"A FEW SUGGESTIONS RESPECTFULLY SUBMITTED TO CONGRESS AND THE PEOPLE.
"In December, 1857, the subscriber submitted a plan to Congress for the creation of a national currency, similar to the one now established. In that recommendation is embraced a plan for regulating the issue of a national currency, so as to provide for the future wants of the country, while at the same time it would effectually check an over-issue without any future legislation on the subject. During the progress of the rebellion there was a natural repugnance to limiting any thing, because the wants of the country were unknown; but the rebellion is now over, and this question is neces sarily forced upon the consideration of the people.
"All business-men are aware of the great importance of stability, particularly in currency and tariffs, and, in order to have this stability, these questions must be removed from legislation as far as possible. Our plan obviates the difficulty effectually. We all know that an inflated currency runs up prices far beyond their real value; while a contracted currency depreciates all kinds of values. With State banks, and even with a national bank, over-issues could only be partially controlled, and the country was always visited with periodical expansions and contractions, carrying ruin everywhere. Under the old system, this could not be avoided; and even under the national-bank system similar effects will be sure to follow if left open for Congress to legislate upon whenever there is a clamor made for more currency by speculators and money-changers.
"Our plan is this. First ascertain the relative value of property compared with money, so that the proportionate value of each is maintained. This can be done by taking a period of prosperity, when there was no over-trading, and ascertain the returned value of the property of the country and the amount of currency required at that period to transact the business. Our impression is that it will be found that for every $30 of the returned value of real and personal property there ought to be an issue of $1 in currency: this, we believe, would give all the currency required. We made an estimate
in 1857, and we found that $1 in currency to $30 of the returned value of property (excluding slave property, which, fortunately for the country, has ceased to exist) would have given at that period a volume of currency equal to about $400,000,000,—all that was required at that time. We have no full and complete data at hand now, but, from the best information we could glean, the present value of real and personal property would be in the neighborhood of $18,800,000,000. The issue of $1 for $30 would give a volume of currency equal to $628,000,000 in round numbers. This, we believe, would be ample for a time of peace. The relative proportions might be raised or lowered according to the supposed wants, if 11 to 530 is considered too high or too low; but it is important that it should be fixed permanently by Congress as early as possible, as after this year none but a national currency will be in existence.
"The value of the property in every State is ascertained every three years. The average annual increase for the three past years is known, and the Comptroller of the Currency should be prohibited from issuing charters for national banks to issue cur rency beyond this point annually. All applications for charters can be registered for each State, and these charters granted in rotation so soon as the increased property will warrant it. This plan requires no further legislation; it provides for the increased wants of the country as the business and property increase, and effectually checks over-issues, over-trading, and wild speculation; and, besides, it gives each State its proportion of currency according to its wealth and business, which is the most equitable mode of distribution,—much better than any distribution that can be fixed upon by uncertain legislation by Congress.