The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-01-22
Ranking and Crrrancv.

some of the free banks has cast doubt and dis II
trust, in the public mind, upon all of them, S
abroad, if not at home; and deprived them in
some measure, the power to confer the bene-
fits upon our people, which they are capable OF
granting, if they could secure the full conf
dence of the public The unfavorable auspi-
ces under which the new State Bank has been
brought into existence has excited public pre-
JUDGE against it, and the attacks made upon
its charter, by the public authorities, threaten
to destroy it entirely, or deprive it Of all pow
er to restore confidence in our confused and
distrusted currency. The condition Of some
ofthe States around US, whose currency min
giles with our own, is no better and serves to
aggravate our difficulties. Something must be
done, and speedily done, to restore confidence,
or our currency and the whole business OF the
State will be utterly Frustrated and deranged.
The crisis is q serious one, demanding wisdom,
energy, and q compromise of all political pre-
JUDGES, and private interests for the public
good. Instead of war upon the new State
Bank, for the sins Gifts fathers-would it not
be better, now that the offspring, though born
in iniqaity, should be put in honest foster
hands, to be made an honest child Of the peo-
pie? Instead of repeating the charter entirely,
give it new and an amended one; make such
provisions shall be a guarantee that its con-
troll shall be placed beyond doubt in hon
est and responsible hands Before attempt
ing to abrogate the charter, amend the system,
and offer substitute for tho present bank to
those who are worthy Of being entrusted with
the charge and who have become the honest
assignees Of the charter. a State Bank is a
necessity; it is as easy to frame an amended
charter for the new bank. as it will be to make
an entirely new plan after it shall have been
repealed. The question who has got the
profits Of the present, or who will share in the
gains of the new one, is a matter OF little con
sequence to the people. Their great need il,
bank Of large actual capital honestly and
ably managed. Financial fluctuations, cJnyuI-
tons and revolutions are as much to be dread
ed as arrangements of civil and political order
in the State. We can't have stability and
confidence without a principal bank with
ample resources in the most competent hands.
The privilege to circulate notes as currency
is the source of all the difficulty in creating
banks, as it is the source Of all the danger, and
the chief temptation to all frauds in the man
agemcnt Of Banks. 1t is high prerogative
equivalent almost to the power to coin money
1t is a right of sovereign power, and should
not be granted by the State except with the
utmost caution. 1t ought not to have but one
source, where its operations could ba
daily watched and directed. In ordinary
banking without issues, there is nothing thai
needs the superintendent Of the law, NOR,
than in any other commercial business. Thu
only care of the government is, required 70
the regulation Of bank issues; all other depart
ments of the banking business may be left a
free as selling groceries.
Why not then make the mother-Stat
Bank, the sole bank Of issue? Let her fur
nish the whole currency of the State; lie
her have nothing to do with individual priyat
business. Limit her sphere to dealings wit
the branches and other banks, and TO the su
psrntendence Of their affairs. Let her pro
vide all the notes for circulation, filled up t
the local banks to which she loans them; tn
local bank to endorse Them and use them q
her circulation the notes to be redeemabl
either at the local bank or by the mother banl
The local bank to provide for her issues
the mother bank, as the New England bank
redeem their notes at the Suffolk Bank i
Boston; and as they are redeemed, the
would be returned to the local bank for re issut
This scheme is not a speculative scheme; il
principles have been in practical and mo-
successful operation in New Engand-en
bracing the whole Of that commercial regio
for thirty years. There it is wholly volunt
cry, and maintained by the banks themsely
for their own convenience while it has fa
nished the soundest and best currency in Il
Union to the people.
The mother bank could furnish the not
for circulation at a charge Of two or three D
cent, which would be but little more than
would cost the local banks to procure the
bills and maintain their circulation und
their present system Of independent and a
tagonistic operations. The Central Bank,
the Suffolk Bank, would become the centre
exchanges, the clearing house for all t
State banks, through which the whole curren
would pass once in twenty or thirty day
where every change in it, would be mark
and seen as distinctly as the changes in t
current of a stream. The State might 4
pense with all other organizations and II
chinery for banks, and with weekly
ports from the Central Bank, like those fro
the Bank of England, the whole conditi