The New York herald., 1861-12-28
4 SYSTEM OF NATIONAL FINANCE


Notes Explanato .u...r, ~ Na-
s,0n%s no ssss sscrss q and Currency, ProPosed
F.llowinx :ary Of the Trsa;sry, re-, snTo,,. IN '"'
shE SECOND AAN CONSIDERED MORE ADVANTAGEOUS
TO ALL.
nsn" d plan suggested rename for eaams.on. alton
I've primo pal features arc (stD circulation OF notes
ocAm' common impression and authenticated oy
SOmr authorty ca the redemption o. these noes
delivered for issue and (3d the security OF that re-
Aempton by ths pledge OF United States stocks and an
In ths plan the people, in their ordinary business,
would ind the advantages OF uniformity in currency or
uniformity in security OF eecual safeguard eectua
safeguard possiblesganst depreciation, and Of
secton from losses in discounts and exchanges while IN
the operations Of the government the people would hnd
the fur her advantage OF largo demand for government
securities Of increased facilities for obtaining the loans
required by the and OF some aevaon of the burden
industry through dminuton IN the rate OF interest,"
participation in the profit Of circulation, without
rsking tho peris Of great money monopoly
THE SECURITY OF THE UNION INCREASED By THE PLAN
further and important advantage to tho people may
- reasonably expected in the increased security OF the
ODon sprngng from the common interest in its preser.
vaton by the distribution Of its stocks 70
eistons throughout the country as the basis Of their
4 NATIONAL CURRENCY THE SAFEST, BEING OF EQUAL
VALUE IN ANY PART OF THE UNION.
The Secretary entertans the opinion that II credit
circulation any form be desirable, IT 10 most desirable
this The notes thus issued and secured would, in his
judgment form the safest currency which this country
has enjoyed while their recevaby Cor all govern
ent dues, except CUSTOMS would make them wherever
payable Of equal value currency every OF the
onion The largo amount Of specie now in the United
States reaching total Of not less than two hundred and
seventy Ave millions Of dollars. will easily support pay
nens Of duties in coin. while these payments and ordin
ary demands will aid in retaining this specie In the coun
Try as q solid basis both OF circulation and loans.
Tho whole circulation Of the country, except limited
amount OF foreign coin would after tho lapse OF two
three years bear the impress of the nation whether in
coin or notes. while the amount OF the latter always
easily aeertanable and, OF course always generally
nown would not be likely 70 be increased beyond the
ZEAL wants Of business
rHB PLAN PARTIALLY TRIED AND FOUND PRACrI-
CABLE.
He expresses opinion In favor OF this plan with the
greater confidence, because II has the advantage Of
oommondation from experience. It is not untried
q tho other Staten, has been subjected in it's most
ssssntia parts 20 the test Of experiment and has been
found practicable and useful The probabilities of
oess will not bo diminished but increased by Its adop
ton under national sanction and for the whole country
SHx CURRENCY Is THUS CHANGED WITHOUT INJURY
TO COMMERCE.
only remains 70 add, that the plan ID recommended
~ one othcr consideration, which, in the judgment OF
the Secretary, entitled TO much influence II avoids
almost, not altogether the evils Of great and sudden
change In the currency by Offering Inducements to
sovent existing institutions to withdraw tho circulation
issued under State authority and substitute that provided
BY the authority the Union Thus through voluntary
action Of the existing institutions aided by wise legisa
sion, the great transition from currency Heterogeneous,
unequal and unsafe TO uniform equal and safe m az
be speedily and almost imperceptibly accomplished.
TIE CONGRESS HAS POWER TO REGULATE THE CUR
RRNCY or THE COUNTRY.
the Secretary has omitted the discussion Of the ques
on Of the constitutional power Of Congress put this
tan into operation 1t is because no argument is neces
ry TO establish the proposition that the power regu
hts commerce and the value Of coin includes the
q TO regulate the currency Of the country the col
lateral proposition that the power effect the end in
ciudes tho power TO adopt the necessary expsdent
The Secretary ensrtains the hope that the plan now
submitted adopted with the limitations and safeguards
which the experience and wisdom Of Senators repre-
Ssntaves will doubtless suggest may impart such value
end stability to government securities that will not be
dncu to obtain the additional loans required for the
vice Of the current and the succeeding
reasonable rates, especially the public credit be sup.
ported by sufficient and certain provision for the payment
0 interest and ultimate redemption OF the principal.
An additional plan proposed by the Secretary,
70 enable all existing banks and associations for banking
purposes TO become national institutions.
The Congress the United States can pass law which
Mi authorize all banks and associations for banking
Ne their appcatons and articles of association in the
department OF the Treasury, and thus make national
sutions Of those that only organized under and
nited to State laws and local credit These banks and
sach have IS large capital they choose and by
throwing the mantle OF the Union them giving
them credit coextensve with the faith OF that govern
mont upon which their existence depends, they will
naturally become the fiscal agents Of the National Trea
sury and may with much propreiy, be made the
or collecting the taxes and all other dues except duties
On imports and act also the dsbusing agents Of the
government everywhere. Upon all this business they
VIII OF course secure commission. This plan, when
avaed Of by the banks will double the value OF their
capital ~ means OF profit.
NOTES.
Th0 plan system Of finance here v tho
Secretary OF tho Treasury, will attract great attention
because embraces and distinctly procoims the ability
q the country to rise superior to it, present smbar-
Jassments means and credits by the nation
also illustrates the declaration Of of sages that
shc "cvidence Of craftsmanship consists shaping tho
measures OF government as TO make the worst caam.
tiss productive OF public blessings"
The proposition Ii made by the Secretary with the
vw Of raising the means necessary to dsfay the extra
Wdinary expenses OF the government in prosecuting
forced upon the loyal people Of this country by In
surrection and rsbsliona rebellion formidable and
vtndctive a. TO require the whole power, energy
and means OF the country to suppress IT, The con.
etitution regards rebellion tho most henious and
nnpTdonaole crime considering the actors as outlaws,
corpue." It s evident that armies employed in
most important duty-nothng less than defending the
life Of our constitution against assassins In this
gency all the material wealth Of country must be put
u rsanstoa in some convertible form for the purpose
enforcing the nws aud preserving the integrity of
The object Of this paper is to illustrate by facts and
spinons the wisdom that conceived 80 comprehensive
plan and thus enable the people Of the country under
stand that they possess all the money they heed within
thsmselvss without any appeal to foreign espitasts
amount We can annually raise BY taxation to pay
md the srdn~y current expenses Of the government
ooxsrunoyAIIIy OF CURRENCY.
thus created j, within the msanns Of ths
sutton Of the United States. That instrument declares
That Congress shall have power to coin money aud
coin money, emit bills Of credit" These are the pro-
visions on which the power to furnish currency
Uno0u W many &Ui0 anu Olstlngu6noQ men. PreSt-
dent Madison In his message Of 1916, says
For the interest Of the community at large IL
y essential that the nation should possess
currency OF equal value, credit and use wherever IL
may circulate The constitution has entrusted Congress
exclusively with the Of regulating currency Of
that description" Senator McDue In his report on the
Bank Of the United States April 49, $780, adopts this
eruction Of President Madison, and Says" Congress
mas power TO regulate the circulating medium coin be-
ING the ordinary and most known form Of circulating mo
dunn that term was used synonymous with currency
The right TO coin money and Ak the value thereof has
been exercised part Of the sovereign power OF
Independent State from time immemoral because the
people are entitled, in their dealings with each ohor TO
have medium Of exchange OF the most reliable chaac
tor The stamp upon coin s the pledged faith Of the
nation that the coin possesses intrinsic value equal
the representation its face Thus, the is not
false, have the highest evidence Of is value Coin
10 properly token Of barbarism. as credit is
symbol OF civilization. As promises on paper are
more convenient than coin, 30 these pro-
misses, well secured, will be preferred to coin in
exchanging values. As . civilized people, accus
toned TO obeyng laws and respecting law gives IL
II but natural that should prefer PROMISE when well
secured to con Hence tho only reason for Investing
the national government with power coin money was
20 get the highest and best known authority stamped
upon our medium OF exchange, and by consent
We use paper instead OF coin currency becomes
absolute duty OF government 70 furnish wit the evi
dence Of its doing this no risk or eYpensa