The sun. [volume] (New York [N.Y.]) 1833-1916, 1861-12-10

I Nv
iuur millions 'f dollars 10 which sum ths prc
poecd income tax will probably add ton million.
The whole sum will he little moro than ons-si XII
OF the surplus earnings OF the county.
The circulation Of the banks of the Unite,
States, on the tst day of January 1861. wa
ccmpu'ed TO be s202 600 1G7. Of this circula
tion Sl5O 600, 900 in round numbers, was il
s'a'ts now loyal, including West Virginia, ant
500 OOO, 900 ia the reb,llious states The Who'll,
"l this circulation constitutes a loan without
interest { ON the people TO the banks. costing
hem nothing except the cNpcnso of issuc and
redemption and the interest on the specie kcp,
"n hatd for the latter purpose and il deserve.
| con liberation whether sound policy does not re-
| quiro that the advantages Of this loan bc trans
ioirc' Ia part at least, from the banks repre-.
sntint only the interests Of the stockt oliers,
~ ih' "'Ncrnmrn'' representing tho aggregate
interests Of tho whole topc.
II has been we'll que stoned by the most cmi.
u' ut statesmen whether q currency of bank
| utcs, Issued 10y locl institutions under state
IVA Is not, in l,c' pruhibi ed bv the natl IN i
constitution. Such cmissions certainly fall
| within the sp'It IL not within tho lri'er. of trc
cousu'u,iord prohibition ot the emission Of
| liiHo Of credit hy thu states, and o' The m ,Ling
| 10y thrm oi an, thing exc ~ i.pli nnl vi ,cr
| coin t. nier ~ lal mcut ut dcu's.
However this may h,, It is 90, cl.a- 10 l,,
| f,r'ura'Iy disputed that Cprgrr s, uui,r ~,
| cor Stitutional powers to Law taNe., tn re- lltc
| ~ -, " ''E"i''c 'h' NHiN' ol com,
| r. 's,'s,,s ample au hofty to control Tie credit
circulation which cntc's - lrrgcy into the
va ",'l"' 81 Commerce aud affects in 20 many
| WAYS tho vduc Of coin.
| In the Judgment q! the Secretary, tho tim,
las arrived when { ngrc, shuuld cNcrcs, this
'utheIli9' lhc value o' ihr esistng bank note
circulation d"fends OH tue lava Of thirty four
states aud the character of s1mc sixteen hun
oroi private corporations. / is usually fur.
ukhcd IN greatest p'opo tions 10y institutions Of
l'A,l actual capital. ti culttion, commonly, is
nv IA" inNersc illo ol sOlN,ny. Wcll-iouudci
''su'Hiiohs' ~ lhtI" nul sofia ctp,h, have, in
t'uefhl, comparatively little circulation +, while
weak corporations almos Invariably seek To sna-
tain themselves 10y Obtaining from tho people
the largest possible credit in tLis form. Under
such systcm, or rather lack Of system, great
iuc'ua' ions and hprNy loss .. in discounts AMI
exchanges arr iucSi'allr: and not tpir,uurnt
lv, through failures ur th i-.uins i'm. itutiors.
considerable portion, Of the circulation b,c c,nc
suddenly worthless In the hands of tite nconlc
1ho recent experience Of several ,il,c, In tho
valley of the Mi .si,sirpi painfully illus,ritcs
th, truth Of those ots,fy ,tinn.
the plan. 20 iar wcii.hs with the :, rctnr, ,h,,
he C,fle,t. to r,cotp,nc,d A its ,J,,,,i,,, INV
Tho second pl,n suggested rcm,in. far ox,,r.
nation liza nrirrinai C,,iurcs ,rc La, IL
cula,ion of no'Cs hcrrin., common inrrc,,i,n
and authenticated bv "A common ,,tLo,i,,.,
tl,D Tho rcd,mption of tbcsc notes hy tbc 49,
citation, and it,tituti,rs Il, ,,Lib tG,,, n,,,. T.,
drliyered for ia,u,. nnJ ,Lt ,t, .s,,,ri, IS
that rcd,mn,ion bv III, La, ~ Ii,S,.IJ VI
States stock. and Al, adcnu,ic ,,rn,i,ior of sno
Gle. ~ 'P'
In this tIap tho rcc,Ic /, ,ho;r ,,t;,r,.
ln,Inc,s. would tinI the ,J,,nt,,"s nr m,i,,-r';.
/. la ,,,,r,r,.,.. ,r ,,,;c,,,,,i, i ~
,O.c ctpoI al mail ic,'1.,,,,nI VI
a la n,,,in,I d,,rsci,ti,,, and ~ ar,,,Pi... :,
lton Losses in discounts and cxch,r,,cs. ,.bilc
iu The opcraticn, ol th, G,ycrnmcn, th, ,c'',I,
v.uld ina tho cur.Lrr ,,I,,rt ,,,,,r p,'al
M, nj for ,;nyepmcnt sccnritiss oS i,crassol us
f. eli ties for obtniuin,, tbc Inans ~ ,,i-i t, Il
wa n~d oC sor,c allc,,ia,;or oc a. iI,,i, w.,
i'd. 'rv tLiou,h n diminn,ion m ,,o ~ ,o ~"
icre-t, or p,r,icip,,ion in fLn rrnG ~ circ,
Ia ION, without ri.kins the p,,l, of ,rclt
money mnnopnly
.urthcr AMI import ant ADVANTAGE to tho
people may be reasonably c,,pcctcd In tho in
creased security of tho Union, springing from
the common nteres, In its prcse ryati1n created
bv the distribution of is stock, IN ns,oci,tions
throughout the country, as the basis of their
circulation
The Secretary cntcriains the opinion that II a
credit circu iti6n In any r,rn bc Iesirn ,Ir n 4,
most desirable In this. The notes thus is.urd
AMI secured woull in his Indictment. firm thc
stlcst currency which this country has cvcr ON.
loved; while their rcrriynI,li,v far all ,,o,c,.,-
ment due. cNccp' custom. would make tbom
wherever nlyalle of equal value o.a c,rrcnc,.
In every plri of the In, lon. The Iar,,, nmouit
of si rir : ow in ,hc Unilcl States rcachin',
total Of not less than tyo hundroi and scyrntv.
five millions ofiollirs, will "a, " ,upporl pny.
mcnts Of dutie, in coin. whlc these navnc6,s
aud ordinary demand, will AID i'm rct,iniI', tbis
specie in tho countr, "a a ,oliI Lt,it Lofb oc
circulation and lnans
The whole circulation Of the country. cxccni
a limited amount Of f1rciyn. would aitcr tGc
l,p,o oftwo or three yc,ri. bear the imnrcs, of
the nation whether in coia or no'ca while the
amount of The llttor, always easily nscortainn.