East Saginaw courier. (East Saginaw, Mich.) 1859-18??, 1864-05-04
OUR FINANCIAL STATE.
From the Cincinnati Enquirer.

At the opening of the discussion
upon the bill to prevent speculations
in gold, Mr.. Sherman read letter
from the Secretary Of the Treasury,
in which that officer pointed out what
were, i'll his opinion, the causes of our
present financial difficulties, and sug-
gestod what would be, in his view,
the appropriate remedies. Abiding
to the rapid advances in the price of
gold or in other words, to the rapid
reduction in the price of currency
he remarks:
''The effect can only be attributed
to ono of two other causes, and is
probably due in part to each First,
the increase of notes of local banks;
and secured, to the efforts Of specula-
tons"
He continues:
II have already submitted, through
you to the consideration of the Com
mittee on Finances, bill intended as
a remedy for the first evil, and now
beg to submit for your consideration,
bill intended as remedy for the
second
lie adds:
'1f approved, it must not be thought
however, that regard either or both
of these measures as adequate rcnle-
dies for financial disorders. Nothing
short o. taxation to ono half Of tho
amount Of the current expenditures
and the reduction of expenditures to
the truest point compatible with eff
cheney will ensure financial success to
tho Government; and without mill
tary success, all measures will fail"
"As ono of the causes of difficulty
is the increase of tho circulation of
local banks one of the remedial mca-
sures of tho Secretary, is to provide
means to reduce such circulation
Local banks are of two species: These
created by act of Congress, and those
created by the State Legislature.
Practically the functions and opera
tons of both are identical the bust
ness of both alike being the discount
ing of business paper, and the issue
of notes for circulation. The banks
created by Congress, were created at
the solicitation of the Secretary of tho
Treasury. They constitute an impor-
tant part of the financial system; q
portion of which he has been not q
littlo boastful; and for whose agency
he has not hesitated to promise the
most beneficial effects. In his annual
report of November last, after stating
that one hundred and thirty-four as
sociations had been formed in sixteen
States and the District of Columbia,
with capital of sixteen millions of
dollars, all of which upon tho sugges-
ton of tho Secretary have adopted tho
name of "National Banks, and which,
TO supply the means ~ go into active
operation, the Department was taxing
its energies to tho utmost He re-
marks
"Thus the great wish Of introduce
ing permanent National Currency
has been entered upon in spirit and
with al energy which promise perfect
success. The Secretary thinks he
risks nothing in saying that within
the present year tho benefits of the
systcn viii have SO approved them
selves 70 the sense and patriotism of
tho people, that il vii. be beyond the
reach of tho successful assault
As we remarked above, the func-
ions and. operation Of the States and
National banks are identical. The
difference between them is this that
the first are chartered by tho Legis-
laturos, the others by Congress. Tho
bucincss VI both is to make as much