The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1862-12-11

can invest such part of it, not less than
fixed minimum, in United States
bonds, and, having deposited these bonds
with the proper officer of the United
States, can receive United States notes
il such denominations as may be desired,
! and employ them as money in discounts
and exchange, The stockholders of any
existing bank can, in ike manner, or
ganize under the act, and transfer, by
/ such degrees as may be found conve-
nient, the capital of the old to the use of
the new associations. The notes thus
put into circulation will be payable, un
. til resumption, in United States notes,
and, after resumption, in specieg by the
association which. issues them on de-
mand; and if not so paid will be re-
deemable at the Treasury of the United
States from the proceeds of the bonds
pledged in security. In the practical
working of the plan, if sanctioned by
! Congress, redemption at one or more of
the great commercial centers will proba-
bly, be provided for by all the associations
which circulate the notes, and in case
any association shall fail in such redemp-
ton, the Treasurer of the United States
will probably, under discretionary au-
thority, pay the notes, and cancel the
public debt held as security ....,. 9
1t seems difiicplt to conceive of q note
circulation which will combine higher
local and general right than this,
After few years no other circulation
would be used, nor could the issues of
! the national circulation be easily in-
creased beyond the legitimate demands
! of business. Every dollar of circulation
would represent real capital, actually
invested in national stocks-and the
total amount issued could always be
easily and quickly ascertained from the
books of the Treasury, These ;circum-
stances, if they might not wholly remove
the temptation to excessive issues, would
certainly reduce it to the lowest point,
while the form of the notes, the uniformi
ty of devices, the signatures of national
officers, and the imprint of the national
seal authenticating the declaration borne
on each that it is secured by bonds which
represent the faith and capital of the
whole country, could not fail to make
every note as good in any part of the
world as the best known and best es-
teemed national securities.
The Secretary has already mentioned
the support to public credit which may
be expected from the proposed associa-
tions. The importance of this point may
excuse some additional observations
The organization proposed, if sane
toned by Congress, would require with
in a few years for security for circulation
Lo,1ca 90 IL IT,,toI e, ,,f
not less than $250,000,000. 1t might
well be expected, indeed, since the cir
culation by uniformity in credit and val
ue, and capacity of quick and cheap
transportation, will be likely to be used
more extensively than any hitherto is
sued, that the demand for bonds will
largely overpass the limit Should Con-
gress see fit to restrict the privilege of
deposit to the bonds known as five
twenties, authorized by the act of last
session, the demand would promptly abb
sorb all Of that description already
issued, and make large room for more.
A steady market for the bonds would
thus be established and the negotiation
of them greatly facilitated
BUTT is not in immediate results that
the value of this support would be only
or chiefly seen. There are always hold
ers who desire to sell securities Of what
ever kind If buyers arc few or uncer-
tain, the market value must decline.
But the plan proposed would create a
constant demand, equaling and often ex-
ceediug the supply. Thus steady uni
forrnity in price would be maintained,
and generally at rate somewhat above
those Of bonds of equal credit, but not
available to banking associations. 1t is
not easy to appreciate the full benefits of
such conditions to a Government obliged
to borrow. 12 as sasu a.9.a D.
Another advantage to be derived from
such associations would be found in the !
convenient agencies which they would
furnish for the deposit of public moneys.
The Secretary does not propose to in
terfere with the independent Treasury.
1t may be advantageously retained, with
the assistant treasurers already estab-
lished in henost important cities, where
the customs may be collected as now, in
coin or Treasury notes issued directly by
the Government, but not furnished to
banking associations.
Dub WldibGNCI blC vi ShEH
arrangements in the commercial cities
in relation to -n-@4----7------vy-s1 S@f
mat the secured national circulation fur
nished to the banking associations !.
should be received everywhere for all
other dues than customs, and that these
associations will constitute the best and
safest depositaries of the revenues deriv-
ed from such receipts. The convenience
and utility to the Government Of their
employment in this capacity, and often,
also, as agents for payments, and as dis
tributors of stamps, need no demonstra-
ton. The necessity for some other de-
positaries than surveyors Of ports, receiv-
ers, postmasters and other officers, Of
whose responsibility and fitness, in many
cases, nothing satisfactory can be known,
is acknowledged by the provision for
selection by the Secretary, contained in
the Internal Revenue act; and it seems
very clear that the public interest will be 4
secured far more certainly by the organi-
zation and employment of associations
organized as proposed than by any Off
cial selection.
Another and very important advantage
of the proposed plan has already been
adverted to- 1t will reconcile, as far as
practicable, the interests of existing in
stitutions with those of the whole peo-