ttled by
distinct provisions of law. It should not be open to doubt or
dispute. The decision of this question by Congress would involve
not merely the construction of existing law, but the public policy
of maintaining in circulation United States notes, either with or
without the legal tender clause. These notes were of great public
convenience--they circulated readily; were of universal credit;
were a debt of the people without interest; were protected by every
possible safeguard against counterfeiting; and, when redeemable in
coin at the demand of the holder, formed a paper currency as good
as had yet been devised.

It was conceded, I said, that a certain amount could, with the aid
of an ample reserve in coin, be always maintained in circulation.
Should not the benefit of this circulation inure to the people,
rather than to corporations, either state or national? The government
had ample facility for the collection, custody, and care of the
coin reserves of the country. It was a safer custodian of such
reserves than a multitude of scattered banks would be. The authority
to issue circulating notes by banks was not given to the banks for
their benefit, but for the public convenience, and to enable them
to meet the ebb and flow of currency caused by varying crops,
productions, and seasons. It was indispensable that a power should
exist somewhere to issue and loan credit money at certain times,
and to redeem it at others. This function could be performed better
by corporations than by the government. The government could not
loan money, deal in bills of exchange, or make advances on property.

I expressed the opinion, that the best currency for the people of
the United States would be a carefully-limited amount of United
States notes, promptly redeemable on presentation in coin, supported
by ample reserves of coin, and supplemented by a system of national
banks, organized under general laws, free and open to all, with
power to issue circulating notes secured by United States bonds,
deposited with the government and redeemable on demand in United
States notes or coin. Such a system would secure to the people a
safe currency of equal value in all parts of the country, receivable
for all dues, and easily convertible into coin. Interest could
thus be saved on so much of the public debt as could be conveniently
maintained in permanent circulation, leaving to national banks the
proper business of such corporations