Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1862-10-04
SATURDAY, OCTOBER 4, 1862.
The Treasury Note Currency.

4UC 4ACoSuAy XSVVV SGAASASy'
There seems to be a very great mis-
apprehension on the part of our Demo-
cratic contemporaries in relation to the
origin of the Treasury note system of
currency. They appear to regard it as
part of the paper system which was
advocated by the Wing party under the
leadership of Henry Clay, and which
was so strenuously opposed by the De.
mocratic party under the leadership Of
Thomas H. Benton.
Those who are familiar with the his
tory of Gen. Jackson's and Martin Van
Buren's Administration will rcmem-
Der that the Wing party was in favor of
a United States Bank, while the Dem
ocrats opposed the bank and advocated
a currency based entirely upon gold
and silver, or the revenues cfthe Gorern-
ment. The Wing argument in favor of
a United States Bank was, that paper
Of some kind was needed for exchange,
and that this system would supply the
want better than it could be supplied
in any other way. On the other hand,
it was urged by the Democrats, that
drafts drawn by the Government upon
different places in favor of creditors,
would answer better purpose for ex-
change, and hence the recommendation
of Mr.. Van Buren, for the establish
mcnt of sub-treasuries at all the promi-
nent commercial points in the nation.
The Sub-Treasury system was adopt
ed, aud ten millions Of Treasury notes
were authorized by Congress to meet a
deficiency in the revenue instead of re-
sorting to a Government loan, which
latter policy was contendcd for by the
Wings. The results which followed
the adoption of this treasury note pol.
icy, as substitute for the bank, are
we'll known. 1t had the effect ofwrest-
ing the power from the Democraiicpar-
ty in 1910. The first act of the Wing
Administration was to repeal the OBJ
noxious sub-treasury enactment and to
convert into Government stocks all the
outstanding notes, and to re-cstablish
q U. S. Bank, which only failed by the
political treachery of John Tyler.
The leading Democrats took the 70.
sition that the issue of bank paper by
the States as money, was in violation of
the cisuss- IN the Constitution prohib.
itirg the issue of bills Of credit, and
that drafts drawn by the Treasury were
the only Constitutional paper circulat-
ing medium which ought to be tolerated
by the people. Two years after the
election of Gen. Harrison, the Den,oc-
racy obtained a majority in Congress
and re-enactcd the sub.treasury law,
and again issued treasury notes to meet
deficiencies in the revenue. The pub.
lie mind gradually settled down into an
acquiescence of the sub.treasury and
treasury note policy. 1t must be borne
in mind that the issue of treasury notes
was the fruit of the sub.treasury, and
consequently both are Democratic
measures. In other words, the present
system Of national finance is nothing
more thau carrying into practical opera-
ton, on a large scale, the Democratic
theories of Gen. Jackson and Thomas
H. Benton.
An effort is now being made by men
styling themselves Union Democrats to
create the impression that the treasury
notes now circulating among US are the
result of the election to the Presidency
Of an "Old-Line Wing" and that Dem.
ocrats are bound to oppose their circu.
Iation as an innovation upon their old
and well-established doctrines of oppo.
sition to a paper currency. Nothing
can be further from tho truth. So fur
from its being Wing or Republican
measure, we have shown that it is the
Constitutional currency advocated by
the Democracy under the Adn,inistra.
tions of Gen. Jackson, Martin Van Blu.
rem, James X. Polk and Franklin
eie-'e, and what is more, it is now be.