The Secretary proposes to make these banks depositories of treasury notes, received by the Government for all dues except customs. This is well; for to use the sub-treasury to receive and circulate treasury notes, is against the object for which it was created. Such deposits should be secured by U. S. stocks with the Government, and thus largely increase the demand for this stock. During nearly my first two years as Secretary of the Treasury, the public moneys were deposited by me in the State banks, secured by United States and State stocks, and there was no loss. Nor, indeed, was there any loss or default by any officer, agent, or employe of the Treasury Department during my entire term of four years, notwithstanding the large loans and war expenditures. Disbursing officers should also deposit with the banks, and pay as formerly by checks on them, with the same guarantee by them of U. S. stocks. How far, and to what extent, and under what special provisions the gold received for customs might be deposited with these banks, may be the subject of discussion hereafter. If this system were adopted in its entirety, the process of absorbing treasury notes would commence at once, and also a correspondent rise in their market value. The system of loans and funding saved England from bankruptcy during her long wars with France, and we must resort to similar expedients. But as loans, in the usual way, except at ruinous discounts, for any large amounts, are impracticable, we are left to the alternative of the Secretary's system, or bankruptcy, repudiation, and disunion. I have another suggestion to make as regards these notes furnished by the Government to the banks, secured by U. S. stocks. These notes are guaranteed not only by the stock of the Government, but, in addition, by the whole capital and property, real and personal, of the banks, and a prior lien on the whole to the Government, to secure the payment of these notes. These notes are receivable by the Government for all dues except customs. These notes are a national currency, furnished by the nation and secured by its stock. These notes then, as in England, should be a legal tender in payment of all debts, except by the banks. As the banks can redeem these issues in legal tender treasury notes, these issues of the new banks ought to be a legal tender also, except by the banks.