The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1862-12-13

their commodities, which is the very essence
of commerce. Statesmen who have agreed
in little else have concurrcd in the opinion
that the power to regulate coin is, IN sub
stance and effect, power to regulate cur
r"ncy, and that the trainers of the Constitu-
tion SO intended. 1t may well enough be
admitted that while Congress confines its
, regulations to weigh. fneness, shape and
device, banks and individuals may issue notes
! for currency in competition with coin. Bnt
il is difficult TO conceive by what process of
hgic the nnqncstionrd power to regulate coin
can be separated from the power to maintain
or restore its circulation, by excluding from
currency all private or corporate substitutes
which affect is value, Whenever Congress
shall see lit to exercise that power Tor that
purpose.
The recommendations, now submitted. of
the limited issue OF United States notes as a
wise eXpcdicnt for the present time, and ms
an OCCASIONAL cXpedient in fitla tia,es, and
OF the organization Of banking assoc iaions to
supply circulation secured by mai ona bonds
and convertible always in the United States
notes, and after resumption of specie bay
mcnts INTO coin, are prompted by no favor to
excessive ISSUES Of any description Of credit
money.
On the contrary. it is the Scerctary's firm
belief that 10y no other path can the rcsrr,ll,-
and so certainly maintained. United States
notes receivable for the bonds bearing a
secure specie interest are next best to notes
convertible into coin. The circulation of
banking associations organized under gen.
erai act OF Congress, secured by Snch bonds
can be most surely aud safely maintained at
he point Of certain conyeribilty into COIN
If, temporarily, these associations redeem
their issues with United States notes, resump-
ton of specie payments will not thereby be
delayed or endangered, but FASTENED and
secured; for, just rs soon as victory shall
restore Ecaec, the ample revenue, .alseadv
secured by wise legislation. will enable the
Government, through advantageous pnr-
clases Of specie, to replace at once large
amounts. and, at no distant day, the whole.
OF This circulation by coin, without dctrimcnt
to any interest. but, on the contrary, with
great and manifest benefit to all interests.
The Secretary recommends, thcrfore no
mere paper money scheme, bat, on the con-
trary, series of measures looking to a safe
and gradual return to gold and silver as the
only permanent basis. standard and measure
of values recognized by the Constitution
between which and an irrcdccmablc paper
currency, as he believes, the choice is now to
be made
No country possesses the true elements of
times can maintain higher standard of cur
rcncv and payment than the United States.
1t has been already stated that the amount
to be proyid d. beyond resources available
under existing laws. is. for the current vval
S2'b 9i2 Oh 60 and Tor tn. cnsucu g year
81 - .3Ss. 1885.
L" provide these amounts, loaus in some
form must be negotiated.
The Secretary has already expressed the
opinion, with great Difference to the superior
vision Of Congress, that it will be unwiSr.
unless conditions greatly change. to author
ize the increase Of United States notes beyond
the limit now fixed hy law. Should any
vacuum be created 10y the withdrawal OF bank
note circulation. that vacuum should, doubt
less, be tilled by United States notes.
Should congress adopt the measures proposed
by the Secretary, it - not Improbable that an
additional issue Of fifty millions may be re-
1ulred for that purpose within the year. ard
an equal additional issue during the following
year. And it may well hc hoped that mill
taIy successes. recSta Jlishing the authority Of
the United States in large districts of the
hsurSrnf region, will call for further issues
to supply the place of the worthless currency
when the rebellion has forced upon the peo-
pc. Should il lie deemed cxpeiicnt to
invest the Secretary with any discretionary
should be so limited as to allow no increase
of aggregate circulation beyond the clear
demands of real business.
consiirra'le additional sum may probably b., oJ
tain"d h! removing th' limit t"rnrn,?tr, .rl.,sit,-
TIL" amount Of the" deposit, las s's,.,y increased,
MISUNDERSTANDING iair' frmlm"ntS I" d. p'>it"rS The
treasury i Tie Government has been mad" III" savings
bank If the people S.uli tn, restriction be r,,.yr
thr" Is r'asm {" ieli-N" that twenty-five, millions ma,
Ice tS'rh"d beyond til" maximum now ti\"'l during The
year.
Eut ho ccf reliance. an! Tho SIf:.>t. must lac upon
loans. rou issues If nitrd STATES r.rs lcy,d
The amount authorized, certain that l,s.rs
FIR tho whole amount required for the current wear can
he readily obtained fair rate, and il may he conf
IDENTIFY hoped that before its close the rc~ozrce- Of the
country will b" :" we'll understood and the .tnration
:" it, territorial integrity well assured that capital
istS will not hesitate to- supply whatever may lac needed
for III" Subsequent year.
Iin in order +" 1'e advantageous negotiation Of loan.
the action Of Congress IL nrcc.Snry
A. an important element If fnrilitv in the
plan of banking associations las been already cnnsid
cred Iit" direct aid is. however. To he expected from
this plan during the present. nor very much r.raps
during til" nrNt year. The operation Of associations
organized under il must. ut first. III. restricted mainly to
investing mite" states mites in In n| S,sug cirrula
ti"n based ~ these bonds. aud tnnspftng ordinary |
bus n a. tar na's.~ rscrivrd for the bonds he
rrs>ucd without injurious imitation &c the cr,ulatn |
they must s|arily lac withdrawn and cancelled TIL.
aggrr@"r 'irrunii"a" Government nit~ States notes
withdrawn will f,r ml'larch 10y til" Of National
circulation furnished To- til" associations The immediate
advantage" I" the 'i"rerin'mt will h. found in the mar
kct create,i FIR bonds s,ui the support thereby given To
the National credit. The general ,vann;.rs which
have been described mnst attend the organization of
banking associations. and will only he fully apparent
when the National circulation furIshr, I" them shall
become the established and sole note circulation of the
cuurfry.
other legislation is s!srrcsrr needed.
TIL" act ct last session authorised tn" Secretary
issue bonds # the United States already N en- ImrutinrI
AZ f'c-twenr'. t" tn" amount Of Eve hundred millions
III dollars. and To dispose of them for coin United
States notes st the market value thereof In the
act authority was given to issue SljnO0OO0 in United
states notes which authority afterwards enlarged
tn S2bHoOU: AMI it was provided that any holder "a
such notes To the amount Of Nifty dollars. any multi
pie Of fiy might exchange them for tivr-twrny bonds
Ut The effect of these provisions make nern-
tinfi"nS VI considerable n'nosns in"ssile for consi
cifl" am"n'f. are seldom taken except with view tn
rr-srs at proHt. sl reSIles Mt profit
sihlr mn-r the law Negotiations below market yaue
are not allowed. and If not allowed the takcr Of the
bonds IAN expect no advance unless market value
Silcrably below pnr shall become established. The at
makes advance above par impossible hy authorizing CON
version of United States notes int" bonds Mt that rate.
The Secretary respectfully recommends the repeal of
II restriction which Congress did nor Intent; and the
second has bcrn slb~o,t by the inconvr nicnccs which
wrr" feared rather than by the benefits which were
expected. Conrcrthy by exchange at will is Of little
NJ II" advantage To the holder If the NOTES f,r the
clauses which their rrcrivubil.ty FIR all ans
max" them practically convertible. Wherever til.
volume If notes reaches point Al which loans L."
hrctrd at rate, far To the country and desirable. t.
tkrrs loans will of cunrSr. be made, and ample ulr
tunifica for ntcr>r,n offered.
Should Congress. hawrvrr he IF opinon that these
',isr> should he retained it VIII be nsrs>ry pro-
Vi lie fT other loa, s. ut rates favorable the ul
rs than ronrcriiiity inn fyr-twc itrs This can h.
Ion" either by authorizing b,irS Of longer time or 10y
I'M rra-ing the RATES Of Interest offered.
The Sccrc airy tniint recommend either cur,o cxcrpt
u an ALTERNATIVE" Ia No provision at ALL
A. .,ch an II t"rhit he w"ul prefer tho Issue Of
ID ir"" years bonds, convertible into vc-twrntN skies
1t OF before maturity. and u small, not hearing into
T. IL. rs II Al in Ii. HrSr