Bradford reporter. [volume] (Towanda, Pa.) 1844-1884, 1857-12-10
Col, Benton on Banking.

of the imperfectons of the present banking Sys-
tenn of the country, and points out measures OF
correction, which should, in his opinion, be
adopted by the Federal Government. We re-
pret that the length of the letter will not ad-
NIT of our giving it place i'll our columns, but
will in some measure, supply the omission by
giving brief synopsis Of its contents.
He commences by defending Gen. Jackson
form the unfair quotations which have been
made of his opinions, expressed IN favor OF the
National Bank, at the beginning of his ireSl- !
dency. He explains that such opinions were
expressed before there was prospect OF res
toring the constitutional currency, and that
after such prospects was seen, nothing more
was ever said bv him in favor of ba ks, Nat!ol
al or State. ." On the contrary, he labored
during the remainder of his public life to res
tore and preserve the hard money currency,
which the founders Of our Government had
secured { as they believed, for US" He states
the plan of that restoration and preservation
as follows
lst. To revive the gold currency by correct
ing the erroneous standard of 1871
I'd. To create demand for hard money by
making it the conclusive currency of the Fed
eral Treasury.
3. To make sure Of the hard money by keep
ing it in its own treasures.
4th. To suppress all paper currency under
twenty dollars by stamp duty.
2 To wind up al detluiting banks by
bankrupt law against delinquents.
The three first Of these has been accomplish
ed-the first under the Jackson ADMINISTRATION,
the two last under VAN BuRES's. To
the accomplishment OF these he ascribes our
twenty years exemption from bank suspension
ana deprecated currency, and to the want Of
the two latter, he charges our present difficult
ties
He strongly advocates the adoption of these
measures now the suppression of issues under
twenty dollars by the imposition Of a stamp
duty, and the passage of a bankrupt law against
delinquent banks.
In regard to the objection Of the first Of the
expense and difficulty Of collection, a simple
plan is proposed-the appointment of a clerk
III the Treasury Department to superntend the
business, and making it tie duty Of the clerks
of the Federal Courts to deliver the stamps re-
ceived from The Treasury.
The money power he considers most fitting
one to be taxed. The dnty should be the same
upon all notes and large enough to prevent
any but the higher denominations from support
ing it.
He defends the Bankrupt Act from the Oh
lection brought by lawyers, that merchants and
traders were the only proper subjects for such
legislation, that both in Roman and English
law, the bankers were the original objects Of
the bankruptcy process.
He maintains that banking in the United
States is the most unsafe and unrestrained in
the world not only from the lack of these
two safeguards, but the absence of any proper
requsition for keeping proportonate amount
of hard money on hand. He compares the un-
restrained license which exists in this respect
to the requirements of the Bank Of England
the fundamental condition Of which is the hold
ing in coin an amount equal to one third Of all
its liabilities, both Of circulation and deposit.
Below that point the bank does not deem IL
self safe fact which has been sworn to by Sc
vera governors and directors.
Not only is this proportion required, but it
must be shown continually.
With lis there is not only very limited re-
quirements for holding hard money on hand
but the basis of the currency, instead of being
reliable specie, is Insecure stocks and notes of
other banks. Paper upon paper is the princi-
pie. Returning to his former argument he en-
umerates the evils arising from small issues
These are too well known to require a state
ment.
The soundest portion Of the letter is that
which he devotes to the question of the amount
Of hard money required for conducting the bu-
siness of the county.
The proof Of the existence Of sufficient is
ample, and the argument is SO sound and elab-
crate, that we copy the entire, rather than
mar it by extracts
Twenty odd years ago, when we were la
boring to restore the constitutional currency
to the government and the people, the ready
objection, repeated by all the friends Of paper
money, was, that there was not gold and silver
in the world to carry Oh the business of the
United States and the ready answer to that
objection was that there was precisely enough
would come to the United States if we would
create demand for it by correcting the gold
STANDARD, max it the government currency,
and suppressing small paper. Only part of
these things have been done, and there have
flowed into the United States, or been obtain
ed from our own mines about four or five times
as much gold as the business of the United
States could employ The supply has been
nearly thousand millions of dollars, and the
business of the United States would only en-
ploy about two hundred millions This is not
guess work, but bottomed upon authentic data
for the statistics Of political economy show
that nations can only use certain amounts of
money, some more, some less, according to
their pursuits Thus, highly manufacturing
country, where the employer needs money in
cessantly to carry on bis business in the pur-
chase of raw materials, and the payment of
operatives, and in the construction or repair
of buildings and machinery, and where the op-
eratires, themselves need money daily for the
support of their families, the quantity of mon
ey required is far greater than in any agricu-
tural and planting country, where the farmer
raises his own supplies, aud has his crops and
produce to pay large demands And there