, 1864-11-17
THE NATIONAL CUR
RENCY.
SPEECH OF HON. s. P. CHASE.
Grcenbacks and National Bank
Issues-An Explanation Of Our
Financial System,

Grcenbacks and National Bank
Issues-An Explanation of OQr
Financial System
Hon. s. T. Chase, cx-sccretarJ Of the Treas
ury, delivered stirring speech at onion
jubilee in Cincinnati, on Saturday last, from
which We extract the following relative to our
financial system. It will be read with IN
terest:
It (the Goyernment} is pledged also, and |
think this pledge not the least important, 10
national currency. lApplanse:l oegon Mreanrtt9 IS
this whole people. We have never had that
before. There have been two attempts to Sc
cure this benefit through banks Of the United
States, but each WIS organized on principles
which made it otious as d monopoly, and
both 1hiled.. Every such attempt must St
necessarily fail from inherent defects OF
principle. Now It is proposed to give the
country a uniform currency in another mode.
When Mr. Lincoln organized his Admin1stra-
tfon, tho duties Of the Treasury Depart
mcnt 'deyolyed upon me. There were some
fifteen Or sixteen hundred banks in the coun-
try. deriving their powers from the different
States in different modes, issuing paper which
secured at all. The interests vested IN
these Institutions under the sanction Of
State legislation could not be disregarded.
Rash and violent interference would be unjust
to them and disasterous to. the communities
in which they were established But it was
necessary, in order to establish national cur
rcncy, to provide for the gradual, and at some
not remote period, the total exclusion Of MI
other currency from circulation. It was ne
cessary, therefore, in order to avoid too grcata
shock, to authorize national bank system, so
that banks having circulation under State
laws might substitute a circulation issued un-
der national authority. Without a provision
for such substitution it would not hare been,
in my Judgment, practical to obtain FROM
Congress the necessary legislation to
secure permanent national currency,
It seemed to me, therefore, and in this the
President concurrcd with me, that 1t was best
for the people to establish national banking
system, under WHICH existing banks of circu-
detrimenS to tier interests, or any serious
inconvenience to tho communities In which
they exist and In which also capitalists In
them and other communities, needing tho fh-
cilit1es Of such institutions, could organize
new branches, as public convenience might
require. Every institution, whether organized
with the Treasurer Of the United States M
tional bonds to an amount ten per cent.
greater than the circulation desired and
upon this deposit note8 prepared under tho
authority Of the Government, of uniform size
and appearance, should be issued to the insti-
issucd and secured. were to be receivcble
everywhere for faTes. and hy avery natinnal
bank and in case Of failure to redeem on de-
mand by the issuing bank, were to be redeem
cd by the Government ITSELF, and the bonds
taken as security, cancelled as paid, or other
Tbis f wa thoupht" TonId make y cnrren.
~ n s3,hstant;al1r enma1 ya1nc IN ararr 1,s
~ lie cnnn4rv.'and fh;a is 1he srs'er3 F eu,s
stantia1}y now In oneratfon I1nder Il viii
tic notes Of National hanks taken in Ginc;n.
natl YOU can 1 nav yonr hiljs in Nav Orleans nr
a nonu1ar svstem. n ero,Ts mn nofnrnl1v. r.
Is nat Earccd nnon ia neon}e. Nnha'iv IA
oh1;oed 70 adon{ + r mataa Il mn ~, souah'a
fnr Efafe hani- n comn1o;n r. nrarantnd
frtm iss,,;ne icca1 rurrcnrv 1rh;la fhnv hara
Tie tT;v;ie6n NJ conversion into Natinnoi
tinn7 cnTcncT ~ % Whic}1 conIa nj h. so csr- rsr
tn;nir 49, me aa s1h.a thoa io Ion W 80 Gs
E uloa az osaes ptau;; n4' W w..
tu.e .,;a ;m.s sysac aa eoaa " stsuft' aau sne
sanc.gh " 49, Long.ess eoLalnsa 10! ~; ,neeesslty
tp .ne .sSue n ~ 4hs ,,o.es aas ' "
states notes. At FIRST all receipts were In
com anu treasury notes, issued under Mr- Bu-
chanan. For the first month they were prin-
cipally IN these notes. when war was made,
however, they were received only In coin.
During eight months, borrowed, for tho pur-
pose Of carrying on the War to suppress the
rebellion about one hundred and
seventy millions OF. dollars. This
sum received in coin. The banks, however,
found themselves embarrassed, and suspended
specie payments. Then 1t became Impossible
TO get coin unless ne were willing to sell our
@pnY q al ri r$otG nh1Ja Fssr3Y-
for them. I thought this unuisc, and turned
my attention to the constipation of other
means Of OBJ tanning money. refused to take
the bank notes, and made greenbacks. lap
plause.l In doing this, think did what
any assemblage OF the people, not controlled
BY any special oI local interests, would have
told me to do, If they could hare debated the
subject among themselves and decided it..
For v hat was really dones Why, simply
this. Instead OF borrowing paper Of the
banks which cost them the price Of the paper,
ink, engraving and printing, took the pco.
ple's credit and turned that into monsy. Al
that was necessary - oroeE 70 mike nj & ms
in excessive quantities. Hnt' II had to ne 1s-
sued in sufficient quantities Tor payment BY
the Government, 70 me army and navy ana
othe. public creditors, and ior payment
to the Governme11 on account OF taxes
and 9, other .s.1 dues: We had to issne enough
SrrNo eAFnFt
a6opt o a. 90U0oo,o9 ~ would @ @srtilce, and about
Ra1ls sto"S "s 1us; tnem ~ nm1.s S.a.e
orsarsraa ~ isennr " 1hair aca1 mntas ond T.
1n ,,t - thae 1soai a-o,3a.n ~ + y.
t9a n;scua+;nns n"i;ono1 and e4,ta aau .aro ~
"ro n"u the. erWa;sn4 IT, IT, uIu as aa "sr s,r
ufs UNI uan al te patPose ~ sn1
an; osrei so,nst;mcs III, au not tis es1ne % #:
~ IT, h Iccd ifthe TX RnEs e So
th..;. " e,lo,'a4ion1 n onssra- nartn;nIr
~ corerH,a,,t co,, 49, ,,rascr1s tar.ns ~
Nat1onoi I Panls md hv rcdnc;n1 ;ts o1en ~ ~ -.
% snrs nronortIonnhiv' nrevent eEcess' srhjs
Was tke n]on cnrrcocv for The cnneroan,v =
Of hi Inited States notes, and then en- ncrmsns1;.
currency Of National Rank notes and ITn;fnj
Stntcs notes i. never e1ccssive @ % n1Tnxs @ % snf;'.
c,ent' In nv irdomcnt # was a tnnd n1an
and If monayeg % 6roncrly vii resnit in rreot r
rood. To-day eFerYbody WHO holds a p5een.
6ocE. or q National bank note. @ can can nv ~ his Els
tares or any ducs to- the Goyernment, Or to
any National Bank, with It, by law. Practi-
cailv. he can naT nny debt with either. To
can can Invest In National Bonds. On which inter.
est at five mr. cant. in nofd in eold. This is a