The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1862-01-04
The New National Currency.

/ put II Is presumed comprehensive, synop-
SIS oil the bill to establish q National cur
rency prepared by the Committee of WAYS
and Means, and to be introduced into the
house IN week or two. In its provisions
1t Is totally unlike the old bank of the
| United States, and hence not so liable to
become q political machiue, dangerous to
The stability and the integrity of the Gov
eminent The principal, and so far as we
can see, the Only benefit the Government
hopes to derive from the scheme, if carried
INTO successful operation. is the large de-
mand 1t VIII create for National securities.
1t the details of the bill are so framed
as to inspire general conidencs, such will
unquestionably be the result The safety
OF the issues under the law, and the per
manent advantage to be derived from It, if
any, viii depend very much upon the
ability and the degree of honesty with
which the law is administered The Bank
Comptroller at Washington, should be a
man OF consummate financial ability, and
one who would value his integrity above
all earthly considerations. Under the
! management Of man destitute of these
qualifications the nation would in a very
| rev years, have a stump-taii' catastrophe
to WHICH our Illinois affair last spring
would not bear the slightest comparison.
! lt-rBay be that several important partic-
u.ars were omitted in the teegraplIic sy-
norsis; but the bill plainly should have
provisions that will guard the following
points: 4 maximum of capital should be
fixed there should be central .edemp-
'iohs by States or districts, and if the bill
csn be 30 framed rs 10 be really "A success,
and make the circulation of the country
uniform, tax must be laid on tine bills Of
other banks, light at first but Increasing
periodically, till ordinary bauk-raEs" are
taxed o3t OF existence.
At present we are not prepared 10 give
( an opinion a. to what the maximum of
capital should be: but IN order to com.
/ nIand the confidence Of capitalists some
limit Should be fixed If we are to have
an Indefinite amount of paper money
issued, capitalists cannot know how much
, expansion there Is TO be, and men OF real
money Will hardly venture to invest in Il
: banking system Of linlitless issues II we
mistake not the entire paper circulation
, Of the couutyy i. or was, about two hun
dred millions OF dollars. The war cxpen-
ses of the Government may possibly
enable the country 10 bear service a. much
hot this Is 80 important matter that
Congress should not decide il without the
"
the subject IN all It's hearings An over
issue Of paper will simply give fictitious
values 10 tine entire real and personal
property of the nation Ia be folio yed at
no distant day 10y financial ruin and
: disaster
Although j; wouIl appear from the
synopsis that the bills Of the banks adopt
inr tine system. are 10 be everywhere re
cciyahle for public dues, both experience
and sound financial principles require that
stringent provisions for central redemp
tions should tie included In the bill at say
/ from "a quarter tu half per cent premium.
+ I he banks cf New England should redeem
in Boston. New York in New York city.
( Pennsylvania Mt Philadelphia. Marylan
( and Delaware ct Baltimore and generally
/ a, the capital or chief commercial city of
eacl, State; or several States. if no: too
/ large, as New Englanl. for instance. In
their leading financial center The cap
ital should be- aprortioned properly among
the States or dis,r:ctS. and the banks
sfissssiss * i-ssel "a. ei.;-= of not less tban
Eve q six thousand inhabitants. Inc
people Of lilinois have had experience
] enough with banks located in swamfs and
nameless places To warn the Nation
against 6 repetition Of so blightinc !
blunder.
Without such = tax upoa the bills o.
other banks - will gradually and surely
drive them GU; Of circulation. there would
b. az '' ;grrpressihle conflict between them
and he Government pets that would lie
neither healthy nor PROFITABLE, either to
the banks or people II we are to haze q
national currency 1t &c lie reality; one
that the people will approve, simple and
safe, and one with whose face tiev csn be
come 50 familiar that altered bills and
counterrritiug Will be next to impossible
Congress by inaGguraiing the proposed
system. will assume a very grave responsi
bi!itv, and every possible safeguard should
be- thrown around !, that their united wis
dom and the history and the experience o
the world can furnish II i wonderful now
small a defect viii destroy the safety anG
the efficiency fanny banking law Kna,e'
and sAarpcrS Will take advantage OF it tC
swindle the people without mercy. Wiki
W.. confidence in any banking system i:
piant Of SLOW .:,owth and until We get
q copy OF the hill and have time carefully
10 examine all it, prov sions, we cannot in
dorse IT. 1t viii be well for our readers 4:
far as possible to adopt the same policy
Ga Iujluac