ffered by it.

'It remains to be considered what results may be reasonably
expected from an act authorizing the organization of banking
associations, such as the Secretary proposed in his last Report.

'The central idea of the proposed measure is the establishment of
one sound, uniform circulation, of equal value throughout the
country, upon the foundation of national credit combined with
private capital.

'Such a currency, it is believed, can be secured through banking
associations organized under national legislation.

'It is proposed that these associations be entirely voluntary. Any
persons, desirous of employing real capital in sufficient amounts,
can, if the plan be adopted, unite together under proper articles,
and having contributed the requisite capital, can invest such part
of it, not less than a fixed minimum, in United States bonds, and,
having deposited these bonds with the proper officer of the United
States, can receive United States notes in such denominations as
may be desired, and employ them as money in discounts and
exchanges. The stockholders of any existing banks can, in like
manner, organize under the act, and transfer, by such degrees as
may be found convenient, the capital of the old to the use of the
new associations. The notes thus put into circulation will be
payable, until resumption, in United States notes, and, after
resumption, in specie, by the association which issues them, on
demand; and if not so paid will be redeemable at the treasury of
the United States from the proceeds of the bonds pledged in
security. In the practical working of the plan, if sanctioned by
Congress, redemption at one or more of the great commercial
centres, will probably be provided for by all the associations
which circulate the notes, and, in case any association shall fail
in such redemption, the treasurer of the United States will
probably, under discretionary authority, pay the notes, and cancel
the public debt held as security.

'It seems difficult to conceive of a note circulation which will
combine higher local and general credit than this. After a few
years no other circulation would be used, nor could the issues of
the national circulation be easily increased beyond the legitimate
demands of business. Every dollar of