The weekly pioneer and Democrat., 1861-12-20
examination. Its principal features are, p


common authority; I'd, the redemption of
these notes by the associations and institu.
tions to which they may be delivered for is
sue and third, the security of that redemp-
tion by the pledge of United States stocks,
and an adequate provision of specie.
In this plan the people, in their ordinary
business, would find the advantages OF uni
formity in currency of uniformity in secu.
rity; of efectual safeguard, il efectual safe
guard is possible, against depreciation and
OF protection from losses in discounts and
exchanges; while in the operations of the
government the people would find the fur
ther advantage af large demand for gov
ernment securities, of increased facilities for
obtaining the loans required by the war,
and of some alleviation OF the burdens of
industry through diminution in the rate
of interest, or participation in the profit
OF circulation, without risking the perils of
a great money monopoly.
A further and important advantage to
the people may be reasonably expected in
the increased security of the Union, spring
ing from the common interest in its preser-
walton created by the distribution of its
stocks to associations throughout the coun-
try, as the basis of their circulation.
The Secretary entertains the opinion
that if credit circulation in any form be
desirable it is most desirable in this. The
notes thus issued and secured would, in his
judgment, form the safest currency which
this country has ever enjoyed while their
receivability for all government dues, ex-
cept customs, would make them, wherever
payable, of equal value as a currancy, in
every part of the Union.
The large amount of specie now in the
United States, reaching total of not less
than two hundred and seventy. five millions
of dollars, will easily support payments of
duties in coin, while these payments and or.
dinary demands will aid in retaining this
specie in the country as solid basis both
of circulation and loans.
The whole circulation of the country, ex-
cept limited amount of foreign coin, would
after the lapse of two or three years, bear
the impress of the nation, whether in coin
or notes while the amount of the latter,
always easily attainable, and of course al
ways generally known, would not be likely
to be increased beyond the real wants of
business.
H. He expresses an opinion in favor of this
plan with the greater confidence because it
has the advantage of recommendation from
experience. 1t is not an untried theory.
In the State OF New York and in one or
more of the other States it has been SUBJ
jected in it's most essential parts to the test
of experiment, and has been found practi-
cable and useful. The probabilities of sue
cess will not be diminished, but increased
by its adoption under national sanction and
for the whole country.
1t only remains to add that the plan is
recommended by one other consideration,
which, in the judgment of the Secretary, is
entitled to much influence. 1t avoids al.
most, if not altogether, the evils of great
and sudden change in the currency by Offer>
ing inducements to solvent existing institu.
tions to withdraw the circulation issued by
state authority, and substitute that provided
by the authority of the Union. Thus
through the voluntary action of existing
institutions, aided by wise legislation, the
great trs 1sition from currency heteroge-
neous, unequal and unsafe, to one uni>
form, equal and safe, may be speedily and
almost imperceptibly accomplished
CONGRESS HAS POWER TO REGULATE THE CUR
RENCY OF THE COUNTRY.
If the Secretary has omitted the discus
sion Of the question of the constitutional
power of Congress to put this plan into
OperatiUI, it is because no argument is nec-
essary to establish the proposition that the
power to regulate commerce and the value
of coin includes the power to regulate the
currency of the country, or the collateral
proposition that the power to effect the end
includes the power to adopt the necessary
and eXpedient means.
The Secretary entertains the hope that
the plan now submitted, if adopted with the
limitations and safeguards which the ex-
perience and wisdom Of Senators aud Rep
resentatiyes will doubtless suggest, may i'm
part such value and stability to government
securities that it will not be difficult to OBJ
tain the additional loans required for the
service Of the current and the succeeding
year at fair and reasonable rates, especially
if the public credit be supported by sufficient
and certain provision for the payment of
interest and ultimate redemption of the
principal.
FINANCIAL REVIEW.
TO obtain clear understanding of the
amount for which it will become necessary
to resort to further loans, it is requisite to
review the financial movements of the
Treasury during the whole of the last and
first quarter of the current fiscal year, and
compare, somewhat more closely than has
been done, the probable wants and probable
resources of the government for the remain.
ing three quarter of the current and the
following year.
In the July report the Secretary submit.
ted a detailed statement, in part estimated
showing the receipts for the last fiscal year
ending the Both June, 1861, including the
balance in the Treasury at its commence
ment, to have been $86,972,S93 81, and
the expenditures to have been $84,577,258
60, and the balance to have been So $685.
635 81. Actal returns show that the le,
ceipts, including balance, were $685.
900 q, the expenditures $64,578,834 Al,
and the balance $2257 ,065 80.
For the first quarter OF the present fiscal
year commencing lst July, 1861, the re.
ceipts and expenditures are ascertained, and
Tor the remaining three quarters, ending
10th June. 1862. are estimated az follows