Evening star. [volume] (Washington, D.C.) 1854-1972, 1862-01-28
The Government Currency and Finances.
The folloHfn0 recefyed from a laadinO w al

The Government Currency and Finances.
The following, received from a leading Wash
ington banker, who has made the subject a study,
merits a careful perusal:
Editor Star venture to submit some sugges-
lions az to what may very well be added on 10 tn
scheme proposed by the Committee of WAYS and
Means, and, since forming my own conclusion as
70 the Satisfactory working Of the plan proposed
have observed that IL 10 one Of which the Rich.
mond government has already awaited itself In
part. | suggest, therefore, that the Secretary Of
the Treasury be AUTHORIZED by Congress 10 Issue
q certain amount-say 500, COO COO of demand
notes-and shall use these in payment of an de-
mands against the Governments, and that upon
presentation by any party Of the above notes in
Of $500 certificates Of deposit shall be issued
70 the party bearing interest at six per cent and
payable on demand, and that said certificates or
the demand notes, shall be fundable in twenty
year stock Of the United States. The benefits Of
the above plan would seem to DE these: the de-
mand notes viii pass into the hands of capi,al,sts
Banks and individuals who will have occasion to
use only such PORTION Of them a. the actual trade
OF the country shall require as the currency me-
dium, the balance or surplus will be made at once
productive 20 the holders, and an opportunity
viii be afforded Of concentrating what will really
be the Idle capital Of the countTy-that Of banks
temporarily unemployed, OF bankers associations,
The evils Of an immense infation caused by the
Issue Of . larger amount Of currency than the
bushes Of the country requires will be avoided,
u
Of interest, with the advantage OF conversion Into
available currency, will cause the surplus 10 be
absorbed In the way suggested. The objection
now existing among business men to investing
their unemployed capital In Government secu-
rifles, viz: that when DESTROYS Of converting
their securities thew are compelled 10 take the
chances OF the market, and submit possibly to a
depreciation In their market value will be avoided
~ they viii always be able 70 command certai q
amount Of available currency when thew have
occasion 70 use IL. snd a. the occasion would
arise but In certain percentage Of cases, the
balance would remain In the custody Of Govern.
ment. -.-'.-a
The 6ovefnmsntwouldg get the benefit of large
circulation without interest, and would paw in.
kTest only on that portion which was not acti We
sad which would otherwise 20 to lower Is credit
ey creating an expansion, resulting, probably, In
serious injury and disturbance LIZ
IL the srcfesary could, by combined ection on
tbs Par OF tue baeks and capitalists, obtain the
roin Tor tue third instalment Of the 100 notes Al
present. unnegotiated, even by disposing Of II At
small discount, the amount OF coin thus obtai ned
could be made the specie basis OF the Government
circulation, and would probably prove sufacieni
20 redeem such amounts a. might be presented a
we various places Of redemption. The deposits
then offered 70 the Government would be coin OF
Us equivalent, demand notes, and would be re.
turnsoie In the same, These suggestions pre.
supposs such provisions On the part Of Congress
for the payment Of the interest and gradual re-
dsn1pcion % The public debt a shzlt be accepta,
s.s 2 5s Rsepis and render The security offered
oque3uon4ple, fNF~f@Nts4E $3.50
tst-sss