Occurring, as
this would have done, at a period when the country was engaged in a
foreign war, when considerable loans of specie were required for distant
disbursements, and when the banks, the fiscal agents of the Government
and the depositories of its money, were suspended, the public credit
must have sunk, and many millions of dollars, as was the case during the
War of 1812, must have been sacrificed in discounts upon loans and upon
the depreciated paper currency which the Government would have been
compelled to use.
Under the operations of the constitutional treasury not a dollar has
been lost by the depreciation of the currency. The loans required to
prosecute the war with Mexico were negotiated by the Secretary of the
Treasury above par, realizing a large premium to the Government. The
restraining effect of the system upon the tendencies to excessive paper
issues by banks has saved the Government from heavy losses and thousands
of our business men from bankruptcy and ruin. The wisdom of the system
has been tested by the experience of the last two years, and it is
the dictate of sound policy that it should remain undisturbed.
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