Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1862-12-17

ist, 1904 mas 10 propose addltonal ways
and means for the further sum
Making a grand aggregate Of means to
be raised to July lst. 1864. of--$se9 goo. 7O1 q
This is the gigantic work that confronts
the Secretary, and to this he bends all the
powers of his intellect and experience. He
first reviews the measures already adopt
ed, oryet under legislative consideration to
furnish means to the Treasury, viz:-the
several acts imposing duties on imports,
the excise Law, the acts authorizing the
issue of United States notes and the.fve-
twenty loan" the two acts authorizing
the issue Of certificates of debt, and the
purchase of coin, and the act authorizing
payment in stamps. We can only glance
at this most interesting and lucid review.
In the course of il Mr.. Chase remarks
that the necessities Of the war required a
system by which he could furnish to the
military departments SEQ. 100000 every
sixty days, and that he deemed the plan
of raising this sum by selling the loans of
the Government at whatever sacrifice
might be demanded, as Incompatible with
his ideas Of public duty. The loans
would also have to be exchanged for bank
funds, and securities negotiated in that
currency would have been but an ex-
change of Government interest-6earing bonds
for debts Of private corporations bearing
no interest. Besides this, 1t would have re-
suited in a great expansion of bank note
currency. 1t was for this reason he pre-
ferred the issue of United States notes
While considering what may be expect
ed from existing laws to July lst. 1891,
and how the balance of disbursements
for that year and the year 1864 are to be
provided for, the Secretary incidentally
touches upon the rise in gold, which he
traces t. speculation. He exhibits the to-
tai amount of circulation in November,
1861, and November, 1862; argues that
the increase in the volume of circulation
is legitimately demanded by the changed
condition of the country ; shows that the
United States notes are not redundant in
the circulation /; that if there is a redund-
ant circulation it is of the bank currency;
that there was no public necessity for this
expansion of the currency; hat there
pas q necessity for the issue of notes on
the part Of the Government; that from
all these considerations the path of wis
dom and duty is clear, and he therefore
adheres to his recommendation in favor of
the United States notes, and of the re-
duction of the bank note circulation by
a small tax thereon. To avoid
the temptations and dangers of extreme
imitation of the National currency under
the existing system, he recommends the
passage of a general law authorizing the
organization of banking associations. If
this plan should be adopted persons hav-
ing real capitol can invest suchpart of it,
less than a fixed minimum, in United
States bonds, and having deposited these
bonds with the proper officer, can receive
O. s. notes. to be employed in discounts
and exchange, IN this way every dollar
Of circulation would represent real capt.
al actually invested in National stock,
md the total amounts issued could always
pc easily ascertained from the books of
he Treasury. This plan is not unlike
he present organization of the State
Bank of Ohio and its branches.
In support of thb proposition Mr..
Chase shows how it will furnish the peo-
BE with a safe and uniform currency; how
t will create a demand and a market for
government loans; how it will hasten the
eturn TO specie payments, and how
t will support the credit and strengthen
he bonds nf the Union. He does not
ield TO the phaptasy taxation is a bless
NJ and debt a benefit, but thinks good
nay be extracted from evil, and that bur
ems may be lightened and even made
Productive of incidental benefit. {
Besides his plan of national banking, :
EXAMINATIONS, the Secretary declares hat /
pans in some form must be issued to t
leet the demands of the future, BE {
passes in rapid review the elements !
f our national credit. Surprising the c
to continue until 1864. u annual ex- /
enses after that year on a peace estab- I
shment, will be. for Government, for in
,rest on debt, for pension and all other
but Sl65, O00, 900 and against this Il
lr present revenue laws, from customs and !
xcise, provide $2cn,OOO.OO0, leaving an il
nnual excess TO extingnish the principle n
: SIS. o 600. In addition to this We =
I'VE the untold wealth to be derived ii
the development of our vast gold VI
caring region, which he estimates at Il
.o0.600,000 annually. The taxes and a
are, hoYeYer. sufficient, and on v
iess the national credit and the Gov r,
,nment loans are secure. W
These, in brief, are the statements, rec y
lamentations and suggestions of Secrets X
Chase. The report is written with m
,IT;t,, o-l ill ra,ov n ooroe,I ,aol- l.,