The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1863-01-23
JANUARY %, 1863.

treasury HOteS Is against Jne OBJECT IOr
which 1t was created.
1t this system were adopted to its en-
tirety the process of absorbing Treasury
notes would commence at once, and
also correspondent rise in their market
value. The system of loans and fund
ing saved England from bankruptcy dur
ing her long war with France, and we
must resort to similar expedients But
as loans, in the usual way, except at ru-
inous discounts, for any large amounts,
are lmpracticable, we are left to the al
tentative of the Secretarys system, or
bankruptcy, reputation and disunion.
have another suggestion to make as
regards these notes furnished by the Gov
ernment to the banks, secured by the
United States stocks. These i1otes are
guaranteed not only by the stock of the
Government, but, in addition, by the
whole capital and property, real and
personal, of the banks, and prior lien
lies on the whole to the Government, to
secure the payment of these notes.
These notes are receivable by the Gov
ernment for all dues except customs.
These notes are a national currency, fur
nished by the nation and secured by its
stock,
These notes, then, as in England,
should be a legal tender in payment of
all debts, except by the banks AS the
banks can redeem these issues in legal
tender Treasury notes, these issues of
the new banks ought to be a legal tender,
also, except by the banks.
There is another reason why this cur
rency should be made legal tender.
Our two last suspensions of specie pay
ments by the banks, viz: in 1857 and
1860, were based upon panics, yet they
had the same disastrous effect, for the
time, as if arising from short crops, over
trading, or currency greatly redun-
dant Such panic commissions are caused
mainly by the call for the redemption of
bank notes in specie, based on the fear
of suspension and depreciation. But if
such notes, as in European Government
banks, were legal tender, except by
the banks, such panics would be far less
frequent here and far less injurious.
The present system, as compared with
that of Europe, discriminates most un-
Justly against our country. As a general
rule, the American creditor cannot de-
mand gold from the foreign debtor, but
such foreign or domestic creditor could
always demand gold from the American
debtor ,,,-,,-,,,,o,,z, to.,
the most disastrous consequences, and
Independent of the present condition of
the country, our whole banking system
requires radical reform We have had
eight general bank suspensions under
our present bank system, many of them
continuing for years, and producing
ruin and desolation. Under our present
system, to talk, as general rule, of well
regulated banks, is to talk of well regu-
lated famine or pestilence, or of well
regulated earthquake or tornado. And
even the few banks that are claimed to
be well managed, have no appreciable
effect on the system 1t is the system
that knows no uniformity or security,
and never can have, as now organized.
That system SO perilous and explosive
should have even partially succeeded, is
proof only of the intelligence and in
tegrity, generally. of the bank officers
the system itself
The want of uniformity as to CONNER
cial regulations, led to the adoption of
our Federal Constitution; and yet we
have no uniformity as to money, which
represents commerce and effects its in
terchanges. In this respect, we are still
suffering all the evils of the old Confed-
eracy, and have thereby so weakened the
Government as to have invited this re-
bellion. Indeed, the State Banks in the
revolted States were the main auxilia-
ries of treason and secession, and sup
piled, to a vast extent, the sinews of
war. By Census Table 81, there were,
in 1860, 1,642 banks, incorporated by
thirty-fOur States, with no uniformity of
organization, issues or security. Thus
is it that the States have usurped the
power to regulate commerce and cur
rency, and to emit bills of credit, in def
ance of the Federal Constitution. The
Egyptians abandoned their folly after
seven plaques; but we have had eight
bank convulsions, and yet we adhere to
the wretched system.
| believe it was slavery caused the re-
bellion, but, in the absence of powerful
aid from the Southern Banks, the revolt
ed States could never have maintained
so prolonged. a. aeegtfi6it- fi6it-ov 1ave sustain
ed the Government Nations expend
millions yearly in erecting forts and
maintaining, even in peace, large armies
and navies to preserve the Government.
But, necessary as these may be, they
would not be more important than the
system now proposed as a secnrity for
the preservation of the Government
Nv last suggestion is, that as regards
all such United States loans, as during
the war shall become the basis of this
system, the time of payment shall be
made twenty years instead of five, so as,
with the notifications above proposed,
to insure the cooperation of the banks,
and the success of the system. As this
plan is deemed essential to save our
finances, to suppress the rebellion, and
mair tain the Union, why incur any haz-
ard on such a question as thlsY In all
our wars, including the present, we have
issued bonds running twenty years to
maturity, and the bonds, redeema able IN
1881, are scarcely at par. Why, then,
issue a stock of less value, which may
fail to accomplish the great object, when
better security would certainly sue
- he onIpiop PY-