The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1843-12-13


IN a condition. " be thrown upon the Treasury IN
i thus absoI y the means Of carrying on the Govern
ment. Nothing appeared 10 Justify the belief iha
there would be such an extraordinary increase in on
revenue for 10 come would he necessary
4 such demaDd. II was b. retore deemed alvisah
to put beyo d the reach of accident such portion 0
this large outstanding debt would relieve the De
I paltmcnt from any apprehension Of inconvenience
danger from the residue The great plenty Of money
! which might be temporary, also invited 10 such
course, as at all events saving considerable amour
OF in crest The state or hings actually existing al
by The third section OF the act reerret
| to- loan was accordingly made under tho direction
the President Of the United States of seyen Inl ON
of dollars upon ten years stock, bearing an inter
est Of FIVE per cent per annuni payable semi. annual
y the Fate ofone HUNDRED and one dollars and
cent every hundred dollurs If stock, for nearly
! the whole small portion having been taken, on
ernls sill more favorable The persons 10 whom and
4 the terms on which the stookwas awarded, and this
names and opOsals OF those whose oAers.w moi
accepted, are given in q statemant (marked E.) ac-
| companyng this report. -,.-
Blythe funds thus provided Treasury notes bear ny
six per cent interest to the unit OF soven millions
have been redeem d. i here then Teuaned Of the
outstanding notes S. 656 387 AS, These notes also
bore interest of SIX psr cent. which was considera
bly, above the value If money. II seemed very OBJ
yious du 10 exercise The authority gives by the first
section Vt the act of I813Of issuing other notes,
| uch form and On such terms would promote the
convenience Of the Treasury and avoid the dangers
and expense Of Ieming coin TO the public agents
for dsbu seinent and at the same timo save TO the
county the greatest amount OF interest The certain
prospect e the condition Of the Treasury, which has
| been exhibited In this report admonishcd to this
course independent Of all other considerations. Not
withs andng all Interest had ceased upon than
two millions Of the outstanding Treasury notes in
consequence OF the notice gwen of readiness to
deem The whole amount, yet II pei ceyed that
they pres. n,ed or redemption, but were re-
ained by the people for the purpose Of remitance
the trans action of their business This fact indicated
that The whole amount could probably be re.issued,
as the outstanding notes should be redeemed in 9TH
ers of low denomination without any, al nom-
nal interest and that they would be received with
avdity by the public creditors, if made convertible in
| to com on demand
In this of things and for these reasons it was
determined, with the sanction Of the President to is
notes OF the denomination offifty dollars it'll in
teres at the rate of one mill per annum upon bum
dred do lars, and to exercise the authority given by
the section of the act Of 1887 by purchasing these
notes at par, whenever presented for that purpose, at
the repositories of the Treasury in the city Of New
York where twohrds of our revenue and means
collected and deposited and to give notice Of such de-
termii alton by an endorsement upon the notes 1t
was doubted whether the bonds required by law to
be given by collectors, any other officers would
tend responsibility for funds that might be placed
their hands to make such purchases ard hence it
was deemed impractIcable To employ them for that
purpose, if had otherwise been considered e1ped
mt.
The notes are made payable in year. rather in
conformity TO the construction heretofore given TO
he act OF 1887, than from conviction of It's being
required by that act. The OBJ ec of the ed section
seeu,s 10 be To prevent them from running bearing
interest Longer Than year 1t is silent respecting
any shorter period apparently With TIE view of
| ing some discretion The notice that they will be
p1rcha cd is endorsed them, distinct from the body
of the notes, that, If any extraordinary emergency
should occur to produce any diff ruy 10 their pur-
chase for any other II should be de emed K
pedenl, the endorsement may be tied and the notes
permit Cd TO circulate without interest they may be
altered spt CITY rate. They only receivable
for all pub dues, but may be exchanged for specie at
par at the Gus ON houses and land offices, to the
amount of one nalf The coin they may respectively
have hand. Less than two hundred and seventy
thousand dollars of tic notes have been ISSUED
! The effort had been made by former Secretary to
substitute notes with nominal rates of interest, and
ALEC notes with the low rate of two per cent but II
had not succeeded IN c.nequence OF tLer not being
convertible into coin demand. For, ar tie present.
value of pos, is diminished in exact proportion
to the time IT has to iun before maturity, discount
upon 1t only be prevented by allowing interest
/ equivalent 10 that time. The question of convrL-
bity therefore was Ia truth question whether int
ri should or shou not DC saved, the permit ing
the notes to be at discount was not to be tolerated
I No apprchen ION was or ID cDieualned OF the per-
feet ability of the Department pa chase all that may
be presented for The purpose. There l. and away $
date calls upon il. This, with revenue than
/ hTce trcs The amount Of The ties constantly
me- would be adequate, as rs place could always be
supp led with other notes, with without interest, as
circumstances required, with which portion of the
! cubic expenditures could be made Ia the possible
event of large accumulation Treasury notes bear
\ ing uch iuere,t would ensure loans, not exceed
ING the prescribed rate, resort to the authority TO
issue a ct ok would tbcr of them bc sufficient To
provide the necessary funds TO meet such occumua-
\ non.
The ,Nirencies Of the Treasury demanded hat the
effort should be made % relieve 1t fiom such weight
of interest especially il would not preclude relui
TO The system which invites Banks 10 hoard Treasury
notes by alo ing the,a lntere- while they borrow
oflhe community without interest tOibe extent ofthcif
\ circulation
The authority given Ivy the Constitution 70 " b, r
low money on the edit Of the United Stdcs, in Its
terms copprehends every form oioan which Congress
may think proper to prescribe AID 1t u no easy to
perceive hoN tits express and unqualified grant o
power can bo limited or curtaed Certiin 1t Is, lhs
the mo distinguished among those who nitnl Tor
a slr ct construction OF the Constitution have given
their sanction to the existence Of this power IN The
form OF bi,s OF credit OF Treasury notes.
Well founded objections exist in Borrowing with
out urgen, IT, in the form either OF perma
zen loans those Il temp rary choiac or. That
Necessity must also Huence he terms and cond-
tipus of cath. mode The former by putting "a tn,
day of payment TO "a more Convenient season"
crs temptation If diff ;ut stance. At has accord
,gly prov, tue btne of all Goyern men's. The policy
ofthe Treasury note system sces 10 have been devsrt
guard against this sysen,by bringing the day oipiy
ment close upon that Of expenditure, and It would
seem that the immedIie the liability TO paw, the
more would that policy be promoted. "A postpone
ment for year invites to profusioD, and nc
check lie so efectual instant responsibility
Every loan thus made directly from the people Is 10
fact made, not IN consideration Of the interest agreed
to be paid by the Government, but literally and solely
upon "lhe credit of the United States"
If, after such nolo' have answered the purpose o
Government in promoting convenience, security, and
economy in the public disbursements, they should, IL
consequence Of heir uniform value, be kept IN clrcu
otion to any considerable extent by our fellOw-clti
zens for their convenience in maintaining inter
nal trade and keeping down the fluctuations Of ex
change between different parts of he country, aisnl
from dlsordercj currency, 1t Ia not perceived how
such result affords g ound for objection TO system
81 consttutionaln itself and adopted for legitimate ant
fe fhe