The Burlington weekly hawk-eye. [volume] (Burlington [Iowa]) 1860-1876, 1862-12-20


interest
Another objection 10, that, although the entire
circulation would rest on uniform basis, it.
value might not be uniform, depending on the
good or bad managemsrt-honsst or rsscality,
of the banks concerned.
Mr.. Chase is not quite clear on the point, bu,
the conclusion from what he says is, that the
Govsrnmsut would not be isbls for the notes thus
issued beyond the proceeds Of the sale Of bonds
deposited as security. There would be times,
then, when some banks would fail to redeem,
and when, Government bonds would be dApreci-
Fated, end when the holders Of the circulation
would repeat the late experience of the holders
of the circulation Of certain Illinois banks, Sc
cured exclusively BY Government stocks, and that
too. when the prospect Of excessive indebted
ness was not so palpable as since. If, on the
contrary, it is proposed that the Governmen,
make up any deficiency on sale of securities
then 1t would sppesr to be plan to pension Of
the banks at six per cent, interest, under vir-
tual guarantee that the market value of their
bonds should never be below par. Mr.. Chase,
evidently, has not lived quite far enough Yves.
to understand all the beauties Of the system.
Were be to travel through the Mississippi region
OF the Northwest, 10 search of appropriate items,
he would no doubt be made to appreciate diff
cuties in the success of bis plan. to qualify his
present views n tns. KS "a saa .tasrts .e,
But the greatest objection of all 10, that the
proposed circulation would not be lsgal tender,
beyond certain public dues; and without that
quality, not even the acknowledged ability Of
Mr.. Chase, will be able to continue uniform
circulation to stand the test in this crisis. Under
the existing Plan, the debtor sleeps soundly on
his green backs" knowing that they will be
good for his liabilities on the morrow; and the
immense private indebtedness of the country
thus impsrts strength and stability to that cir
culation which oil the banks combined cannot
effect, and which can never attach to circula-
ton not legal tender The creditor or capitalist,
too, can now convert his surplus ''green-backs'
into ak per cent. securities; and so long az this
privilege existed, there would be no danger of q
redundancy Of circulation in connection with fu>
ture issues 7 f''- F. 'asa+
J. To continuance of the present plan. hoxey-
er, Mr. Chase enumerates certain objections, to-
wit; 9" III
The principal objections to such circulation
"a permanent system are, LIST, the facility of
excessive expansion when expenditures exceed
revenue; I'd. the danger Of lavish and corrupt
expenditure, stimulated by facility of expansion;
50, the danger of fraud in management aud SUI
peavislo1; 9th, the impossibility of providing it
10 sutdclent amounts for the wants of the people
Whenever expenditures are reduced to equality
OF revenue, or below it.
The first two are singular enough, and could
hardly have been designed, for very serious con-
slderations. If We are to continue Govern :
ment of the people, political parties, as hereto
fore, will operate as checks on excessive e1pan-
sions, and lavish and corrupt expenditures; if
not, then the serious question arises whether We
have not been mistaken in estimating the ad-
vantages of our form of Government! The
faithfulness of public officers or servants is a
risk incident to every form Of government, and
cannot we'll be dispensed with under existing
inventions. And this remark applies as we'll to
the Sd objection; and, further, in connection
With that objection, would there not be equal
danger Of fraud in the management and supervis.
ion of the new circulation? Would not the
opportunity to practice fraud successfully be
greater than now? HIS .a -..r
Mr. Chase's 4th objection is clearly taken from
the standpoint of permanent system,' That
isjust what the people wish to avoid-.hey wan,
no permanent sy,tea of paper meney, under Ell
tber or any plan. If there is any one thing, in
this connection, that the majority particularly
in the West) desire more then another, it ia
permanent system of hard money circulation This
they cannot have at present; and, knowing that,
they ask the next thing to illegal tender issues
of the Government. Suppose it should become
necessary for Congress to authorize the issue of
six hundred millions, before the rebellion is sup
pressed; does any one suppose that amount Tor
whatever amount was issued could be suddenly
and rapidly withdrawn and redeemed by the
Government? No. On the contrary, it could
only disappear gradually, and the gold and silver
which redeemed it would take its place. Besides,
whenever it appeared evident that the maximum
had been reached, and the Government would
thepceforth gradually redeem, the difference be-
tween coin and legal tender would less gradually
disappear; and such result would be hastenel
by the steadily increasing product Of gold within
our own boundaries. We want no permanent sys.
TEN of paper money, and the only chance or hope
Of eventually reaching permanent system
Of gold and silver, is through the continuance
of legal-tender issues to the extent necessary,
which Issues, as before stated, with their quail
ity to.pay private debts and public dues) would
advance more rapidly to the value Of coin thar
the amount OF quantity would recede from The
maximum issue BY redemption; and as redemn
ton progressed, the outstanding amount xould
gradually tighten n tie hands Of the peonI.
from eonvelpdispcsc and coin would be freely ussd
in the payment Of public dsea large i a. . oun