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

The United States Notes. tW
Tho country hos reason to be proud Of IL
Secretary of the Treasury. On the l1th of
April 1851, United States six per cent.
twenty years stock was selling at eighty
three; the Government was in discrcdit,
and under the delusivo id0a that the war
would he ended in II short time, temporary
palllatons were being rcsorted to in order
to prop up the financial condition of tho
Government. ...a..
Tho whole banking interest Of the coun-
try was urging the adoption of the ordinary
ia"" -" s'o,h system. ritho~ than d,e trcas
ury noto plan of the Secretary But
against the prcudices Of the day the tinan-
cial schemes Of the Secretary were in the
main finally adopted, .....rr
II was urged against tho Secretary that
he conioundcd the circulating medium, BY
whose agency capital changes hands, with
capital itself Ms 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 n talacy. fFoH.
Tho Government at the beginning of tho
war could not borrow ut rcnse.'btc rates
To meet It's expenses but by the issue OF
United States notes ii was enabled to meet
the current demands upon it. A uniform
currency was secured, TO be distributed by
the various channels Of Government cxpen-'
diture to the country at large, and the legal
tender clause gave strength to its circula-
ton.
Meanwhile the darkest days have passed,
a. A. Al
more restored, In what striking contrast
does the taking Of the Fivc-Twcnty Loan,
today, stand with the timd offer made to
the Government on the first of january,
1860, of 81 800 coo at twelve per cent, on
condition that the money should be applied
TO the payment Of the interest on 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 Coy
crnment ON the capital of II country, In
the French Revolution four hundred mil
lions Of dSSjgadtS, to be redeemed with tho
proceeds Of the sale of coniscated lands,
became utterly worthless in five years.
Russia and AuLsra furnish striking in
stances Of deprecated paper currency and
bankrupt credit. England and our own
country in the Revolution have been no OK
cePuon to the rule Of depreciation and loss
Of credit. - ....... ..,,
After the issue Of the United States notes
and fractional cur, cncy the premium on
gold thirtytw and n half per cent in Do
oember 1867, has, after II year of war,
risen comparatively little, while trade and
manufactures are in very satisfactory con-
dition.
Though tho system of deposits and that
Of certificates Of indebtedness havo been
employed, and though loans have been
emitted, and large rovenuo derived from
taxation in various forms, yet it is not too
much to say that the mastery manner in
which the United States paper currency has
been issued and employed first gave fnan-
cal strength to the Government. and has
proved tho salvation of the credit of tho
country. .'..
ltis, however, deemed incxpedicnt BY tho
Secretary to increase the amount Of these
notes, they having reached the limit pro-
scribed by law, viz; four hundred millions
Tho reasons therefor are conclusive The
want OF circulating medium, caused by
the Withdrawal of specie as such. and that
'l''''b ~ h'I'uN'N IloHcN utildHuS anu
payments by the Government has been
supplied by uniform currency, provided
to take the place. Also of the different cor
poralion notes The actual circulating mo.
dunn of the country, before tho war. was
about three hundred millions, one third
specie, the balance bank notes 1t is,
therefore, evident that it would be unwise
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 10 perform well its tunctions to seek
TO raise further money for the Government
would, indeed, prove illusory, for dimin-
ishcd value could hardly fail to neuraize
amount
The United States notes. however, do not
promise to pass away after an cpbemeraI
existence, like the dSSigndts and mdndats of
the French or 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 n system of National Banks, wc
have an assurance that a uniform currency,
based On Government credit, is to bo one of
the enduring cgacics of our present strug-
Tle and a monument to the ability of Sec
retary CnAsE.-Rhitddclphio Inquirer