Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1863-05-25

The National BauktnE Law-sOpinion Of
the New ComptrolleFs
The following letter was intended to be
private, but it is so clear in its expositions
of the new National Banking law that we
take pleasure in laying it before the pub
lie:
"WAsHISGroN, D. c., Monday May Il, 1853.
uDEAR SIR From what you may re-
collect Of the opinions 1 have heretofore
expressed to you upon the subject OF the
currency, you may be surprised at my &C
ceptsnce Of the Office Of Comptroller UNI
der the National Banking law enacted by
Congress at their last session. therefore
consider it proper to state to you briefly
the reasons that prompted me to do SO. A
careful examination Of the law referred to
made before I had the slightest idea Of
having any agencyin putting it into prae-
teal Observation-Disclosures me thstit treated
q system Of banking which would grsdu-
ally supersede, and, as far as circulation
is regarded, ought to supersede, the exist
ing corporate banking institutions Of the
United States; for the following, among
other reasons:
81. By this law the faith and resourcesof
the nation are pledged for the redemption
Of the national currency. The notes to be
furnished to the associations organized I'M
der il are made receivable for the public
dues, except for duties on imports and in
case Of the failure Of any Of the sssocia-
tons to redeem the notes that are to be
supplied to them, the Government is bound
promptly to redeem them at the national
treasury so that the redemption of this
national currency is not only made GER
tain, but not q dollar Of it can ever be even
temporarily deprecated in value. For the
first time the Government has undertaken
iudiciously to CIRCULATE the currency"
and to do its duty to the people, who have
have been virtually compelled, by national
and State legislation, to regard and to use
bank notes IS money. By this law the
Government becomes responsible for the
character and the redemption Of the cur
rency of which it authorizes the issue.
~. The fact that the National currency
is to be received for all public dues except
duties upon imports, and is secured by the
Government itself, will give to it q uni
formity Of value throughout the country
which the notes of State institutions can
never possess, and cause it to take the
place of the circulation of the thousands
Of local banks which are now in existence,
whose issues, even if there is an available
security behind them, (which the people
have so frequently learned to their SORROW
is not always the fact cRn have no Ger.
tain and reliable credit, except in limited
localities. The national system Of bank
ing has been devised with q wisdom that
reflects the highest credit upon its author
to furnish to the people Of the United
States q national bank note circulation
without the agency Of q national bank
It is not to be a mammoth corporation
with power TO increase and diminish i'll
discounts and circulation at the will o.
its managers, thus enabling a Boarc
of Directors TO control, to q large eI'
tent, the business and politics of thu
country. It can have no concentrated
political power. Nor do see how it can bt
diverted from its proper and legitimate OBJ
jects for partisan purposes. It will con
centrate in the hands Of no privileged per
sons q monopoly of banking. It simply
authorizes, under suitable and necessary
restrictions, any number of persons, no
less than five in number, in any Of thI
States or Territories Of the Union, to en-
gage in the business of banking, while i
prevents them from issuing a single dOllal
to circulate as money which is not secured
by the stocks and the Of thu
Government. 1t is, therefore, in my judg
meuL, (as far ae calculation is regarded,
not only g perfectly safe system of bank
ing, but it is one that is eminantly adapted
to the nature Of our political institutions
1t secures the bill-holder beyond a contin.
gency, protects depositors to q greater eK
tent than they are usually protected by
State legislation, offers equal facilities Il
all who may have the capital and the dis
position to form associations under il, snt
promises fair, if not large, returns to theil
stockholders, on their investments.
8. This system Of banking, if it be
comes q success, which l believe it will be
will tend directly and powerfully to ere.
ate and keep alive a Onion sentiment
among the people. The national ~circuls.
ton will represent the unity Of the nation
II will add the power Of pecunisry inter
est to higher considerations for the main.
tenance Of the Government, and make
loyalty to the Union and the Constitution
q matter of interest as well as Of duty.
1t is this general view of this system OF
national banking that has induced me to
discontinue my exceedingly pleasant
official connection with the Bank Of the
State Of Indiana, one Of the strongest, il
not the strongest and most conservative
bank in the Union, and to accept the Office
Of Comptroller Of the Currency. BelieV-
ing that this view of the system will agree
with yours, and that the result of the ex-
pertinent will not prove it to be erroneous,
1 remain, Truly yours,
HUGH MCCULLOCH.
MORRIS KETcHUM, Esq, New York.