The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1844-11-26
From Tie Ns,o York Sxn.
THE EXCHEQUER PLAN.

In the heat of political discussion where each party
has favorito financial plan Of its own, any compro-
mise project apt 10 be east aside without sny
sideraton of its merits. For several years past the
projects Of Bank OF the United States and Sub
Treasury have occupied the columns Of the partisan
Press, and each recommended and urged upon
their respective merits 1t not TO be expected
in that position that the plan of Exchequer pro-
posed by the present administration could obtain any
thing like fair hearing We are too apt in this
country 10 90 either to The extremes OF opposition or
the extremes Of support and To avoid that very me-
dunn which might satisfy both sides. A new era has
commenced and new men are to take charge Of the
government, and this conceive is the proper
time to examine the Exchequer project, and ascertain
how far il may be- advisable 10 sustain it in preference
either TO Bank or Sub-Treasury. We cannot ex-
peci always to have an overlooking Treasury. Over
trading viii exhaust ITSELF and the reduction Of
certain portions of the Tariff Of lS42, which bears
hard sever al interests, will diminish the receipts Of
the national Golfers besides, we shall be called upon
in few months TO redeem loans which are due, and
which will absorb all the balance remaining after
meeting the current expenses Our government,
therefore, must adopt measures for the permanent
support Of its credit and must therefore choose be-
tween an Exchequer, Government Bank, or Sub
Treasury. The disastrous ruin Of the United States
Bank In means and reputation, both at home and
abroad the abuse OF It's powers, and It's utter inability
to regulate the currency of the country place such
project at too remote distance to believe that il
can be adopted at least in generation, with its
severe losses pressing hard upon the people,
That PROJECT we do not believe will be preached
by the present or by any Congress- at least until
cry other system has been exhausted, and has failed
in accomplishing all the objects contemplated. The
next in order is the Independent Treasury, common
ly called the Sub Sreasury; which is merely assign
ing to the custody of person Of integrity, the safe
keeping OF the public moneys; precisely the same in
character and effect as the duty now discharged by
tha lie TIA only cd for
the adoption of the SubTreasury project was an APP
prehension at that time that the public moneys
safe in the Banks, and if look at the immense
issue of notes and the positive dishonesty Of certain
Banks, the apprehension Justly founded. 1t may
and probably will be urged that the financial difficult
ties of 1886 may again occur and that the Banks,
though now restricted in the issue of paper circu
laiion and very well managed may by revulsions and
trading find themselves in similar difficulties and
therefore the revival Of the Sub-Treasury would at
guard against that evil. Beyond the mere safe
keeping of the public moneys, the Sub Treasury
of use to the governmental could not and did not
strengthen the credit Of the government and only
available to the amount OF money it had in custody
Now the object of the Exchequer was to issue Bills
by the Government against the amount of gold and
silver in the Freasuy-a plan usefully adopted else
WHERE and by this issue regulate the currency of the
country, while it enlarged, extended and confirmed
the public credit at home and abroad. II was pro-
posed by President Tyler If we remember rightly, to
create Treasury Board, consisting of three Com
missioners for the purpose Of supplying paper me-
dunn of Exchange, which at all times could be
vertible into gold silver. Subordinate and coop
erative boards to be established in each of the
States under the limitations and restrictions.
The Exchequer was to retain from the Treasury five
millions in gold or silver permanent fund TO pay
the public creditor, either at his option in specie or In
Treasury notes, OF not less than five, higher than
hundred dollars redeemable the several places
of issue, and received every where in payment OF
dues. The amount of bills in circulation never to
exceed fifteen millions Of dollars. This five millions
in specie and five millions in Government stocks
would constitute guarantee for the redemption OF
the fifteen millions of Exchequer bills, and thus maxi
ing the issue of fifteen millions to substantially
on ten millions capital, and keeping dollar and
fifty cents in circulation for dollar in specie
Those bills would pass throughout the Union,
and all the profits arising from the operation would
60 into the Treasury, and in time, if found TO
1t is only issuing what the Government now does,
Treasury notes; but Exchequer bills will be based
by law a safe capital 1t is not a Bank, because
1t loans no money and has no stockholders 1t gives
permanency to the credit of government and prevents
the humiliation Of going abroad with small loan and
finding the English capitalists refusing TO take it, and
in the event of war; such an institution will COM
pose the very snews of it. We believe that the EX-
cheqaer project has been condemned without an ex-
animation, and trust that the contest is over,
it will meet, we think it merits with fair and
close scrutiny, and ascertain whether the fnancers
and capitalists of the country cannot unite under
tain notifications in favor of an Exchequer in pre-
ference to the SuD-Treasury Bank of the United
States, which cannot, as we conceive, pass through
either House of Congress at present.