Brownlow's Knoxville Whig, and rebel ventilator. [volume] (Knoxville, Tenn.) 1863-1866, 1864-01-23
The United States Notes.

The country has reason to be proud of its
Secretary of the Treasury. On the ilth of
,. April. 1861. United States six per cent.
twenty Years stock was selling at eighty
B., three; the Government was in di,credit
and under the delusive idea that the war
would be ended in n short time. temporary
pallations were being resorted to in order
to prop up the financial condition of the
Government.
The whole banking interest of the coun-
Try WAS urging the adoption Of the ordinary
loan or stock system. rather than the treas
ury note plan of the Secretary But
against the prcjudices of the day the tinan-
ciai schemes of the Secretary We're in the
main finally adopted.
1t was urged against the Secretary that
ne coHtounded the circulating medium. by
whose agency capital changes hands with
capital itself. ps he seemed To advocate pa
per issues in order to enable him to obtain
loans Actual experience has proved that
the Secretarys idea, that paper money,
when abundant would be readily converted
into long stock, was not a talacv.
The Government, at the beginning of the
war, could not borrow at reasonable rites
To meet its expenses but by the issue of
tnited States notes it was enabled to meet
the current demands upon it. \ uniform
currency was secured, 10 be distributed by
the various channels of Government cxpen-
dIture to the country ut large and the legal
tender clause gave strength to its circula-
ton
Meanwhile the darkest days have passed,
and the credit Of the Government is once
more restored. In what striking contrast
does the taking Of the Five-Twcntv Loan.
to-day, stand with the timid offer made 70
the Government on the first Of January.
1860, Of 81 100000 at twelve per cent. on
condition that thc money should be applied
10 the payment Of the interest OIL the pub
lie debt
Nowhere in history are there to be found
similar results following such enormous is
sues Of paper money and such calls by Gov
ernment on the capital of country. In
the French Revolution four hundred mill
lions Of aSsjgHatS to be redeemed with tho
proceeds of the sale of confscated lands.
became utterly worthless in five years
Russia and Autsria furnish striking in
stances Of deprecated paper currency and
bankrupt credit. England and our own
country in the Revolution have been no OK
ccption to the rule Of depreciation and loss
Of credit
After the issue of the United States notes
and fractional currency the premium on
gold, thirty two and half per cent. in De
cembtr, 1862, has, after year of war,
risen comparatively little, while trade and
manufactures are i'll "a very satisfactory con
dition.
Though the system of deposits and that
Of certificates Of Indebtedness have been
employed and though loans have been
emitted and large revenue derived from
taxation in various forms, yet it is not too
much to say that the masterly manner in
which the United States paper currency has
been issued and employed first gave finan-
cia strength to the Government. and has
proved the salvation of the credit of the
country.
It's, however, deemed inexpedient by the
Secretary to increase the amount Of these
notes they having reached the limit pre-
scri5ed by law, viz: four hundred millions
Tho reasons therefor are conclusive The
want Of n circulating medium, caused by
the Withdrawal! Of specie as such, and that
created by increased money demands and
payments by the Government. has been
supplied by uniform currency, provided
to take the place, also, Of the different cor
DtlttlDU itOteS. Inc &tJltll circulating me-
dunn of the country. before the war. was
about three hundred millions one-third
specie. the balance bank notes. 1t is.
therefore. evident that it would be unwiso
to exceed the amount Of United States notes
already issued, except to replace those al
ready destroyed or lost.
There is now fully sufficient Of this cur
rcncv to perform well its functions to seek
to raise further money for the Government
would, indeed prove iilusory for dimin-
ished value could hardly fail to neutraIize
increased amount
The United States notes. however. do not
promise to pass away after an cphemeral
existence, ike the dSsjgnGt5 and D,al,dGts of
the French OF our own Continental money.
or the notes of the old United States
Bank
In their extensive use their convenience
and uniformity, and above all in the crea-
ton of a system OF National Banks, we
have an assurance that a uniform currency,
based on Government credit, IS to be one OF
the enduring legacics Of our present strug-
gle and monument to the ability OF Sec
retart PhHadciphia Inquirer.