The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-12-06

England or Germany, to an amount sufli cient
TO absorb the six per cent. bonds hel in Europe
and TO meet the demand there for actual and
permanent investment; and
Fifth. In the rehabilitation of the Southern
States.n
He varies each of these suggestions at
length. In regard to the first, New York
city is designated as the proper place where
all bonds should be redeemed which may be
issued by the national banks. She is to be
made absolutely the centre of all the vast
system, the controller of the currency, the
goddess at whose shrine all of our Philadel-
phia banks must bow. We are to be made
provincial banks, and all be ruled by New
York associations. The Secretary we'll SAYS
that 1t requires q sacrifice of local pride to
assent to such plan. If the little banks of
the little country towns feel aggrieved at
such a proposition, how much more will those
OF the great centres of the Atlantic coast
whose credit is a. good as any in the city of
New York; But why is this change neces-
saryP We are told because the notes of
banks situated at distance are less valuable
than those in the neighborhood Is this
practically true in the case OF national banks ?
We think not. All are guaranteed by the
same deposits at Washington, and all that is
necessary is that we know the note to be
genuine, in order that it be received at par.
We see daily hundreds of notes of national
banks, IN all parts OF the country, received and
passed out the same as those situated on
CT esnut street. The fact that these notes are
receivable for all public dues Except imports)
is of itself sufficient guarantee that they
will all remain at par in all parts OF the land.
In the second place, the currency is to be
curtailed. That has been going on for some
time past, but not with sufficient rapidity, in
the Secretary's opinion. He proposes to con-
tract all the notes of the United States at the
rate of six millions and ten millions month,
until all be withdrawn and the national banks
alone furnish the circulating medium. AS
the plan proposed is intended to be perma-
nent one, at least for years, let us look at the
effect. The first proposition makes all
national bank notes redeemable in New York
city. Redeemable with what? Gold?
Clearly not, for the change is at once recon-
mended, and yet specie basis is not antici-
pated for months. Clearly, then, they must
be redeemed with United States notes But
If these notes be withdrawn from circulation,
what can the national banks redeem their
notes with in New York? The two PROPOSE
tions here clash, unless there be a supple
mentary idea of covering the issues with
gold deposits when all the legal-tender
notes are withdrawn. We think that ten
!; millions month would be too rapid a
contracton-would cause a stringency, and
eventuate in a panic before the haven of
specie payment could be reached.
The third proposition looks suspicious. 1t
mainly commends Mr.. Wells, and tavors re-
! vision OF the tariff according to his sugges-
tions. 1t states that free trade is consistent
with tie spirit Of our institutions, and views
tariff rather as means OF raising revenue than
as q means of protecting American industry.
We will not advance an opinion on this
point, because, while the tariff does indeed
need revision, it may be either rightly or
wrongly revised; and as the Secretary does
not specify his idea very clearly, we cannot
venture on a judgment. But it needs no
spirit of prophecy to foretell an attempt to
sacrifice Pennsylvania when the report of
the ommittee is read.
Why could not the fourth proposition be
made to apply to all United States bonds,
and not only to those held abroad? Why
not have universal funded debt" and not
have only that part Of il which is held
abroad payable in that shape and bearing five
per cent. interest? We contend that gene
raj system OF American Consols is what is
needed, what will make all our debts OF equal
value, and what will be received at par
both at home and in foreign lands. We will
revert to this subject again at greater length.
In regard to the rehabilitation of the South
ern Stat9s," we all conclude that such is de-
sirable, but when it shall be secured rests
entirely with the people of the late Rebel
section. That it has not already been Sc
cured, is due as much to the indiscreet
speeches of Mr.. 'McCulloch as Of any other
Northern man. Until they turn from the
evil of their ways, we do not believe in cast
ing pearls before swine.
We have sought to glance for moment at
the proposition of the Secretary. OF course,
the subject-matter of the Report cannot be
treated of in one article. 1t will occupy
much of the attention of Congress, and we
will revert to it frequently hereafter. Judg-
ing from our first i'm preston, we do not hail
with any peculiar qualification the theories
OF the holder of the portfolio of the Treasury.