Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1861-12-12

ton, issue and redemption; while the people /
would gain the additional advantage OF q
Uniform currency, and relief from a consider
able burden IN the form of interest on debt.
These advantages are, doubtless considerable; |
and Il scheme can be devised by which such |
a circulation will be certainly aud strictly |
confined TO the real needs Of the people, and
kept constantly equivalent 70 specie by
prompt and certain redemption In coin, It
will hardly fail Of legislative sanction.
THn INCONVENIENCE AND HAZARDS or THE
FIRST PLAN.
The plan however, is not without serious
| inconvenience and hazards The tempta-
ten, especially great In times Of pressure
and danger, 70 issue notes without adequate
provision for redemption; the every present
| liability to be called on for redemption be-
yond means, however carefully provided and
managed; the hazard OF psnics, preeipitating
demands for coin, concentrated on q few
points and q single fund.- the risk of de-
pFeciated, depreciating, and finally worthless
paper money; the immeasurable evils OF dis
honored public faith and national bank
ruptcy; all these are possible consequences
of the adoption Of system Of government
circulation. Il may be said, and perhaps
truly, that they are less deplorable than
those Of an irredeemable bank circulation.
Without entering into that comparison, the
Secretary contents himself with observing
! that in his Judgment, these possible disas-
, ters 80 far outweigh the probable benefits OF
the plan that he feels himself constrained to
forbear recommending its adoption.
TUE SECOND PLAN coNsIDERED ADVANTA-
: aEoUs TO ALL.
: The second plan suggested remains for ex.
- animation. Its principal features are, (lst
o a circulation of notes bearing common i'm
preston and authenticated By common an
thority; (2d) the redemption Of these note
a by the associations and institutions to whicl
|. they may be delivered for issue; and (3) tn
security of that redemption by the pledges o
United States stocks, and an adequate pro
vision of specie.
In this plan the people, in their ordinar
business, would find the advantages of uni
n formity in currency; of uniformity in secu
:, rity; Of efectual safeguard, if efiectual safe
a guard is possible, against depreciation; an
Of protection from losses in discounts an
exchanges; while in the operations of th
h. government the people would fad the ful
in ther advantage of q large demand for Gov
IA eminent securities, Of increased facilities fC
o. obtaining the loans required by the war, an
5s through diminuition in the rate Of interes
n or participation in the profit Of circulation
MS without riSking the perils of a great none
monopoly.
E, A NATIONAL CURRENCY THE SAFEST, BEING
EQUAL VALUE IN ANY PART OF TIE UEIoF.
The Secretary eutertains the opinion tn
We If credit circulation in any form be desir
in BILE, it is most desirable in this. The not
,ee thus issued and secured would, in his jud
= ment form the safest currency which th
country has ever enjoyed, while their recei
To- ability for all government dues, except Gu
I'VE toms, would make them, wherever paysbl
re- Of equal value as a currency in every part
:. the Union. The large amount of specie nc
O' in the United States reaching total of u
es- less than two hundred and seventy-6Ve m
of lions of dollars, will easily support paymer
at of duties in coin, while these payments al
g ordinary demands will aid in retaining Il
specie in the country as solid basis both
all circulation and loans.
The whole circulation Of the country, e
re- cept limited amount Of foreign coin, woul
= after the lapse of two or three years, be
-, the impress of the nation, whether in coin
lu' notes; while the amount of the latter, alwa
md easily sscertainable, and, of course, alwa
ilIV generally known, would not be likely to
increased beyond the real wants Of busine