Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-12-28

them i'm our ranks"
A Mobile paper says that General Polk com
inands at Enterprise, Mississippi
Report OF the Comptroller.
We have received from the Hon. Hugh McCul-
loch, who is at the head of the new Banking De
partment at Washington, copy of has first
annual report. Like everything we have seen
from him, i is a clear, outspoken document, ex-
pressing his views without shadow of reserve
or Discrimination If all the friends of the new
system had been as frank as the Comptroller, it
would never have been adopted by Congress.
But it has obtained power, because il has
hold of tie national purse, and there is not force
enough in all of the present banks, or their
friends, ocheck its career or curta its authority.
Whether for good or i'll, it has now to be tried
There was time when judcious discussion of
the system and thorough exposure OF its true
characterhy the whole press of the country, would
have insured its defeat But at that day few
would lisen to discussion To oppose il was
to oppose the Secretary of the Treasury; and to
oppose him was to prevent supplies for the war,
and this vas treason. There is the history of its
success.
The clsmor against opposition, and the epithets
| freely bestowed upon those whose principles,
cherished for lifetime, did not permit them to
indorse the new system, were sufficient to deter
/ a
from expressing their true sentiments, or even in
timating their dissent from the Secretarys policy
We did not yield to this clamor, and, in the face
of obloquy and abuse IRON partisan politicians,
we placed on the record, calmly and fairly. our
views of the whole question, showing clearly
what the projectors Of the new plan intended, and
why we objected to it When il was adopted.
our active opposition ceased, and we submitted
to the test of trial. Now, when the mischief is
/ l.
vCut Republicans, beseeching US to interfere and
save the nation from this infection. They see
the arm of authority lifted against all State in
sttutoDs; they denounce the banks formed [see
Williams pa implicit as "wild- Cat" institutions;
they find the government funds deposited in them
witt little pretence of exactiDg security they
can see that the first step is likely to lead on to
Their own4uin; and now they would even turn
| against Mr. Chase or denounce the Admnistra-
tionin tones that would drown the voice of the
loudest "cOpperhead." if by this means they
couH stay the progress of the new invention.
But t is too late. The hungry politicians have a
scent of the spoils, and they will not be turned
| aside
We do not suppose that the new system will
| work unmixed evil, although il has in i: the
most corrupting agency the country has ever
known. Some of its features are desirable in
! themselves, and in superhuman hands il might he
made a blessing to the country. 1t is true that
it is despotic power 10 finance; it gives the con
troll OF the nations capital to large extent into
the hsnds of politicians. But despotic power in
immaculate hands is the most benefcent govern
ment. We object to the system, we always
desire constitutional limitations of governmental
authority because the perfect administrator can
not be found among men aud because an oppor-
tunitY for corruption and mismanagement will
alwaTs find those who will avail of it, But ouI
opposition to this system has at 10 time been
iactieus or unreasonable Many worthy men dc
not discover the evil hidden in it, and seeing only
its capabilities for good, its earnest advocates
They have obtained it, and we now unite with tht
| Comptroller in desiring that it may be made a:
perfect possible. If our views are correct, il
will work evil enough to Justify the original OBJ
position to it, after all the amendments have beer
adopted.
There have been organized, under the law, l3l
banks, of which Go, with n capital of 81 lS4 ~ ;
are noticed in the Comptrollers report. Thi
officer suggests great number of amenduent
to the law, most of which are designed to con
solidate the system, iniuce the organization o
new banks, and give the Treasury Department
more complete control OF them. He recommend
that section AZ, which limits the amounted none,
to be loaned to any person or firm to one-third o
the banks capital, be stricken out leaving tn,
bank to loan all its money to one individual i
the directors so desire He would allow one thirt
of the bank directors to be non residents of tn,
State where the bank is located He desires tn,
failure of national bank to be made pri,pa faci
evidence of fraud. throwing the proof of homes
dealing upon the managers He urges the strikiD;
out OF section 81, requiring additional security
for circulation when the United States bonds fai
below 80 cents at the New York Stock Exchange
He suggests that 20 bank should be allowed Il
cOmmpnro huSinaSS with lose than 1S0 nm ca =;
tai paid in.
The Comptroller further recommends that al
these banks throughout the country be above,
to charge per cent. interest, which is Dol,
stroke of policy to draw into them the capital o
New England and other States where the laws o
the commonwealth allow but six per cent. IL
also urges that departure from this rate shall
only work forfeiture of the interest taken, ant
not involve the principal He makes enothe
suggestion in this connection which may well at
tract attention. He recommends that power b.
lodged by Congress in the hands of the Secretar'
of the Treasury, or a commission TO be cresteC
for tina; purpose, to absolve the national banks il
all our large cities from the penalties of the usur,
laws and allow them to charge whatever rate o
interest may be deemed best when it is desirable
TO check speculation or discourage imports Thi
instead of being free trade in money is the yer,
hight of despotic power, as it would place th
financial resources or our large cities COMPLETELY
in the hahds of the authorities at Washington
but il is in keeping with other features of III,
measure, already adopted
He suggests the repeal of Section IS, which
provides for semi annual reports. and the adop
ton instead. of clause requiring the banks I,
carry one sixth of their profits to the surplus &C
count, until that shall amount TO thirty per cent
OF the capital. The sections 90, So and 81
which allow the State Bank to participate in tn
new circulation, he would repeal, thus com
polling them TO wind up and organize under tn
new system. tr r. -
He recommends that the national banks "b
required to prevent their notes from being de
preciated in the commercial cities ofthe country
This Is "A good suggestion, although the obiec
may be at times little difficult of attainment
One objectionto the law he proposes to obviat
by noble promise on the part of the Treasury
He states that "If the banks fail and the bond
of the Government are dep ressed on the marke
the notes Of the national banks must be redeeme,
in full at the Treasury OF che United States
If this promise can be at all times made good
then indeed we have found the Philosopher
Stone, and the golden age sreached There ar
Questions which crowd thickIy upon us, as thi
glowing promise rings in our ear, but we will no
AJAX them now. Mr.. McCulloch is earnest an,
sincere. and will meet problems enough to solve
even it panics and financial crises never to returI
TO vex him. IN. Y. Jour. Of Commerce
A Courr Of fuunIrv for Rrest A a M II N