The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-02-20
THE ExCHEQUER

/ The following is an extract from letter
written US by one OF Virynia's most g'I'ed
sons--one who has uniformly been considered
among the most Incorporating Democrats IN
The Union, and who is still resolved TO stand OF
fall with the grea, Republican party.
"ln the first place, let us inquire how far the
Exohequer plan is comfortable to some well
established principles in the science Of human
governments, aud how far the evils il is design
ed TO remedy have been produced by depart
ure from those principles.
ITO coin money is an attribute of sovereign
ty, and can be safely exercised only by the sove-
reign power in the State" at clnnol be safely
delegated p and whenever and wherever il has
been delegated aud entrusted 10 hands less re-
spons ble, the exercise of this power has heen
abused, 10 the injury Of the citizen or subject.
| Quere. II il is permitted TO substitute any
thing IN The place OF coin a common measure
OF value, should moi thai substitute be furnished
by The sovereign power in the State? 1t would
seem, reasoning priori, that this power can
no more be safely delegated than that of coming
money; and further, il would seem that, in aid
Of our reason, we have had lesson Of expert
ence bitter enough TO satisfy any people.
But is there any necessity that a substitute
for coin should be furnished as ci culating
medium
| No! not for the purpose of increasing the
amount, for tina, destroys or greatly diminishes
its utility as a measure Of value but 10 save, in
great degree, the risk and cost Of the uansporta-
lion of coin, there is an absolute necessity.
( For this purpose, TO facilitate the immensely
increased number and amount Of commercial
transactions growing out fthe present advanced
state of civilization, the substitute must and
will be had.
| If the sovereign power in State neither fur
nshes this substitute, nor delegates the power
to do so, it will most assuredly be supplied by
I usurpation.
Here, again, the bitter lessons of experience
come in aid of our reason.
| circulating medium, substituted for coined
money, has, in our country been furnished by
those to whom the power was delegated, and by
others who usurped it., and the consequences
have been such as might well have been antici-
pated. The power has been and continues to
be most outrageousy abused. In view Of the
evils OF the past and present system, thousands
would seek remedy by banishing from the
commercial world every substitute for specie
And if there were no remedy for the abuse.
this "were consummaton most devoutly to
be wished" Blu, however desirable that con-
summation, | am we'll persuaded that II is
wholly unat,ainable; and, furthermore, | am
equally well persuaded that there is remedy.
Let the sovereign power Of the Stale discharge
its duty, not by delega,ing the power TO ire
sponsbe hands, as in the case Of the United
States Bank, but by exercising it and furnishing
safe paper medium not in small sums for or
binary circulation, (or this purpose, coin only is
demanded, but for exchanges and remilances
In other WORKS, carry out the EYchequer plan
recommended by President Tyler. speak not
Of lis details,-if defective in them, il is
amendabe at pleasure.
But il is liable to abuse in the hands of bad
men. So are all the other powers con6ded by
the Constitution, and for that reason the instru-
ment provides for the expiration Of the trust at
short intervals, 10 be renewed only at the plea
sure of those for whom 1t is exercised. Bu,
il is a Government Bank" is The shout of the
stockholders in the thousand and one Banks,
whose issues have flooded the country with IT.
rcdeemable paper. Those who, by usurpa-
ton of power, have profted largely by supplying
the country with circulating medium, may
well ring the alarm upon Government
Bank Let it be a Government Bank then,
(Heavcn save the mark y and If there is any
profl in banking, let it come 10 those who al
ways bear the loss.
II will be so far Government Bank that il
will supersede the use of other Banks by the
Government
1t will be so far Government Bank, that those
who hold its bills will feel that they hold secu-
ry on the Government and People of the
United States for their payment.
1t will be so far Government Bank that il
Will be what the friends of the late United States
Bank proposed il should be, "a grea, regulator
checking over-issues of the State bank." In
short, it will be so far Government Bank, that
1t will serve all the legitimate purposes Of a Ma
tiona Bank, without liability TO The abuses ne
cesssrly incident TO such an institution in ire
sponsibe hands.
But all this will be pronounced assumption.
without proof, and it is true that no one can
speak positively of the effects of system until
it has been lred. All must be matter of OPT
MON, entitled TO consideration only, as it is sup
ported by rrasoLs drawn from analogy. The
experiment Of deegsting to others than the con
stilutionsl authorities Of the country, the custo-
dy of the public treasury, and the power Of Gre
aling paper substitute for coin, has twice been
| tired and so far as my acquaintance extends,