The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1868-09-01

circulation of each bank respectively. in
the custody of some public officer, at
the commercial center Of the country,
for the sole purpose of redeeming their
circulating notes at par. The interest
on the stocks left with the Treasurer to
insure the redemption Of their circulat-
ing notes might be retained for this pur-
pose until it reached the required
amount. Redemption Of their circulat
ing notes by banks at their own counters
is of no practical utility; they might,
therefore, safely be released from this
liability.
New banks should receive no circulat-
ing notes from the Controller of the
Currency except for four per cent.
stock of the United States; and all ex-
listing banks should within specified
time be required to substitute a like
stock for the stocks now ON deposit with
the Treasurer to secure the redemption
of their circulating notes. The avidity
issue of the United States three per
cent. certificates was taken by these
banks, and their clamor, which induced
Congress to authorize another issue,
which is being taken up as fast as it can
be prepared, would seem to indicate that
it would be no hardship for these banks
to hold four per cent stock; especially
as Government stocks in their hands, to
the amount of their capitals, are now
by law exempt from the payment of
duty on scapital stock" levied on them
in lieu of all other taxes.
Should Government agencies at the
same time be established in Amsterdam,
Frankfort, London and Paris, for the
of such four per cent. loan
and the payment of the interest thereon
quarterly at either Of the places named
or at either of the offices
in this country where it is now payable,
at the option of the holder of the stock,
it is believed enough would be taken to
redeem, not only the six per cent five
twenties now held in Europe, but much
of that stock that is now held at home.
These stocks should of course have long
terms to run to maturity, giving them
somewhat the character of annuities,
and might be known as "American
Consols.' All this new stock should
be convertible from coupon to regis
tered, and from a registered to coupon
stock, at any time, at the owners
option.
With these two arrangeme tents COM
pleted, one half of the present public
debt would be disposed of at rate of
interest one third less than that now
paid. After that, the Government would
have little difficulty in placing the re-
mainder on the same terms at home;
this could be done by commencing re-
in the order of the issue of
the various stocks by payment in money.
Every dollar received on the sale of the
new four per cents would redeem dol
lar of the old six per cent stock. Such
new stock should, however, be exempt
from every kind Of taxation whatever,
by the General Government, or by
States, municipalities, or corporations.
Such provision would not only make
the stocks more desirable and readily
taken, but it is necessary to the very ex-
istence of the Government itself Any
Government that taxes its own stock is
a repudiator to the extent. of such tax
alton. If it permits States or munich
palities to tax it, the Government would
always be at the mercy of the States
any time, tax it to such an extent as to
virtually tax it out of existence, and
thus, forever after, prevent the Govern
ment from negotiating loans, however
much they might be needed for its own
preservation. Once grant to the States
the power to tax United States stocks,
Secession will have an easier road to
disunion and separation than any that
could be opened by an armed rebellion.
Many Of the men who, during the
rebellion, invested their all in the pres
emit six per cent stocks, to save the coun-
try from dissolution, would, from motives
of patriotism if not from pecuniary con-
siderations, be willing to exchange such
stocks now held by them for any new
stock that would be reliable to them
and satisfactory to the great body Of the
people.
know, at least, one such, the earn
ings of whose whole life are now so in
vested, who would at any time, now or
hereafter. under such circumstances and
conditions, be glad to join others max
ing such an exchange. 1 doubt not
Gen. Cutler holds of these stocks, and l
believe that he and his loyal friends,
who hold his peculiar opinions in regard