Chapter XCI

THE THIRD FISCAL AGENT, ENTITLED A BOARD OF EXCHEQUER.

This measure, recommended by the President, was immediately taken up in each branch of Congress. In the House of Representatives a committee of a novel character--one without precedent, and without imitation--was created for it: "_A select committee on the finances and the currency_," composed of nine members, and Mr. Caleb Cushing its chairman. Through its chairman this committee, with the exception of two of its members (Mr. Garret Davis of Kentucky, and Mr. John P. Kennedy, of Maryland), made a most elaborate report, recommending the measure, and accompanied by a bill to carry it into effect. The ruling feature of the whole plan was a national currency of paper-money, to be issued by the federal government, and to be got into circulation through payments made by it, and by its character of receivability in payment of public dues. To clear the ground for the erection of this new species of national currency, all other kinds of currency were reviewed and examined--their good and their bad qualities stated--and this government currency pronounced to combine the good qualities, and to avoid the bad of all other kinds. National bank-notes were condemned for one set of reasons: local bank-notes for another: and as for gold and silver, the reporter found so many defects in such a currency, and detailed them with such precision, that it looked like drawing up a bill of indictment against such vicious substitutes for money. In this view the report said

"But the precious metals themselves, in addition to their uses
for coin, are likewise, whether coined or uncoined, a commodity,
or article of production, consumption, and merchandise.
Themselves are a part of that general property of the community,
of all the rest of which they are the measure; and they are
of actual value different in different places, according to
the contingencies of government or commerce. Their aggregate
quantity is subject to be diminished by casual destruction or
absorption in the arts of manufacture, or to be diminished
or augmented by the greater or less number or productiveness
of mines; and thus their aggregate value relatively to other
commodities is liable to perpetual change. The influence of
these facts upon prices, upon public affairs, and upon commerce,
is visible in all the financial history of modern times. Besides
which, coin is subject to debasement, or to be made a legal
tender, at a rate exceeding its actual value, by the arbitrary
act of the government, which controls its coinage and prescribes
its legal value. In times when the uses of a paper currency
and of public stocks were not understood or not practised, and
communities had not begun to resort to a paper symbol or nominal
representative of money, capable of being fabricated at will,
the adulteration of coin, instead of it, was, it is well known,
the frequent expedient of public necessity or public cupidity
to obtain relief from some pressing pecuniary embarrassment.
Moreover, the precious metals, though of less bulk in proportion
to their value than most other commodities, yet cannot be
transported from place to place without cost and risk; coin
is subject to be stolen or lost, and in that case cannot be
easily identified, so as to be reclaimed; the continual counting
of it in large sums is inconvenient; it would be unsafe, and
would cause much money to remain idle and unfruitful, if every
merchant kept constantly on hand a sum of coin for all his
transactions; and the displacement of large amounts of coin, its
transfer from one community or one country to another, is liable
to occasion fluctuations in the value of property or labor, and
to embarrass commercial operations."

Having thus shown the demerit of all other sorts of currency, and cleared the way for this new species, the report proceeds to recommend it to the adoption of the legislature, with an encomium upon the President, and on the select committee on the finances and the currency, who had so well discharged their duty in proposing it; thus:

"The President of the United States, in presenting this plan to
Congress, has obeyed the injunction of the constitution, which
requires him to recommend to their consideration such measures
as he shall judge necessary and expedient; he has fully redeemed
the engagements in this respect which he had previously made to
Congress: and thus he has faithfully discharged his whole duty
to the constitution and the Union. The committee, while animated
by the highest respect for his views, have yet deemed it due to
him, to themselves, to the occasion, and to the country, to give
to those views a free and unbiassed examination. They have done
so; and in so doing, they have also discharged their duty. They
respectfully submit the result to the House in the bill herewith
reported. They believe this measure to contain the elements of
usefulness and public good; and, as such, they recommend it to
the House. But they feel no pride of opinion concerning it; and,
if in error, they are ready to follow the lead of better lights,
if better there be, from other quarters; being anxious only
to minister to the welfare of the people whom they represent.
It remains now for Congress to act in the matter; the country
demands that in some way we shall act; and the times appeal to
us to act with decision, with moderation, with impartiality,
with independence. Long enough, the question of the national
finances has been the sport of passion and the battle-cry of
party. Foremost of all things, the country, in order to recover
itself, needs repose and order for its material interest, and
a settled purpose in that respect (what it shall be is of less
moment, but at any rate _some_ settled purpose) on the part of
the federal government. If, careless of names and solicitous
only for things, aiming beyond all intermediate objects to
the visible mark of the practicable and attainable good--if
Congress shall in its wisdom concur at length in some equitable
adjustment of the currency question, it cannot fail to deserve
and secure the lasting gratitude of the people of the United
States."

After reading this elaborate report, Mr. Cushing also read the equally elaborate bill which accompanied it: and that was the last of the bill ever heard of in the House. It was never called up for consideration, but died a natural death on the calendar on which it was placed. In the Senate the fate of the measure was still more compendiously decided. The President's recommendation, the ample report of the Secretary of the Treasury, and the bill drawn up at the Treasury itself, were all sent to the Committee of Finance; which committee, deeming it unworthy of consideration, through its chairman, Mr. Evans, of Maine, prayed to be discharged from the consideration of it: and were so discharged accordingly. But, though so lightly disposed of, the measure did not escape ample denunciation. Deeming the proposition an outrage upon the constitution, an insult to gold and silver, and infinitely demoralizing to the government and dangerous to the people, Mr. Benton struck another blow at it as it went out of the Senate to the committee. It was on the motion to refer the subject to the Finance Committee, that he delivered a speech of three hours against it: of which some extracts were given in Chapter XC.