The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1843-10-12
TREASURY NOTES.

TED issue OF Treasury Holes' IL quoteo i'oii :"
paper Of the true Benton stamp some OF It's stale
repetilions of the old party slang about Govern
menl paper 1t treats Mr.. Jeferson's very delib-
erate-very carefully and repeatedly expressed
opinions, as "unguarded," and not entitled TO
consideration 1t is wonderful with what lacil-
ity the authority of the great apostle Of Demo
cracy can be quoted one day, and derlded the
next, by his protested disciples.
As we understand, the act of Congress of
March 3, 1843, provides that when any of the
Treasury notes then outstanding shall be re-
deemed, at any time before the LIST of July,
1914, the Secretary of the Treasury "may
cause other notes to the same amount to be is
sued in place of such as may be redeemed un-
der the limitations and other provisions OF the
respective acts by which said notes were orgl-
paly authorized and issued" The limitations
under which the outstanding notes were issued
less than fifty dollars, and should bear interest
at rate not exceeding six per cent. On the
Sd March, 1S43, there were outstanding Urea
sury notes to the amount of nearly twelve mil
lions of dollars. Pursuant to the authority given
by another section of the act OF 1913, loan OF
seven millions of dollars was obtained at 5 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-
gust last, and will cease on the whole amount
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 TO the country, and yet not
obstruct the receipt of the notes by the public
creditors?
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 obviated by the employment
of Treasury notes of 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
been frequent Accordingly it has been deter
mined for the present to issue them of the de-
nomination Of fifty dollars.
1t 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
cilitaling the operations of the Treasury, but in
the then condition Of the money market, the
rate of interest was not sufficient to prevent the
notes being Immediately returned and their
place supplied by those bearing higher rate.
1t 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 al the
repositories of the Treasury in the city Of New
1887, and will be exchanged at other deposto-
ries. and at the Land Offices and Custom-houses
for coin.
Thus it is anticipated that economy, respon-
siblity, and convenience in the disbursement
Of the public moneys will be promoted, while
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
one-fourth Of their amount, in the mode so pow
erfuIly urged by MIR. Jefferson.
1t is no mans project. tits provided by Con
gress by series Of laws since 1887. 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 circum-
stances as they might arise.
Now, we have been unable to see either the
Unauthorized assumption charged, by such
description of Treasury notes, or any danger
TO arise from them. That full authority is given
by acts of Congress, has not been and cannot be
denied. Mr. Richie admits the constitutional
power "to raise loans by means of Treasury
notes" Indeed no one has yet denied it
These notes are continuance of the loan made
when the original notes were issued. These
however, in effect, borrow from the People at
large-those went into the hands OF moneyed
nstilutions. where thew were boarded Mr.
Richie, however, denies the right of issuing
them in such form as to be intended and calcu
lated to answer the purposes Of a circulating me-
dunn" Why no2 If the right exists TO issue