221
WRITINGS OF SAM HOUSTON, 1838
and is still intended, to possess that character, and perform the office of a circulating medium, as distinguished from the other paper of the Government. When the first issues reached New Orleans, last autumn, it was passed at a slight discount; but as the quantity increased in that market, the depreciation increased, until the value of the paper was reduced to fifty cents on the dollar. The reason is obvious; it was not available in business transac- tions, except for those persons whose relations with Texas enabled them to use it. The merchants of that city could not send it abroad, and its circulation was limited to the Texas demand. If Texas had no business transactions beyond her own borders, she could be self-existent, and independent of all the world; any representative she chose to put forth as a circulating medium, which was acceptable to her own citizens, would be well, and one thing equally as good as another. But the operations of· commerce, and reciprocity of exchanges, have created relations of dependence between different nations, as strong and necessary as exist between individuals of the same country. It is impossible for any Government, and especially one situ- ated like ours, to place its currency beyond the influence of these relations. They must be consulted, and will regulate, to a great extent, the value of any currency- except the precious metals, both at home and abroad. It seems to me, the Congress have lost sight of the great object for which this particular species of paper was created. If the only object of the country was not to pay off those having claims against the Government, and the holders of those claims were anxious to receive government paper in payment, I can see no good reason why we should not discharge the whole public debt at once, except the trouble of issuing the paper. That it would be futile and useless expenditure of labor, is obvious to all. The form of the transaction only, would be changed, the debt would still remain against the Government, and the creditor still hold nothing but the promises. But the treasury notes are designed to serve a purpose en- tirely different, equally important, and connected ·with the inter- ests of all classes of the community. When this currency was projected, both the Government and the country were without money or resources. National existence
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