The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-10

prepared Tor circulation under hauohHt difetttoH,
ana to be secured as to prompt convertbihty into
coin by the pledge Of United States bonds and
other needful regulations
The first Of these plans was partially adopted at
the last session OF Congress in the provision author
lzng the Secretary TO issue United States notes,
payable in coin, to an amount not exceeding ifty
millions OF dollars. That provision may be 80 ex-
Tended as TO reach the average circulation Of the
country, while moderate tax, gradually augment
ed, on bank notes, will relieve the national from
the competition Of local circulation 1t has been
already suggested that the substitution of nation
al Tor State currency, upon this plan would be
equivalent to loan to the government without inter-
est except the fund TO be kept in coin and with
out expense, except the cost or preparation, issue
and redemption; while the people would gain the ad
ditional advantage Of uniform currency and relief
from considerable burden in the form of interest
on debt, These advantages are, doubtless, CON
sidefable aud if a scheme can be devised by which
such a circulation viii be certainly and strictly
confined to The real needs Of the people, and kept
constantly equivalent TO specie by prompt and GER
IAN redemption in coin, it will hardly fail Of legis
lative sanction.
THE lNCOHyESiENcEs AND HAZARDS or THE FIRST
PLAN.
The plan however, is not without serious neon
yeniences and hazards. The temptation, especial
" great in times of pressure and danger to Issue
notes without adequate provision for redemption;
the ever present liability to be called on for re-
dempton beyond means, however carefully provd
cd and managed; the hazard of panics, precipitat
and single fund; the risk Of deprecated, deprc
catng and finally worthless paper money; the i'm
measurable evils Of dshonored public faith and ma
uonal bankruptcy; all these are possible conse-
qnences OF the adoption Of system Of government
circulation II may be said, and perhaps truly,
that they less depiorabe thar those Il an ire
dccmablc bank circulation. Without entering into
that comparison. the Secretary contents himself
with observing that iii Ills judgment these posi-
BILE disasters 80 far outweigh the probable benefits
Of the plan that he feels himself constrained to for
bear recommending it's adoption.
TIE SECOND PLAN CONSIDERED MORE ADVANTAGEOUS
TO ALI.
The second plan suggested remains for exami-
nation. Its principal features are QsE a crcua
ton OF notes bearing common impression and
authenticated by common authority; (2d) the
redemption Of these eotes BY the associations and
Institutions to which they may be delivered for
issue; and CD the security OF that redemption by
the pledge of United States stocks, and an ade-
quate provision OF specie.
In this plan the people in their ordinary bust
ness, would find the advantages of uniformity in
currency OF uniformity in security; OF ei!ectual
safeguard, if cectual safeguard is possible against
dcpreciaton; and Of protection from losses in dis
counts and exchanges; while in the operations of
the government the people would find the further
advantage Of large demand for government
securities, Of increased facilities for obtain
ing the loans required by the war, and
of some alienation of the burthens on industry
through diIfnution in the rate of interest or a
participation in the profit Of circulation, without
riskng the perils Of a great money monopoly.
THE SECURITY or THE UNION INCREASED by THE
PLAN.
further ard important advantage to the people
may be reasonably expected in the increased Sc
curly oi thc Union, springing from The common
interest in it, preservation, created by the distrj
button 81 its stocks TO associations throughout the
country, Is the basis Of their circulation.
A NATIONAL CURRENCY Tue SAFEST, BslNG or EQUAL
VALUE IN Any PART or THE UNION.
The Secretary entertains Tie opinion that if a Gre
dit circulation IN any form be desirable, il Is most
desirable in this The notes thus issued and Sc
cured would, in his judgment, form the safest
currency which this country has ever enjoyed
while their receivabiIty for all government. dues,
except customs, would make them, wherever pay
able. Of equal value as a currency in every part Of
tho Union. The large amount of specie now in the
titcd States, reaching total Of not less than two
hundred and scventy-tive millions of dollars will
easily support payments of duties in coin, while
these payments and ordinary demands will aid iii
retaining This specie IN the country solid basis
both Of circulation and loans.
The whole circulation Of the country except a
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 ascertainablc
and, OF course, always generally known. would
not be likely to be increased beyond the real wants
of business.
THE PLAN PARTIALLY TRIED AND FOUND pRAcTI.
CABLE
He expresses an opinion in favor Of this plan
with the greater confidence, because it has the adj
vantage of recommendation from experience. 1t
j. not an untred theory. In the State of New
York and in one more Of the other States it has
been subjected in its most essential parts, to the
test of experiment, and has been found practica.
bic aud useful. The probabilities OF success will
not be diminished, but increased by its adoption
under national sanction and for the whole country.
THE CURRENCY rs THUS CHANGED WITHOUT INJURY
70 COMMERCE..
1t only remains to add that the plan is recon-
menled by one other consideration, which, in the
Judgment Of the Secretary, is entitled to mach in
tueuce. it avoids almost, il not altogether, the
evils OF great and sudden change in the currency
by Offering Inducements to solvent existing instii-
tons to Withdraw the circulation issued under
State authority, and substitute that provided by
the authority of the Union Thus through the
voluntary action OF the existing institutions, aided
by wise legislation the great transition from a cur
rcncy heterogeneous unequal and unsafe, to one
uniform, equal and safe, may be speedily and al
most impcrceptbiy accomplished.
TIE CONGRESS HAS POWER TO REGULATE THE CUR
REECY or THE COUNTRY.
II the Secretary has omitted the discussion of
the question of the constitutional power OF Con-
gress to put this plan into operation, it is because
argument is necessary to establish the PROPOSE
ton that the power to regulate commerce and
the value Of coin includes the power to regulate TIE
currency Of the country, or the collateral PROPOSE.
ton 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, II adopted with the limitations and
safeguards which the experience and wisdom Of
Senators and Representatives viii doubtless oug-
gest, may mpart snch value and stability to go
yernment securities that it will not be difficult to
obtain the additional loans required for the service
of the current and the succeeding year at fair and
reasonable rates, especially il the public credit be
supported by sufficient and certain provision for
the payment Of interest and ultimate redemption
of the principal.
FINANCES FOR THE FIFTEEN FISCAL MONTHS REVIEW
ED AND coMrApED WITH THE NEXT TwENry-o NE
MONTHS.
To obtain clear understanding of the amount
for which it will become necessary to resort to fur
Their loans, it is requisite to review the financial
movement of the Treasury during the whole Of the
last and the first quarter of the current fiscal year,
and compare somewhat more closely than has al
ready been done, the probable wants and probable
resources of the government for the remaining
three quarters of the current and the whole Of the
following year.
In the July report the Secretary submitted de-
tailed statement, in part estimated showing the
receipts for the last fiscal year, ending the 30th
June, 1861, including the balance in the Treasury
at its commencement, to have been $50 ,972 1893 81
and the expenditures to have been ss4,577 ,25s 60.
and the balance to have been 81 355 635 81. Actual
returns show that the receipts including balance,
were $50 1876 800 27, the expenditures $S4,57s,-
S34 AZ, and the balance 81 1857 065 so.
For the first quarter of the current fiscal year,
commencing LIST July, 1861, the receipts and ex-
penditures are ascertained and for the remaining