The age-herald., 1898-03-20
 ORIGIN AND HISTORY OF THE NATIONAL BANKING SYSTEM
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FIRST INsTALLMENT.

5. To issue per cent. twenty-year bonds to be negotiated by the secretary of the treasury, and without any limitation as to the price he may obtain for them In the market
 The conference adjourned without coming to any understanding but I mention this plan because it shows what the purposes of the great banks were and how quickly and tremendously they could act even Tn those days.
 On January IS, 1862, another conference was held "by the bank delegates and oth- CT persons connected with MT. Chase" and the result was an approval of the secre- tary's plan. for raising money by launcn- ing the national bank system. The plan was in substance as follows
 1. The secretary of the treasury WILL within the next two weeks, in addition to the current payments in United states notes, pay the sum of at least $2O,OOO,oOo Tn 'seven-thirty" bonds to such public cred itors as desire to receive them, and thus releive the existing pressure.
 g. The issue O United States demand notes not to be increased beyond the S5o,- 900 00O authorized by act of last July but 1t Is desired that congress should extend the provisions of the existing loan acts passed at the extra session in July, 1S6l, so as to enable the secretary to issue Tn ex- change for United States demand notes, or in payment of creditors, notes payable in one year. bearing 3.65 per cent. interest, and convertible into 7-30 three year bonds; or to borrow under the existing proVlslohs to the amount of $500 OOO0O0.
 3 It is desirable that congress should enact the national currency bank Dill, em- bracing the general provisions recommend- ed by the secretary of the treasury In ms annual report.
 A. It is expected that this action and liouidation will render it unnecessary for the United States demand notes authorized last July to be made legal tender, or to be increased beyond $50,0O0,OOO.
 January 22, 1862, an additional section of the bill was reported to the house by the ways and means committee. rms sec tion authorized the secretary of the treas ury to issue coupon bonds to an amount not exceeding $500, ,000000, redeemable after twenty years and bearing per cent, pay able semi-annually, to enable the secretary to fund the treasury notes and floating debt The bill containing this section pass ed the house February 6, and 1t provided that $150, 900 900 of 365 per cent notes shouiu be issued, and that the demand notes is- sued under act of July F, 1S61,, should be taken up as fast as practicable, and the notes herein provided for substituted for them.p Thaddeus Stevens, then chairman of the ways and means committee, closed the debate on this bill in a speech from which the following extract is made:
 Secretary Chase's Plan
  report recommended a scheme to produce a uniform national currency and furnish market for government bonds. It proposes that the banks shall receive their c1rcuia- from the government to the amount Of government bonds pledged with the treas- 1lrv for their security and that no more notes should be issued than the par value of such bonds, and should be redeemed cy the banks How would that be any better than the governments own notes? The security of the government IS equal to that of the banks, and would give as much currency. To the banks 1 can see it's advantage. They would have the whole benefit of the circulation without interest, and at the same time would draw interest on the government bonds from the time they got the notes. Now it is very plain that if the United States issued those notes direct they Ghe United States) would have the benefit of the whole circu- lation. I flatter myself that l have demonstrated that such notes made le- gal tender and not issued in excess Of the demand will remain at par and pass Tn all transactions great and small at the full value of their face; that we shall have one currency for all sections of the country and for every class of people, the poor as well as the rich. MT. Chalrman iee me say in conclusion that unless this p,N is to pass with the legal tender clause Ill if if is not desirable to it's friends, or to the administration, that it should pass at all. If this bill shall pass I shall hail it as the most suspicious measure of this congress; if 1t should fail, the result will be more deplorabe than any disaster which could befall us."
 ITO he Concluded.)