The board thus constituted was given as much permanency
as could be imparted to it without endangering the
proper share of much responsibility which should attach
to all public agents. In order to insure all the
advantages of a well-matured experience, the
commissioners were to hold their offices for the
respective periods of two, four, and six years, thereby
securing at all times in the management of the exchequer
the services of two men of experience; and to place them
in a condition to exercise perfect independence of mind
and action it was provided that their removal should
only take place for actual incapacity or infidelity to
the trust, and to be followed by the President with an
exposition of the causes of such removal, should it
occur.
It was proposed to establish subordinate boards in
each of the States, under the same restrictions and
limitations of the power of removal, which, with the
central board, should receive, safely keep, and disburse
the public moneys. An in order to furnish a sound paper
medium of exchange the exchequer should retain of the
revenues of the Government a sum not to exceed
$5,000,000 in specie, to be set apart as required by its
operations, and to pay the public creditor at his own
option either in specie or Treasury notes of
denominations not less than $5 nor exceeding $100, which
notes should be redeemed at the several places of issue,
and to be receivable at all times and everywhere in
payment of Government dues, with a restraint upon such
issue of bills that the same should not exceed the
maximum of $15,000,000.
In order to guard against all the hazards incident to
fluctuations in trade, the Secretary of the Treasury was
invested with authority to issue $5,000,000 of
Government stock, should the same at any time be
regarded as necessary in order to place beyond hazard
the prompt redemption of the bills which might be thrown
into circulation; thus in fact making the issue of
$15,000,000 of exchequer bills rest substantially on
$10,000,000, and keeping in circulation never more than
one and one-half dollars for every dollar in specie.
When to this it is added that the bills are not only
everywhere receivable in Government dues, but that the
Government itself would be bound for their ultimate
redemption, no rational doubt can exist that the paper
which the exchequer would furnish would readily enter
into general circulation and be maintained at all times
at or above par with gold and silver, thereby realizing
the great want of the age and fulfilling the wishes of
the people.
Volume: IV Pages: 204-209 (extract) "In order to
reimburse the Government the expenses of the plan, it
was proposed to invest the exchequer with the limited
authority to deal in bills of exchange (unless
prohibited by the State in which an agency might be
situated) having only thirty days to run and resting on
a fair and bona fide basis. The legislative will on this
point might be so plainly announced as to avoid all
pretext for partiality or favoritism. It was furthermore
proposed to invest this Treasury agent with authority to
receive on deposit to a limited amount the specie funds
of individuals and to grant certificates therefore to be
redeemed on presentation, under the idea, which is
believed to be well founded, that such certificates
would come in aid of the exchequer bills in supplying a
safe and ample paper circulation.
Or if in place of the contemplated dealings in
exchange the exchequer should be authorized not only to
exchange its bills for actual deposits of specie, but,
for specie or its equivalent, to sell drafts, charging
therefore a small but reasonable premium. I can not
doubt but that the benefits of the law would be speedily
manifested in the revival of the credit, trade, and
business of the whole country. Entertaining this
opinion, it becomes my duty to urge its adoption upon
Congress by reference to the strongest considerations of
the public interests, with such alterations in its
details as Congress may in its wisdom see fit to make.
I am well aware that this proposed alteration and
amendment of the laws establishing the Treasury
Department has encountered various objections, and that
among others it has been proclaimed a Government bank of
fearful and dangerous import. It is proposed to confer
upon it no extraordinary power. It purports to do no
more than pay the debts of the Government with the
redeemable paper of the Government, in which respect it
accomplishes precisely what the Treasury does daily at
this time in issuing to the public creditors the
Treasury notes which under law it is authorized to
issue. It has no resemblance to an ordinary bank, as it
furnishes no profits to private stockholders and lends
no capital to individuals. If it be objected to as a
Government bank and the objection be available, then
should all the laws in relation to the Treasury be
repealed and the capacity of the Government to collect
what is due to it or pay what it owes be abrogated.
This is the chief purpose of the proposed exchequer, and
surely if in the accomplishment of a purpose so
essential it affords a sound circulating medium to the
country and facilities to trade it should be regarded as
no slight recommendation of it to public consideration.
Properly guarded by the provisions of law, it can run
into no dangerous evil, nor can any abuse arise under it
but such as the legislature itself will be answerable
for if it be tolerated, since it is but the creature of
the law and is susceptible at all times of modification,
amendment, or repeal at the pleasure of Congress.
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