New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-11-20
Mr.. PEyDGEToNS FNANCI1L TAGAET.

The World calls our attention to Mr. Pendle
toms so-called "Plan for paying the National
debt" in fifteen years. 1t is as follows:
Three hundred and thirty eight millions of these bonds
are the report OF the Secretary OF the Treasury dcpos
tied to-day security In the vaults OF the Treasury Three
hundred millions OF bank paper Is issued on the fath ot
these bonds Now, gentlemen maintain that this circu-
aton ought called in that these bonds ought 10 be
redeemed with legal tenders which will take the place OF
What would be the effect Of thisl The seventeen hund
red millions OF Understanding bonds would be
lions Of dollars would be saved 10 the Government from
the winch paid TO the bankers for the bonds
Now, then. suppose you take these twenty millions OF
interest which is saved and add u TO the OTyeeht mil
lions OF dollars which these gentlemen they pay
from the current revenue, and you have xyeght mil
hons OF dolaIs year Dy wear anu you eSnSfro @ sum
dollars year ard II this is Appropriated asa sinking
years without adding dollar TO your taxation,
dollar to your circulating medium
Bear In mind that am arguing proposition that these
bonds can be paid IN greenDaCk without Initiating the
currency.
The only portion of this plan which is Mr..
PendletOn's is that relating to the twenty
millions of dollars which he thinks can be saved
by abolishing tho National Banking system,
and making the Treasury Department issue all
the currency now issued by the National Banks.
This would convert the Treasury Department
at Washington into United States Bank, with
the country. but commissioned to furnish the
country with all its paper money. Now, we
maintain that there are practical reasons, grow
ing out of the nature of Banking and paper
money system, why the Treasury Department
cannot thus supply the currency of the coun-
try. The ordinary mode in which paper cur
rency is kept ahoat is that the notes and drafts
arising in course of trade and business, and
having from thirty days to four months
to run, are received by the banks,
and lheld till they mature, the banks
giving in exchange therefor their own notes,
payable on demand, and the latter pass into
circulation as currency. Apart from this sys-
tenn of dscounting private paper, currency
cannot be kept in circulation. This business
the Treasury Department could not transact,
either directly or indirectly. The attempt to
do so through the old United States Bank
broke down the party that committed the err
ror Banking, though necessary to our public
and business life must be kept distinct from
the Treasury Department and all Government
influences Let us suppose Mr.. PcndletOn's
plan carried out-the present National Banks
recall their currency, and sell the bonds now
deposited with the Government for about
S9OOOOO,OOO in greenbaeks. This transaction
has swept the National Banks ont of existence.
There is the same amount of currency held by
the people, but there are no banks, no places
of redemption, no agencies for keeping it in
circulation, no security has been given for
it by anybody, and nobody knows how
much of it there is in circulation except
at hearsay. The profit on circulation,
which is the only consideration which can
induce bank to give its circulating notes,
payable on demand in exchange for notes Of