Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-12-23

Another attempt, by their agency in circu
lating treasury note s, TO overcome the ne-
qualities of the exchange has only bcsn
Partially sue esSful. And plan recently
proposed, with the DIES gn TO curtail the
issue or bank n.tes, to fix the public
confidence an the administration of the sf
fairs OF the banks, and to give cath bank a
legitimate share in the circulation, is
not likely 60 receive the sanction of the
banks. The truth is, that the charter
restrictions OF s,rne of the banks tie mu-
tual relation and dependence OF the banks
ct the same state, and even of the banks
OF dHerent states. and the duty which the
directors of each bank conceive that they
owe to the + immediate constituents upon
points OF security or emolument intcrpose
an insuperable obstacle to any voluntary
arrangement, upon national considera-
tons alone. for the establishment of a
nat'oual medium through the agency OF
the state banks. 1t is, nevertheless, with
the State BANKS that the measures for
restoring the national currency of god
and silver must originate; for until their
issues of paper be reduced their specie
capitals be re-instated ; and their specie
operations be commenced there will be
neither room. nor employment, nor safety,
for the introduction of the precious me-
tals.F The policy and interest of the State
banks must therefore be engaged in the
grca. fiscal WORK, by all the means which
the treasury can employ, or the Legislative
WIS lom shall prov:dc.
81. The establishment of National
Bank IS regarded as the best and perhaps
the only adequate resource To relieve the
couatry and Che government from the pre-
mt enb ,rrassments. Authorized TO issue
mites which will be received in all pay
-, 10. Al
ton OF it's issues viii be co-extensive with
the Union /; and there will exist a con-
slant demand, bearing just proportion to
the annual amount OF toe duties ana taxes
to be collected, independent oil the gener-
al circulation for commercial and social
purposes. A National Bank will therefore
possess the means and the opportunity
OK supplying circulating medium of e.
quail use and value in every State, and in
every district of every State. Establish
ed by the authority of the government of
the United States; accredited by the gov
eminent to the whole amount of its notes
IN circulation and entrusted as the de-
pository of the government with all the ac-
cumulations of the pubic treasure the
National Bank, independent of its imme-
date capital, will enjoy every recommen-
dation which Can merit and secure the
confidence OF the public. Organized up
on principles Of responsibility, but of in--
dependence, the national bank will be re-
tanned within its legitimate sphere of &C
tom without just apprehension from the
misconduct of its directors or from the en-
croachments of the government Eminent
III its resources, and in its example, the
National Bank will concilate, aid, and
lead, the State banks in all that is necessa-
ry for the restoration of credit, public and
capital, partly of stock and partly of gold
and silver, the National Bank will be the
ready instrument to enhance the value of
the publ securities and to restore the cur
rency OF the national coin.
q. The powers of the government to
supply and maintain a paper medium of
'~esaefAac{sa aElii not he questioned but for
the Introduction of that medium there
must be an adequate motive. The sole
motive for issuing treasury notes has hith-
erto heea to raise money in anticipation of
the revenue. The revenue, however, will
probably become, i'll the course Of the year
1916, and continue afterwards, sufficient
70 discharge all the debts and to defray
all the expenses of the government, and
consequently there will exist no motive to
issue the paper Of the government as an
instrument of credit.
1t will not be deemed an ADEQUATE OBJ
ject for an issue of the paper of the govern
ment, merely that it may be exchanged
for the paper of the banks, since the
treasury will be abundantly supplied with
bank paper by the collection of the re-
venue, and the government cannotj be ex-
peCted to render itself a general debtor,
in order to become the special creditor of
the State banks:
Toe cooperation of the government with
the national bank, in the introduction of a
national currency may, however, be advan-
tageously employed by issues of treasury
notes as long as they shall be required for
the public service.
Upon the whole, the state of the nation
al currency and other important consider
atoms connected with the operations of the
treasury, render il duty respectfully to
propose,
That a National Bank be established
at the city of Philadelphia, having power
to erect branches elsewhere and that the
capital of the bank (being of a compe--
tent amount) consist of three fourths of the
public stock, and one fourth of gold and
silver.
AL which is respectfully submitted
A. ]. DALLAS,
Secretary ofthe Treasury.
URY-DEPARTMENT,
9th December 1915