New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-04-28

of the country banks are restricted and they 90
redeem in Boston while the issues Of the city
banks are swollen and the Suffolk Bank makes
the latest dividends Of any bank in Safest
As to the interest Of the country Banks or
the city Banks, we do not care fg which way
the scale turns. But We DO feel natural soilcl
tude 10 see the most benefcent results possible
flow from these institutions, which, for good or
evil, have been made BY our State Legislatures
The fountains of that most important agency and
element Of national prosperty-the Currency.
y" The great objection 70 the Suffolk system
is, that it changes the entire character Of the
country tanks as fountains Of circulation. Our
Banking system presumes the Banks TO be the
.osrces which supply the circulating medium OF
the community And when they redeem their
bills at home, they are But when they change
the point Of redemption 70 the commercial CEN
tiers, they become merely vendors of bills OF ex'
change. This is most forcibly ustr ated 10 the
operations of the Suffolk Bank. This B snk being
the point of re demptiOn for the Banks o. New.
England, the country bank bills rush there IN the
capacity Of bills Of exchange as fast as they are
issued. The operations of the Suffolk Bank dis
close the remarkable fact that all the bills Of the
country Banks Of New.Enslsnd pass over her
counter once in every FIVE or six weeks. The
circulation o. the Banks of New-Engand (out OF
Boston, averages less than twenty-five millions,
while the average monthly redemption Of the
Suffolk falls but little short of twenty millions.
Bank bills that are redeemed in this rapid
manner fulfil none of the functions Of currency,
properly speaking they perform the office mere
y Of bills Of exchange The effect of the Suffolk
system is therefor 10 rob the Banking Institu.
tons Of the several New England States of the
very quality which their charters presume to con-
stitute their distinctive character. 1t destroys
the ability of the B anks to discharge the duty
they were primarily and principally created to
fulfil. Under it they cease to furnish 8 currency
for the community, but instead, furnish sight bills
of exchange for traders and money dealers
Taking this view of the case, we might hest
tate to complain that the specie basis Of the coun-
try banks redeemng in Boston is so small as it is
for the operation of furnishing exchange really
requires no specie whatever at the point Of issue
and thus he two millions OF coin held by the
country banks in New England is reserve Who'll
ly useless, and subtracts just so much from the
available currency Of the community. But, on
the other hand, when we view the Banks in their
true capacity as furnishers Of the circulating me-
dunn, we must object entirely TO the aspect they
present, in their supply Of specie compared with
their bill circulation. The country banks OF New
England with less than two millions Of coin, have
an average of circulation Of near twenty. FIVE mil
lions AS a basis of a paper currency Of this
amount, the total nadequacy of this coin reserve
is manifest to every one.
"Now, we contend that reform is necessary.
The ybrid character of the Banking operations
of the institutions referred to should be changed.
There should be a distinction made between their
exchange operations and their office as furnisbers
of currency. The State that charters Bank is
IN some sense responsible for the character Of the
bills Of that b ank, and while those bills profess
to represent specie, they should rest on an ade-
quate specie basis. It's exchange operations are
a different thing. They may be allowed TO rest
between the Bank and It's customers. But the
mingled character of the bank bill, as represen
tatve Of coin, and as a bill Of exchange, should
be avoided as far as possible.
"This reform cannot be effected under any SAT-
folk Bank System in New England or in New
York. On the contrary, this system is princi
pal obstacle in its way AS things now stand,
the currency Of New England so far as it is fur
nisbed by the country banks, rests on fauh. 1t
should rest on com. The security for its prompt
redemption in specie lies entirely with the Boston
Banks, who hold no more specie than they need
for their own use 1t stands exclusively on their
fidelity and their ability in both of which atsrib
utes, we are glad to say, they are we'll endowed
But no State is mindful Of its dignity or true TO
its Just responsibilities which permits the bank
ing institutions Of its creation and partaking Of
its own independent standing and character, to
voluntarily transfer the keeping Of their faith and
honor to any set Of banks or bankers anywhere
however high their r putation for probity and
responsibility.
at is not fitting spectacle that the Banks OF
Vermont should STOW circulation Of over mil
lion and a half, On paltry coin basis Of ninety
thousand dollars. Or that Maine with quarter
Of a million Of specie, should have bank notes ia
circulation TO the amount of two and half or
three millions, and that Rhode Island should
show an inverted pyramid of three and a half
millions Of circulation resting on less than three
hundred thousand dollars Of specie,-Connecticut
and New Hampshire standing bat little better.
Now, there is no difficulty in effecting thi, re-
FORM and by it, accomplishing their great objects
In the fret place. it would force the Banks 10 re-
sumo their natural and proper functions OF redeem
ing their issues at home and nowhere else I'd,
il would establish that currency upon an ade.
ouate specie basis and render il independent Oh
the supply Of specie az the commercial senters'
and maxi every bank its own keeper and 3D.
it would DO what is of vast consequence, land
what Suffolk systems are nothing bat ingenious
contrivsnces to counteract) that is, swell the
channels of bank circulation until the actual
aanta Of every community in which they are