success, and, notwithstanding the increase of our debt, the premium on gold, for our Federal currency, fundable in this stock, has fallen from 73 per cent. in February last, before the adoption of Mr. Chase's system, to 27 per cent. at present; and before the 30th of June next, it is not doubted that this premium must disappear. No loyal American doubts the complete suppression of the rebellion before that date, in which event, our Federal currency will rise at once to the par of gold. In the meantime, however, gold is at a premium of 27 per cent., which is the least profit (independent of future advance above par) so soon to be realized by those purchasing this currency now, and waiting its appreciation, or investing it in our U. $. 5.20 six per cent. stock.

But, besides the financial benefits to the Government of Mr. Chase's system, its other advantages are great indeed. It will ultimately displace our whole state bank system and circulation, and give us a national currency, based on ample private capital and Federal stocks, a currency of uniform value throughout the country, and always certainly convertible on demand into coin. Besides, by displacing the state bank circulation, the whole bank note currency of the Union will be based on the stocks of the Government, and give to every citizen who holds the bonds or the currency, (which will embrace the whole community in every State) a direct interest in the maintenance of the Union.

The annual losses which our people sustain under

the separate State bank system, in the rate of exchange, is enormous, whilst the constant and everrecurring insolvency of so many of these institutions, accompanied by eight general bank suspensions of specie payment, have from time to time spread ruin and devastation throughout the country. I believe that, in a period of twenty years, the saving to the people of the United States, by the substitution of the new system, would reach a sum very nearly approaching the total amount of our public debt, and in time largely exceeding it. As a question, then, of national wealth, as well as national unity, I believe the gain to the country in time by the adoption of the new system, will far exceed the cost of the war. It was the State bank system in the rebel States that furnished to Secession mainly the sinews of war. These banks are now generally insolvent, but, if the banking system now proposed had been in existence, and the circulating medium in all the States had been an uniform national currency based entirely on the stocks of the United States, the rebellion could never have occurred. Every bank and all its stockholders, and all the holders of the stock and notes of all the banks, embracing our whole paper currency, would have been united to the Government by an interest so direct and universal, that rebellion would have been impossible. Hamilton and Madison, Story and Marshall, and the Supreme Court of the United States, have declared that to the Federal Govern

C

ment belongs the " entire regulation of the currency of the country." That power they have now exercised in the adoption of the system recommended by the Secretary. Our whole currency, in coin as well as paper, will soon, now, all be national, which is the most important measure for the security and perpetuity of the Union, and the welfare of the people, ever adopted by Congress. It is to Congress that the Constitution grants the exclusive power "to regulate commerce with foreign nations and among the States;" and a sound uniform currency, in coin, or convertible on demand into coin, is one of the most essential instrumentalities connected with trade and exchanges.

Having given in the Appendix the three great Acts of Congress carrying into effect the system of the Secretary, marked 1, 2, 3, I shall, after these preliminary remarks, proceed with the discussion of the subject in my next letter.

R. J. WALKER.

APPENDIX.

NATIONAL CURRENCY ACT.

No. I.

AN ACT

TO PROVIDE A NATIONAL CURRENCY, SECURED BY A PLEDGÈ
OF UNITED STATES STOCKS, AND TO PROVIDE FOR THE CIR-

CULATION AND REDEMPTION THEREOF.

Comptroller

Be it enacted by the Senate and House of Representatives Currency of the United States of America in Congress assembled, Bureau That there shall be established in the Treasury Department a established. separate bureau, which shall be charged with the execution of this and all other laws that may be passed by Congress respecting the issue and regulation of a national currency secured by United States bonds. The chief officer of the said bureau shall be denominated the Comptroller of the Currency, and shall be under the general direction of the Secretary of the of the Currency. Treasury. He shall be appointed by the President, on the nomination of the Secretary of the Treasury, by and with the advice and consent of the Senate, and shall hold his office for the term of five years unless sooner removed by the President, by and with the advice and consent of the Senate; he shall receive an annual salary of five thousand dollars; he shall have a competent deputy, appointed by the Secretary, whose Deputy salary shall be two thousand five hundred dollars, and who Comptroller. shall possess the power and perform the duties attached by law to the office of Comptroller during a vacancy in such office and during his absence or inability; he shall employ, from time to time, the necessary clerks to discharge such duties as he shall direct, which clerks shall be appointed and classified by the Secretary of the Treasury in the manner now provided by law. Within fifteen days from the time of notice of his appointment the Comptroller shall take and subscribe the oath of office prescribed by the Constitution and laws of the United States; and he shall give to the United States a bond in the bond of penalty of one hundred thousand dollars, with not less than Comptroller. two responsible freeholders as sureties, to be approved by the Secretary of the Treasury, conditioned for the faithful dis

Clerks.

Oath and

charge of the duties of his office. The Deputy Comptroller Oath and so appointed shall also take the oath of office prescribed by bond of Deputy. the Constitution and laws of the United States, and shall give

a like bond in the penalty of fifty thousand dollars. The

Interest for

bidden.

Seal of bureau.

Comptroller and Deputy Comptroller shall not, either directly or indirectly, be interested in any association issuing national currency under the provisions of this act.

SEC. 2. And be it further enacted, That the Comptroller of the Currency, with the approval of the Secretary of the Treasury, shall devise a seal, with suitable inscriptions, for his office, a description of which, with a certificate of approval by the Secretary of the Treasury, shall be filed in the office of the Secretary of State with an impression thereof, which shall thereupon become the seal of office of the Comptroller of the Sealed instru- Currency, and the same may be renewed when necessary. ments evidence Every certificate, assignment, and conveyance executed by the Comptroller, in pursuance of any authority conferred on him by law, and sealed with his seal of office, shall be received in evidence in all places and courts whatsoever; and all copies of papers in the office of the Comptroller, certified by him and authenticated by the said seal, shall in all cases be evidence Impression equally and in like manner as the original. An impression of such seal directly on the paper shall be as valid as if made on wax or wafer.

of seal.

Office for the

SEC. 3. And be it further enacted, That there shall be asbureau in the signed to the Comptroller of the Currency by the Secretary of treasury. Treasury suitable rooms in the Treasury building for conducting the business of the Currency Bureau, in which shall be safe and secure fire proof vaults, in which it shall be the duty of the Comptroller to deposit and safely keep all the plates and other valuable things belonging to his department; and the Comptroller shall from time to time furnish the necessary furniture, stationery, fuel, lights, and other proper conveniences for the transaction of the said business.

U. S. bonds defined.

Associates

SEC. 4. And be it further enacted, That the term "United States bonds," as used in this act, shall be construed to mean all coupon and registered bonds now issued, or that may hereafter be issued, on the faith of the United States by the Secretary of the Treasury in pursuance of law.

SEC. 5. And be it further enacted, That associations for not less than carrying on the business of banking may be formed by any number of persons, not less in any case than five.

five.

Preliminary Sec. 6. And be it further enacted, That persons uniting to certificate required, and form such an association shall, under their hands and seals, what to contain. make a certificate which shall specify

First. The name assumed by such association.

Second. The place where its operations of discount and deposits are to be carried on; designating the State, Territory, or district, and also the particular city, town, or village.