Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1863-09-05
Tk Financial Com baa..The state


Banks.
WS>ave shown that the head of the new ma
sionnlg anking department h,s openly announced
his hoaility TO the State banks. and uttered his
prediesson that they must wind up their sffirs
ard glsFe place to their newer rivals. These in
81 tuissns for The most part are under the control
Of hi 81 minded. patriotic men. who have already
maniE sted their willingness to aid TIE country in
i,sppSent- struggle by every lawful means in
their 9wer. and who must be now somewhat ex
ercises "a to their duty in this emergency. A
mljorfty Of them are not so selfish as 70 consult,
only sheir pecunisry interest. independently of
highe. and holier obligations; and mos, Of them
rhriuE: from ANYTHING which shall even seem to
placesshem in opposition to the wishes Of the
Fe.Ies.l authorities What position shall they
take - this contest which the Washington Comp
trolley declares inevitable? The question ap
pears e:.t first to have a wide range. but little
eranE ation will bring il into more narrow
lrnirH
Thes' need not hope to change their institutions
so ~ q secure TO them the favor of the DEPART
ment9 This is explicitly declared by the national
CompSoIler he not only declines to issue any
eurrelzy to them. except upon compulsion. but
recarki- through thorough winding up of their
sif,irs the sinking of their corporate names. and
fresh organization as new association. But
even !. the Comptroller were willing to facilitate
the cAsnge. IL i not easy to see how il is 20 be
DONE The banks. in most of the States, are
menSDle 10 statutes which forbid such transfer.
and tescrbe penalties for their violation. for
whictsh he act Of Congress will afford relief.
Not1an they easily follow the Clmptroller's
IL. !.
new .Sstence N the national form. In this
s s'e'sie process OF winding up an established
bunk Shch Is doing prosperous business would
be ksrcu'ean tssk. involving heavy losses and
expeiees for which the stockholders would re-
eeivek o adequate compensation Would the
mtpss ers Of bank be justified in such under
TAX nj In many Of the banks large portion
OF az. ssock is owned nv widows. and held in
trust Cor minors. and otherwise placed within
limitssxhere It could not he easily managed by a
CONVERSATIONS board of directors. Besides, the
prescsss banks hold large amount of specie which
must BE sold If thew wind up for the benefit of
their stockholiers. The new banks are organ
izing xn another basis. and will not wish to buy
IT, Is safe keeping in other hands mas been so
muclEh ,mperrd by lite Congressional legislation
that iaslividuils could not afford u purchase and
hold it. II must then be shipped and sold
abrnSi A. custOdans of our chief reser
v,irssnf specie. could hardly spare our State
bank.
We see no other course. then. for the State
banks pursue hut to hold their present
organizations and try to outride the storm which
has hssen gathering to oyerwhelm them. 1t Is
probsi.e that up to this point OF these insti-
tutiohe will find the path of duty saith -iently
plain But here question arises which is one OF
real difficulty. Ia struggling for their existence
thew vail find themselves engaged in "a contest
with tie new tssoei .,ions. If the Comptroller
had NJ. svowed his hostility this collision would
have sen inevitable No bank can min neu
trail ara continue to transact active business IL
must Z, ia with the current. when il will soon
dad itself overloaded with the issues, and
mos, 4 It's available assets absorbed in them; or
10 mus decline the exchange and refuse TO take
them. or taking them. must present them at once
for re iamption. ss "a raf
We 80 not think that the blnks can refuse to
receive these issues The Government is the
graf employer. and these new notes will be the
currensv in which il will deal Many who have
not needed our warnings heretofore. will find this
pet Backing scheme they praised iippantly
monster OF very formidable dimensions when
t,ev come 10 exsmine It, proportions The notes
of thee new banks are To he legal tender from
TIE Government for every debt or clsim whatever
excep the interest on the permanent debt All
con'rsstors. all Governmenf EMPLOYEES and
creditors must tike them presentation The
y.
bscons will be paid in these notes. There the
tendeS.stops by law. but must go by necessity
The Iotes will be the only currency actively
sdost, land every must take them nothing
Beside We foresee that the banks will have an
Interest in making the notes current The Gov
ernmsat owes them a large amount. The Seven
and t.pee;enths Notes held nv the banks are
convelsible. az the option of the holder. into a
tweuts year permanent loan: so that these will
10 s-..f4 anHr of R,f ab, th
the banks have loaned TO the Government fifty
millios dollars upon ten day certificates and
hold BESIDES. shout thmty million dollars Of the
ole yesr certificates. The Treasury, under the
law. can paw these eighty millions in the national
notes, and the banks must take them. Depositors
need not take them of the banks. they are
legal lender no further; and the banks. 20 be rid
Of ,hee,. must make them current. The market
will So be full of the noies paid out by
tractors and Others; and Que must 90 outside OF
the atrlosphere consent To- breathe 10
IL VII be asked. why NAV not the banks take
them Estd present them for redemptioni They
may. s7rd this will probsby 0e the course they
will er .ieavor 90 pursue: bat this - task of no
little r,Agntude For let il be remembered that
the neies printed only at Washington. but
are TO BE redeemed wherever issued The points
Of issue will be mulutudinous when the scheme
i in s,dl operation: and. the redemption Is the
least pleasant part OF the whole business, no eSpe
cial fs@ilities will be provided IN this direction
The Government will be collecting It's internal
revenue frpm al parts Of the country. and huge
C mixed notes will thus be received from
all qnSters aud paid out here National Bank.
No La. at LeIvenworth. Kansas. do No 5l4
az DU:uque. Iowa; do No sl5 IT Youngstown
Ohio; AMI Others OF Ike character will lie ma
gel "a the pile No matter where issued, the
creditar must receive them from Government
vheneser otferei. for that il T. the Law. Il viii
therehsre be some time before this part OF the
business ~Hl work smoothly: 5nt other
clurss which the State banks csn pursue
Aekstme. there are some other points Of in
tereS;Sshich nav be presented ia this connection.
We Understand that the friends of the new meas
ure pTSpose To urge upon the next Congress seve
raj irtportant amendments and IL is said these
viii la<elv be recommended in the Secretary ;
repors First. the shutting out OF State banks
from q possible participation 10 the scheme. for
the purpose OF compelling them 10 withdraw from
the fed. Secondly. the establishment of a cen
ral Clearing House. where all these new issues
nav 60 for exchange and redemption And
third. the organization OF Board OF Control. TO
be located at " ashsngtnn which shall direct the
entire: man gement Of the bank operst ons 80 as
20 exclude all chances Of collision between each
other. between them and the government
!