The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1861-12-19
Secretary Chase o. the Csrency.
From the N. Y. World. ]

the currency is before the public in an
authentic shape, the country will be bet
ter prepared to appreciate tho innovation
he proposes. 1t will be seen that his
plan does not contemplate the creation
OF national bank, and is not excosed to
the objections which would apply to a
great financial monopoly, which might
be perverted into a gigantic engine of
political influence !; objections by which
the old United States Bank was idemol-
ished aud made odious. Mr.. Chase has
no disposition to revive that obsolete in
stitution, or anything resembling it. The
discussion Of the measure he proposes
cannot be. conducted by furnishing up
the rusty arguments of the bank contro.
yersy Of the last generation.
The State Banks, as we understand
Mr.. Chase's plan, will remain as at pres
ent, and continue to conduct the banking
business Of the country, the most impor-
tant part of which consists in discount
ing commercial paper. But, instead of
paying out their own notes, they will use
notes prepared by the government, and
registered in the Treasury Department,
which they will obtain by the deposit
and pledge of an equal amount Of govern
ment securities. These notes will be
redecnable in specie by the banks issu.
ing them, and will be receivable for all
government dues except custom duties.
This scheme would seem to combine all
the advantages which were claimed for
the old United States Bank, without its
drawbacks 1t would regulate and give
uniformity to the currency, facilitate ex-
changes, give adequate and ample securi-
ty to the bill holders, aud enable the 60.
vernmeut to obtain, without difficulty, all
the loans necessary for conducting the
war, and for carrying the public debt
when the war shall have closed. The
money power Of the country would not
be centralized, as it was under the old
bank, but divided, as now, among null
titude of rival institutions scattered
throughout all the States. Illinois cur
rency would be equal to New York cur
rency, and the great agricultural region
Of the West would not be taxed, as here
tofore, three or four per cent. Of the an.
nual value Of its products in the differ
ence, Of exchange between the western
and the eastern cities. -..-..
\ s,palI but gradually increasing tax on
all bank notes, except those issued by
eoyernmen. authority, would quietly
take the former out Of circulation, aud,
without any abrupt or disturbing chang.
es, substitute the latter. The process
would not be essentially different from
that now adopted by banks in this State
in getting their notes registered and
countcrsigned in the bank department at
Albany. Banks, finding them more eco.
nom'cal than the taxed notes prepared by
themselves, would deposit with the pro.
per officer an amount Of government Sc
curi;ics equal to that wanted Of the
notes The liability of the bank to re
deem in specie all the notes i, put in cir
culatian would act as a check on excess
i've issues, which would at all times know
the amount Of such notes in use.
\ capital advantage Of this plan is that
it would interest every moncycd instI;u
ton, every capitalist, and almost every
citizen Of the country in sustaining the
credit Of the government, and would fur
"ioh 10 tbs community strong personal
motives fer su6mittln. to whatever taxes
might be necessary for preventing the
depreciation Of the public securities.
Another advantage. and the one which
has led to the proposal Of this plan at
this time, is the large demand which its
adoption would create for government Sc
cuFities as basis for banking, thus ona
bling the treasury to obtain the large
loans needed for the war without strain,
ing its credit.
This is SO large aud complex subject
and sound currency is so vital to every
interest, that, favorable as Mr. Chase's
plan appears at first blush, it ought not
TO Be adopted by Congress without the
most thorough scrutiny. 1t will be caa
vassed in all its bearings by the hest
financial minds in the country; and it is
to be hoped that Congress will seek their
aid and profit BY their views in the for
nation of its judgment. The currency
is too delicate and too vital an interest
for much tampcrlng by unskilful hands,
and if Nr. Chasc's plan should be adop,
ted, it ought TO he surrounded by all the
safeguards which the ripest experience
can suggest. The Secretary has wisely
absta'ned from specific re communications
as to details, leaving these to be adjusted
by Congress after wise dcliberaton and
full discussion.