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

he telegraph yesterday gave us brief
! but 1t is presumed comprehensive, synop
| SIS OF the bill to establish q Nationa! cur
rency prepared by the Committee of Ways
and Means, and to be introduced into the
house in week or two. In its provisions
IT Is totally unlike the old bank of the
| United States, and hence not so liable to
become political machine, dangerous to
the stability and the integrity OF the Gov
ernment. 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 it will create for National securities.
If the details Of the bill are so framed
as to inspire general conh1encs. such will
unquestionably be the result The safety
oil the issues under the law, and the per
manent advantage to be derived from IT, If
/ any, will depend very much upon the
ability and the degree of honesty with
which the law is administered The Bank
Comptroller at Washington, should be q
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 q very
few years, have stump-tail catastrophe
to which our Illinois affair last spring
would not bear the slightest comparison
1t may be that several importsnt partic.
u!ats were omitted in the telegraplic sy-
noisis; but the bill plainly should have
provisions that will guard the following
points: A maximum of capital should be
fixed there should be central .edemp-
'ions by States or districts and if the bill
can be so framed a. 20 be really success
and make the circulation or the country
uniform, o tax must be laid on the bills Of
other banks, light at first, but increasing
periodically, till ordinary bank -ra.s" are
taxed out OF existence.
At present we are not prepared 70 give
an opinion as to what the maximum of
capital should be: but IN order 10 com
nand 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 i TO be, and men of real
money will hardly venture to invest in Il
banking syst4in Of linlitlcss issues. If we
mistake not the entire paper circulation
OF the couuiry 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 as much;
hat this i 90 important matter that
Congress shopll not decide ii without the
greatest care and the fullest discussion o5
the subject In all is hearings An over
issue Of paper will simply give fictitious
values to the entire real aud personal
property OF the nation II be followed at
no distant day by financial ruin and
disaster
Although il wonlI appear from the
synopsis that the bills of the banks adopt
ing the system. are 10 be eyerywhere re-
ceiyah!e for public dues. both experience
md sound financial principles require that
stringent provisions for central redcmp
tions should he included IN the bill. a, say
from quarter To hal per cent premium.
The bankso New England should redeem
in Boston, New York in New York CITY
Pennsylvania ut Philadelphia. Mary lard
and Delaware at Baltimore, and generally
at the capital or chief commercial CITY OF
each State; or several States, if no: too
large, as New Engiani, for instance, in
their leading financial center The cap
ital should iie appor;ioned properly among
the States or dig.rictS. and the banks
should ~ s>>s,.e.i IA. ei.i- Of not less than
tive OF six thousand Inhabitants Ine
people Of Illinois have had experience
enough with banks located in swamrs and
against 4 repetition OF so blightine 4
blunder
Without such : tax upoa the bills Of
other banks as vii! gradually and surely
drive them out of circulation. there would
h. aa iir"press;tle conflict between them
and the Government pets that would he
neither healthy nor rro@table, either 10
the banks or people. II we are to haze q
national currency let iL lie reality; one
thai ihe people viii approve simple and
safe, and one with whose face Il ev csn be
come So familiar that altered bills and
counterfritius will be next TO mpossible.
Congress by inaugurating the proposed
system. will assume very grave reSponSi-
biiity, and every possible safeguard should
be thrown around IT that their united wis
dom and the history and the experience of
the world can furnish II is wonderful now
small a defect VIII destroy the safety and
the efficiency ofany banking law Knaves
and sharpeI> will take advantage OF it to
swindle the people without mercy. With
Us, confidence in aHy banking system IL
a plant Of slow .rowtl, and until we get
q copy Of the hill and have time carefully
10 examine al itS prov sions, we cannot in
dorse it. 1t will be well for our readers as
far as possible to adopt the same policy
Chi Iuj1lGe