The daily union. [volume] (Washington [D.C.]) 1845-1857, 1849-10-17

Il would al the same time be banking capital Of &c.,
100000 spon VIII h banking profits would be made and
the fortunate holders OF that stock would find their in
vesiments doubled in value by the operation OF law
and they would be enabled 10 command double as much
of the national production as they now command
The government stock now held BY capitalists yields
% 900 900 per annum, which is paid from the treasury
as interest on loans for which that stock issued and
il Mr. Flmores scheme should go into operation, that
stock would soon be deposited in the Treasury Depart
mep where il would still yield $3.60o,o0 to the indi-
yduals and corporations deposing it; aud those indi
yduals and corporations would at the same time receive
800 OF treasury notes bank notes. countesign
ed at the Treasury which would be receivable specie
in payment Of duties for public lands and all other dues
of the government; and with these notes, based not
upon money but upon the national credit they could buy
no $50 900 worth Of the proceeds of the labor OF the
nation Il will be seen at that the whole system
will fall into the hands Of the banks Even il individuals
should be allowed to depose stocks and issue notes
thereon and have them registered al the Treasury or de-
posite stocks and receive treasury notes therefor they
would either associate themselves banking nsttu-
TONS or sell their stocks to banks already incorporated
In either six per cent would be received from the
government on the stocks deposited. and the notes
received on the security Of those stocks would be used
as banking capital either in discounts or to buy up ad.
ditonal amounts of stocks The banks would at once
enter the market and purchase up six per cent govern
ment stocks. They would deposite those stocks and
have their own notes equal amount registered and
countesgned at the treasury and thus made receivable
in payment for public Dues These notes, if not issued
in loans or discounts to Individuals might be again used
along with the interest on the stock deposited to purchase
an additional amount of six per cent stock This opera
ton might be repeated indefinitely until specie was driven
from the country redundant paper circulation produced,
and specie called for in payment Of the countesgned
notes. As it is evident that upon the banks for the
payment Of notes which receivable in payment OF
public dues would not be made until specie commanded
high premium, the banks would fail, while the holders
OF the bank stocks rolled in wealth. and forced specie
sale of the government stocks deposited would not be
adequate to the payment and redemption of the whole
amount of the notes issued on them. The balance un
paid and unsecured would still be receivable in payment
of government dues and the income of the government
would to great extent be received in nedeemable and
worthless paper.
Such system adopted by the United States would
soon be adopted BY the States which have issued stocks
or bonds for State loans. Specie would Immediately flow
abroad 10 purchase American stocks. to be used bank
ing capital in the United States for unlike specie, it
would be an Understanding capital In short time
we would have currency consisting entirely of paper,
based entirely on the credit Of the State and general
governments And the holders Of capital would have
given Them by the operation Of law, amount of
fictitious capital receivable in State and federal dues
equal TO the whole amount of State and federal indebt
edness In other words they would be enabled, by le-
gisative enactment, and without adding silver to the
national wealth to the national production, to obtain an
amount Of the proceeds Of the national labor equal to
the Indebtedness Of the State and federal governments
more monstrous scheme to egalize fraud and plum
der labor was never brought forward in country;
scheme which would speedily end in national bankrupt
CIV and ruin