h House to the expediency of issuing notes or
certificates of that description, and the act of February 26, 1879,
already quoted, was passed.

On the 26th of March I issued a circular relative to these
certificates, prescribing the manner in which they should be sold,
and stated the purpose and probable effect of their issue, as
follows:

"The primary purpose of these certificates is to enable persons of
limited means to husband small savings as they accrue, and place
them where they will draw interest and become the nest egg for
future accumulation. The form of certificate seems better adapted
for the purpose than the French _ventes_ or the English savings
bank system. The objection to a national savings bank is that, in
a country so extensive as ours, the agencies would necessarily be
scattered, and the cost and delay of correspondence and transferring
money to Washington would be considerable; but, more than all, the
United States cannot undertake the risk of repaying deposits at
any time when called for. The necessary reserve for that purpose
would make the system burdensome. The certificate, as issued, may,
at the expense of the subscriber, be either to bearer, or, by being
registered, only transferable by assignment on the books of the
treasury. It combines, in the cheapest form, all the benefits of
any system of savings banks that has been devised. No doubt these
certificates, when first issued, will, by voluntary consent of
parties, be used as currency; but, after they shall have run a
short time, the accruing interest on them will induce their sorting
and holding, and thus, like the compound-interest notes, they will
cease to be a currency and become an investment. Their possible
use as currency is certainly no objection to them; for, though I
adhere as strictly as anyone to a specie standard of value, I think
that, it being constantly maintained by ample reserves and prompt
redemption, current money in different forms should be provided
for daily use. Diversity of the currency, if it is always redeemable,
is no objection. These certificates will always be redeemable in
the bonds stipulated for, and can, with profit, be issued, while
the money received for them can be used in redeeming bonds bearing
a higher rate of interest. They are of as low a denomination as
can be conveniently issued and bear interest. The issue of this
certificate is a safe experiment. I have confidence that it will
be ben