1.  A loan to the Government upon its bonds reimbursable in twenty years, but redeemable after five years, at the option of the nation, the interest being six per cent., payable semi-annually in coin, as is also the principal.

2.  The issue of United States legal tender notes, receivable for all dues to the nation except customs, and fundable in this United States 5—­20 six per cent. stock.

3.  The authorization of the banks recommended in his Report, whose circulation would be secured not only by private capital, but by adequate deposits of United States stock with the Government.

4.  To maintain, in the meantime, as near to specie as practicable, this Federal Currency,—­1st, by making it receivable in all dues to the Government except for customs; 2d, by the privilege of funding it in United States stock; 3d, by enhancing the benefit of this privilege, not only by making the stock, both principal and interest, payable in specie, but by making it gradually the ultimate basis of our whole bank circulation, which, as shown by the census tables before referred to (including deposits), nearly doubles every decade.

5.  By imposing such a tax on the circulation of the State banks, as, together with State or municipal taxes, would induce them to transfer their capital to the new banks proposed by the Secretary.

6.  To relieve the new banks from all State or municipal taxation.

7.  In lieu thereof, to impose a moderate Federal tax on all bank circulation, as a bonus to be paid cheerfully by these banks for the great privilege of furnishing ultimately the whole paper currency of the country, and the other advantages secured by these bills.

This tax, as proposed by the Secretary, was one per cent. semi-annually, which in effect would have reduced the interest on our principal loans from six to four per cent. per annum, so far as those loans were made the basis of bank circulation.  Congress, however, fixed this tax at about one half, thus making the interest on such loans equivalent in fact to five per cent. per annum, so far as such loans, at the option of the holder, are made the basis of banking and of bank circulation.  This is a privilege which gives great additional value to these loans, for the right to issue the bank paper circulation of the country free from State or municipal taxes, is worth far more than one half per cent, semi-annually, to be paid on such circulation.  That this privilege is worth more than the Federal tax, is proved by the fact, that many banks are already being organized under this system, and by the further fact, that more than $200,000,000 of legal tenders have already been funded in this stock, and the process continues at the rate of from one to two millions of dollars a day.  It will be observed, that the holders of such bonds can keep them, if they please, disconnected with all banks, receiving the principal at maturity, as well as the semi-annual interest, in gold, free from all taxes.