, 1863-02-05

in existence may avail themselves Of the pro-
visions Of the bill, By recognizing under it
in tue SAME manner as original organizations. |
And, in order to make it The interest Of ex.
isting Institutions thus to reorganize, the bill
proposes to furnish them circulation without
cost. This, coupled with the fact that the
NATIONAL circulation will be q superior cur
rencY, equally good in every part Of the
Union, receivable everywhere for taxes aud |
al dues to the Government, other than duties |
Bank Of issue in the land to abandon their |
circulation altogether, or give their custom
crs the advantages prodered by the new sys- |
TEN. Various provisions arc made to carry |
out thu details Of the system proposed, and
to thoroughly protect the public III receiving
the circulating notes described; but the fore
going statement gives thegist Of the measure,
md presents its vital principle.
IT HEL1EyEs TIE TRE4sCNY, 1T CHECKING M
FLAT1ON.
The first inquiry Of the reader doubtless is,
ttIlow will the adoption of such 4 plan sus-
tain the public credit, and ayert the threaten
ed danger Of national and individual bank
Of paper currency atloat, Keeping it entirely
within control Of tho Government, correcting
the present grcat redundancy and inilation,
and checking the disastrous competition now
maintained between local banks on one hand
and the Treasury Oh the other, in the matter
O1 kHEH HIEopECklAe Liz
Important bearing Ut these propositions will
more distinctly appear as NC proceed in the
discussion. Secretary Chase, upon whom the
financial responsibility chiefly rests, who has
undo the whole subject matter Of careful
study. and whose opinions are elnphatically
indorsed by the President and all lis associ~
atcs i'll the Cabinet, tells us that the existing
bank circulation prevents or cn1barra5ses the
process of funding the public debt, By which
alone United States Bonds 'cau be absorbed
and new loans obtained from the people.
PAPER MONEY INDISPENSABLE, BUT IT'S ISSUE
SHOULD BE RESTRICTED.
The Government has at its command only
Two resources for meeting the expenses Of
existing war-sale Of its bonds, or thu issue
Of legal tender Treasury notes. It Is notori-
GUS that very few loans can now be effected
! on. terms that would not precipitate financial
| ruin. Unless this can be rcmcdied in some
way, and a market be provided for United
| States bonds, immense additional issues Of
| legal tenders are unavoidable; and if Con-
| gfrss fails to check bank circulation under
existing conditions, the Government paper
must continue to deprcclate ut fearful rate.
| Already, gold. III your market today, com
manded q premium over Government paper
| Of 1ifty-four pcr cent At this rate We begin
] to realize that Hon Robert j. Walker WAS
! t1uc prophet Of eyil when he predicted pre-
| mium Of sixty per cent. Now look squarely
in tlc face, without 1ismar, If you can, his
| E1u1DlI VI kAE IG5u1L HillCl Lul1 VI
| things presents with the irresistible logic Of
mathematics. At sixty rcr cent premium. ho
tells 1lE, if uur yearly expenses reach 500,
Coo eco III paper, this woula command only
II gola thu 9n16|ss1lng n the Co.
or delucting reasonably for interest saved on
the proceeds of the operation, the net loss
may be stated at $i0S, $4,000 per annulll,
from the use Of i redundant and, therefore,
deprecated currency. sim, paper money is
| fsFl11 md all
not In circulation at all. They are
boarded, just as they always have been
and always will be in time Of war, and cs.
pccia1ly Of civil war. It is not the issue oi
Government paper which has driven specie
out of circulation. but the abxNes Of specie
which has made the lrgal tender paper nc
ccssity. All history shows that war carries
tho precious metals out Of circulation, aud il,
consequence every nation has been compelled
to carry on its wars by use Of paper money
We arc driven to the came necessity now
There is no use in mourning the fact; 1t i:
, worse than idle to complain Of Government
, for accepting it, and acting accordingly. Al
we can do is to throw around the use Of tl4i
; paper currency every available guard ant
check, Keep the amount Issued small as pos
sib1e, and drive out every inferior circulation
, whirli tends TO depseciatc its value.
!. MODE OF ELEyAT1SG DEPRECATED CTR
RESCT.
It is III this way that tile banking schene o
3fr. Chase is designed to remedy the cy11 Of
! redundant currency. The local banks circu
lation, now when Government has no contro
ITn;+aI' Ctot5s '1nro ;e,,a,, eoSn 40 ooo :. -
nntes ,,J ~ thc sa,nc 'v t;me tba psnH ~
p,,,n;oa 1 tha;r o;ra11,,;n,, e, on1 nno A., A..
c this process, unless checked By legislation,
likely 10 SO On IN arithmctica} progression
f for the banks make money By the operation
those a., .rho a,t";,. - ,et ~ Goais
aaoss ~ 1.ns-l : ss11 ~ NY salateney - W w
pfcclalea " ss9E Q! tnncu otates pape
IS stla 1t'uae aspiueaaso ~ tne !ss4e :,
ns nllnois auoaeionai 1p pap11r; 1;t3 y ptMaae II
h;Iitn AZ nrescnt t1cre L not h;nr to 12eron
, nrivsic hanks from ;nrreasne tbeir nancr ~ !.
j. ptNatc u."an oa aiU ~ ~ eletI papet
sues np 70 o S2o0,oly,ov, ot5 n:teaa q tneir nre:
!. en- slo',0Vo,gW. ~ II nos eleaf 1nat II me
(. are restralnca N thls, and II every dollar
pfNa1e p31k clIcGiatloh IS conlpenea 70 :
il ~ VI Ssso st@tS ~ ~ oVi,us, sn0 .sausns =.
!. I,>,nr1I vii hc refura1 IN = mnISeS daTrcs
To deny the proposition would be to say th,
= merchant is better off with half a give
= amount Of business and with sharp, acti,
u competition than be would be if the trade ":
;; entirely in his own hands and upon his ON
u terms. If there was no money in this cou1
!, try but United States Bank bills, the proce
Of funding the national debt would be goir
Oh day by day, for whenever their accuinul
|
r. 1neut. they would BE- invested in bonds. at
- The Government would hare them arain to r
# issue in payment Of current cxpenscs. II
l. Secretary Of the Treasury gives it as his i
h Iberatc Judgment that with such a system.
n would carry en- the war without the Issue
d another dollar Of paper money. He is sati
fled, after the most deliberate inyestieatio
that nothing hut the influence Of local bar
:, circulation prevents absorption by the pcop
Il Of national loan, SO rapidly as to render a
c, serious sacrifice quite unnecessary At pre-
L. ent the United States legal tenders are in
Ee great measure driven ou: of circulation by Il
D. supcrabundance Of an inferior issue-loc
x hank circulation, in exact accordance with t.
4 there is M Inferior currency, the latter "
1, I'll nll tue channels Of circulation. and the $
ID perior will be boarded. The abscnce OF 81
IS cIe from circulation is at once both iIlustl
tion and proof Of the accuracy Of this prop
sition,
re- tFrom tbcx = T;mc. Eth ~
!. -, 49,, go 1,,,.,1. =, .-r7,.I, s,-.,,
+ AN' .'Ah NEE -. sis1eA'
lhe vel. guarded free banking system n
ID posed BY Mr. Chase, commcnds itself In II,
atprofntses the needed currency. Thecent1
T. luea q that measure Is tne cslaptlsnment
N one sound, uniform circulation, Of equal val
lis throughout the country, upon the foundatit
to of National credit, combined with ptiva
its capital. The proposed circula' ing notes v
to bear common impression, be authenticate
m by 4 common authority, be redcemab1e by t
70 private associations issuing theu,. and secur
IN by pledge Of United States stocks. RecclTal
hee everywhere for public dues except custom
Ior they will have an equal value In every pr
Of the Union. They are effectual
he guarded against deprreiatiou--at lie:
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