M'arthur Democrat. (McArthur, Vinton County, Ohio) 1853-1865, 1862-01-16

State, and requires those Of the Unit
cd States as the sole basis of security
for the circulation.
To the objection already stated TO
this system Of banking, namely, its
want Of immediate availability as dis
tinguished from ultimate security, the
plan proposed is liable to other obiec.
lions, among which | may onumer-
ate the liability otgrcator fnCtua;ion
!u the market valRe of United States
than la Ohio bonds; the establishing
of a paper currency for all the States
upon one basis, the depreciation Of
which,. aside from ts ultimate securi.
ty, would affect and damage the en-.
tire system the discredit of State
bonds, as a basis Of security, and
throwing large amounts upon the mar.
ket in order to effect tue proposed
changes.
Such q currency, moreover, would
in no sense be q national currency,
notwithstanding sits commorimpres.
siOn and common authorization" for
The issues of each local bank would be
convertible into coin only at the bank
issuirg the same, which fact would
fix It's character and standard as a cur
rency and medium of exchange, and
not the security on which it may be
based, or "its common impression and
authenticatiou." These considera.
tions, and Others which might be ad,
duced, compel my dissent 10 the expe.
diency oftue proposed radical changes
in the banking systems and currency
Of the country.
But independent Of all objections
70 the proposed plan Of the Secretary
as a system Of banking. and waving
all the doubts, difficulties and dan.
gers Of undertaking to displace exist.
ing. systems "a established in tho sew.
eral States. BY the substitution of that
proposed, under any, and certainly
under the existing condition OF the
country, | consider the measure i'm.
practicable as one Of relief to the Gov
ernment.
ltis presented as furnishing mar.
ket on demand for the stocks of the
Government eqnal TO the requirements
Of the Government, to meet its expen.
ditures. These the Secretary esti.
mates as follows:
For the fiscal year end.
ing June 20, 1861. $275,500,00O
For the fiscal year end
ing June 20, 1862. 379, 100000
Making a total Of. $655,000,000
The practical question then comes
mp. and Russ be met, Can these sums
be suppI D as a basic of bank issues
within the time. requredl II all tire
banks in the loyal States were, at once
to engage earnestly in The work of
converting their present means into
money, and investing itiu Govern
ment stocks as fast as realized, would
itprodnco the EqAfed amount Of
s275 500. 900 in six monte and$655,, ,
100000 iu eiGhIesn mopthsl 1t seelHs
to me only necessary % state this to
shew its impracticahility. The coin
held by the banks would be requiDed
as the basis of these new issues
That could not be parted with. Tho
State stocks held by some OF them
might be converted iuto money at q
heavy loss, btt this wonld supply
very email ESrtnni Of the sum requir.
ed. Tie main dependence would be
the rapid collection Of the bills re-.
Ceivable held by the banks. The az,
greeate amount of fall the bills recelvs
bic held by all the banks of the coup
try was, on the 1st OF January. 1860,
S5,161,00O, about two-thirdS d
which was held by banks in the
loyal States. The sum required is,
therefore, greater than the sum of all
the means from which tits to be maH
and the plan ia impracticablo as Il
means of providing funds from that
cause alone.
This plan OF providing relief to the
Government is fraught with other
dan .ers. The entire banking circu-
lation within the loyal States is stat!
ed by the Secretary to be $50, 900,
0G0 on the first DAY Of January, 1861.
The effect Of the proposed plan would
be to create bank circulation within
eighteen months of 755,000,000.-
This would be independent of the
Governments issue OF demand notes,
making together perhaps one thons-
and millions of dollars as a substitute
for the existing one hundred and fifty
millions. Il
Who can estimate the consequences
OF such an expransions Prices Of all
SORTS would be enhanced; I'll eexporta.
tations of the country diminished
whle the Importation of foreign goods
would be increased; the exchanges
now in our favor be turned against
or,>..ooIn1 h.,