circulation would represent
real capital, actually invested in national stocks, and the total
amount issued could always be easily and quickly ascertained from
the books of the treasury. These circumstances, if they might not
wholly remove the temptation to excessive issues, would certainly
reduce it to the lowest point, while the form of the notes, the
uniformity of the devices, the signatures of national officers, and
the imprint of the national seal authenticating the declaration
borne on each that it is secured by bonds which represent the faith
and capital of the whole country, could not fail to make every note
as good in any part of the world as the best known and best
esteemed national securities.

'The Secretary has already mentioned the support to public credit
which may be expected from the proposed associations. The
importance of this point may excuse some additional observations.

'The organization proposed, if sanctioned by Congress, would
require, within a very few years, for deposit as security for
circulation, bonds of the United States to an amount not less than
$250,000,000. It may well be expected, indeed, since the
circulation, by uniformity in credit and value, and capacity of
quick and cheap transportation, will be likely to be used more
extensively than any hitherto issued, that the demand for bonds
will overpass this limit. Should Congress see fit to restrict the
privilege of deposit to the bonds known as five-twenties,
authorized by the act of last session, the demand would promptly
absorb all of that description already issued and make large room
for more. A steady market for the bonds would thus be established
and the negotiation of them greatly facilitated.

'But it is not in immediate results that the value of this support
would be only or chiefly seen. There are always holders who desire
to sell securities of whatever kind. If buyers are few or
uncertain, the market value must decline. But the plan proposed
would create a constant demand, equalling and often exceeding the
supply. Thus a steady uniformity in price would be maintained, and
generally at a rate somewhat above those of bonds of equal credit,
but not available to banking associations. It is not easy to
appreciate the full benefits of such conditions