Delaware State journal and statesman., 1861-12-13
A NArloNAL ouNlsENoY.


The Report of the Secretary of the Treasury
bas at last been published 1t is quite
lengthy document embracing more points of i'm
portance TO the mercantile and financial interests
of the country than any report from the same
auarter, since the foundation of the government.
The proportions and suggestions of Secretary
Chase are argued and explained with a force
and clearness that show the ability and grasp OF
mind which he has thrown into the subject. Ills
views of national paper currency which shall
be uniform all over tho Union, are laid down
with much distnctncss and will command the
attention of the people as well as Of Congress,
That portion Of lis Report which relates TO this
very important matter, We give entire, as
follows:-
1t has been well questioned by the most emf
nent Statesmen whether II currency OF bank notes.
issued by local institutions under State laws, is
not, in fact prohibited by the national Constitu-
tion Such emissions certainly fall Within the
spirit, il not within the letter. Of the constltu-
tional prohibition Of the emission Of bills OF
credit by the States, and Of the making by them
Of anything except goid and silver coin Legal
tender in payment OF debts
However this may be, ii is too clear to be rea-
tutional power to lay taxes, to regulate COM
merce anl to regulate the value the value of
coin, possesses ample authority TO control the
credit circulation v hch enters Sc largely into the
transactions of commerce aud affects in go many
ways tho value Of coin.
n the judgment of the Secretary the time
has arrived when Congress should exercise this
authority. The value Of the existing bank note
circulation depends the laws Of thirty -four
States and the character Of some sixteen hun
slred private corporations 1t s usually furnish
cd in greatest proportions by institutions Of
least actual capital Circulation, commonly, is
in the inverse ratio Of sovency Well founded
institutions, of large aud solid capital have, in
GENERAL comparatively little circulation while
weak corporations almost invariably seek to sus
tain themselves by obtaining from the people the
largest possible credit in this form. Under such
a system, or rather lack Of system, great iuctu-
atious. and heavy losses in discounts and ex-
changes, are Inevitable; and not unfrequenty,
through failures Of the issuing institutions,
considerable portions Of the circulation become
suddenly worthless in the hands of the people,
The recent experience OF several States in the
valley of the Msss ppi painfully illustrates the
,iustice Of these observations; aud enloroes, by
the most cogent practical arguments, the duty
of protecting commerce aud industry against
ahe recurI Ience of such disorders
The Secretary thinks it possible to combine
with this protection provision for circulation,
safe TO the community aud convenient for the
government.
saTwo plaus for elTectng this object are suggest
ed. The first contempates the gradual with
draWal from circulation of the notes of private
corporations, and for the issue, in their stead,
of United States notes, payable in coin on de.
,uapd in amounts sufficient for the useful ends oil
A representative currency The second contem-
mates the preparation aud delivery, to nslitu,
ff nWn1 fa.
cireulation under national dire clion, and to be
secured us to prompt convertibiity into coin BY
the pledge Of United States bonds and othel
,needful regulations
The FIRST of these plans was partially adopted
MT the last session Of Congress, in the provision
authorizing the Secretary to issue United State
notes payablc in coin, to an amount not exceed
inp fifty millions of dollars That provision ma,
he 40 extended as to reach the average ciroula
tion of the country, while n moderate tax, grad
unlly augmented, on bank notes, will relieve tn
national from tho competition of local circula-
ton It has been already suggested that til
substitution of u National for II State currency
upon this plan, would be equivalent to loan t
the Government without interest, except Dn til
fund to be kept i'll coin and without expense
except the cost Of preparation, issue and redomI
tiou; while the people would gain the adlitiOnu
advantage of uniform currency, and relit
from n considerable burden in the form of inter
est on debt. These advantages are, doubtless
considerable; and ii u scheme can be devised b
which such u circulation will be certainly an
strictly confined to the real needs of the people
and kent constantly equivalent to specie b
prompt and certain redemption in coin, it wi
hardly fail of Legislative sanction
The plnn however, is not without seriOI
inconyenepces and hazards. The Temptation
.especially great in times of pressure and DANCE
to'issue notes without adequate provision for r,
dempton; the ever'present liability to be calle
nn for redemption beyond means, however care
fully provided and managed: the hazard
panics, precipitating demands for coin, conce
trnted on q few points and q single fund Il
risk of n deprecated, aepreeiating, aud final
worthless paper money tho immeasurablo evi
of dishonored public faith aud national ban
,ruptcy all these are possible consequences
uhe adoption of a system of government circ
lation. 1t may be said, and perhaps truly, th
they are less deplOrable than those of an irr
.lpemable bank circulation. Without enter
into that comparison, the Secretary oOnteI
himself with observing thit, in his judgmei
these possible disasters SO lar outweigh the pro
able benefits of tho plan that he feels hms
con- trained to forbear recommending its ado
tion.
The second plan suggested remains for exar
nation. Its principal features are, (ls) cirC
lation of notes bearing common Impression a
authenticated by q common authority; (2d) I
sdempiion Of these notes by the associate
institutions to which they may be deliver
suu sas ssn :; and (3i) the security Of that redeu
,t or Isa r., ~ pledge of United States stocks,
mOn adsouatc ~ MT ,NroVision Of specie.
S' Su tSs nIap ,se people, in their ordinary bu
ln .n,, pi'tn snd n, 3 advantages Of uniformity
CURRENCY I, Of uniform 'i'y in security Of ,9 efGI
al safeguard, it eiTeetua saieguS,u ~ pUSsr. ~
against depreciation; an Oh pfo'eGuSh sshiIl - IT
losses in discounts and exeh Nnges While IN
Sases oneTatiops of the government he people wo
Gpd the further advantage Of a 10 .ge demand
government securities, Of increased 'aeillues
obtaining the loans required by the VI y, snu ,ll
some alienation of the burdens on i.Nuu1
through u dimiuulon in the rate of interes't,
participation in the profit of circulation, WI
out risking the perils Of great money monop'
A further and important advantage to the