Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1849-10-26

Bladen county. NJ c., and CALVIN ]. DICK
con appointed Post Master.
Mr.. CLINGMAN's New FINANCIAL SCHEME
We have read with considerable attention a
letter from Hon. Thomas L. Clingman. of this
State, upon the subject OF the national curren-
cy, addressed to Simeon Draper, of New York
Mr.. Clngman's scheme, which, in all its I'M
portant particulars, is identical with The Free
Banking system of New York. consists in the
issue of United States Treasury Notes, not
bearing interest, 10 State banks or private in
dividuals, upon the deposit OF sufficient
amount of United States stock 10 secure the
redemption of the same. Upon the delivery
of these notes 10 the bank or individual, they
are 10 be endorsed By them, and such bank or
individual will be required TO redeem them in
specie upon presentation. The notes SO is
sued 10 be received in payment OF public dues
Such are the main features OF the scheme )
now LEI US look at is operation,
OF the immense power which il would give
TO capital, there can be no question, the bur-
tbens which ii would impose uPon labor are
equally unquestionable, Take. for instance,
the case assumed by MIR, Chngman himself,
of an individual OF a hank possessed of one
hundred thousand dollars of United States
stock He deposi,es the stock and receives a
corresponding sum in notes, which notes be
can either lend out at interest or invest in bu
siness, as he pleases. Is it not plain that ht
thus receives interest on his money twice over
In the first instance, he draws six per cent
interest upon the original stock which he de
posites. In the second instance, he receive:
SIX per cent upon the investment of the notes
which he receives in place of those deposites
Mr.. Clingmans scheme expressly provides
that interest shall still accrue upon deposte
of stock made in pursuance of the proposed
system.
In this way the government of the Unite
States would pay interest 10 the holders OF itE
stock, and the people of the United States
would again pay interest to those same stock
holders for the use of currency based upor
the very stock upon which they are already
paving interest But even this, absurd anC
Infamous as it is, is not the most dangerou;
feature in the scheme. 1t is proposed that, II
case of the failure OF the redemption OF these
notes by the person TO whom they are issued
the Treasurer of the United States, after GER
tain legal formula have been complied with
shall sell the stock deposited for their redemp
ton, and redeem the notes so issued. Sup
pose, in case of financial crisis like that o
1839.40, run is made upon the individua
endorsers of the notes, is it not plain that a
immense amount might be protested, and il
the very middle of the crisis corresponding
amount of United States stock be forced upo
the market, in order to provide for their re
demption, by which the credit Of the Unite
States would and must be disastrously affec
ted? A combination of brokers, by obtainin
the control of vast numbers of these note:
might hold the credit OF the United States {
their mercy.
We have, perhaps, devoted too much spac
to this matter, which is only significant as IL
dicatng the current, as straws do the directo
of the wind. 1t, in fact, shows that, wit
certain members of the Federal party, the Un
ted States Bank is hardly yet an &c obsole
idea" 1t is yet to be seen how far the press'
of Mr.. C.'s party in this State will susta
him in this movement.