’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 to a government obliged to borrow.

     ’Another advantage to be derived from such associations would be
     found in the convenient agencies which they would furnish for the
     deposit of public moneys.

’The Secretary does not propose to interfere with the independent treasury.  It may be advantageously retained, with the assistant treasurers already established in the most important cities, where the customs may be collected as now, in coin or treasury notes issued directly by the Government, but not furnished to banking associations.

’But whatever the advantages of such arrangements in the commercial cities in relation to customs, it seems clear that the secured national circulation furnished to the banking associations should be received everywhere for all other dues than customs, and that these associations will constitute the best and safest depositaries of the revenues derived from such receipts.  The convenience and utility to the Government of their employment in this capacity, and often, also, as agents for payments and as distributors of stamps, need no demonstration.  The necessity for some other depositaries than surveyors of ports, receivers, postmasters, and other officers, of whose responsibilities and fitness, in many cases, nothing satisfactory can be known, is acknowledged by the provision for selection by the Secretary contained in the internal revenue act; and it seems very clear that the public interest will be secured far more certainly by the organization and employment of associations