Year: 1862

principal The only value which they place upon
capital 10 derived from the fact that will ied then
srevsnas and al any time the cari,alst shcuia sh
T. nse the principal Of his bend he kDcws tha, he can
always sell il TO another WHO desrous TO invest as
much he desires 70 sell The Of debt OF the
British gcvernu,ent great that the most ssngone
political economist can devise no method by which It
eau be eSngushed yet the bonds representing that
very deot are Of value Capital seeks them for in
vestmsn because the interest sure and the only rea
that they below par because the pay
ment Of the principal is OF ess hopeless but be-
the rates Of neres, ia the market the time being
are higher than the rate provided for in the bonds there
another advantage attached 10 this scheme of taxation
| As the surplus, after Gedoeting the ordinary ex
penses Of The government will be more than sufficient TO
pay the interest upon any debts which the United States
has incurred hereafter proposes TO contract whcu
this rebellion shall have been subdued and peace shall
have once again spread her wings over the land the re-
win with tho prosperity OF the country,
and the excess win operate sinking fund by means
cf which the whole debt be gradually exinguished.
We have seen, in experience at no very distant
date surplus used 10 diminish the natona.
debt by even paying for it excrbitant premium
Having thus, believe provided wise system OF
taxation which should enable the TO borrow
al the money which may need at fair rates 1t s pro-
posed in order to give still further assistance and also
with the object of securing much needed reform, 10
| recommend general banking law. The views which
hive been considered in framing that bill will serve to
| give clearer under erstanding OF its prov vsons. For
nearly thirty years he country has been without uni
form paper currency As nearly all the business OF the
country done by OF paper specie being seldom
used except the payment of balances the inconve.
resulting from this have been very great
The travelling public remiters Of small sums by mail,
and the aborng classes, who often receive their pay in
uncurren funds chiefly experience these nconveniences
IN order 10 relieve this want it is necessary TO give 10
| the paper currency three quacstons.--


First-t must be well secured that the people may
tee that they are sure OF obtaining its value when
| needed.


| Second-lt must have governmental endorsement or
guarantee that the people everywhere may be able 10
distinguish it, aud the government prove s confidence in


by taking in payment OF taxes assessment and other
| dues


Tsi,d-It must be guarded far possible, against
| arbitrary increase.


| These requisites have all been provided for in
| the bill. The paper currency Is TO be secured by
a Deposit with the government, Of United States
stocks, the market value Of which shall be equal TO
! the amount Of the currency issued. There can be
| no higher security known TO the government,
and its permanent value has heretofore been shown
The government upon the receipt OF such security Is to
certify the of the for currency that the
secursd by pledge OF United States stocks,
and to take them in payment Of all taxes excses and
| other dues, excepting only for duties upon imports
Lastly the government cannot increase the amount Of
the currency except upon the application Of bank and
the banks increase it except upon application TO
and depcsi,ing security with the government 1t has
been suggested that far the government alone was
Interested the objects which had to gain could be AT
tanned in an easier expensive The paper
circulation Of the country being in reality loan from the
people witho&t interest," it would he equitable and just
that government should take this loan directly into
its own hands and furnish all the paper circulation in
stead OF allowing the benefit OF il TO private
Citations and individuals. But The Committee deemed
it more attain their proposed ends il possible,
without disturbing existing institutions habits, do
ing any thing that might pjuriously affect private ine.
rests The currency therefore left to the banks they
are only required deposit security for it and TO sub
NIT certain established rules and regulations pre-
scribed in the bill in order TO insure conformity OF
management, for the common benefit Of the banks
themselves and Of the public. To many OF
| the banks these requirements will not be difficult
Of performance, as they already hold stocks OF the
United States which they will be at liberty TO pledge.
n exchange the restrictions imposed upon them the
banks will enjoy the benefit Of hyed and permanent in
terest upon their hypothecated stocks IAN odor Of
nationality as Mr. Webster called il is aso impaired
their bills enabling them 10 circulate wider and far
her than before, and what would become q constant,
upon their specie s checked by the consent Of the
government receive their notes in satisfaction OF its
dues. Thus secured all the benefits OF the old United
states Bank without many Of those Objectionable fea
which aroused opposition. It was affirmed that,
by IT'S fayors the government enabled that bank TO
monopoi2e the business of the country. Here such
system of favoritsm exists. 1t was affirmed that while
a large portion or the property in the several States,
owned by foreign stockholders, was invested in that
bank and its branches, yet IL was nnnstly exempted
from taxation. Here every State is left at perfect lib
erty far this law is concerned TO tax banks within
is limits whatever manner and TO whatever extent IL
may please. II affirmed that frequently great in
convenience and sometimes terrible disaster resulted to


the trade and commerce Of different localities by the
mother OF the United States arbitrarily interfering
with the manage Of the branches by red icing sud
| denly their loans, and sometimes Withdrawing large
UNITS OF their specie for political effect Here each
bank trsnsacs its business upon its own capital,
! and is subject 10 no demands except those OF s
customers and its business. II will be as IL the
| Bank Of the United states had been divided into
many parts and each part endowed with the life,
motion and smiltudc Of the WHOLE revolving in its own
orbit mana ,ed by BOARD Of Directors sttspding
to the business interests Of its own locality and yet ID
the bills OF each viii be given wide circulation and
fixed value given TO those OF the Bank
VI the United states in its pamiest dsys. II is not TO be
supposed that variation in the rates Of exchange will en-


rely disappear Specie itself yields TO the law Of de.
maud and supply and nucustes in value with the con
tnua changes Of the balance Of trade But this currency
will approach as uniformity its value possible
These institutions all originate among the people in their
own localities, and not created by the government
The government simply authorize the investment Of CAPT


the loans and the of the bonds representing tina
loans as the basis Of sound circulation This measure
WILL therefore, give to the people that which they most
desre-a currency which shall not only purpor 10 be
money, but shall actually be money in a broader and
positive than are TIC notes Of the Bank OF
England high they the estimation of the com


erca world for the reason entire capital Of the
Bank England vested in its government stocks, pay
ing very small OF interest," aud upon these stocks
based, therefore, the ultimate security Of their