Indiana American, Volume 10, Number 51, Brookville, Franklin County, 16 December 1842 — Page 2
as
and who were wrongfully taken and held
prisoners of war in Mexico, have all been liber ated.
are injurious as
importer. Tin
m well lo the manufacturer as the our neutral relations on the boundary between ie quantity of goods in store be- us and Texas, and keeping in check the IndU
the Department of State and the Mexican Min
ister of Foreign Affairs, upon the complaint of Mexico that citizens of the United States were permitted to give aid to the inhabitants of Texas in the war existing between her and that Republic. Copies of this correspondence are herewith communicated to Congress, together with copies of letters on the subject, addressed to the Diplomatic Corps at Mexico, by the
American Minister and the Mexican Secretary of State. Mexico has thought proper to reciprocate the mission ol the United State3 to that Government by accrediting to this a Minister of the eime rank as that of the representitive of the United States in Mexico. From tlie circumstances connected with liia mission, favorable r-!s'i!t an anticipated from it. It is so obviously for tho interests of both countries a neighbors and friends, that all just caiwes of mutual r!is.itis(.iction should he removed, that
ing at all times readily known, it would enable Bns in that qurater. will he maintain inn
importer, wi;h an approach to accuracy, to as- as circumstances may require.
ror several years nnffrv rnntfntinn bnvo
A correspondence has taken place between ; certiHn the actliai wanls of lhe market, and to
regulate himself accordingly. If however he grown out or the disposition directed by law to
should fall into error, by importing an excess be made of the mineral lands held by the Gov
iiuuic me puuMt niiis, "i- "Mini rrauuy ii-(ernment in several of the States The Govrect its evils by availing himself of the benefits'ernment is constitute! the landlord and the
- iima r.nniiuin.vrmrei1j m lne states w herein lie the lands
... ,c guuus iuiiuncu -"uiu . us tenants, rne relation
nwau tin; uemaiuis 01 me
is
s, are
an unwise one.
ucive of the
lands should be
they should remain in their
.present condition. The supply of the ore xould
rnished
enterprise and in
dustry nf 111 nrnnriclni ll..,, . rl . tl.
n.. , . . J " f-iiviwii mail II nut: I lie IJItV
v...... ...... ..... ..v.. i n.nu.umu pilHyflm,
imu wunout something to ameliorate tlie rigor The recommendation of the Secretary in re,f cash payments, the entire import trade may ! eard to lhc improvements of the Western wa-
......... u. .,..,., a Kw weauny rapnansis; tcr!, and cci,ail, prominent harbors on the lakes
receive, your se-
Is of the market, and their is-, and it would be much m,.r Mn
sues would be governed by the fixed principle public interest that a sale of the la
in uumaiiu ana supply, inns nn approxima-. made than that . tion would be made to a steadiness and unifor-' present conditu
mity or price, which if attainable, would con- be more abundantly and certainly fur ucetothe decided advantage or mercantile 'when to be drawn from the enterprise a
aim inn iiaiucai operations.
in tlii country, and in Eerope. The small ; merits, and I doubt not will
importer, v, no requires an tne money lie can ; rions attention. The great importance of these
i..r ..i.tMiiirms an.uau.aiiu w no can out : subjects lo the posperity of the extensive legion
security of the whole coim-
, cannot escape olservation.
property which annually
ipon the amount thus paid for all occur ll navigation of the Mississioni alone.
:!. ; . u ' . . - i
hdi.iispheie formerly under th dominion of i K , ui.mhu, because or the dangerous obstructions in the
. Sna n. Imv im n-l-i.in n,o i.,.-i . .., hrt ' " t.i uius. nr i n ,n v-nver. make a oiid iJemanil unnn Connress for
M ire.uici ni ,..11,1 viv-iajr ; in rtnurn iu pay me lowest uuiy, wouia nave 10; referred to and the tliP lllllltiv nielli nfmtv ilrsl lila anil linnara. -..I. t : ..J ' f . V I ...J- i . . '
... , r..u..-.. ; sninutd ,,, .iinniii v iipoiuon oi ins tunas in r-'try in time of war,
U'V, t t4-0,,,,!,,"V Bl t. Ier to pay the duties, and would lose the in-:The los of lifeand 1 in i:T.n nini :nr hpiuusn th f'nr-cm . ' J ' . ... .line ium in memiu
, "r. " v " " ' " " iari4l I
na several iiiiersut tu-Mates of the .1..
ment
fisvally obtrjcted by the mditary rovolu-; llrt"!l lu"""-s i nome, wouiu uius ,he adoption of efflcent measures for their re ruT-nd convicts in those countries. j possess, afier a short time, an almost exclusive !,noval.
... he ratification of the lreay between the j monopoly ot me import iraoe, ami taws ne- The report of the Secretary of the Navy
11 1 ltu i ic n nnu Liirr tt'iiiiniii 111 .riiniiitr. ni . si" uru mi iiiv. iirriir;!! & in nu. n 1111111 11111 iriii-itiirr
the lath of June, 189
Will
itMiiiL' vim aiMiu;iiriiFfi wilii iiiiiL iiiiiiiirLHiii.
have been exchanged. 1 for the benefit of the few, a result wholly un-i,r-nrh nftho w; r. ri.WmiTt,o
and that instruments has been duly promulga- congenial with the spirit of our iustitutions,and already vast and dai, increail,n- cornraerce of ted on the part ofth.i Government. Cop, anti-republican in all its tendencies. The lhp C0Untry apart from the exposure to hostile are now communicated U Congress with a view Wirehonsintr vstem would enable the imnnr- rm,nirJ opart trom trie exposure to riosuie to.cnahlo that body to makl such chants .l"" 1 that rcliiC
. . V a- . j V 1 a 1 ""rtTy i uuicuiiiifni o excne particular
1 uiiiu iui 111c (iiu i ini; 11m luuus lur .ur. n.
in lbs liws applicable tj our intercourse with that Republic, as miy be deemed requisite. Provision bis bean ma Ie by th3 government of Cltil for lhj parmfnt of the claim on ac
count of the illegal detention of the brig War
rior at t;oquimb', in Tl
has reason to expect that othe
eitisen against Chili, will be h
nal and satisfactory close
The empire of llrazil has not been altogether exempt from thoie convalsions which so constantlf atHict the Reighrniring republics. Disturbances which recently broke out are. h iwever, now understood to ba q'lieted. Itut these occurrences, by threateniugtha stability of tha
i ivernmsnts or by causing incessant tnd violent changes in them, 01 in the persons who administer them, tend greatly to retard provisions for a just indemnity lor losses and injuries suffered by the individual subjects or citizens of other States. The Government of the United Sutea will feel it to be its duty, however to consent to na delay not unavoidable in ma
king satisfaction for wrongs and injuries sustained by its own citzons. Many years having in some cascs, elapsed, a decisive and effectual course of proceeding will be demanded of- the respective governments against whom claims have been preferred. The vexatious, harassing and expensive war which so long prevailed with the Indian tribes inhabiting the peninsula of Florida, has happily been terminated, whereby our army has been relieved from a service of the most disagreeable character, and the Treasury from a
large expenditure. Some casual outbreaks mav occur, such ae are incident to the close
proximity of the border settlers and the Indians,
but these as in all other cases, may be left to
the care of the local authorities, aided when occasion may require, by the forces of the
United States. A sufficient number of troops
will be maintained in Florida, so long as the remotest apprehension of danger shall exist,
yet their duties will be limited rather to the garrisoning of the necessary posts, than to the
maintenance of active hostilities. It is to be
hoped that a territory, so long retarded in its growth, will "now speedily tecover from the
evils incident to a protractad war, exhibiting
in thelincreased amount of its rich productions,
true evidence'of returning wealth and prosper
ity. By the practice of rigid justice towards
the numerous Indian tribes residing within
our territorial limits, and the exercise of a pa
rental vigilance over their interests, protecting them against fraud and intrusion, and at the
came time using every proper expedient to introduce among them the arts of civilized life, "we may fondly hope not only to wean
them from their love of war, but to inspire
them with a love of peace in all its avocations
itn several or the tribes great progress in
civilizing them has already been made. The
schoolmaster and the missionary are found
side by side, the remnants of what were once numerous and powerful nations may yet be preserved as the builders up of n new name
for themselves and their posterity,
The balance in the Treasury, on the 1st of
January, 1842; (exclusive of th? amount de
posited with the States. Trust Funds and Indemnities was S130.4S2.6S. The receipts into
the Treasury during the three first quarters of the present rear, from all .sources, amount to S2Q.6 1 6.593 7S, of which moie than fourteen
millions were received from customs, and
about one million from the public lands. The
receipts for the fourth quarter are estimated at
nearly eight millions, of which four millions
are expected from customs, and three millions
and a half from Ioans and Treasury notes.
The expenditures of the first three quarters of
the present year exceed twenty-six millions:
and those estimated for the fourth quarter
amouut to about eight millions, and it is antici
p ited there will be a deficiency of half a million
on the 1st of January next but that the a-
mount of outstanding warrants (estimated at
SSXKOOO) will leave an actual balance of about
attention. Vhntpvpr Ipnda In tit In its of.
: pron tame portion ot tne carrying iraoe in am- ficjency, without entailing unnecessary charges cles entered for the benefit of drawback, mwtjl1pon the Treasury, is well worthy of your sealso be mot seriously affected, without the rions consideration. It will bo PPn that whil
mill-
ear is
sum is
proposed to be included $400,000, for the purchase of clothing, which when once expended,
is Government adoption of some expedient tn relieve the cash an appropriation exceeding by less than a r claims of out system. The Warehousing System would t- ion ,lie appropriations of the present y fastened toafi- ford that relief, since the carrier would have a asked by ,he Secretary, yet that in this s
safe recourse to the public storehouses, and
might, without advancing the duty, rership
; I
wiinm some reasonaoie perioa 10 loreign pons. bc annually reimbursed by the sale or the A farther effect or tho measure would be, to rlothcs lld .vilI th... rorislitM tp nr.rT,Ptnni
supersede the system or drawbacks, thereby flllldi without anv new appropriation to the effectually protecting the Government against Uame object. To'this may also be added
" - 1 900. asked to cover the arreages of past years,
and $250,000, in order to maintain a competent
fxaiifl no tltA n 1 1 f nC 1 r1ai n 1 11 a a af a
1 1 auu j iit 1111 an uv-m nuiit u wuiu lias ui tuch to goods after their withdrawal from the public stores. In revising the existing tariff of duties, should you deem it proper to 'do so at your
present session, I can only repeat the suggestions and recommendations which, upon sev
eral occasions, I have heretofore felt it to be
my duty to offer to Congress. The great, primary and controlling interest of the American
People is union union not only in the mere
forms of government forms which may be bro
ken but union founded in an attachment of
States and individuals for each other. This
union in sentiment and feeling can only be
preserved by the adoption of that course of
policjrwhich, neither giving exclusive benefits
to some, nor imposing unnecessary burdens
upon others, shall consult the interests of all,
bv mirsulne a course or moderation, and
thereby seeknig to harmonize public optnton
and causing the people everywhere to Teel and
to know that the Government is carenil of the
interests of all alike. Nor is there any subject
in regard to which'moderation, connected with a wise discrimination, is more necessary than
in the imposition of duties on imports. heth
er reference be had to revenue, the primary
object in the imposition of taxes, or to the in
cidents which necessarily flow from their im
position, this is entirely true. Extravagant du
ties defeat their end and object, not only by
exciting in the public mind an hostility to the
manufacturing interests, but by inducing a sys
tern or smuggling on an extensive scale, and
the practice oreverv manner or fraud upon th
revenue, which the utmost vigilance or govern
ment cannot effectually suppress.
An opposite course of policy would be at
tended by results essentially different, of which
everv interest or society, and none more than !
those orthe manufacturer, would reap important advantages Among the most striking or
its benefits would be that derived from the
general acquiescence orthe country in its sup
port, and the consequent permanancy and sta
bility which would be given to all the opera
tions or industry. It cannot bc too often re
peated, that no system of legislation can be
wise which is fluctuating and uncertain. No interest can thrive under it. The prudent capitalist will never adventure his capital in manufacturing establishments, or in any other leading pursuit or lire, ir there exists a state or un
certainty as to whether the government will
repeal to-morrow what it has enacted to-day.
Fitftil profits, however high, ir threatened w ith
amnions reduction by a vascillatme policy
on the part or Government, will scarcely tempt
him to trust the money which he has acquired by alireoriabor, upon the uncertain adventure.
I, therefore in the spirit of conciliation, and influenced by no other desire than to rescue the great interests of the country from the vortex
of political contention, and in the discharge of
the high and solemn duties of the place which
I now occupy, recommend moderate duties
imposed with a wise discrimination as to their several objects, as being not only most likely to
be durable, but most advantageous to every in
terest or society,
The report of the Secretary orthe War De
partment exhibits a very full and satisfactory
S224,000 in the Treasury: Among the expen-1 account of the various important interests com-
ditures of the year, are more than eight mil
lions for the public debt, and $00,000 on account of the distribution to the States of the proceeds of the puclic lands. THa present tariff of duties was 'somewhat hastily and luurriedly passed near the close of the lute session of Congress. That it should have defects can, therefore be surprising to no one. To remedy such defects as may be found to exist in many of , its numerous provis
ions, will not fail to claim your serious atten-1 tion. It may well merit enquiry, whether the exaction of all duties in caah does not call for the introduction of a system wVich has proved highly beneficial in countries where it has been adopted. I refer to the Warehousing System. The first and most prominent effect which it would broduce would be to protect the market
alike against redundant or deficient supplies of
foreign fabrics both of which, in the long run
mm i me cnarge oi umi otticer. it is par
ticularly gratuyinK to find that the expenditures for the militiary service are greatly reduced in amount that a strict system of economy has been introduced into the service, anc the abuses of past years greatly reformed.--The fortifications on our maritime fron'ier
have been prosecuted with much vigor, r.d at
many points our defences are in -a very considerable state of forwardness. The suf jeslions
in reference to the establishment of 'itieans or communication with our territories 'in the Pa
cific, and to the surveys so essentia' 10 a knowledge of the resources of the intermediate country, are entitled toihe most favorable conside
ration. While I would propose nothing inconsistent with friendly negotiations to settle the
extent or our claims in that region, yet ft prudent forecast points out the necessity of such measures as may enable us to maintain our rights. The arrangements made for preserving
squadron on the coast of Africa, all of w hich,
when deducted, will reduce the expenditures
nearly wnhin the limits orthose or the current
ear. While, however, the expenditures will
thus remain very nearly the same as or the an
tecedent year, it is proposed to add greatly to
theoperatmns orthe Marine, and in lieu of on
ly 25 ships in commission, and but little in the
way of building, to keep, with the same expen
dihire, forty-one vessels afloat, and to build
twelve ships of a small class.
A strict system of accountability is establish
ed, and great pains are taken to insure industry,
fidelity and economy, in every department of
duty. Experiments have been instituted to
test the quality of various materials, particular
ly copper, iron and coal, so as to prevent fraud and imposition. -
It will appear by the report or the I'ostmas-
tei General the great point which, for several
years, has been so much desired, has, during
the current year, been fully accomplished.
The expenditures of the Department, Tor the
current year has been brought within its income
without lessening its general usefulness.
There has been an increase of revenue equal
to S!16C,000 for the year 1842 over that of 1841
without, as it is believed, anv addition having
been made to the number of letters and, news
papers transmitted through the mails. The
Post office laws have been honestly adminis
tered, and fidelity has been observed in accoun
ting for and paying over by the subordinate of
the Department, the moneys which have been
received. For the details orthe service, I refer
jou to the report
I flatter myself that lhe exhibition thus made
of the condition of the public administration
will serve to convince you that every proper attention has been paid to the interests of the
country by those who have been called to the
heads or the diiierent uepariments. lne re duct ion in the annual expenditures of the Gov
ertiment already accomplished, furnishes a sure
evidence that economy in tho application or the
public moneys, is regarded as a paramour.
duty.
At peace with an tuo worm me persona
liberty oTthe citizens sacredly maintained, and
his rights secured under politic! inatttudvna
deriving all their authority from the direct
sanction of the people with a toil fertile al
most beyond example; and a country blessed
with every diversity of climate and production
hat remains to be done in order to advance
the happiness and prosperity nf such a people?
Under ordinary circumetancei this enquiry
could readily bo answered.
The best that probably could be done for a
people inhabiting euch a country, would be to fortify their peace and security in the prosecution of their various pursuits, by guarding them
against invasion from without, and violence from within. Tho rest, for the greater part,
might be left to their own energy and enterprise. The chief embarrassments, which at tho
moment exhibit themselves, have arisen from
overact ion; and the most difficult task which re
mains to be accomplished, is that of correcting
ar d overcoming its effects
Between the years 18.1-1 and 1833, additions vcre made lo bank capital and bank issues, in the form of notes designed for circulation, to an txtent enormously great. The question seem
ed to be, not how the beet currency could be
provided, but in what manner the greatest a-
mount of bank paper could be put in circulation
Thus a vast amount or what was called money
since, for the time being, it answered the pur
poses or money, was thrown upon the country
an over issue which was attended, as a necessary consequence, by an extravagant increasa or tho prices of all articles or property, the spread of a speculative mania all over the country, and I... H II . I ...
u unauy cncicd in a general indebtedness on
me pari 01 stale and individuals, the nrnxtra
tion of public and private credit, a depreciation in the market value of real and personal estate.
and bas left large district of country almott
ertirely without any circulating medium.
In view orthe fact that, in 1830. the whole
bank note circulation within the United State amounted to but $61,333,898, according to the Treasury statements, and that an addition bad
oeen made thereto or the enormous sum
the first of January, 1837, being stated at f 149, 185,890,) faided by the great facilitiea afforded in obtaining loans from Earopean capitalists, Who were seized with the same speculative mania which prevailed in the United States and the large importation of fund from abroad, the result of stock sales and loans no one can be surprised at the apparent but unsubstantial state of prosperity which every where
prevailed over the land; while as littlo cause of
surprise should be felt at the present prostration of every thing, and the ruin which hits befallen so many cf our follow- itizens in the sadden withdrawal from circulation of so large an
amount or bank Usues, since 137 exceeding, as is bclived, the amount added to the paper cur
rency for a similar period antecedent to 191i, it ceases to be a matter or astonishment that such extensive shipreck elm-tld Lave been made or private fortunes, or tnat difficulties nhould exist in meetingtbeir engagements on the part of the debtor States. Apart from which, if there be taken into account th? immense losses sustained in the dishonor of numerous banks, it is
less a matter of surprise that insolvency should have visited many or our felbiw-citizcns, than that so many should have escaped the blighting influence of the times. In the solemn conviction of these truths, and with an ardent desire to meet the necessities of the country, I felt it to be my duty to cause to be submitted to yau at the commencement of your late session, the plan of an Exchequer, the whole power and duty of maintaining which in purity and vigor, was to be exercised by the Representatives or the People and the States, and therefore virtually by the people themselves It wns proposed to place it under the control and direction of a Treasury Hoard, to consist of three Commissioners, whose duty it should he to see that the law of its creation was faithfully executed, and that the great end
of supplying a paper medium of exchange, at ail times convertible into gold and silver,
nLnuld be attained. The Hoard thu consti
tuted, was given as much permanency as
could be jmparted to it. without endangering
the proper snare or responsibility which should attach to all public agents. In order to insure all the advantages of a well-matured experience, the Commiseioncrs were to hold
their ofhcesUbr the respective'. periods 01 two, four, and six vears. thereby securing at all
times in the management el the !'-.xctiequer, the services of two men of experience; and to
place them in a condition to exercise perfect
independence of mind snd action, it was
provided that their removal should only take
place for actual incapacity of infidelity to be
followed by the President with an exposition of
the causes of such removal, should it occur.
It ws proposed to establish subordinate boards in each orthe States, under the same re
strictions and limitations orthe power or remo
val, which with the central board.chould receive, saMy keep, and disburse the public monevs; and in order to furnish a sound paper medium of exchange, the Exchequer should retain of the revenues of the Government a 6iim not to exceed
i5,0t0,b00 in spec e.tol e set apart as required
by its operations, and to pay the public creditor at his own option, either in specie or Treasury
notes, or denominations not less than hve, nor
exceeding one hundred dollars, which notes
should be redeemed at the several places of is
sue, and to by receivable at all times and every
where in payment ofUovernmcnt dues; wiiu a
restraint upon such issue of bills that tlie same
hould not exceed the maximum of$lo,()lil),UO(i
n order to guard against all tho hazards inci
dent to fluctuation in trade, the Secretary of
the 1 reaury was invested with authCfrry to
sue $5,000,000 of Government stock, should the
same at any time be regarded as neccessary, in
order to place -beyond hizard the prompt re
demption ol the hills which might bn thrown in
to circulation. 1 hus in fact mnkin the issae
or 15,000,000 of Exchequer bills, rest subdtan
tially on $10,000,4 00; and keeping in circulation
never more than one and one-hnlf dollars for
every doll-ir in specie. When to this it is added
that tho bills are not only every where receival
ble in Government dues, but that the Govern
ment itself would be bound for tLeir ultimate
redemption, no rational doubt can exist that the
paper which the Exchequer would furnish would
readilv enter into general circulation, and be
maintained at all times at or above par will
gold and silver; thereby realizing the great wnni
of the age, and fulfilling the wibhes of the Peo
ple
In order to reimburse the Government the ex
penses of the plan, it wa proposed to invest the
Lxchcqner with the limited authority to deal in hills of exchange, unless prohibited bv the State
in which an agency might be situated, having
only thirty days to run, and retting on a fair
and bonafide.basis. The Legislative will on
thin point might be so plainly announced a& to avoid all pretext for partial ty or favoritism.
It was furthermore proposed to invest this
Treasury agent with authority to receive on de
noaite. to a limited amount, the snecie funds of
individuata. ltt to frrunt crtifio tre'rre,
to be redcemd on presentation, under the idea, which is believed to be well founded, that such certificates would come in aid or the Exchequer bil's in supplying a safe and ample paper circulation. Or, if in place of the contem
plated dealings in exchange, the Exchequer
hould be authorized not only to exchange its
bills for actual denositeu of specie, but for spj
cic or its equivalents to sell drafts, charging
tliprpfora small but reasonable premium, I can
not doubt but that tho benefits of the law would
be spedily manifested in tne revival ofthe cred
it, trade and bnsinon of the whole country.
Entertaining this opinion, it becomes my duty
to urge its adoption upon Congress, by reference
to tba strongest considerations of tne pumic in
1 profit a. with such alterations in its details as
Coiiir-.ess may in its wisdom see fit to make.
I am well aware tnat mis proposed alteration
and'ainendment of the laws establishing the 1 reasury Department has encountered various objections, and that among others it has been
proclaimed a government name 01 leinui uu
dangerous import. It is proposed to corner up- . v . . In
on it no extraordinary powers. 11 -do no more than pay tho debts of the JGov-
.... :,k 1 ha reifoemable paper O' tue
dllllldl " I -V . , f5 i which reenect it accomplished
V VITI llltl-ii a - , .
precisely what the Treasury does dauy at im
in nuniic crt'uuwia
mendation of it to public conWN,
eriy guarded by the provis8 and run into nn it-umo... l lit-''-' .;
--6'-us ctii, .TTfr can T arise under it but such as the Ugislature'i will be answerable for, if it be tolerated s nW" it w but he creature of the law, and is susceoUble at all times of modification. mm.nA9 .
repeal, at the pleasure of confess.
Left
that It hn nhtola1 .L
h. i-.ki ;::.,..;",. iue ayem would
I know
be liable ,0 be abused by XtoOX whom alone it could be hnprf .u. ' 0y
conflicts of the day. That such abu manifest itself in a chan?e of th- i.I T.. .
would authorize an excessive issue of paper Poep&of inflatin pri- - To that it may be answered, that the ascription of such a motive to Congress is altogether gratuitous and in admissible. The theory of our institutions would lead us to a different conclusion. Dul a perfect security against a proceeding so reckless, would be round to ex ist in the very nature of things. The political party which should be so blind to the true interest3 ofthe country, as to resort to such an expedient, would inevitably meet with a final over-throw in the fact that, the moment the paper ceased to beconvertable info specie or other wise promptly redeemed, it would become worthless, and would in the end, dishonor the Government, involve the people in ruin, and such political parly in hopeless disgrace. At the same lime, such a view iuvolres the utter impossibility of furnishing any currency other than that of the precious metals, for, if the Government itself cannot foiego the temptation , of exce&sive paper issues, w hat reliance can be placed in corporations upon whom the temptation of individual aggrandizement would most strongly operate? The people would have to blame none but themselves for any injury that might arise from a course so reckless, since their agents would be wrong-doers, and they passive spectators. There can be but three kinds of public currency. 1st. Gold and silver. 2d. Thepaper of State institutions; or, 3d. A representative of the precious metals, provided by the Gener&l Government, or under its authority. The StibTrpasury system rejected the last in any fwrm; and as it was believed that no reliance could be placeJ 011 the issues of local institution, for the purposes of general circulation, it necessarily
and unavoidably adopted specie as the exclusive currency for its own use. And this must ever be the case unless one of the other kinds- be used. The choice, in the present state of pub
lic sentiment, lies between an exclusive specie currency on the one hand, and Government is
sues or some kin J,on thenher. That these is
sues cannot be made by a chartered institution,
is supposed to be conclusively setiled. They
must be made direclly by Government agents.
For several years past they have been thus
made in the Torm ofTreasury notes, and. have answered a valuable purpose. Their useful
ness has been limited by their being transient and temporary; their ceasing to bear interest at
given periods, necessarily causes their speedy return, and thus restricts their range of; circulation, and, being used only in the disburse
ments oT Government, they cannot reach those points w here they are most required By rendering tVir use permanent, to the moderate ex
tent already mentioned, by offering no induce
ment for their return, and by exchanging ihem
for coin and other values, they w ill consiitiiTe,
to a certain extent, the general currency so
much needed to maintain the internal trade of the country. And this is the Exchequer 'plan, so Tar as it may operate in furnishing a enr-
rency.
of
;mA an loam rrr
11 IllXt 111 1 - . ,
Treasury notes which, under law, it is author
ized to issue. It has no resemoiance to an ur innrv Itnnk. as it furnishes no profits to pri
vt stockholders, and lends no capital to indi
viduals. If it be objected to as a Government nnk nd the obiection be available then
should all the laws in relation to the Treasury
be repealed, and the capacity 01 tne govern
ment to collect what is aue w nor vy owes, be abrogated.
This is the chief purpose ofthe proposed Ex pi Miner: and aurelv if. in accomplishment of 1
nurnose so essential, it affords a sound circula
ting medium to the country, and facilities to
$88,000,000 in aaven years, (the circulation on J trade, it should be regarded as no slight recom
I cannot forego the occasion to urge its im
portance to the credit of the GovernmenX in a
financialpoint of view. The great necessity or restoring to every proper and becoming expedient in order to place the Treasury on a foot
ing of lhe highest respectability, is entirely obvious. The credit of the Government itself a principle of vitality u iiboul wljch;all its movements are languid and all iis operations embarrassed. In ihis spirit the Exccuiive felt itself bound by the most imperative sense of duty to submit to Congress, at its lasfseisfioiv the propriety of making a specific pledge of the land Hind, as the basis Tor the negotiation, or the loans authorized to be contracted, Ithen thought that such an appiicaiioa or thepublic domain would, w ithout doubt, have placed at the command or the Government ample runds to relieve the Treasury from the ternnnrnrv mfcnwiiiriil! tiiidrr wliirh it labored
American creoit lias sunerea a consionww
hock in Europe, from the large indebtedness-
or the States and the temporary inability oi some or them to meet the interest on their.
debts. The utter and disastrous prostration 01.
the United States Dank or Pennsj lvania, lias, contributed largely lo increase the sentiment or distrust by reason or the loss and ruin sus
tained by the holders or Us stock, a large portion or whom were foreigners, and many of whom were alike ignorant of our political or-
canization and ot our actual responsiDinui.
It was the anxious aesire 01 mc
that, in the effort to negotiate tne loan aoruau, the American negotiator might be able to point
the money lender to the fund mortgaged ! redemption of the principal and interest of any loan he might contract, and thereby vmdica e
the Government from all suspicion 01 oau
or inability to meet Hs engagemenis.
gress differed from tne executive 111 n
rth subieci. 11 Decame, neveruicics!.,
duty ofthe Executive to resort to every expe-
dient in its power to negotiate me """
loan. After a failure to do so 111 tne aui. market, a citizen of high character and talent
was sent to Europe with no better suctc--, thus the mortifying spectacle has been presen
ted of the inability of this Government -tain a loan so small as not in the whole to a-
mount to more than one forth of its wru"'"' annual income; at a time when the GoreT"" ments of Europe, although invalved in dew, and with their subjects heavily burdened w taxation, readily obtain loans of any amount
a greatly reduced rate or interest It would be unprofitable to look further in o thia anomalous state of things,but I rDn0,nt elude without adding that, for a Gowmmm which has paid off its debts of two wars w.m rhetrg owing a debt which is almost next to v0"1 iv"gr.rcd with its boundless resources, a
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