New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-11-06
CURRENCY QUERIES.


~ ~ ESstu " Ths ~ r. IySsss -
SIN: AZ ,he ecwmepeens.s a TIE I'sstri onss'
You ADVISED working msE - Improve Toe oreeeAt ses
cen b studying Pchticai EcoSomy. I have followed
xour asyioe 10 the extent Of reading aeous al tlsyou
have pub.irA ed OF the Csnsscy since thai tine. II
yeu VII ems veY the following Questions, you VII cou-
Or favor Oh al least one working nah'
Ix.S.,,..,d ,cu TO be in favor o. sn et-y .esump-
Non Of ,p.os ps,me ats by tie banks snd being o-
vs,sd 70 their doing the only thing by which they caa
he su,e Of alssys continuing taem-keeping e. mach
so;u ON band ns they have bills 10 ciIculs ion. Whs:
,opor,ioa Of specie would you have the banks keep
jf .rs :hst the bills Of all he hanks in New ork
A,sse ere fully sec-ssd, srd would be, even Ell Tue
Aanks 10 lose every dollar in coin they nos poe
ssss what 70 the need Of the banks keeping 60 hsny
nions Of specie iis In their vaults ss ley nor do
What need o. bllholdsrs bsirg more than secure
10 il just for the ls~ 10 allow rich msn 20 oepce
hundred thousand dollars Of state stocks Tor wnca
Ia d-sv. INTEREST," in the Bank Department, and then
allow lin to issae hundred Eouss.e Collars In bulls
which can be loared az interest, thus oIngiog nim
double interest. and not allow p1or msn 70 cepost
small amount Of Safe stocks GO thai Re TOO cso hsoe
bills to the amount Of his stock ,. H.. X
Ieplp.-I. We are not epposea 70 tie Bake
heevipg soy amour. Of specie On hand. They may
Aeep two dollars for every Of paper thcy issue,
Tor srght We care. But We have no faith In any leg
lslssive requirement that csrtsin proportion Of
specie be uniformly retained. because oil experience
proves il illusory. If the specie is paid out Oh de-
nand, j. nust cease 10 be KEEP. on hsnd; if it is
not paid out, its being kept on hand is OF no avail
TIE hw msy require dollar for dollar; but when
bank becomes insolvent the specie always comes
Up missing. Nothing Can really be security for
Bank issues thss is kept and disb1rsed BY the
spk'sofisers. We have de6nise proportion
Of specie 10 issues OK liabilities tbs. We would 70
auiIe Bank 10 keep on hand. a Baak 10 an OK
porting city requires far more than one 10 tho in
terror. Experience must BE- the gqids in this re-
sp<et; but the redemption Of the Banks notes must
- secured otherwise than by the coin in ts vaults.
2. The issues of the STATE Security or Free
Banks are secured by their deposits with the State,
which can only DO resumed upon returning and
burning the notes. Wsdesm this far safer for the
Ail.hOder than legal requirement that two dollars
n coin be kept in bank for every dollar issued.
3. The use of the coin in the Banks vaults 10 not
90 secure the ultimate redemption of the bills but to
provide for their instant redemption as payment nay
De required. The coin is secary to the
but 10 means of maintaining the credit and fssi-
Eating the business of the Bank. AT present. it is
paid out in change, or 10 the redemption OF notes
when insisted on, or held preparatory to speedy
resumption.
A. Oar correspondent may be offended BY our re-
MARI that We regard bis talk about "the rich
man" and "the poor mai" 81 intensely contempt
DE. Experience has shown that petty banks,
issuing few hundred or few thousand dollars each,
were perpetuslly falling into insolvency aud dis
credit, causing great loss to their bilbolders, as
well 90 trouble to the Bank Department. 1t
was found necessary in the bill-holders behalf, to
require every banker 10 put up stated amount of
securities $50 900, we belieye-snd we have no
doubt that this requirement is wise and proper.
S. The only question for the public as to allow.
ing citizen TO deposit State Stocks aud issue Cur
rency thereon, is-Does this cOnduce to the public
benefit We think it does; and, 30 thinking, the
fact that somebody makes or may make, profit
thereop, does not render us ayerse to it. On the
contrary, we are glad to see our neighbor
prosper by any mesns not adverse to the public
well being. If our correspondent thinks the issue
Of Bank notes Injurious to the public, he should
oppose such issue.
We beg our correspondent to understand that
ne have given the above and similar replies to men
of his school, because they require il, and not be-
cause We desire TO convert them. We do not mean
% be- diverted from the great Issue Of Freedom
against Slavery BY any quarrel about Banks or
Tariffs We believe Banks n the msio usefal; but
II they are 10 DO made the subject of q political
1sht they are sure TO be rendered odious and
broken down, az the United States Bank was. Let
either Of the great parties take ground in favor Of
Hard Money and No Banks of Issue, and we shall
b inclined to help give that policy fair trial.
We believe it will result in Shinplastsr Currency
instead Of one of Specie, and will multiply bankers
or. brokers instead Of diminishing their number;
but tbis is capital time for trying Currency ex-
perimeDts; 90 come ahead Ed.