admit that its creation might facilitate the financial
operations of the country. Many of them were willing to give it
a fair trial. The advocates of the National system constantly
pressed their cause among the people. The five-twenty six per
cent. bonds, into which the legal tenders were convertible, offered,
as they explained, an excellent basis for banking. Their absorption
for that purpose would create not only a market for that class of
securities but inevitably cause them to appreciate in value. The
government would thus be largely benefitted, and its cause would
be strengthened by the silent influence of self-interest which
would certainly be developed by the general distribution of its
bonds as the basis of a national currency. It was also urged that
the existing banks could with great facility and without sacrifice
re-organize under the proposed national law.

The popular mind having been thus favorably turned towards the
system of national banks, the President specifically approved it
in his message to Congress in December, 1862. Expressing his doubts
"whether a circulation of United-States notes, payable in coin,
and sufficiently large for the wants of the people, can be permanently,
usefully, and safely maintained," Mr. Lincoln asked if there was
"any other mode by which necessary provision for the public wants
can be made, and the great advantage of a safe and uniform currency
secured?" He declared that he knew of none "which promises so
certain results, and is at the same time so unobjectionable, as
the organization of banking associations under a general law of
Congress well guarded in its provisions." Mr. Chase elaborated
his recommendation of the preceding year to the same effect. He
asked that "a tax might be imposed on the notes of existing banks
such as would practically exclude them from circulation." In their
stead the legal-tender notes would be used, but he preferred "a
circulation furnished by the government but issued by banking
associations organized under a general Act of Congress."

Mr. Chase said "the central idea of the proposed measure is the
establishment of one uniform circulation, of equal value throughout
the country, upon the foundation of national credit combined with
private capital." He suggested 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 pr