Daily national Republican., 1862-11-11
FINANCIAL.

FINANCIAL. ...
The idea of suppressing, by the imposition of
practically prohibitory stamp duties, all paper
money, except that issued by the national au-
thority, IL being discussed by the press as the
period for the meeting Of Congress approaches.
Il will be opposed, Of course, by the large
and active interest connected with banks of Is
sue. The city banks, as a general rule, have
hut few notes In circulation, and rely for their
profits mainly upon deposits. But the country
banks, which are numerous and influential, al
though with small capitals, and oftentimcs with
no real capital, may be expected to resist the
suggested change with great vehemence.
II will not he an agreeable one to the govern
menis of some States, which derive large reve-
nues from taxing the privilege of circulation
now enjoyed by the banks. This method Of
taxation has afrorded nearly all thep public income
of Massachusetts for many years past, and Is an
important item In the budgets of other States.
II will not he given up without reluctance.
The elements of resistance to the proposed
new policy, would not be likely to be overcome
by anything short Of the necessity now pressing
upon the National Government, to reach after
unhnClil TclltI III uHttllOn IL may w
found
The relief to be obtained by taking to itself
the sole power Of Issuing paper money, Is large
and promptly available. If bank notes were
taxed ont of existence, five hundred millions OF
Treasury notes might be circulated without in
jury. and that large amount of the national
debt might be carried, not merely without in
terest, but with the positive gain of the annual
loss of notes by wear and tear, shipwrecks,
confagrations, and the various accidents by
which circulating notes disappear. If this gain
be computed at SO little as one-tenth of one per
cent. per annum, IL would amount to half a
million of dollars, upon five hundred millions.
Three hundred millions are now authorized
by law. Two hundred millions more would
only supply the place of the bank notes which
are now in circulation. And in addition TO this,
as the war is now being pressed in that I" more
rigorous " style for which the Democracy have
clamored so long, we shall soon increase the
field for the circulation of Treasury notes quite
one-half, by the conquest of the rebel States.
To whatever extent it may be proved by ex-
perience to be expedient to circulate such notes,
they constitute q form of national debt calcu-
lated to increase the strength Of the national
Government, II we must have such a debt In
any form.
It has been a received opinion that the debt
of Great Britain, although injurious by the ne
cessity of onerous taxation which 1t involves,
was, in another aspect, a support to the British
Government, by interesting in Its behalf all the
holders of its stocks. The same view is care
lessly applied to this country, without con
sidering the difference of the circumstances
We have in England single nation occupying
a small space; in America, thirty-four distinc
States, in many respects sovereign, covering al
immense area, and widely different in thei
financial positions.
1t was pointed out by Mr.. Seymour, the lutcl,
elected Governor of New York, in one of hii
insdious speeches intended 10 damage the pub
ic credit, that while the national loans woult
held In n small area on the northeastern
aboard, the political power, which coulC
npose taxes, or refuse to impose them, a
pleasure, would rest with the interior. Mr.
seymour's r'shalfexpressedinf inference was, that thi
interior would have temptation to repudate
which would be dangerous. There is trutl
enough in this to entitle il to be considered.
The national debt, If in the form of loans
will not be held at the South, which is "poor Il
aproverb," as old Roger Sherman said of Viz
gnia, nor at the West, not because the West II
poor, but because the profits of capital in III,
development Of that new region are ordinaril!
so high, that investments in Government stock
are not likely to he made upon any large scale
It is, in fine, In the old and rich States of tn
Northeast, that these stocks viii be held.
II is thus true, that while large nationa
stock debt may strengthen the British Govern
ment, it would, on the contrary, present in thi
country a constant temptation and inducemen
TO schemes Of breaking the Union up.
II is not 30 with debt existing in the form
of Treasury circulating notes, diffused every
where from the nature Of them, and interesting
everybody, to the amount of such notes, to mp
hold the power from which they derive thel
value. Every man with Treasury note in hi
pocket, has an inducement to be patriot, an
It is much better to have that sort of induce
ment on the right side, than on the wrong sidl