The Alexandria herald. [volume] (Alexandria [Va.]) 1811-1826, 1816-08-02
WASHINGTON, July so.
THE TREASURY.

state banks several propossuohs I'D
succe..ioc, with q view TO enable the
treasury TO transfer its funds IRON
places, where they accumulated bt
,yond the IL cal demand, to places whtr
the local demand exceeded the funds u
with "a view to equaliSe the exchange
between the different states and witt:
an Interior view TO restore the Lawful
national CURRENCY. The state banks
in general, declined acting upon RI.
propositions without offs ring, in an.
ins,snce, an efficient substitute, for tn,
accomplishment of objects so import
ant TO them. as well as to the govern
meut, and TO the people of the United
States.
1.-THE subject, under these circum-
stances, was presented for the conside
ration OF congress, and the powers OF
the legislature have been put in mo-
lion, TO relieve the community from an
indefinite continuance Of The evils,
which were produced by the suspen-
sion OF payments ia coin, al tho primer
pal state banks. The establishment OF
a national bank, and resolution, which
'psoyides for correcting the revenue az
The lawful currency of the United
States, after the goth of February, 1917,
are preparatory, but decisive mea-
sures. That they will be enforced and
strengthened by congress, cannot be
double ed by any man who is not prepar
cd to doubt the wisdom, policy and en-
ergy Of the government. II must.
therefore, be an error fa,al, probably. 10
many of the state banks against which
they are anxious!y admonished) to in
dulee hope, that the next session will
retract, or relax the measures Of the
last. 1t is believed that rot only the
national legislature, but the legislator,
of every state in the union must take
q stand in opposition TO the enormous
abuses of The banking system.
The resolution of congress Of the
2s,h April, 1916, directs and requires
the secretary of the treasury TO make
some attempt to facilitate the collec
ton Of the revenue in the lawful cur
rency, even before the Goth OF Febtua
ry, 1917 aud f,eiias, accor dinghy, ad
dressed circular letter to the state
banks, Of which a copy Is subioined. |
The propositions contained in the cir
cular, and the notice accompanying
1t, are smicable, fair and practical; and.
the benefits TO be derived from their a.
'doption are expected to be principally
these
!. That by requiring the banks toll
pay their notes OF low denomination
: in coin, the public debtors will be sup.
Piled with current medium to answer
the call upon them.
Q That by requiring the debtors OF
the Uniled States to pay debts of
small amount In coin, channel of cir
eulation is kept open, for the eventual
return of the money TO the banks, as a
deposit.
3 That by an early commencement
of small paymentsin coin, the public
confidence in the convertibiiity of notes
into money will gradually revive and
the public mind be seasonably prepar-
ed TO support the. general resumption
of coin payments in February next.
In every view. of the course now pur.
sued by the treasury, we think the ex.
pertinent proper to be tried II it sue.
coed, The advantages are incalculabie.
IL IT fail, because the requisite CO ope.
ration Of the state banks is refused, the.
nation will be completely awakened to
sense of its Danger, as well as to the
necessity of pro.Iding for its relief, By
means independent of those inslitu-
tions,
Circular addressed by the secretary of
me treasury TO the StGfe Banks. an
order 10 Jdcitsate me execution offhe
Resolution of Congress, Ea68ed 29!h
of Af1rH, 1916.
Treasury Department, July %, 1916.
SIR, 4
BY the constitution and laws Of the |
United States, gold, silver, and cop
per coins are made the only lawful mo. |
ney Of the United States, current as |
legal tender in all cases whatsoever.
BY particular acts OF congress, .trea>1
sury notes issued by the government
and notes issued BY the Bank OF the
United States are made receivable in
all payments to The United States.
bur, iDbcOnsequeBce OF the suspen
sion Of payments in coin, at many q !
the principal state bankss the Lawful
money of the UBiied States suddenly |
ceased TO bea circulating medium, and
the treasury notes issued by the go