Daily national Republican. [volume] (Washington, D.C.) 1862-1866, 1864-06-18
Edition
FOUR O'CLOCK. P. M.
THOMAS JEFFERSON AND SALMON p
CHASE ON THE FINANCES IN TIMES
OF WAR.

| OF WAR.
1t will be seen by the following extract of 4
letter written to Mr.. John W. Eppes by Thos
Jefferson, under date Of June "a, 1911, that hi,
theory of conducting the finances, in time o
war, was very similar to that now entertained
and practiced upon by the present Secretary oI
the Treasury, with the difference that Mr.
Chase's ideas are rather more economical. Mr.
Jefferson writes:
"a nation making It's purchases and pay
| ments with bills fitted for circulation thrusts
| an equal sum of coin out of circulation. This
Is equivalent to borrowing the sum, and yet
| the vender, receiving payments In medium as
efIectual as coin for his purchases or a payments
has no claim TO interest. And SO the nation
| may continue to issue It's bills as far as Its
wants may require, and the limits of the cir.
culation will admit.
"Those limits are understood to extend with
us, at present, to two hundred millions Of dol.
lars-d greater sum than Uould be Necessary .fOr
any wdr. But this, the only resource which
the Government could command with certain.
| ty, the States have unfortunately fooled away,
nay, corruptly alienated to swindlers and
shavers, under the cover of private banks.
Say, too, as an additional evil, that the
disposable funds of individuals, to this great
| amount have thus been withdrawn from i'm
I
ployed in the useless, usurious, and demoralZ
ing practlces of bank directors and their &C.
completes"
1t will be remembered that when Mr.. JefTer-
son wrote, in 1911, the population of the States
was only seven and half millions. He thought
then that two hundred million dollars would
be ga greater sum than would be necessary for
any war" OF course he meant "auy war ~
that could arise with any power at that time.
Now, by comparison 1t will be observed that
Mr.. Chase's estimates for carrying on the wal
are much less than were Mr.. JefTerson's. For
instance: in 1864 the population of the loyal
States is twenty-five and half millions, three
times as much population, with at least Eve
times as much business, as existed In 1911
yet Mr.. Chase makes the comparatively low
estimate of Eve hundred million of dollars at
the sum necessary for carrying on the war
When all the facts are taken into consldera,
tiOn, 1t must be admitted that this is an ex
ceedlngly economical demand. The similarity
of views upon the question of State banks, Of
Mr.. Jefferson and Mr.. Chase, is quite striking.
Carrying out the theory of Mr.. Jefferson,
Mr.. Chase is in favor of putting tax on State
banks of one fifth of one per cent. a month
upon all circulation under 80 per cent. of their
capital.
If Congress would carry out this view of the
Secretary, there is no doubt that the country
would be greatly relieved financially.
Congress might well afford to receive from
any State bank, wishing to retire Its clrcula.
ton an equal amount in United States notes
and assume its payments.
Such an arrangement, 1t is believed, would
enable every bank to redeem Its circulation at
once, and at the least possible expense. What
stands in the way of Congress doing this !
We know of nothing except the money power
concentrated in the combination of the State
banks as against the National Banking System.