Cincinnati daily press. [volume] (Cincinnati [Ohio]) 1860-1862, 1862-01-03
The Proposed aarlOnaI Currency.


The Proposed aatiOnRI Currency.
The act OF Congress 70 authorizs national
currency, and which, it is understood, has
caused the suspension of specie payments by
the Eastern Banks, provides, first for g
United States Bank Department in the
Treasury Building, with Bank Controller
to be appointed by the President aud Senate,
with salary of $5,OOO to have general
charge and supervision over all banking
operations under the act. 1t provides for
Issuing circulating notes in the simihtude of
bank-notes, to be countersigned and regis
tered in the Bank Department, to be stamped
on their face, Secured by pledge of United
States Stocks, and receivable for all dues to
and from the United States except duties on
imports, and made legal tender for these pur-
poses" All existing banks in all States and
Territories of the United States may elect
if not to avail themselves of the benefits of
this national currency on complying with
the provisions of the act. New banks may
be FORMED by any number Of personsunder
its provisions, with capital of $lO0 900 or
more, to circulate this currency and carry
on general banking business in any part
of the United States All banks issuing
national currency are required to keep con-
stsntly on hand twenty-five per ceut. of
their outstanding circulating notes in specie
to secure the prompt redemption of the
same Stockholders are made individually
liable for the debts of the bank to the
amount Of their stock. Banks organized
under this act are to have SEAL may sue
and be sued in all courts, and may make all
bylaws necessary to carry on the business.
Banks under the act are to make quarterly
reports 10 the Bank Controller, who is
annually to report to Congress If banks
fail TO redeem their bills and become insol,
vent, the securities in the bands of the Bank
Controller may be sold at public auction
and the bill holders first paid. Insolvent
bapksare TO baVe receiver appointed, and be
wound up by order of the court. Frauds aud
coanterieitiDg are carefully guarded against.
Thisbill will, the committee believe, create a
large demand for United States stocks to be
issued for banbiog purposes. The bills issued
on bypotbecation CT these stocks will have
extent for their redemption. These bills are
to be receivable for taxes and other public
dues TO the Government, and for all salaries,
and for all other debts and demands due from
the United States for services rendered, and
for supplies and materials furnished. The
banks issuing this national currency are
made liable for its redemption, and the stock
holders are made liable for it, The bill
holders have as security: 6rSt, the United
States stocks deposited with the Bank Con-
trollerj second, The liability of the bank issu-
ing bills tbiro, tbe personal liabilities of the
stockholders of the bank to an amount equal
to their stock; and it is thus thought to con-
stitute very safe and secure currency for
circulation among the people, to pay the
army, and all other extraordinary expenses
of the war,
In view of the suspension Of the banks,
the following important section has been
added to the original bill reported by the
Committee Of Ways and Means, and il is
supposed will become part of the law:
THAT for temporary purposes, and until the
circulating notes authorized by this act shall
a
tions and associations, to the aggregate
amount OF 100000, 0C0. the Secretary OF the
Treasury be and is hereby authorized TO
ieeue $50,000 900 of treasury notes on the
faith of the United States, payable on de.
mand, without specifying any place of pay
mept, and n such denominations as he may
deem eTpeGient, not less than $5 each, which
shall be receivable for all debts and de-.
mands due 10 the United States, and for all
salaries, dues, debts and demands owing bV
the United States 10 individuals, CORPORA
tiODB and associations within the United
States, and such treasury-note sh all also be
legal tender in payment of all debts. pub.
tic and private, within the United States.
and shall be exchanged at any time at their
par value, the same ss coin, at the Treasury
of the United States, and the offices of AS
sistant TIeasuTeTs in New York, Boston,
Philadelphia, ST. Louis and Cincinnati, for
any Of the coupon or registered bonds which
the Secretary of the Treasury is now, or
may hereafter be, authorized to issue, and
such treasury. notes may be reissued, from
time 10 time, as the exigeneies of the public
service may require. Such treasury. notes
shall be signed by the Treasurer of the
United states, or by some officer Of the
Treasury Department designated bY the
Secretary Of the Treasury. and shsll be
eountersiRned by the Register of the Treas.
0ry, or some officer Of the Treasury Depart-
ment designated by the Secretary Of the
Treasury for the Register. And ali the pro
visions Of the set entitled IAN act TO author.
ne tne ISSUE OF treasury notes, approved the
zdd oAy OF December, 1857 so far IS the
same can be applied to the provisions Of this
section, and not incOnaistent tharewith. ara
hereby revived or FeunitedD p