The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1843-10-16
IAN INDEPENDENT TREASURY"

| Since the Richmond Enquirer has seen pro-
per to overlook the hostile demonstrations of the
British Government, on our Southern border,
and TO turn its batteries on an acknowledged JEFF
fersonian measure, Qor the Secretary of the
Treasury has faithfully followed the guidance
of Jefferson) 1--WE deem it proper to open De-
mocratic battery in its favor, and one of equal
calbre, too.
We ask the attention of our readers to the
Post
MR. JEFFERSON ON AN INDEPENDENT
TREASURY AND A CONSTITUTIONAL
CURRENCY.
Mr.. Editor Having referred in your columns of
the 29th ultimo to the proposition of Mr.. Jefferson,
which was to make use of the treasury note as a
Of reducing the paper circulation of ndivid-
uals some features were suggested as proper for
adopting such notes. under the present authorized is
sue to accomplish this end. These that it
should be payable in specie demand, at the COM
mercial centre of the Union, New York; and bear
the low interest Of one mill. This considered
the only practicable step that can be taken during
the present condition of parties towards securing
of the great objects for which the democratic porty
have so long commended.
With the government itself, this would be mere
choice between an issue Of treasury bearing in
terest and payable at future day specified at its
pleasure, and issue of the same payable at the op
ton of the holder. The object of these is to
enable the government to meet any contingencies,
either immediate remote, for which it is APP
pretended that the ordinary will not fur
nsh seasonab'e or sufficient supply Ii treasury
notes bearing an interest are to be issued they
be of no service until they have been sent cut to
agents, who procure banks individuals to discount
them and the funds thus obtained from individuals
or the credit in banks, become the cash which the
government uses On the other hand, if the note is
issued payable at the option of the holder, it goes
forth as cash, without the trouble risk expense of
getting it discounted and the government is not be-
holden to the manufacturers of paper money for any
assistance 1t can make the issue at the moment the
contingency occurs, without the necessity of prepa
ring for long beforehand. Thus the object is more
quickly and independently accomplished
1t is also done far more economically, for the iDte
rest Of the note is saved. million Of Treasury
notes, at per cent, issued for six months, would
cost the country, for interest alone, twenty-five thou
sand dollars. On five millions, the interest for the
same time would be hundred and twenty five
thousand dollars. This paying too much to banks
and individuals for dscountng the credit Of this great
nation-and that, too, by usually substituting their
own in its place On the other hand, note under
the present form would he at premium in every
quarter of the country and to this extent it would be
a source Of revenue to the Government
1t is the most simple step that can be adopted to
meet any contingencies of the Government At the
same time it entirely divorces the Government from
all connexon with, or dependence upon banks.
1t is also attended with perfect safety to the Gov
eminent. Apart from the limit fl led by the law of
Co. gress, the amount of an issue of these Treasury
in this form is controlled by the particular
tngency. 1t must also correspond, in close degree,
with the amount of revenue which the Government
is receiving in coin at the place Of redemption. AT
the time the demand for specie will be gradual,
and sudden and rapid for the services which the
notes render would be required in every quarter of
the country, while the plase where they payable
is local. though at the commercial centre. Thus
much with regard TO the interest Of the Government
alone, in this modified form of the Treasury notes.
But there is another view of this subject, more
ensive and equally important, TO be taken 1t is the
influence Of this change in the features Of the Trca-
sury Lote upon the commercial transaction. of the cit
zen At this time ii may be considered as the settled
determination of that maiority of the people who com
pose the Democratic party TO establish the national
reasury on an independent and distinct basis and to
require it absolutely to only the constitutional
funds Of the Government, which consists of its coin
and the legalzed coin of other nations and IFS credit
to the extent that contingencies may require The
only mode by which, al present, the Treasury can
use com, is by receiving and paying out the article
ITSELF by receiving the com and disbursng it by
means Of drafts Now it the case that the Govern
ment pays out the most of it. funds the seapoard
but collects very large sums in the interior of the
country.
IT, then it adopts the course Of receiving and pay
ing out CON- that which il collects at the West must
at its risk and expense, be transported TO the
East On the other hand, if 1T adopts the course Of
receiving coin but discussing il by drafts then it
must issue these drafts TO its creditors at the East
when much of the funds for redemption are in some
distant quarter Of the West. What IS the conse-
quence' Why the draft Immediately depreciates and
becomes at greater or less discount, according TO
the distance ard difficulty of reaching the place of
its payment. This will be the case with every draT
at nj ab a al of H.
Union. Now, who is TO lose this discount Shall the
government or its cIedors Ii the government bears
the loss, then here is item of expense most heavy
and severe, for the drafts will be at a discount from
one TO twenty per cent Shall the creditors be forced
TO bear the loss? Then he will raise his voice with
indignation He will say that his claim was a Just
one that he has perfect right TO its full amount,
that il is feature OF tyranny to force him to take de-
precaed paper, and thus be satisfied with only por-
ton of his claim; and he sentiment of a commercial
people will respond to the Justice Of his assertions
How then, shall the government avoid the risk and
expense OF transporting the specie from the West or
escape the loss deprecated drafts, and at the same
time be innocent of all extortions from its honest
creditors In other wolds, how shall the govern
ment strictly adhere to the currency Of the consttu-
ton, and at the same time meet every creditor and
debtor On secure, economical and Just ioong2 II
can be done only by modification Of the features of
the treasury note in the we have suggested
long the contingencies of the government shall
require tne issue Oh them lnese contingencies VIII
occur while the receipts of tho continue in
adequate TO meet the immediate demands of the gov
ernmeut.
But this point is too important TO be hastily passed
over. There has been from the outset an lncessant
conflict in this country between the principle and the
practice The principle entertained by MIR JEFF
ferson is that the constitutional currency Of the
ton is gold and silver, and such Treasury notes as
may G issued, TO anticipate the revenue for contin-
gences The practice is to use substitute so far
as relates to the transporting Of specie in order TO
avoid the risk and expense speak not of the local
paper currency. This practice owes its existence to
the active commercial habits Of our citizens and so
long these continue, it will be most difficult or inn
possible TO set 1t aside, root it out. What then
shall be done Shall the principle surrender to the
practices Never Yet the friends Of the practice
have heretofore proved too strong for the advocates
of the principle, and have introduced whatever they
pleased as substitute for a constitutional currency