The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1849-06-06
A New Currency Scheme.

| plan fora National Currency. 1t Is paper con-
trivance, of course. 1t takes quite pamphlet to
expound its merits-and long newspaper essays to
explain to the satisfaction of its authors, how II
may be kept, by good deal of complex legal as
sistance, nearly as good as gold or sllver-the Ma
| tional currency we have already What we want
| of such substitute is not clearly explained. We
| are told that the new currency IS not to lead to
! bank expansions If not, it is not to become new
basis for discounts but merely substitute for so
much of the hard money, which is to be taken ont
of circulation There to be more silver teapots
! and spoons, and fewer silver dollars. The eagle
and the new gold dollar are to be converted into
guard chains and earrings; else the creation of
| thirty or forty millions of paper must initiate the
| currency to begin with; and the scheme contains
within itself the elements of inevitable periodical
huctuation. Indeed paper circulation that shall
be exactly adequate TO the real business wants of
a community without liability to injurious nfa-
ons and destructive contracons, is yet to be dis
covered if such a thing be possible in the nature
of things. Certainly j; is not to be attained by the
device of stamping State Bank paper with Ma.
onal endorsement, as the financiers are now pro-
posing, to be used as substitute for gold and sill
ver in The receipts and disbursements of the Fed
eral government.
The project is simply this the Secretary of the
Treasury is to receive from State Banks stocks,
bonds and treasury notes of the United States, to
the amount of half of the capital stock of EACH He
is then to countersign and endorse equal amount
of their bank notes as receivable for all duties and
other payments to the United States. On the fail
ure of any bank redeem its notes, the Secretary
is to sell the security, and redeem the issues, in
New York under the free banking law. As in the
case of that law, the main object is the security of
the individual note holder But there is no GER
tainty obtained against an undue increase, periodi
icay ofthe quantity issued. In speculative times,
the banks may issue freely as they please, and
the freely, because the receivability for gov
eminent dues, will give the notes a currency, inde
pendent of their convertibty at the counter of
the bank. Each individual note may be secured,
and the effect on prices, initiating them periodically
to the ruin of thousands, will be not the less dam
gerous. The range of this tendency to expansion
may be limited, but the principle of the evil is
there. Wal street knows it, and will make its
profit, even of small things, if there be enough
of them. 1t can loss to its craft in the issue of
the little gold dollars to displace the ragged bank
note. They will stand heartily by the effigy, who
have the making of such, for their own gain.
The same motives for action will produce an
other deleterous" effect. The conversion of gov
eminent securities into currency, will create
vast associated interest, against reducing the guam.
ty. To disturb the amount of the public debt, I'M
less perhaps to increase it, will be interference
to be resisted with the relations which the cur
rency bears TO IFS bas the payment of the debt
would extinguish the security and the currency.
How many formidable interests will be combined
against the payment! How many will be the in
terests combined to find means for disposing else
where of the funds, which should be applied to
the debit Hos much then, might the whole pol
icy of the government be swayed by such con-
sderations, totally distinct from any clear sys-
tenn of administration, upon just principles. Be-
sides, waving now the question of the constitu
tional power to do what is proposed-the novel ma
ture of the functions, with which it is proposed to
invest the Federal government, may we'll startle
the public. The U. S. Treasury is to become over
seer, comptroller of State instiutions-to take
chargeof part of their assets, security for part
Of their contracts and to act sort Of assignee
in insolvency. TO ascertain their debts and collect and
apportion their funds among their creditors. This
Is one singular class of duties, selfassumed |
towards State banks, which is, AT least unusual. |
There is another, to which there some greater |
objections. The projectors of the plan may look |
to it, perhaps, as privilege for other uses, not |
financial The project refers to the discretion of |
the Federal Treasury-the amount and the proper
tons of currency assignabe to each bank. Based |
on the idea that it represents revenue, it ia to be
apportioned among the States in pro-rata share,
a" according shall he most convenient to the
Treasury of the United States The number of
banks is to be decided by the Secretary-to be one
of them, and TO get the largest share of the appOr
tionment, all special fayors to be shufIled for
The effect of such a system, has heen thoroughly
argued, in the discussions on the old Pei Bank sys
tenn, happily exploded long ago, by the common
consent of all parties. Its revival, in of the
most offensive particulars, is precisely what the
new project will effect.
We might go on enumerating objections, for they
ire manifold, but the time is not yet come; some
influential names have been given to its support,
out their success thus far, in ensting popular favor
las been small indeed.
Gs- Captain Tibbats, late master of the ship Pa
C. h.,