WRITINGS OF 5AM HOUSTON, 1843
· 188
to its market value in the streets, the same influence and means which had been employed to depreciate its value in the market, would have been united to enhance the same. I regret much that you suppose that you have any reason to complain of what you say was contained in the Acting Secre- tary's letter to you. It arose from the fact that I was informed a house had been furnished by you at Houston with several thousand dollars, for the purpose of purchasing drafts on the Government with Exchequer bills. I wished the Exchequers to be collected to be as much as· withdrawn from circulation as was practicable. If a few hundred dollars in Exchequer notes are in circulation, they create the impression that a much larger amount has been issued than would be the case if one draft represented some twenty or thirty bills; and I had been assured that these drafts had been issued with an understanding that they were to be absorbed at the receipt of customs but not to be redeemed in Exchequer bills. You have enclosed to me an extract from the Secretary's letter that corresponds with my understanding. In speaking of the issue of drafts he says, in substance, that it was to prevent the circulation of Exchequer bills as much as possible, and "at the same time satisfy the holders of liabilities who received the drafts with the distinct understanding that if it was not con- sistent with the interest of the currency or the convenience of the Government, the money would not be paid by you, but that they would be received for customs, and might therefore answer their purpose with the merchant." And the extract which you have given further shows that the object was to withdraw as soon as possible or at least to reduce the amount of Exchequers in circulation. You then go on to remark in your letter: "Now, it does seem to me, if the public were to be made acquainted with this order, it would be considered a piece of financial jugglery that would seriously interfere with the credit of the Government, and would not appear well in our history of finance." How you could have arrived at this conclusion I cannot perceive. The extract, to be sure, says: "It will afford a fair excuse for not having the drafts when presented." Though this is the case, the subsequent statement of the understanding with which the drafts were issued goes clearly to show that there was no jug- glery, or unfair dealing intended in the transaction. And if they
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