The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1863-01-27

Hon. h. J. Walkers Review Of
Secretary Chase's Finan-
i"e'a' - cial Plan. ar'wsdt

Il
Monthly contains very able contribution
from the pen Of Hon. r. j. Walker, late Sec
retary of the Treasury, entitled a " Review Of
Our Finances, and Of Secretary Chase's Re-
port"
1t is a searching and elaborate vindication
Of the social d bank plan of Mr.. Chase, and
is one Of the most powerful articles that has
yet proceeded from the pen OF Gov. Walker.
He supports this plan at necessity, not as a
choice, and argues as prime reason for CIV
ing il his sanction that the propose connec
tiou oi the banks with the government is not
political, and is attended with mono of those
formidable objections to the late Bank Of the
United States. He thinks that il the meas
ure recommended by Sec. Chase became a
law, il would furnish currency specie more
nearly than can be accomplished in any other
way, and because, when the war is over, it
provides the best means for return 10 the
shortest possible period to specie payments
He insists that this system is better than that
of new aud more numerous issue of treasury
notes, because il such issue were now author
lied, these notes would further depreciate, and
to the extent Of that depreciation augment our
expenditures, and perhaps indefinitely post
pone the resumption of specie paymsnts.
He argues that the new bank plan Of the
Secretary, by which uniform currency wo'd
be secured, would be incalcuabIy beneficial
to the brave men m the army and navy by
preventing the d, pr citation Of the money in
which they are 10 be paid and hence by res
cuirg .hcm AID their families from loss; and
Le distinctly snys tat any member Of Con-
gress voting for the policy Of au Increased pa
per currency outside % the rrco lamentations
Of Mr.. Chase, wo:ill vote 10 reduce the pay
and pensions for our troops, 10 aunihate the
allotment, made by them for the support of
thr ir famiir; to reduce the value OF the wa.
gcs Of labor; an,l. in fact. to cmtarrass the
prosecution OF the war, aud to prepare til way
,or repulia,i N and isunion. Ii Congress
shall SANCTION The Sccre'ary's plan, then. says
Governor Walker, the new banks " i'll bccone
fiscal ageits OF tho Goyernn, ct; their circn
laton would bc uniform, furnished by the
Go,einn cnt, aid as'd on United States
stocks, the principal aud interest Of which
would be pay able in gold. The interest Of
and capital Of ,he banks, the Go, o,ernmcnt and
the pcoplp, would for the first time become
iuseparaby united and consolidated. Eve
" citizen, whether a siockholler of the banks
or not, would have dir ct and incaculsble
interest in their sue ess and prosperity.
Gov. Walker, in ls48, was the champion
Of tho divorce Of The Government from the
hanks. Hc now proposes TO restore the union
AS recommended 10y Secretary Chase, on the
ground that just as you strengthen the banks
anl increase their capital and pre- fits, you will
fur d more and more Treasury notes, and save
tie country from depreci 'ted aud redundant
currency. lie believes that if the Secretary +
plan is adopted, Treasury notes would begin
TO bo absorbed at ouce and rise in their tnar-
ket value. The notes Of The banks TO be re
organized on the Secrelar,'s theory are guar
aniced no! only 10y the stock Of the Govern.
mrnt iisclf, hut hy the whole property and
stock Of the bauks, With prior lien on the
caIi,'l and property to s"caro their ulim
redemption aud present value. They would
be ~ cc,ved by the Govcrnmcut for all dues,
exccp customs, aud wpuI of n,ces ity b co ne
a sound, healthy and 'qnal circulating me-
dium
The Governor would provide a iweuty year
oau az the basis of The new bank note curr'n
/
uuay from the interest of these onis, ps an
cquival, ut for the expense Of he Government
in furnishing the circulation, ctc.;. all othel
bank circulation shoui be taxo Oh, aal a
half per cent. semi annually, secured 10y a 10
auate penaltips Governor Walker believes
that IT, with lilo assistance Of Congress, this
id, a is carried out, so MS TO give the people d
sound currency, secure to the Government
vast loans at an ANIMAL interest Of only fpu
per c ,ut. !, Secretary Chssc will have accom-
p.i.bcd financial miracle, and deserved 8
fame ne ,rest TO that Of tie first and eroates
of his predec," sors, the peerless Hamilton. =,
lie then proceeds to argue, with much force
that all State bank currency is uncoasLtution
al, and under this head accuinuls;es mas
Of authorities which canno, fail to interest ii
nanciers and statesmen, politicians, and tn
people at large. Tie subj ind passage is a
once striking and new: This rebellion prore
the awful danger Of State violations of tb
Federal Constitution The rebellion is th
child of State usurpation, State supremacy
State alegiauce. and State secession. AN
now the Government is parayzed financially
in its efforts to suppress the rebellion hy
question as to State banks depreciating tn
currency, and State banks based on STAT
stocks. Regarding tho city of New York a
the point from which the greatest OPPOSITE
will come to the Secretary's plan, bccaus
therc ibc greatest amount Of banking -capta
3 ia accuu ulated, lie makes an appeal to be
BANKERS aud pcopl" not TO persevere in cours
which must end in their ruin. And he cor
cludes bis splendid production with the fol
lowing invocation:
And what Of Pennsy lvania, that gloriou
old Commonwealth, so many Of whose nobl
sons, cut off mostly in tho morning OF lif
now fill graves prepared ty treasonf Is sh
to become Border State, and hor souther
boundary the line Of blood, marked by frowr
4 ing forts by brstliug bayouets, by the tram
), Of .ontendiny armies, engaged in the carniv'
:, Of slaughter and revelrv of desthiF Is Ne
: England to becomc re- re-colonized, and the Bri
ish flag again TO float over the chosen donna
!, of freedomf Wbai OF the small States, d
>, prived Of the secured equality and protecti,
. guarantees Of The constitution, to be surel
q crushed by more powerful comnunitiesi T.
ID What Of the Westi Is it TO be cut off fro
the seaboard, and rendered tributary to u
maratime powerf What Of the States Of Il
Pacifici Are they 10 lose the great imperi