Andrew Jackson destroyed the National bank as a financial force by removing it's federal deposits and diverting it's funds to private banks. Without central control, speculative lending practices led to inflationary paper money. John Tyler had a solution. During his annual address to congress of 1842, President John Tyler outlined his plan for an exchequer system. Tyler wanted to create a "board of exchequer" that would provide for a sound currency and safeguard the public funds. John Tyler began:
"I felt it to be my duty to cause to be submitted to you at the commencement of your last 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 of the people and the States, and therefore virtually by the people themselves."
His exchequer system among other things proposed the following:
- It was proposed to be "exercised by the representatives of the people and the States" placed "under the control and direction of a Treasury board"
- It was proposed to "establish subordinate boards in each of the states"
- It was proposed that "in order to furnish a sound paper medium of exchange the exchequer should retain of the revenues of the Government ... and to pay the public creditor at his own option either in specie or Treasury notes"
- It was proposed that " In order to guard against all the hazards incident to fluctuations in trade, the Secretary of the Treasury was invested with authority to issue [Government stock]"
- It was proposed supply "a paper medium of exchange at all times convertible into gold and silver"
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