Delaware State journal and statesman., 1862-12-12
The Treasury Report.
UNIFORM CIRCULATION.

UNIFORM CIRCULATION.
Upon this point, Secretary Chase says:-
" 1t may be properly added that this desirable
substitution of n circulation, uniform in dcscrip.
tion aud value, for circulation varying widely
in both, may, perhaps, be more easily and beue-
icially effected now than at any other time
The circulation of United States Notes may
greatly facilitate the payments to the Banks
through which their own notes must be with
drawn, and thus not only protect the community
from the Inconvenience, but the Banks from the
losses which might otherwise attend reduction
" Ii may also be added that when the substi-
tuition shall have been ACCOMPLISHED, and.
perhaps, if circumstances favor, at an earlier
period, payments in specie of United States Notes
may be resumed witt less cost and less injury to
business than would attend like resumption in
payment of corporate notes. With compara-
lively trivial sacrifice, the Government can,
whenever its expenditures are reduced to its
revenue, provide, by loan or otherwise, all the
coin needed to commence and maintain the
resumption.
"While the Secretary thus repeats the prefer
ence he has heretofore expressed for United
States Note circulation, even when issued direct
ly by the Government, and dependent on the
action of the Government for regulation and final
redemption, over the note circulation Of the
numerous and variousy organized and variously
IcSlouslDle Uuuhe uOM G1lSuDR IN Lle country
and while he now sets forth, more fully than
heretofore, the grounds of that preference, he
still adheres to the opinion expressed in his last
report, that circulation furnished by the Gov
ernment, but issued by banking associations
organized under II general act of Congress, is
TO be preferred to either. Such circulation,
uniform in general characteristics, and amply
secured as to prompt conyertibility by national
tonds deposited in the Treasury, by the associa-
ffnu II unutd nm; i,,k k;a
Eore elements of soundness aud utility than can
be combined in any other.
'fA circulation composed exclusively of notes
issued directly by the Government, or of such
notes and coin, is recommended mainly by two
considerations; the first, derived from the facil-
ity with which it may be provided in emergen-
cies and the second, from its cheapness
The principal objections to such a circula-
tion as apermanent system are, lst the facility
of excessive expansion when expenditures ex-
ceel revenue; ID, the danger of lavish and
corrupt expenditure, stimulated by facility of
expansion; 3 J., the danger of fraud in manage
ment and supervision 18th, the impossibiity of
providing sufficient amounts for the wants of the
people wheneter expenditures are reduced TO
equality with revenue or below it.,
''These objections are all serious. The last
requires some clucidaton. 1t will be easily
understood, however, il it be considered that a
Government issuing credit circulation cannot
supply, in any given period, an amount of cur.
rency greater than the excess of its disburse-
ments over its receipts. To that amount it may
create debt in small notes, and these notes may
be used as currency. This is precisely the way
in which the existing currency of United States
notes is supplied. That portion of the expenli.
ture not met by revenue or loans has been met
by the issue Of these notes. Debt in this form
has been substituted for various debts in other
forms. Whenever, therefore, the country shall
be restored to healthy normal condition, aud
receipts exceed expenditures the supply of
United States notes will be arrested, and must
progressively diminish. Whatever demand may
be made for their redemption in coin must has
ten this dimiuution; and there can be no reissue;
for reissue, under the conditions. necessarily
implies disbursement, and the revenue upon the
snppositi0n supplies more than is needed for that
purpose. There is, tnen, no mode in which n
currency in United States notes can be perma-
neuty maintained, except by loans of them,
when not required for disbursement, Oh deposits
of coin, OF pledge Of securities, or in some other
way. This would convert the Treasury into a
Government Bank with all its hazards and
mischiels
"If these reasOniDgs be sound, little room can
remain for doubt that the evils certain TO arise
from such n scheme of currency, if adopted as
permanent system, greatly overbalnnce the
temporary though not inconsidcrablc advantages
offered by it.
.sIt remains to be considered what results may
be reasonably expected from AN act authorizing
the organization OF banking associations, such
as the Secretary proposed in his last report.
THE central idea Of the proposed measure is
the establishment of uae sound, uniform circu-
lntion, of equal value throughout the country,
upon the foundation of national credit combined
with private capital
"Such a currency, it is believed, can be
secured through banking asso ,iatiOns organized
under national legislation
"lt is proposed that these associations be
entirely voluntary. Any persons, desirous OF
employing real capital in sufficient amounts, can,
if the plan be adopted, unite together under
proper articles, and, having contributed the
requisite capital, 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 receive
United States notes in such denominations as
may be desired, and employ them as money in