Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1862-03-22
SATURDAY, MARCH 22, 1862.
The Treasury Note Law.

We alluded last week to this law, and
showed that the illegal tender" clause was in
strict accordance with the Constitution of the
United States. We now propose to notice
its policy, and its effect upon the country by
furnishing circulating medium. Before do
ing this, however, it is proper that we should
allude briefly to the history and origin of this
treasury note scheme of finance; and we do
this for the purpose Of showing that whatever
of merit or dement, may now or hereafter at
tach to the system, it belongs to the Demo-
cratic party as organized under the leadership
of Gen. jackson and Thomas II. Benton, and
that it is the legitimate fruit yielded by the
sub-treasury system Of Martin Van Buren,,
now acquiesced in by all parties as the safest
and best system Of depository ever devised
by man.
1t will be recollected that Mr.. Benton al
ways contended that the issue of bank paper
by States or corporations, was a violation of
that clause Of the Constitution which denies
to the States the right to issue bills of credit;
but he was over-rulcd by a majority of the
people, in consequence Of their having become
identified in interest with the system of credit,
introduced into the country by the system Of
banking which sprung up under the Admins
tration Of Gen. jackson, as o consequence of
putting down the old United States Bank.
The Democracy very soon found they had
committed capital error in the encouraging
of State banks, to supply the place occasioned
by the withdrawal of the circulation of the
United States Bank paper; and they were
subsequently compelled to abolish State banks
and adopt the sub-trcasury to save the coun-
try from bankruptcy and ruin, which they saw
was inevitable as a consequence Of OVERHEAD
ing; and Mr.. Van Buren, had patriotism and
boldnsss enough to issue the specie circular.
which created general crash Of our banks.
deranged temporarily the business Of the
wholr country. and, - was to have been ex-
pscted, resulted in . most overwhelming de-
feat Of the Democracy by the Wing. or rather
United States Bank Party. The FIRST thing
done BY the Harrison Administration was to
repeal the obnoxious sub-trcasury. and pro-
cure 4 re-charter Of the United States Rank.
the latter Of which was prevented by Tyler's
trssehey. Two yean after a Democratic
majority in Congress re-enacted the sub-,rcss-
my lsv, and No disposition has been mani
tested BY eiier party sinee that time to dis
fsrb IT,
II. hrst Treasury notes were isssed BY
Mr. Woodbury.. President Van Burens Seere-
'ary {" the Trassry. to supply a de6eieney
81 snns ten millisas in the revenue instead al
sss"f'.g to IN ordinary loan. This was
nsss hsssesiy opposed by the whigs. and -
sra'essly Insisted .. by the Democrats when
m power. VIA the whigs came into power
IN lsas. BY the elscsicn II Gen. TayIor. the
trsa-ry nstes vese hid asid~ ed ordinary
h. rssussi 10 Ssr naki,g ~ d~kesenriss
= ssvssss. ssi Tie tsras.ry mite sysse. was
sviaasaly growing IN favor with the people.
OA whies had esss-d to elanor for n.sioual
bnk. ssd very many of them bad become
decidedly hostile to IN. banks. During al
this period. Presidest Lincoln wss . leading