJ convenient season, removes lbc
mos. efisctua check to prodicalty, and offers mp
,,;on of difficult resistance. IL has accordingly proved
the bare Of ell Go7ernmeEis he policy OF 'hc it1
surv note system 10 haze been deTIsed to guafa
-ainst this evil By bringing the day ct payment close
mon thkt Of expenditure, and IL would seem liza, ',c
mere immedat. the Liability to pay, the more would
that policy be promoted pns'ponPn'et even '"i
verr invites 10 pro.rsc and check caa be so iec-
u,I n; instant respors brlt; Every loan tins n'aue
directly from the people, in fact made, not IN consi-
deraon of the interest agreed 10 be Fad by TIE 90,
yernment, but literally and solely upon "'he c1ee' OF
the u. ). - r
. If o,ier such notes have answered the purpose OF
Government in promoting convenience, security ara
i economy in the public disbursements they shoulo, III
consequence of their Uniform value, De KEEP. w CIV"
lon to any considerable exten, by our fei'o"-c''
. Gems for their convenience in maintaining n'er
q nal trade and keeping down the Fluctuations OF eX'
between different parts Of the country, arising
'f from disordered currency, it is not perceived no"
IS spch result affords ground for objection to system
constitutional in ITSELF and adopted for legitimate ana
objects It is snsmsd iei the Ie
9, s ,n ower 10 incur Debt and not for the use OIL
abuse by the people of the evidences Of that debt which
N Their upp cation By The community TO the purpose
81 mert oned, is proof that they are wanted Tor ina
PURPOSE and That "the credit Of the oa!sa s'a,es
Inns taken tie place of local. chartered, or state Great
THOSE who obec. TO such qucncc in The presen
20 sat. of our finances, which require loan IN som
d, form must, Schoose between The evils OF 'ha
y result, # they are evils. and the pers OF permansn
national debit which must either De created Directly
s. ar nu, f,aw al 80 period and take up secc
OF ,iss which may be issued in the form Of pf0tfac,e
'g omise 10 pay For in this, as in ether cases. az
q o allowed the use Of entirely Tree IRON oOjec
et ION but are compelled 10 select Between a'he'e"
ne modes that which is least Objectionable
~ A, all events, the small amount OF convertible iiea
IA -, he ;scoed under existing l2%s (lst