Year: 1861

pie may be reasonably expected in the increased
security of the Union, sprDging from the COM
mon interest in its preservation, created by the
distribution of its stocks to associations through
out the country, as the basis of their circulation.


The Secretary entertains the opinion that if
credit circulation in any form be desirable, il is
most desirable in this The notes thus issued
and secured would, in his judgment, form the
safest currency which this country has ever
joyed; while their reoeivabily for NIL govern
ment dues, except customs, would make them,
wherever payable, of equal value, as a currency,
in every part Of the Union. The large amount
Of specie now in the United States, reaching "A
total of not less than two hundred and seventy
five millions of dollars, will easily support pay
ments of duties in coin, while these payments
and ordinary demands will mid in retaining this
specie in the country as solid basis both OF
circulation and loans.


The whole circulation of the country, except
q limited amount Of foreign coin, would, after
the lapse of two or three years, bear the impress
of the nation whether in coin or notes; while
| the amount Of the latter, always easily asccr-
tainable, and, of course, always generally known
would not be likely to be increased beyond the
real wants Of business.


He expresses an opinion in favor Of this plan
with the greater confidence, because it has the
advantage of recommendation from experience.
1t is not an untred theory In the State of New
York and in one or more Of the other states it
has been subjected, in its most essential parts,
TO the test OF experiment, and has been found
practicable and useful. The probabilities OF
success will not be diminished but increased by
its adoption under national sanction and for the
| whole country.


1t only remains to add that the plan is recon-
mended by one other consideration, which, in
the judgment Of the Secretary, is entitled to
much influence. 1t avoids almost If not alto
| Abar flxa ,yilu oF md upltl
| in the currency by Offering inducements to sol
| vent existing institutions to withdraw the circu-
latiOn issued under State authority, aud subsii-
tute that provided by the authority Of the Union.
Thus through the voluntary action of the exist
ing institutions, aided by wiso legislation, the
| great transition from currencv heterogeneous,
UNEQUAL and unsafe, to one uniform, equal, and
safe, may be speedily and almost imperceptiby
accomplished.


If the Secretary has omitted the discussion of
| the question of the constitutional power OF Con-
gress TO put this plan into operation it is because
no argument is necessary to establish the propo-
sition that the power to regulate commerce and
the value of coin includes the power to regulate
the currency Of the country, or the collateral
proposition that the power TO elect the end in
cludes the power to adopt the necessary and ex-
pedent means.


The Secretary entertains the hope that the
plan now submitted, if adopted with the mta-
tiOns and safeguards which the experience and
wisdom of Senators and Representatives will,
doubtless, suggest, may impart such value and
stability to Government securities that 1t will not
be difficult to obtain the additional loans required
for the service of the current and the succeeding
year at fair and reasonable rates: especially II
the public credit be supported by sufficient and
certain provision for The payment of interest
and ultimate redemption of the principal