The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1861-12-20

commonly, is in the inverse ratio Of
.oleency. Well-'ounded ipstitu.
tions, Of large and solid capital,
have, in general. comparatively ILL.,
tie circulation; while weak corpurs-
'inns almost invariably Geek TO aus.
tain themselves nv obtaining from
The people the largest possible credit
in this form. Under such d system,
cr rather lack OF system, great fuc-
,nations, and heavy loeses in dis-
counts aud exchanges. are inevita.
rll'; and not unfrcquenf'y. through
ailures ci the issuing institutions,
considerable portions of the circnfa-
iion becnme snddcnly worthless in
The hands OF the people. The recent
experience of sevpral etafes IN The
valley Of the Mississippi painfully
illustrates tho Justice OF these OBJ
servations; and entorces hy the moet
cog, M practical argument. rhc duty
81 protecting commerce and ipduatry
against the recurrence Of such dis
orders.
The Secretary thinks II possible
10 combine with This protection
provision Ter circulation. safe 10 the
community and convenient for the
government.
Two ,,l@ns for effcc'irg this object
are euppes,ed Tie first cont,m-
plat tie gradual withdrawal from
rirculation ,f the notcs Of private
corr nraiio,e, and Er the issue In
rpir stead, OF United Ststes notes,
pyahle in coin on demand, IN
am un's a, flirient for the nseiul ends
~ ri rcs-ntative currency. The
cond cont, mi lats the preparation
AMI delivery. TO institutions and MS.
-Wi,iions, u n"tts prepared for
circulation ur'cr national direction,
nj in hr A. rnr d ap 10 prompt con-
y trl,il " into coin 10y the Wedge Of
Unitrd States bonds and other need
fui regulations.
Thc frs vi thcae plans was ra'.
tally adopted at The last session Of
lC ngr,ss in the provision author.
~ the Secretary 10 issne United
otats noes. payable in coin. to an
inonnt not exceeding fifty milIiops
u dbl ars. That provision may be
+o Ext nded ~ 10 reach the average
circulation OF the country, while
moderate tax gradually augmented,
IN bank ro,,s. will relieve the nation
rom the competition Of local cir.
!. culation. |, has been already sug'
gested that the substitution ot .
national tor a stare currency, upon
. his plan, would hc equivalent 10 q
. 'oen to tho government without
I interest, except on the fund to be
. kept in coin. and without expense,
= ,Xcept the cost Of preparation, issue.
}. and redemption: while the people
:. wonld gain the additional advantage
, OF a uniform currency, and relief
2 rom q considerable burden in the
D firm of interest upcn debt. These
q 'dvantages are. doubtless. consider
able; IN ifa scheme can be devised
rs which such u circulation will he
. r'ainly and strictly coniited to the
= real needs Of the people. and con
, stnuily equivalent to specie by
prompt aud certain redemption in
: coin, it will hardly fail of legislative
! sanction.
?, The plan. however, is not without
!. serious ucon veniences and hHz 'rds.
a. rhe temptation, especially great in
p lines "t rrrsenre and danger, tn
i- sue notes without adequate provis.
n lon 'or redemption, the ever presen,
t. liability TO he called on tor redemp-
IT. lion beyond means however care
inlly provided and mhnsged;- the
o. h z,rl of panics, pr, ci pitsting de-
o ,iands Tor coin. concentrated on . lev
,- paints and single fund, the risk o.
N DEF reciatcd. d.preciatiDg, and
Ds finally worthless paper money; the
- IN measurable evils ot d,shonored
h. Iul,ic 'si:h and national bankruptcy
is ,nh Il ese ure possible consequence
u - the adoption ot u SYSTEM U gov
-. 'rrment circulation. IL may h
h, .sni. and perhaps truly. that the,
nd re Iess deI, urable than those OF Nj
~ rrrI.rL able bank circnlatiOn,-.
/ W nh Mt ent.r ring into that compsri
ri s"n. the Secretary cWt.nts himsel
! with ohser, ing that, in his Judgment
nj, these Irubabl. disasters 30 lar out
re-. weigh III. pr"bahlc benrii's OF tn
L., plan that he ferls himself cnnstaine'
pi ~ 'orbcar recommending its ajop'
sts ron.
The second plan suggested remain
he for examination. lts principal tea
r lures are, (ls) n circulation of note
l., bcariDg u common impression an
w ,uti entc ted by common Hnthor
he ~; (2d) tho redemption Of thes
"a. notes by the associations and inst
.t. buttons t. which they may he deliv
N. cred tor issue; snd (3i) the sscurit
on at that redemption by the pledgc I
md United States socks. and an ad'
ing quste provision Of epecie.
gal In this plan the people. In the
ordinary business. would find u
too advantage OF uniformity in Gu
hat rency; ot unif'rmiiy in sccurit,,
nal efisctusl aatcgusrls, II efisctual SAT
,m. guard ia possible. against dereci
Of ton; and OF protection IRON losses
TO discounts and exchanges; while
ich the operations Of the governne