The Middlebury galaxy. [volume] (Middlebury, Vt.) 1848-1850, 1848-03-28

lures Of this Mexican war To avoid the ex-
portation o~fspecie to Mexico we have sent
Treasury drafts and Treasury notes. These
have been cashed thereby EnrFsh capitalists :
the money has been ,FfsSorsed in Mexico by
our officers; but the drafts have poem present
ed Prepayment at the Trsasary, and the avail.
I exported to,EngtsBE # has been found a
conveh~Asnrode OfremiiE,nce of the gold and
silver OF MexirO to England. You must eth
er continue this process, or send the gold and
silver TO MexirO, If YOU can command II, and
whether toR adopt one course or the otheri>.
50 far AS the currency is concerned, %unimport-
ant. No further exploration ofspecie can take
place without Gripping the currency.
But, sir, coriA YOU effect these oans under
these circumstances. yorweuld PROSTATE the
whole commercial community ; and with it you
would sacrifice every other industrial interest.
and annihilate vOurrevenue. II done at all.
il must be done by hawking about your stocks
ut . great depreciation. II capital is thus to
be forced into new channels, the effect NAV BE-
easily foreseen. The withdrawal ofdepO>ite>
from the banks-thas forcing them to further
curtailments--the 20. ced sale of stO, Ks tending
to further depreciation of every species OF
; propertv-would result in mischief indescriha-
bic: in general ruin. Fortunately for the
country, it could not and would not sustain
such n pressure, but yosir financial operations
would fail. Nor do l wish to see the credit OF
this Government in the hands Of usurers.
This might be done if the rights and honor
Of the nation were at stake, but never with
nv concurrence. for the purpose Of carrying
on Il war eesenenced, in my humble judy
mcnt, wff;hoat necessity and prosecuted with
out y rational Object.
With the Sub-treasury in operation, you
can never expect TO supply the deficiency in
your revenue. VIII YOU Mostly thSt system
bv repeating the specie clause? ? Will that n
vail YOU? The effect will be merely TO enable
YOU to receive paper instead 81 coin. That
papcr must be hank paper; there is no other.
Your loans. whether obtained firm banks or
individuals, viii be received in that currency.
What tken, will he the result You will. re-
ouire OF the banks first currency TO meet the
exirencies of the commercial world, and Sec
onilv a medium for your immense expenditure.
II they attempt this, they must enlarge their
circulation TO an enormous extent and ifihcv
do this. they will inevitably be driven to sus-
pension. We shall find ourselves thrown
hack at once upon the financial policy of 1914
the Government leanin. upOn suspended
hanks. & the hanks countcnancetI & sustained III
their suspension by the Government.
This would he an amusing comment upon
the boastcti divorce of the banks and the Gov
eminent, the blessed influence of the con>ti-
tutional treasury. and the, glorious practical re-
suits Of the specie humbug.
But notes of suspended banks would not an
swer your purpose. They could he used at hon'
only at a discount disguised under The device
OF lirh prices, increasing still further your ex-
pcH,lifnrcs and your cmbarrassncnts. and
woull he useless in your forci.n expenditure
If these loans cannot be effected at home, car
il he dome abroad ? No, sir. The state Of the
monetary affairs in Europe is still embarrassed
They are just recovering cSpc' ially in England
from cxtrr me pressure. Confidence is not vel
fullv restored. They have no m..ncy TO spare
and. IL they had. they would not he much inclined
10 aid YOU. American public credit does moi
stand very high there and. above all. they hay,
no sympathy with YOU. in this wal. They have
seen enough OF intcrminahlc war-tl'ey are dis
t-scd 10 peace. And they will not fail 10 regard
! Ibis war Us prosecuted for an unlawful purpose.
and rs originating in reckless ambition and low
Of cOnguc-;.
MIR. President The pext topic wlii"h pro-
rrsc .c aiseH=s is the project OF supplying" the de-
ficiencv in your revenue by means Of Treasury
notes and this is to be considered. first. rs Il
mere revenue measurc; and. secondly, as Il mcan'
81 relief 10 the currency and the business Of the
cunnfv.
Sir, AZ n rcvcnne measure. Treasury notes ma,
serve rs a temporary relief lev cnallin. YOU. for Il
short period, TO anticipate the revenue, hut ihe.,
ran never supply II deficiency. II rcsortet Ia ii
tImt purpose they must necessarily fail and the
! reason Is. that flicr will absorb, the revenue they
are intended 10 rkc ont. TO give them the effect
intended. they must bc made PAYABLE at n fuiur'
day. and uion such rate OF interest as will
make ii,cm an pi.ic.t Of Investment. and this will
30, them on tic IJpIin. Of a mere security for :
IHrmarcut loan. If placed ON this ground. the,
.riiI w cHccinal uniy when n lc:n upon stock, al
the same rate, could be obtained.
The iIcn that T'rcasury notes, rs n Govern
f1cfii crrrcncy. receivable for public dues, AM
convertible into money on demand, can Il"
made 10 supply II deficiency Of revenue. IL 10 my
mind IN ai,>urliiy. Suppose yOnr expenditure l.
:r,psiMA afrI vonr revenue S20.OOO!OOO, YOU
f.snc Treasury noics for s20.OOO.UUO 10 cover the
deficiency. Y0u must make them receivable fer
public ducs, or they will lie presented TO tn
Treasury for payment. II receivable they VIII IL
F,.,i ~ IN iies Of revenue and in either Ca,
:hcv will absorb ~ much revenue as they repre-
sent that is 10 saw. they will absorb ~ Of tb,
$40 400. 900, and leave the deficiency the same A.
II, fhr refsrt, TUAvcid this result. they must hs
re-issuc,i. or listed 10 an amount transcendin;
the revenue and il 80, how shall they he re-
deemed II not convertible into money ut thu
pleasure Of The holder, will they answer YOU
purpose nj home or abroad ? But there are 9th
e. dir .afics. II .ljshurscd abroad. they will tat
INTO The Eard, II foreigners a. they have hiihert"
done, and the specie will he demanded for ex-
y-rsn,tr,, H. has lseen the ease heretofore. u
Msf,ar.-d nj Hume, they viii kn mo the hand
of the banks, who. in the present crisis. will he
anxious TO fortify~ themselves, and who will pre-
sent them to the Treasury and transfer the sPe-
&c tc ,bxir vaults. if indeed the specie is to h.
had. fun where is the specie 10 lie had! NOT
at the custom house for the Treasury notes VIII
be paid in there in lieu Of specic. They are AZ
III moment ut a dhcr'nt, and constitute, as l.
well known. almost the whole OF your receipts
Here. Nsr at the Treasury or Sub-Treasury-
becaase II Is MT ut The ct>tUrn-house-
These Treasury notes mist necessarily dePre-
ciate. The, are deprecated now They arc Is
sued confrssedlv TO cover q deficiency of revenue.
and have no ls,sis 10 rest u. on, as no means are
kled for their redemption.
Sir. this evil Of deportation in the Govern
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