Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1863-10-29
THE UNITED STATES FINANCES.

/ AT meeting Of the New York Clearing House Az.
socston," held October 9th 1863 it was resolved that
committee of FIVE Bank Officers be appointed 10 examps
into the system of National Banking Initiated by the Sec
re'ay OF The Treasury in its prospective effects upon TIA,
currency OF our nation and the national credit and t.,
report what action If any devoyes upon the Banks Of
the association in the premises
La the discussion which preceded the adoption of tbs
resolution, Mr. James Galatu well known as writer on
financial subjects, participated and rearmed his original
objections TO the paper money system Of Mr. Chase
Mr Galiatin IL is Known is "buionist" and believes
That the expenditures Of the might have been aud
should have been sustained without suspension specie
payments. We have never yet been able to see very
ce, ry how this could have been done.
Mr.. Galaiin takes strong ground against the proposed
nomenclature If the National Banking system of the Sscre-
try tits known that Mr. Chase has to the conclu
son that anonal currepcy to be provided through
tue insrumentaty OF National Banking Associations all
such ass'ciAtions should have name Persons
forming associations under the have therefore been
aivsed to take the Of First, Second, Third &c.
National Bapks Of the places in which they are estab
sbed according to the order Of oganiz tion This rule
is expected to be observed by Safe Banks that may bs
converted INTO National Banks under the sxtyrst sec
ton Of the act as well as by original associations
In opposition to this proposition and nsgenersi oppo-
ston to the financial policy of the Secretary under this
head Mr. Galatin argues follows:
"Itis true that by any other will smell az
but doubt very much the poss biity of transfer
ring the credit OF old banks, he proposes to the ey
ones, under names, especially the names he pro-
pofss not real distinctive but simple numerals
In the case of members of Congress, the members
ot the Cabinet for example, how ridiculous for the
Speaker Of the House the President TO insist upon
having them known by their numerals the Secre
tAry and the Comptroller to be compelled select nu
Hsrats tor themselves, contradiction OF pnwars at
Washington to enforce such regulation would be no
more absurd than this proposed re uaou part OF
the financial Capitalization of power, compel banks
TO be known by their numerals lnde d. serious
question involved In this numbering of bahks involving
the credit of the whole system. fer the great dan
ger OF The organization OF bogus banks undar the law
as was the case under similar laws IN several of the
Ithwesern States years ago; and 10 is possible
that the Secretary well the Comptroller may live
long enough to witness serious blows to the credit Of the
new banking system from abandoning distinctive names
for numerals,
Among all the deplorabe consequences Of increasing
the prices of commodities, by this proposed increase of
paper money through he banks none ia so injurious
to our national wealth the ira Of public debt
into tn. hans OF foreign capitalists the most extaord
nary low prices Persons conversant with financial
affairs shamefuly deceived and msed this Ques-
ton Because the stocks of the United States quoted
at or above matter what may b the price of gold
and other commodities, they consider financial policy
to be founded upon the wise teachings of experience
Now, for example, let US take similar those
which occur every day the street. and in the New York
Stock Board. We will suppose gold to be at 6fry per
cent premium, as it has b e1 than within a
year. aud capitalist residing ii London Paris wishes
10 buy h'usand dollars worth Of our Government
stock-say five twentes. This stock is ut par in our
paper money hundred dollars Of greenbacks teing
worth hundred dollars in 'fve.twentes The capi
taist has sent thousand dollars 10 gold Cor bills of
change payable in god) from London from Paris and
this sells in New York for about fifteen hundred dollars IN
ereenbacks, there being slight charge for expenses
that thousand dollars sent from other countries
gold about fifty premium III NewYork, buys about fl
teen hundred dollars Cf Goveremen stock bearing six
per cent interest in gold and ia reality Mr. Chase gets
less Gin real u- than thousand dollars his fifteen
hundred OF stock because hs Of paper money have
Increased the prices of every thug much that the If
teen hundred dollars hc would have received in paper in
the example just referred 10, would buy far ess COM
modrs than tie thousand dollars uuder specie cur
rency lie pays interest On fifteen hundred dollars
nuay 10 gold, being ninety dollars year. although he has
ceived in real value only thousand dollars In ths
way every foreign capitalist when gold Is fifty premium,
gets Cover ment securities about sxtysx cents on
The dollar, that his capital yields him more than nine
per cent interest, while poor people, well all
persons having fixed incomes made pay fftr per
cent for tire uecsssaes Of f. aud our own capital
lists compelled 10 pay fifty cert tban foreign
ers for eur own hstlona rites. To ippovetsh
nation and discourage the labor and savings of s people
stem eifrctual this Of paper money aud
this stn ruhous 10 the nation and the people, which
requested t. render active aud efficient by admit
ting its engines into the Clearing House, that they may
destroy sUpp4n the specie paying system upon which
New York city banks founded aud establish upon
Is that OF the nuoruu John Law, which has ex
ploded in every country which has tried it. leaving sue
cesSen Of AWFUL warnings and admunltons which to
be read in almost every chapter OF the history n naon
daring the last aud preseut centuries
Notwithstanding the advantages undoubtedly possessed
by foreign capitals citizens Of the United States
making nents in United States securities we be-
ieve that but sms portion Of the nations Indebted
has yet been aken by the former. IL perhsps
to suggest objections to Mr. Chases monetary s
than t. devise better under present clrcum.
stances of the country.