Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1857-11-26

flee at such period Of distrust, a reserve
fund might be provided to meet such losses,
by allowing the interest on the securities to
accumulate for two or three years, before the
Department commenced paying the same in
TO the State Treasury.
Iftwenty millions should be fixed as the
maximum upon which the department could
issue its notes, based upon public securities,
then it should hold ten millions more in bull.
ion, making in all thirty millions of dollars,
and be allowed 10 issue thirty millions
The department would, in the first instance,
have 10 prepare these thirty millions Of bank
notes, or "promises 10 pay on demand" in
the name Of the Commonwealth of Massa-
chusetts, and the banks Of discount and de-
posit, to provide themselves with these
notes for their circulation, would have TO
bring the public securities and the bullion
in :he proportions pointed out. When all
the exchanges were completed, the Depart
ment of Issue would hold in public seouri-
ties twenty millions of dollars, and in bull
ion ten millions, against thirty millions Of
notes in circulation. If the banks wanted
more notes, they would have TO bring gold
for them, dollar for dollar. Supposing the
public securities TO gain six per cent. inter-
est, the Issue Department would receive
81 200, 900 per cent. as profits on circula-
ton, against $4,000, the present annual
bank tax, which 1t proposed to remit, leav-
ing balance OF $4,000 out Of which the
expenses OF the department would have 10
be paid; but there would still remain proba-
bly, 100000 to be paid over TO the State,
and TO that extent the public taxes might be
reduced.
Let us row see what would be the opera
tion Of the new system upon the l73 banks
now existing in the State-they would lose
the profits on twenty millions of circulation,
amounting to $l,200,000, but they would
be exempt from the tax of per cent. on
their capital, say $500, 900, and they would
be released from the operation of the usury
laws, which would enable them to raise the
rate of discount whenever the demand for
money warranted it, as the Bank of Eng
land does, and if by SO doing they average
per cent. on their capital, instead of 6 per
cent, they would be fully compensated for
the loss of their circulation; besides which
they weuld still retain the profits on their
deposits, which might be made sure and
certain source Of revenue, by establishing
the rule that every customer should ha v.
always permanent deposit in the hands Of
the banker to compensate him for keeping
his account, or allow him asmall fraction ol
per cent. on the yearly amount Of hi:
bank business, as is the custom in Ham
burg. The abolition of the usury laws woulc
enable the merchant to charge the curren
rate of interest in account current to hi
correspondents, instead Of q per cent. as a
present, by which he is generally loser
the average current rate OF interest through
out the year being usually from 8 to pc
cent.
If it be an objection 10 State Depart
ment OF issue, that such power in the
hands of politicians might be perverted Il
unworthy ends, 1t may be stated in repl,
that the plan may be SO arranged as to b
almost slef-scting and mechanical in it
operation, without giving the governmen
of the day any control or connection with it
and the Commissioners or Directors them
selves would have no other discretion thai
that Of determining at what point durin
the period of contracting currency, i
,, securities held against the twenty million
Of notes, SO as TO prevent the possibility o
an exhaustion of their bullion; and, whel
again, they should repurchase these securi
ties; never, however, exceeding the origina
: amount Of twenty millions Of dollars"
As for the old, antiquated, impolitic usur
; laws which are disregarded by everybody
: and which defeat the very object they wer
) intended to accomplish. (that Of keepln
down the rate of interest, )the sooner the
are stricken from the statute book, the bel
ter.
The accumulation Of large amounts c
bullion in the National Treasury is an ev
e which must be apparent to everybody, an
. perhaps to no one more than the preser
n Secretary of the Treasury, whose judici'
S action in the actual crisis in disbursing tn
3 funds under his control as far as prudei c
: would admit, has no doubt allevinted yer
e much the pressure, and entities him to tn
: gratitude Of the community. II may easil
= be imagined how much more aggravate
Q might hate been the crises If instead o
n twenty millions there had been forty million
4 in TIE Sub-Treasury, with Secretary OF
9 different calibre TO control so vast SUI
e and withhold it from the usual channels {
: trade.
: With o currency established upon such
: basis as that indicated and with bank note
d bearing upon their lace, 'the promises
a to pay Of the Commonwealth Of Massachu
!, setts, our domestic exchanges could neve
# be interrupted as they are at present, and
d Is not hazarding too much to say, that sue
notes would command their full value in Il
$ produce Of the West, or the cotton Of II
= South; even in such crisis as the prssen
9 ABrAuTIFuL CoMPLIMEST.-Steele pa
;, the fines compliment TO woman that Pc
! hsps was ever offered. OF one wOms
: whom Congreve had also admired ana eel
v brated, he says that ITO have loved her WI
Il liberal education" "How often," he say
= dedicating a volume to his wife, "has yo'