New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-02-12
Banks and Specie.

To ne Editor Of The " u IribuHef
Your edition of the I'd inst contains an ar
cle headed Banks and Specie over the Signature ii
"P" that certainly Is the ast anomaly a the preseut
scheme p0llEc Space will not allow me 70 give
hs language and will therefore state bis points and
endesyor 10 dismember the logic which this e wisdom
working noddle has yentured eliminate His first no
On IT, that Banks be compelled by law to keep on hand
dollar in specie for every three ssuedhus taking
from The circulation, and locking up in the bank vaults
Of this state about thirty millions OF dollars In CON- for
the real benefit Of nobody except perhaps the bank rob-
bers. This one third OF specie, Il 1t possible 10
understaEd his argument az all Ia 20 be and above
tie stock securities lodged Ia the Bank Department At
Albany for his issues which OF course are dollar for dol
lar the par value Of such stocks, and In
less, where stocks less than par. Thu Bank Of
hundred thousand dollars capital mast first purchase
Ike amount Of State Federal stocks, which pres
rates vi premium would about 9ll6 OO0-then
aside from these stocks the pees security Of which, 70
the bllhoder, he dOubts-must be supersdded thirty
three-snd-onehird thousand dollars la specs-maktnx
Ia the aggregate nearly $4,000 OF real capital, Tor tins
sake OF Issuing s00O 600 Of paper currency. This u
Utopian wisdom Edeed-yet this Is his meaning, II he
means snyhing specie In bankers vault under his
own CONTROL forms little or no real security NJ 10 his
former lssues az that which day Ia his vault raj hs
tomorrow take legs and leave bis Issues ~ which this
coin formed the basis take Of themseiyes This
By no means would be the Gaze WIKI vouchers out of hs
control ana GUY 100 ged IN me bnhh Department.
The next Ink Ia s tissue Of flsces and thst which
brings Argument, Jor1iori, aganst hnself Is that
Banks must make sill their loans ~ parties who la.
dub tsbly solvent" Ia this uncertain world Of ours how
Il this always % be ehectedf Endorsements collateral
notes mortgage Judgments wha, not that an spph.
cant for Bank loan might Ofer security or that he
might be enabled 20 obtain for that purpose would not
in accordance with Pc doctrine, be sufficient security
unless be bad also third Of the amount be wished 10
borrow IN specie, locked up in his till and subject To
the inspection Of all any who CHANGED TO doubt
biz credi, ability 10 redeem M notes Under this in
flexible system Of indsbtabie solyency your subscr
bers Mr. Editor would each be Obliged 20 pay for his
copy Of your valuable Journal separately iei damp
rom the press-or eke, whes you received one Of P.s
duly secured FIVE dollar notes for annual subscription
In advance, you would be obliged 70 deposit the
In the hands of indgbitable Shylock, who In his
turn, ght ht his cigar each morning after breakfas,
and walk 70 your pre,s room see inst each edition
duly ssued and mailed and then hand 30 you
the 3l3th part Of said i've dollars All practical sysa-
blty either % loan borrow, would tins be estspped
Yet the system above indicated p. says "uoud Be no
haydsktp 20 Banks Whatever" aud "that every Bank
which undertakes 10 lssRe currency rcdeemable In
specie shOnd always keep reserve Of coin on hand
which shs bear fxed proportion 10 ss issues" and
tAat eray cell conducted Bank does lis- Ths Is nk-
take-but let Il pass kB.