The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-06-08

that can be called into the field to override the
dictates Of common sense on this question.
Moreover, we are not recommending an untried
experiment, or one which has not received the
fullest consideration. Since the general go
vernment went into operation under the pre-
sent constitution we have had two national
banks, established under the administra-
ton Of the most popular Presidents
washington and Madison) that have occupied
the Executive chair. The first of these, founded
in 1871, paid, until the expiration of its charter
in 1911, regular dividends of from eight to ten
per cent on its capital stock. When unable
to obtain renewal of the privilege, the affairs
of the bank were wound up. The circum-
stances under which 1t was effected showed
how sound had been the management of its
business. Within year and half after the
expiration of the charter there had been
already paid to the stockholders lightweight
per cent of the capital stock and from first to
last they received $lOs so on every 500 o
stock invested.
We need not dwell on the embarrassment
caused by the rapid multiplication of State
banks which followed this event. They are
matter of history. Suffice it to say that they
increased the mass of paper credits and de-
preoiated the whole circulating medium so far
below specie value as to excite want of con-
fdence in its convertibility. The consequence
was a general stoppage of all the banks in the
United States, except those of New England,
in August and September, 1914. As q
remedy for this disastrous state of things,
Mr.. Dallas proposed, in October Of
the same year, the re-establisbment of
a national bank. 1t was not however, until
after severe struggle, occasioned not so much
expediency of the measure, but as to the most
desirable mode of organizing it, that bill was
finally passed in April, 1916, chartering the
late Bank of the United States.
Although it cannot be denied that the charter
of the bank was in several instances violated,
and that there was great mismanagement in its
affairs, the arguments against the renewal of its
charter that were based upon these facts ought
not to have weighed against the utility and
value of the institution itself. Provisions might
have been introduced in new charter which
would have effectually guarded against the re-
currence of these abuses, and the bank have
been rendered, on the plan of MIR. Gallatin, ian
instrument for alleviating the suferings caused
by war and other calamities, and an additional
bond of common interest and union among the
several States" The renewal of its charter
was, however, converted into party question,
and its advocates were compelled to succumb
to an influence that silenced without convincing
them.
We are now 80 situated that even if we were
to establish an institution of this kind as an en-
tirely new experiment, we should be justified
in doing so. Who will contend, after what we
have passed through in the last quarter of a
century, that it is not better for us to have one
great bank, with government guarantee for
its stock, than fifteen hundred, spread all over
the country, and carrying on business uncon
trolled by almost any sort of responsibility?
AS to the objection that there will not be time
in the approaching session of Congress to CON-
slider its details, there is no truth in it. The
question has been thoroughly examined and
debated by the ablest inanciers that the coun-
Try has produced. Their views are on record,
and unless frivolous obstacles are thrown in
the way the measure can be discussed and
passed in week.