The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-10-10
TREASURY NOTES.

repetilions Of the old party slang about Govern
men, paper. II treats Mr. Jeferson's very delio-
,rate-yery carefully and repeatedly expressed
opnions, as unguardcd," and not entitled 10
consideration. Ii is wonderful with what facil-
ity the authority of the great apostle oil Demo
cracy can be quoted one day, and derlded the
next by his prolessed disciples.
AS we understand, the act Of Congress OF
March 3, ls43, provides that when any of the
Treasury notes then outstanding shall be re-
deemed, at any time before the LIST oil july
1874 the Secretary of the Treasury may
sued, in place of such as may be redeemed I'M
der the limitations and other provisions OF the
respective acts by which said notes were origi-
Daly authorized and issued" The limitations
under which the outstanding notes were issued
are, that they should not be Of denomination
less Than fifty dollars, and should bear interest
at a rate not exceeding six per cent. Ga the
Sd March, 1913, there were outstanding Trea-
sury notes to the amount of nearly Twelve mil
lions Of dollars. Pursuant the authority given
by another section Of the acl Of ls43, a loan Of
seven millions OF dollars was obtained at S per
cent. and small premium, with which the same
amount Of Treasury notes bearing SIX per cent.
interest have been or will be redeemed. As
the remaining FIVE millions of notes bear an
interest OF six per cent, 1t was very desirable
TO call them in, that the country might, as soon
practicable, have the benefit Of the present re-
duced value Of money. Accordingly, notice
has been given by which interest ceased on
nearly one-half of the amount on The 3lst Au-
4 ~ n.
as the respective issues become due.
But, as "the wants Of the public service" in
the language of the act of Congress, require
from time to time the issue Of notes TO supply
the place of those thus redeemed, the inquiry
became necessary, what denominations would
be most convenient for the public service, and
what rate of interest could be adopted which
would save the most 10 the country, and yet not
obstruct the receipt Of the notes by the public
credtors2
For some years the Government has been ex-
posed to great hazard, delay, and expense, in
the transportation Of specie TO The remote points
of the Union where its disbursements are made.
All these could be obyiated by the employment
of Treasury notes of a low denomination, which
could be RENTED with perfect safety by the Or
binary means TO the discussing agents. In fact,
applications for such notes by those agents have
.-L----f------ .--J.--i, J. $3.50 -" "''.i
mined Tor the present 10 issue them Of the de-
nomination OF fifty dollars.
Ii was matter of some importance TO save the
interest upon FIVE millions Of dollars. Mr.. Wood
bury, while Secretary, had issued notes, some
bearing two mills interest and Others two per
cent. They answered The main purpose of ia
cilila,ng The operations of the Treasury, but ia
the then condition OF the money market, the
rate of interest was not sufficient 10 prevent the
notes being Immediately returned and their
place supplied by those bearing higher rate.
II is supposed that the present abundance of
money will justify the issue of notes at mere
nominal interest, especially if convertible into
coin at the pleasure Of the holder. With this
view the notes will be purchased at par at the
repositories of The Trea ,ury in the city of New
York, under the authority gwen by the act Of
1897 and will be exchanged at other deposito-
ries and at the Land Offices and Custom houses
for coin
Thus it is anticipated that economy, respon-
sblity, and convenience in the disbursement
" a.
handsome saving Of interest will be effected
This is a plain statement Of very simple
operation. There is no loaning of money or
credit by the Government to any one, no dis
counts, no drafts by fiscal agents, no depostes
nothing but the ordinary payments by the Trea.
sury through the public agents, of the expenses
of the Government, TO the extent Of perhaps
Of al in tho No
erfully urged by Mr.. Jefferson.
1t is no mans project. Its provided by Con-
gress by a series Of laws since 1897. The dis
erection given by these laws was intended to en-
able the Treasury TO issue the notes in the form
and manner best adapted TO existing crcum-
stances as they might arise.
Now, we have been unable to see either the
Unauthorized assumption charged, by such a
description Of Treasury notes, or any danger
TO arse from them. That full authority is given
by acts Of Congress, has not been and canno, be
denied. Mr.. Richie admits the constitutional
power "to raise loans by means of Treasury
notes. lndeel no one has yet denied it,
These notes are a continuance Of the loan made
when the original notes were issued. These
however, in effect, bJrrow from the peonle n,
large-those went into the hands OF moneveJ
institutions, where they were boarded. Mr.
Richie, however, denies the right of ISSUING
them in such form as to be intended and calco.
lated to answer the purposes of a circulating me.
dum." Why mott If the right exists to issue
them at all, what provision Of the Constitution
forbids their being in such form as will answer
the purpose of a circulating medium" for the
Government Who has he authority to re.
strict the exercise of general rover to any ne.
cular form and model
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