Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1862-09-08
m36I65o

This statement, while IN the large amount cf
call deposits /: exhibits its confidence in the
credit Of the government, yet in the small com
parativs amount OF bonds and stock, it shows
aa iadspOsition 10 make investments in that
form We are, therefore, constrained to resort
80 Treasury Notes as the only mode By which
the requisite funds can be raised. The resource
has its limits. But it IS hoped that with reason
able economy in making tho appropriations, the
plans already set in operation Will extend these
limits, SO as to reach to the end Of the war.
The inherent objections which attend to gov
ernment currency are that il distUrbs the stand
ard Of value aHd enhances prices. The facility
with which il is created is constant temptation
to excssl and the danger Of this excess, together
with the doubt Of an ability to pay, are the chief
csusss which sffeet the credit as currency.
Thus far no want Of confidence has been ex-
hibited IN our currency. It freely cireulates
everywhere, and the fact that the banking iusti
tatOus receive and pay out Treasury Notes In
their own business in the most certain indication
That their credit is unimpaired
The other cause becomes active only when tue
total amount OF circulation exceeds the usual
business wants Of the community. 1t operates
without relation TO the sctusl value of tbs circu
lston, SO thst even coin, if It could be kept in
country, (if in exceFs) produce the same result.
The effect is q necessary consequence Of the re-
lztfou between the whole circulating medium
ard The whole business and property Of the com
munity, and can only ss modified by influences
upon the cause. Every means, therefore, which
wiz reduce the quantity Of circulation becoms
important, and should diligently be sought after
It was with this view that Congress adopted
two measures Of relief; one, by which any ex-
cess in the quantity of currency might at onos
be permanently Withdrawn and funded ia per
cent bonds-ths other by which the same effect
could be produced for a time, through interest
bearing notes and deposits on call. Bus plans
are working we'll The deposits have in fact
been a permanent loan at per cent. The in
teTest notes although current to certain degree,
are usually Withdrawn from general circulation
ss soon IS a sufficient amount Of interest has &c
erued upoB them 70 make them valuable as q
temporary Investment. 1t must be observed,
however, that if this interest should remain in
auear for long or indefinite time, these notes
/ encounter a difficulty which seriously impairs
their vslus, namely, that Of al unproductive In
vestment. Thus, being both unproductive and
/ uncuTrent, they viii not pass into general use
unless the interest be paid annually. 1t viii be
/ seen that the issue Of these notes already
amounts 70 upwards Of twenty-five millions
| Much of il has doubtless been taken under the
/ belief that the interest would be paid like othel
! interest, and I have encouraged this belief by
stating that I would recommend to Congress
! that the interest should be paid annually
earnestly hope that Congress viii approve th
recommendation. The FAyment could b
stamped annually on the note, without encum
bering it with 8 coupon and in this way it !
believed the objects intended by the issue woul'
be effected.
I would also recommend thst the notes b
issued Of a less denomination than one hondre
dollars. The large amount OF money Ia tn
hands Of private capitalists is the fund Bhic
we must induce to be loaned for the uses OF IA
government From the War-tsx returns an
from estimstes as 10 such States as have not -
made complete returns, this fund may be 3,
down at seven hundred millions, and one OF 70
best means for procuring the use Of part Of it b
the government seems to be through these mote
which answer the double purpose Of cuTrenc
and investment.
1 have also to report that the acceptance
deposits on call at six per cent has operate