The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1862-01-15

tenn of credits for thirty millions of peo-
pie, by the summary removal of one that
has thus been established and acted on,
would be attended with most serious din,
culties under any circumstances, and espe.
cially under the existing embarrassments
of the country-passing all these consid-
srations, see the most serious objections
to the whole project in the means sug-
gested for its accomplishment.
The Secretary suggests that the grad
ual withdrawal of the notes of private
corporations and the issue, in their stead,
of United States notes, payable in coin
on demand, may be effected by the exer-
else, by Congress, of the power to levy
taxes, and that moderate tax, gradually
augmented, on bank notes. will relieve the
national from the competition of local cir
culation. If the government will furnish
better currency to the people than that
of their local banks, no such process as
that of . tax, gradually augmented. to
the extinction of the latter, will be neces.
sary for the protection of the former.
The people are not only competent to
decide, but will be ready and quick to
choose the better currency.
The right to discriminate in tho impo-
sitioR of taxes, for the encouragement and
protection of particular interests of the
people, may be admitted. and its exercise
under peculiar circumstances expected.
but the right to discriminate against Q
specific interest. and to levy q tax grad.
mated to the declared purpose and object
of its destruction, is power which. once
conceded, may prove to be an engine of
crushing force to any local or State inter.
est, or State institution.
The Secretary suggests two plans for
paper currency as substitutes
for that now furnished by local or State
banks, both of which are liable to serious,
and, as I think. fatal objections. "The
first contemplates the gradual withdrawal
from circulation of the notes of private
and for the issue, 10 their
stead, of United States notes, payable ia
coin on demand, in amounts sufficient fer
the useful ends of representative cur.
rency." To this plan such serious objec-
ttons presented themselves to the mind of
ts author, that he abandons il. and dis
misses it by saying he contents himself
with observing that, in his Judgment,
these possible disasters (incident to the
plau) SO far outweigh the probable bene.
its of the plan. that he feels himself con.
strained to forbear recommending it's
adoption. 1t may, therefore. re dismissed
rom fur, her consideration.
The second plan of the Secretary is
simply tho system of local banks, as now
n existence, with circulation based ex
,lusively on United States stocks 1t
iiffers 10 40 esser tial particular from the
stock bank system, now in use in this
State. except that it excludes tie stocks
# the State, and requires those of the
United States as the sole basis of securi.
y for the circulation.
To the objection already stated to this
ystem of banking, namely, its want OF
Immediate availability as distinguished
rom ultimate security. the plan proposed
$ liable to other objections. among which
may enumerste the liability Of greater
10 the market value of Uuited
States than in Ohio bonds; the establish
ng of paper currency for all the States
upon one basis, the depreciation of which,
aside from its ultimate security, would af
feet and damage the entire system; the
discredit Of State bonds, as basis Of Sc
curity, aud throwing large amounts upon
the market in order to effect the proposed
changes.
Such currency, moreover, would 10
no sense be national currency, notwith-
its common impression and COM
mon authorization" for the issues of
each local bank would be convertible into
coin only at the bank issuing the same,
which fact would Ok its character and
standard as a currency and medium Of ex-
change. and not the security on which it
may be based, or '.its common impress
sion and authsntication These consid-
erations, and others which might be adj
duced, compel my dissent to the expedi-
ency of the proposed radical changes in
the banking systems and currency of the
country.
But independent of all objections to the
proposed plan Of the Secretary as o sys
tenn of banking, and waving all the
doubts. difficulties and dangers of under.
taking to displace existing systems as es.
tablished in the several States, by the
substituiiousof that proposed, under any,
and ceEtainly under the existing condition
of the country, consider the measure
imprac ticable as one Of relief to the Gov
ernment
1t is presented as furnishing a market
on demand for the. stocks of the Govern
ment equal to the requirements of the
Government, to meet its expenditures.
These the Secretary estimates as follows:
For the fiscal year ending
Juue 80. 1862 .......... $215,500, 900
Al