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. 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 therefor 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 therefor 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
consi