The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1863-01-30

III speCie, auu tncy neeu Keep only one DOL
lar of Treasury notes for three of bank cir
culation. This is the policy forced upon
the banks by Congress. But the more re-
dundant and deprecated this currency be-
comes, the easier it will be for the banks
to provide the basis of redemption. and ex-
pand their circulation in the ratio, like tha,
of specie, of three dollars Of bank currency
for each dollar of Treasury notes held by
them. Thus it is that the enlarged issue
of Treasury notes necessarily Increases the
bank circulation. IN the ratio Of three 10 one
and thus also, that The circulation of bank
aud Treasury notes becomes redundant and
deprecated.
Under such policy. every bauk then,
however loyal its stockholders officers.
becomes a citadel. whose artillery bears
with more fearful effect upon the Govern
ment than all the armies Of the rebellion
This will soon become obvious, and the
odium will rest upon the banks. their Off
GERS and stockholders. But the real respon-
sibility will be Congress, who, by such q
system. will have arrayed the banks n nee
essary and inevitable hostility 10 The Gov.
ernment, Such we all know, is not the in
tenton of Congress; but this result will
necessarily flow from their measures, upon
them, 10 the end. will fall the terrible res
possibility OF the disaster. 1t is this appal-
ling. condition Of our liusnces.thst gives the
rebellion It's only hope of success. and in
vites iorei ,n Intervention. But if Congress
will adopt the policy OF the Secretary, they
will render certain The triumph OF the Union,
and the rebels. from despair and exhaustion,
mus. soon abandon the contest.
We have seen how dreadful is the disas-
ter which the banks would bring on the
hy thn
and how terrible the odium to which they
would be subjected. But now let us look
at the result. il the plan of the Secretary is
adopted. The new banks would become
fiscal agents of the Government. Their cir
culation would be uniform, furnished by the
Government and based on United States
stocks. the principal and interest of which
would be payable 10 Gold The interest Of
labor and capital, OF the banks, the Govern
ment, and the people, would for the first
time become inseparably united and consol-
idated. This is grand result. and fraught
with momentous consequences to the coun.
try. Every citizen. whether stockholder
OF the banks or not, would have a direct
and incaculable interest in their success and
prosperity. They. the people, would have
this interest, not merely as holding the notes
Of the banks, which would become our cur.
rency, but becanse the banks would hold the
! stock of the Government, would have loan
ed it in this way the money to suppress the
rebellion, and thus have saved US from a re-
dundant and deprecated currency, from in
evitable bankruptcy and reputation. and
have prevented the overthrow of the U nioD. |
Each bank would then become citade! |
over which should float the flag of the I'm.
ion. for each bank would then become !
powerful auxiliary for the support Of the /
Government and the overthrow Of the rebel |
lion.
The bill divorcing the banks and the Gov.
ernment was drawn by me, as Secretary of /
the Treasury, in lS46, TO enlarge the circu !
latiOn of specie and restrain excessive iss Hes |
of bank paper. | 90 for the reunion now,
proposed by the Secretary, to enable the
Government to effect loans upon their stock /
to prevent a redundant and deprecated pa
per currency, with a correspondent increase
Of expenditures. and to provide the means, /
when the war is over. to resume specie pay
ment at the earliest practicable period. I
was for restraining excessive paper issues
then, and so am l now as far as possible
| carried into full effect then the divorce Of
the Government and the banks, against a
terrible opposition from them and the great
Whig party | made the divorce complete
.
the union complete, so far as proposed by
the Secretary, for the interests of the banks
and the Government would be united; and |
just as you strengthened the banks aud in
creased their capital and profits. would you
fund more and more Treasury notes. and /
save from the ruin Of redundant and depre.
ciated currency.
The Secretary proposes 10 make these
bank repositories of Treasury notes. receiv-
ed by the Government for all dues except |
customs. This is well; for to use the Sub
Treasury to receive and circulate Treasury
notes is against the object for which i, was
created.
II this system was adopted in its entirety /
the process of absorbing Treasury notes |
would commsnce at once, and also a corre-
spondent rise in their market value. The
system of loans and funding saved England I
from bankruptcy during her long wars with
France. and we must resort to similar expe
dients. But as loans, in the usual way, ex-
ceps at ruinous discounts, for any large I
amounts, are impracticable, We are left to
the alternative of the Secretary's system, or /
bankruptcy. reputation and disunion.
1 have another suggestion to make as re-
CARDS these notes furnished by the Govern
ment to the banks. secured By the United |
States stocks. These notes are guaranteed /
no. only by the stock of the Government I
but. in addition. by the whole capital and !
property. real and personal. of the banks, t
and prior lien lies the whole to the Gov
crnment, to secure the payment of these
notes. / hese notes are receivable by the /
Government for all dues except customs
These notes are a national currency, furnish
ed By the nation and secured By its stock.
These notes. then, as in England, should
be legal tender in payment of all debts,
except by the banks. As the banks can re
deem these issues in legai-tender Treasury
notes, these issues Of the new banks ought
to be legal tender, also. .e1ceptb by the banks.
There is another reason why this curren-
cy should be made legal tender. Oartwoi
last suspensions of specie payments BIZ the