New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1862-12-06
the wants oftNe people whenever .xr.ra,,--.-

however, II 10 be considered that a Goyernmen, =;
SUNG credit circulation cannot supply In anr -. 10
en- perioo, an amount OF c1rreocy greater than ~.
excess OF It's disbursements over its recs;n,s 'se
that amount, 1t may create debt in small nd,a. 20
these notes msy be used az currency Tbis IL aau
cisciy the way in which the existing cnrro,P Pc
United States notes lie supplied. That portion y; ,t
expenditure nor met by revenue or oans has t. .us
met by the issue OF these notes. Debt in hi, fsa
has been substituted for various debts in otbe, s,a
Whenever therefore. the country shall be r..sa.u:
10 healthy normal condition, aud receipts svc.e1
expenditure the supply Of United States note, IN
oe arrested, and must progressively dmrn;.s
Whatever demand nay DO made Tor their redenr;o.
IN coin must hasten this dimnuton and there can \.
no reissue ioI ressue under the conditions nece,.'.
MY implies disbursement, and tho revenue unon N.
snpposliion, supplies more than IL needed for ,bss
purpese. There Is, then, no mode in which A rr.
rency IN United states notes can be ueruansr.
maintained, except by loans Of them, when NOT ~
quired for disbursement, on deposits of coin :,
pledge OF securities, or in some other way. mi,
would convert tie rleasury into al Government Bsn%
with all its hazards aud mischiefs.
IL these reasOnings be sound, little room can y.
main Tor doubt that the evils certain 10 arise fro
snch scheme Of currency, if adopted as permaner
tystem, greatly oyerbalance the temporary tbouSn
net uncomfortable advantages offered by il.
II remains to be considered what results NAV IA
reag0naby expected from al get authorizing The orr
ganzaiion Of bau king associations, such a. the Sec
Rotary proposed in bis last report.
The central idea Of the proposed measure IA tha
establishment Of one sound uniform circulation OF
equal value Throughout the country, upon The
foundation Of national credit combined with private
capital.
Such a curreuoy, it is believed, can be secured
through banking associations organized under ns.
llcnal legislation.
L. is proposed that these associations be entire,
voluntary. Any persons, desirSus Of employing
real capital IN sunicieDt amounts, cen, If the Dan
DO adopted, unite together under proper articles.
and, having contributed the requisite capital, csn
invest such part OF IL, Lot less than fixed min.
mum, in United S a;es bonds and having do.
posited these bonds with the proper officer Of
The United States receive United States no,es
IN such denominations as may be desired,
aud eDploy them money ia discounts AM ex.
changes. TIE stockholders Of any existing banks
can, In ike manner, organize unker tns act, and
tran,ler, by such degrees as may be found conye-
uient the capital oil tue old TO tie use OF tic new
assOclatlous. Tie notes thus put mio circulation
will be PAYABLE, until resumption, IN United Stales
notes AID. after resumption, IA speole by the
ciation which is-ues them Oh demand; and If no; 70
paid viii be reCeeu1 lie NJ the Treasury 81 the United
States RON The nrccerds Of tie bonds pledged in
rity. In The practical working OF the plan, if sane
TONED by Con- c-s, redemption at che or more OF
Tire great commercial centers, VIII probably be PRO.
yi6ed for ,v all he associations which circulate the
Redemption, tie Treasurer OF the United States viii
probably. under Discretionary authority, pay the
l0.es and CT Ell The public debt held as security.
Il seems dialcll 10 conceive Of note circulation
which val combine bIs ler ,ocal and general ertdt
than thia Alter few years no other circulation
would be used nor could the Issues OF the national
circulation be easily increased beyond the Legitimate
denauds Of bu-iucss. Every dollar Of cifculfloc
would represent real capital, actually invested IN IA
tonal s0sks, aud the to,al amount Issued could 4.
ways be easy and quickly ssceriained from the
books OF tie Treasury. These circumstances, Il
they might no, wholly remove the temptation 20 ex.
cssfiye issues would certainly reduce IL 10 the lowe
ct point while tie form OF the notes the uniforms
Is of devices tie signatures OF national officers, aat
tho imprint OF e national zeal sntbenliealiug tne
declaration borne each that u is secured By oonds
y hich represent The aIsh aud capital OF the wnOe
country, could 10. fil TO make every note as good
in any pat Of the world ~ The best known aud best
esteemed national securities.
The Secretary has slieaoy mentioned the suppon
10 pubc credit which may be expected from the
proposed ASSOCIATIONS Tie importance oil this POM
may excuse some addIt oDal observations.
Tie Organization proposed, If sanctioned by Con-
grefs, would require within q very few years i,r
depo.it as security for circulation, bonds Of
the United State, 10 en amount not less tbsr
$50 100000. IL may well be expected, indeed;
SINCE the circulation, by uniformity in credit and
value ana capacity OF quick and cheap Transports
lion, viii be likely 10 be- used more extensively than
any hitherto Issued mat tho demand for bonds vii
largely overpass this limit. Should Congress sec
10 ~ restrict tie privilege If deposit TO the Donds
known hye-twebues, Authorized BY the act OF las.
session, the demand would promptly absorb all VI
that description lioGdy lssneG ana make large room
for more. a steady market for the bonds woale
thus he established and the neso'@tion OF item
grrutlv Facilitated.
But il Is rot 20 immediate results tina. the yslue Of
tlia support would DO ouy OF chiefly seen. lheit
are always ioders who desire TO cell securities OK
whatever kind Ii buyers are few or unceriVln, the
maraet value must decline. But the plan proposea
would create "a constant demand, equalng and oiten
exceeding tie supply. ILus steady uniformity IN
piice wOsId 10 mtiniained, aud generally NJ rs'e
somrw "a above those OF bonds OF equal cTedlI Vus
not available TO banking associations. IL not easy
10 appreciate tbs full benefits of such conciIiOls"
a Government Obliged 10 borrow.
Another Advantage 70 be derived from such ssso'
o!allous would be found In tue convenient; ageaces
which they would furnish iOg the deposit OF paohe
moneys. .,
Tn Secretary does not propose 10 interfere wi,n
The IaIel endon, treasury. A. may DO advdnsee0usy
retained, with TIE assistan. teasnrers slreacy
established IN tie most important cities, where 'oe
customs ~ Je collected now in coin or treasury
notes isoued directly ty the Government ea' h''
furnished 20 banking associations.
Bu, Whatever the advantages Of such arrange-
mcnts IN he commercial cites IN relation 70 oee
toms, 4 seems clear hat the secured naIioh"i ~
culatlon FURNISHED TO tie banking ASSOCIATIONS
should 10 received everywhere for all other daee
than customs aud that these associations WIZ oon'
sutu,o tho best aud saest repositories OF Ine reNc-
uues derived from such receipts. The conyehieAVe
and utility 10 the Government " TIER empioymes'
IA thus capacity and o.ien also, as agents ios pay!
nents md as ulstiiUutors u siamps heeu no oen
.t,,t,on IN, ,e..s,ity for soalo other dePostaTee
dian SURVEYORS OF pors, receivers, posniasters -hs
other ollcers. Of wloso responsibility ana ntne.''
n many eases. nothing satisfactory can &c hnoIn,
IS acSuow legged by tue provision for selection W
the Secretary contained IN the in'el4ai ns,eHS -.
act Gudit seems very clear tnA tn' rD sh o,asya.
lion mad ea.nloymont OF Associations organized !"
prcposed lhau b. any official selection.
Auotlsr and very important advantage OF ne pro,
roseJ plNu has already been adyerted to. IL WI