Delaware State journal and statesman., 1862-12-12

resumption, in United States notes, and, aitet
resumption, in specie, by the association which
issues them on demand; and if not 50 paid will
be redeemable at the Treasury of the United
States from the proceeds of the bonds pledged in
security. In the practical working of the plan,
if sanctioned by Congress, redemption at one or
more OF the great commercial centers will prob
ably be provided for by all the associations which
circulate the notes, and, iu case any associations
ball fail in such redemption, the Treasurer Of
the United States will probably. under discre-
tonary authority, pay their notes, and cancel
the public debt held as security.
a. 1t seems difficult to conceive of note cir
culation which will combine higher local and
general credit than this After a few yearsano
other circulation would be used, nor could the
Issues Of the national circ dlaton be easily in
creased beyond the legitimate demands of busi-
ness. Every dollar OF circulation would repre-
sent real capital, actually invested in national
stocks, and the total amount issued could always
be easily and quickly asoertained from the books
Of the Treasury. These circumstances, il they
might not wholly remove the temptation to ex-
cessive issues, would certainly reduce it to tine
lowest point, while the form of notes, the uni
| formity of devices, the signatures of national
officers, and the imprint Of the national seal
authenticating the declaration borne on each
that 1t is secured by bonds which represent the
faith and capital of the whole country, could not
fli to make every note as good in any part of
the world as the best known and best esteemed
national securities.
The Secretary has already mentioned the
support to public credit which may be expected
from the proposed associations. The Importance
OF this point may excuse some additional
observations.
The organization proposed, if sanctioned by
Congress, would require within q very few years
for deposit as securitd for circulation, bonds of
the United States TO an amount not less than
Ia
since the circulation, by uniformity in credit and
value, and, capacity of quick and cheap trans
portaton, will be likely to be used more extern
syely than any hitherto issued, that the demani
for bonds will largely ogerpass this limit Should
Congress see lit TO restrict the privilege of dc.
post to the bonds known as fiye-twenties.
authorised by the act of last session, the demand
would promptly absorb all ef that description
already issRed and make large room for more.
A steady market for the bonds would thus be
established and the negotiation of them greatly
facilitated
" But 1t is not in immediate results that the
value of this support would be only or chiefly
seen. There are always holders who desire to
sell securities of whatever kind. II buyers are
few or uncertain, the market value must decline
But the plan proposed would create constant
demand, equaling aud often exceeding the sup
ply. Thus study uniformity in price would be
maintained, aud generally at rate somewhat
above those of bonds of equal credit but not
available to banking associations. 1t not easy
to appreciate the full benefits of such conditions
TO Government obliged to borrow.
" Another advantage to be derived from auch
associations would be found in the convenient
agencies which they would furnish for the depos-
it of public moneys
g The Secretary does not propose to interfere
with the independent treasury. 1t may be ad-
yantageously retained, with the assistant treasu-
1 already established in
cities, where the customs may be collected as
now, in coin or treasury notes issued directly
by the Government, but not furnished to BANGING
associations.
But whatever the advantages of such
arrangements in the commercial cities in relation
to customs, it seems clear that the secured
national circulation furnished to the banking
associations should be received everywhere for
all other dues than customs, and that these
associations will constitute the best and safest
repositories of the revenues derived from such
receipts. The convenience and utility to the
Government of their employment in this capaci-
~, anu ofteni also, as agents for payments and
as distributors of stamps, need no demonstration.
The necessity for some other repositories than
surveyors of ports, receivers, postmasters and
other officers, Of whose responsibility and fitness
in many cases, nothing satisfactory can be known,
is acknowledged by the provision for selection
by the Secretary contained in the Internal Reve-
nue. act and it seems very clear that the public
interest will be secured far more certainly by the
organization and employment of associations
organized as proposed than by any official
selection.
" Another and very important advantage of
the proposed plan has already been adveIted to.
1t WillreoOncile, far as practicable the inter
ests oil existing institutions with those of the
whole people.
"Al changes, however important, should be
introduced with caution, and proceeded in with
careful regard to every affected interest. Rash
is not less dangerous than stupefed
inaction The time has come when circulation
of the United States notes in some form, must
be employed. The people demand uniformity
in currency, and claim, at least part of tho
benefit of debt without interest made into money.
hitherto exclusively enjoyed by the banks. These
demands are just and must be respected. But
there need by no sudden change there need he
no hurtiul interference with existing interests.
As yet the United States note circulation hardly
hills the vacuum caused by the temporary with
drlwal OF com; It does not, perhaps, fully meet
the demand for increased circulation created bv
the increased number, variety, and activity Of
payments in money. There is opportunity.
therefore, for the wise and beneficial regulation
Of its substitution for other circulation. The
mode of substitution, also, may be iudiciouslv
adapted to actual circumstances. The plan sug-
gested consults both purposes. 1t coniemplates
and proposes 4 United States note circulation.
to banking associations, ia the advan
tnges OF which they may participate in full
proportion to the care and responsibility assumed
aud the services performed by them The
and zeal with which many of tbe
existing institutions come to the financial
support Of the Government in the dark days
which followed the outbreak of the rebellion. il
not forgotten. They ventured largely, and
boldly, and patriotically on the side of the Union
and the constitutional supremacy of the natisn
over States and citizens. Il does not at all
ieract from the merit Of the act that the losses.
which they feared but unhesitatingly risked,
were transmitted into unexpected gains. It isa
solid recommendation of the suggested plan that
1t oilers the opportunity to these and kindred
institutions to ieOrganize, continue their bus-
ness under the proposed act. and with little loss
and much advantage, participate in maintaining
the new and uniform national currency.
'' The proposed plan is recommended, finally,
by the firm anchorage il will supply to the Union
OF the States. Every banking association whose
bonds arc deposited in the Treasury of the
Union every individual who holds dollar of
the circulation secured by such deposit; every
merchant, every manufacturer, every farmer,
every mechanic, interested in transactions
dependent for success on the credit of that
will feel as an injury every attempt
to rend the national unity, with The permanence
and stability of which all their interests are SO
closely and vitality connected. Had the system
been possible and had 1t actually existed two
years ago, can it be doubted, that the national
interests and sentiments enlisted by it for the
Union would have strengthened the motives
for adhesion derived from other sources that the