, 1861-01-04
OUR CURRENCY


l.aastors Of the Chicago Tribune:
Having noticed two or three articles In your
paper looking to change In the currency aud
banking system in the State Of Illinois, ] oiT
the following reflections:
First, That the wants Of the people Of I'LL.
:lols arc not supplied with good specie pay
ing circulation is apparent to all,
The State has now population Of aoou!
r,ur times that Of Connecticut.
Connecticut has two systems of banking,
Statu stocks for free banks, and chartered
;anks.
Bo:h are good and reliable, but after fair
.zial it was found that the stock secured banks
could not meet the wants Of the community;
and therefore the banks that had their means
to redeem in their vaults have done the largest,
and nearly all the discouuting. =.
The bank returns published in 1859 show:
spts Siocts t;j # the Hanks inearly:. %%SS &.}
SPECIE, ST. Stocks, q IN md due ifom other ~'~
1'aaks ...-....-.-.-...-.--.--.-, 5,sHVeo
About sl,oo0. 600 Of the above assets are in
State Stocks, which represent the Free Banks.
Let us take glance ut tue Bank Of Illinois.
Loaus and discounts, none reported !; anu
the question may be asked, can they chow
Loans and Discounts feayl..-.......... $1,000 oM
circulation l2sa,G.! ~
Specie. -.-..--.-----..-..ss.- 944eStl
Assets in Stocks-ralue 1e,0000tN
Now, III all fairness, ,yhat is the difference to
the people between the two States-Connccti-
cut and Illinois.
Connecticut discounts at 6per cent; Illinois
discounts ut 10 per cent.
Tie people of the little State Of Connecticut
yet loans and discounts SS,o0O,0eO.
The people Of the great Statc OF Illinois get
perhaps less than So,000. 600 loans and dis
counts.
While Illinois has deprecated currency
aflnat Of 81, ,O00, 900, Connecticut has ciTcE-
1ation Of 2ll 000, COO, aud I'LL par with gold.
Vermont shows more discounts and clrcufa-
lion in proportion to her Bank capital; bnt
take Connecticut as a fair sample Of al the
Eastern States.
The State Of Indiana, with less commerce
than Illinois, shows in forty-tivc Of her char
tered and FREQ banks in 1859:
Lonns and Uecnunts- ,4t5
capital 5os3'9 e e.:
% spseie and Cash Aetets. 1,sss;iS
Sloc.s ], ,al6
1t will be seen that Indiana discounts near
5000 coo to her people, and has only about one
third Of bills aloat to Illinois, and the banks co
successful business md pay good oeS dividends
But the State OF Ohio perhaps {under char
tered and free Banks) is better Adapted to ILL.,
! nois than any other State.
| The Report before me shows in her forty
| nine Banks:
Loans aud Discounts. ,bss 9as
Capital Stocks Of all the Banks 6.68o, ~
speeis and due from Other bauEs. siSts
Stocks and Real Estate, nbout. ao00.0E
Only about one-half the above Is in Stocks,
| It will be seen that Ohio ia 1oaning at PEI
cent. to her customers, and loans about $40,
| O00.0D0, on capital OF about 100000, and
| tic Bank and branches pay good dividends or
their Bank Stock and have specie paying cir
| cuiatipn.
The Kentucky Banks, joining Ohio, have dis
counted s1s,oQo,o 600, On
Capital Stock, about $l1 .0oo0s
spccIe and specie Assets, about........ 5,oW'1
which shows that Kcntucky has on hand Il
}quidate Mt olce more than half Of all her cir
cuiatIon, and other assets, go that the Bank
conld close In ninety days and retire all thci
circulation
hayc not been able to see tbat our Baukin,
system In Illinois has increased our ability u
all; 1t has had the tendency, as will be seen
compared to other States, to raise tic rates d
interest, aud to dcpreciate the currency. IT
rcliancei is on Stat 6 Stocks, that rise md fal
| in the market, and although the currency vii
ali 10 good and finally redeemed, it does MI
| meet the wants Of the people as specie pay
tic stato Of New York has about doubt
the population Of Illinois. That State hs
,gono literally into the Stock system, but ha
| lost millions In the change, and the rates Of in
terest have been made higher by shortenir
the paper and making It payable In New YorE
It was rich State when that system con
rnenced and the Free Banks had in that Stat
| about 100000 Of chartered spceiepayfn
bank capital to lean upon, and had that ben,
fit for some eighteen years. Also, joining I'll
State east, more than 800 0oo,0 900 Of epcci
paying bank capital, from which the hanke.
n bank capital OF about s110; ;0oo, 900, her loa,
and discounts are more than &16Q, goo, ,ooQ-
The question Is, what can the legislature
| Illinois do By way Of amendment to her pre-
ent Banking Law? I answer, the duty Is plai
under all the circumstances, Pass a Law cha
statea Of Ohio aud Iowa. with capital Of q
100000, to be raised to 900 or so OK
| | 600, as the wants Of the State require. n
, | branch to be established with a les capN
than s100,0 600, and to be located In q city {
: village Of more than i, 900 people, each to tai
!, the others bills at allowed to iss1
two to enc Of capital paid In, and cor
l PEELED to keep in specie or specie deposit
, ! twenty per cent Of the circulation paid Oh
| All the Banks to contribute halfof one cent p
| 6UuUn Oh lQGlT t1Ap1LA1 elOChr 10 Ut 1ufc&Lt
! | under Law, till tho Investment and lntcre
| reach Is per cent of the whole capital, ns
| fund to redeem dcfau1ting Banks.
l.. 4 Board of Control to see the funds arc
: paid in, and bills all registered by the Sta
officer.
Have a central redemption forall the Bank
u The Bank Commissioners to hare full co
troll over both systems Of Banking.
: The new chartered Banks to lonn and d
t | count ut seyeu per cent, and leave the #
X, Banks to&oan' and discount as they arc nc
authorized to do.
# have taken some pains to look at the po
q ulatIcn Of the different States tho Inst SIX
years: The Banking Of tho various stats
5 and the whole history, shows that people
e J thrive and improve in q country, must have
. low rate Of interest
Mixing IN amendment to our BankIl
b ! Law, by the chartcring Of Bank with sor
:. thirty branches well located In different pa,
= Of the State, will have tendency to lower t
c rate Of interest. Iwuuld restrict the charter
r Banks to Z per cent loans and discounts. I
- the present Baulx be treated literally and Il
4 altef their rates Of Interest. A. central !
d demption Of both classes Of Banks Will brf
!. an the currency to par. The new banks, VT
II the funds In their .nults, will be able to j
r. deem their circulation at sight, and and b
Il ter dividends to the stockholders
~ IN tusdca to lows und Indiana. ma ahou
i 3.AIA AA4ra -