Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-11-03
From the Harrisburg Democratic Union


the Southern Wings will go for low duties
From the Harrisburg Democratic Union.l
The american Sentinel and Mr.. SPeneers issue q
&. 600 900 IF Treasury Notes, payable on demand,
and intended a circulating medium.
We observe that the American Sentinel attacks our
article in opposition to the issue of 900 Of Co.
vernmen, paper money, by Mr. Secretary Spencer
The point in dispute between US ls very simple we
ask have Treasury Notes before been issued re-
deemable in specie on demand We emphatcaily
deny that this has ever been DONE II is chiefly lns
change in their character, which makes them TO-
vernment circulating paper medium. We repeat what
we sa;d IN our former article that " These Treasury
Notes have never heretofore been redeemabe at any
bank before they were due and 1t is TINS redemption
OF them on demand, before they have reached MATURE
ty together with the nominal rate oil interest they
bear which changes them from a Government loan, 10
Government paper circulation. We ask, II Inc 1o
vernmeul issue promssory notes, bearing no interest,
ard payable 10 the holder on demand Tor the aVo"ed
purpose Of making these notes circulating meoiun1,
if this be not the of Government paper mo
ney? In what other conceivable form could Govern
men paper money be issueds The Sentinel states "hat
will be found BY reference to The speech OF Mr. Web
ster that the right claimed by him for the Government
something very different from that exercised in the
present case by the Secretary of the Treasury Will
the Sentinel be kind enough TO point out the derence'
We confess, that have not sufficient power OF dis
elimination TO perceive it, The claim OF Mr.. Webster,
which startled even his own political friends was that
Congress possesses the power, under the Constitution,
10 establish paper currency as medium OF commerce
and exchange for the country Now, il Congress do
possess this power and should determine to exercise IT.
they could do /. in other manner than that adopted
by the Secretary of the Ireasuryto issue notes in the
form OF bank notes, by winch the United States pro-
mise 10 pay the bearer holder on demand, certain
amount. Both The article of the Sentinel and that
which il extracts with appreciation from the New York
Evening Post recommend the Secretarys plan, be-
cause these notes will be circulating medium, paper
currency; and will be substitute for bank paper cir
cula,ion, Nay, more, the article in the New York
Evening Post contends that il is not merely the right,
but the duty of the Government To issue paper money
II declares "hat at lh,s moment the field OF crcula
ting medium, which of right and Justice should be oc
cupied by the Government of the States, is much
as ever in the hands OF private individuals" How,
then. it be denied tina, the new miscaled Trea.
sury notes of Mr. Spencer both intended TO be- and
will be, Government paper circulation?
We shall now prove beyond all doubt, that Con-
gress, as they could not give neither have they at
tempted 10 give, the Secretary of the Treasury any
such power. IL is true, they have authorized him 10
issue Treasury notes; but i'll what form: What is
Treasury rote under the existing acts of Congress-
II is an engagement on the part OF the u. States 10
pay the holder, 'after the expiration Of year from
the date Of such note, sum not less than fifty dol
lars, bearing such rate Of interest not exceeding six
per cent per annum, "as shall be fixed by the Secre-
lay of the Treasury by and with the appreciation of
the President Of the United States Whence, then,
does the Secretary of the Treasury derive the power
10 issue these notes, payable demand: II he have
done SO, this plain mud papabe violation both of
the letter and spirit of the law The law Declares that
these notes shall be payable, after the expiration Of
year from their date but not SO, says the Secre-
tary, they shall be payable demand We have
of these notes. and yet feel almost convn
ced, that the Sentinel must be mistaken in stating, that
upon their face they made payable on demand This
would be too direct violation of the law In terms they
are doubtless payable one year after date but there
may b. notice stamped some part of them, stating,
that they will be redeemed on demand in New York
or New Orleans. After careful examination Of all
the acts of Congress the subject, we venture
sert, that they do afford the shadow OF authority
10 make these Treasury notes redeemabe at any pc
Rod before year after their date. The law declares,
that before maturity they receivable in payment of
taxes, duties and debts due 10 the Government the
interest them 10 be calculated up the date of their
receipt; but nowhere gives the slightest color to the
idea that the Treasury may make them redeemabe in
specie at New York, any where else, before
year after their date.
Again these Treasury notes were intended 10 be the
evidence OF loan Government for one year, either
by the capitalist public creditor, and net crculat
ing med'um and, therefore, it prescribed that the
rate of interest should not exceed six per II mo-
ney could be borrowed al four or five per cent so
much the better for the Government but the Secreta.
~ was prohibited from going beyond six per cent
Now, alter IL has resolved 10 issue paper money as
circulating medium, and thus 10 change the character
of the Treasury note 10 that OF Bank note she whips
the devil round the stump by fixing the rate Of inter
est sat mill per cent which is Just nothing at all
This evasion OF the law is plan that requires no
illustration beyond the simple statement of the fact.
The Sentinel is mistaken in supposng, that the au-
horty 10 issue Treasury notes has never been called
question 1t has not only been questioned, but denied
by many of the soundes Democrats, in both Houses Of
Congress- even when restricted according TO existing
,pd IN diet HAITI ha foup
OF any party in the nezt Congress- who will sustain the
power has been assumed and exercised by the pre-
sen, Secretary of the Treasury. We would commend
the pesuSa of the Sentinel the powerful speech Of
Col Hentoa this subject, delivered in the Senate OF
the Un';sc States, the 18th February, 1871. (Ap-
pend,x TO Congressional Globe, page 225
Treasury notes first issued during the late
with Great Britain and the example followed by
Mr. Van Burens administration, in 1887, when the
X. Bank System had ploded, with oil the OF
he Gov"rnment locked up in their possession. They
ought never 10 be issued, unless in extreme
The 'extreme medicine" Of the Constitution ought not
to be converted into lis daily bread They ought to be
reserved for times Of approaching actual war, TO
cipa.e the means OF the Government before
loans can be made taxes coeced but if the country
should be overrnn with them when in peace and tran
guilty, this resource for the day and hour Of danger
will tail
The great argument of the Sealine! in favor of the
Secreurys issue is, HAT it viii the country the
interest upon five millions OF dollars for one year
And this has seec the paper money argument oil the
world over t IS the cheapest and easiest thing in
the wo.d, 10 issue promises 10 pay, instead of max
ing actual payment. It is SO cheap and so easy, that
every Government which has tried The experiment on
extensive scale has been made bankrupt There is
no end to extravagance under such Government
Money is appropriated without stint or limit, when
there is nothing to do but The paper machine at work,
with rags ans lamp black and fabrcate as much of ii
may be desired 1t is the first step which costs and
this first step on the road TO has been taken by the
Secretary Of the Treasury. Should our nrnuress moi