, 1863-10-27
THE NATIONAL BANKS.
Success of Chnse"s Financial
System. -
LETTER FROM ROBERT ]. WALKER.

ae5s H4o@~ "4A~A W. SA -. @ N
to published letter from Hon. Robert J.
1.,.ss. rt,s ,a,t,. .-.,,,,,a ~. -
came poeitlon. LIS is4ter e1p1aaAs tne "ofh-
ipgs Ct the new National Bank system so ful-
" that We gladly give 1t q place in our col.
-, -. for .he .,oo;.1 haraet of nv r.,da,,-
nnsns 1of Inc special oenens OF cur reaaets-
particularly capitalists, fnancierE, and all bu-
sinese men. Ii is worthy of carefn1 ,,eru.
-, '''- go =
0n.
~ a1,.n ~ TN fsor..,,oa., -.,, u,
bonds refrohnrssh1e in twentT Tesrs o hnt "a. ss
5earnnh1e afiar H. ,sa.rs ~ ~. ,1st,o,
Na1inn tha inte,est he;,1 81, M ,,er co,st 1,Ts
hIa sem, .nnns1IT T., MS a. X s1so ~ ,:;n-
cjnals H. - WIN ~ - ''@'0 WV Z. -
ssa Tbafesua of Tinted s}atea Local tan.
dor mites rrc.tvah1e ~ al ,nes fo tha Nasian
eycent cnstnn;s. ani1 inndah1e IN this 1in;ted
~ ~ "a n.r,t stnc, - *4A1' o0tSee
st9 The .nthnrfzatf nf fha hanks renom.
| mended IN tis renort Thnee ciTcn'ntinn ,yonid
| he secnrei mt nnir tv nrirate ca1,ito1 Int 10
| fHe G;orsrnIoent. ".0 0''~> "1''S
| ii n mnintain In the meantime AZ near
| tn snec;e a. rrac,icahIe thia Faiera1 cnTranrv
| Nfi1st hv mnEinp Il receiVahIe IN nj dnes to
+le Government excent for rnstams: second.
by the privilege Of fn1dInr It in Uuited States
I enhancing benefit
! privilege, not only bY making the stock, both
princIpsl and interest, pa7abie In epecle, but
by mai;irg it gradually the ultimate basis ct
] our whole bank circulation, which, as shown
| by the Census Tables before referred to, (in-
cludtng depos1ts,1 nearly doubles every de-
cade: .-.
''5. 81 Imposing such tax on the clrcn-
| lation Of the State banks as, together with
| State OF municipal taxes, would induce them
| TO tfane1tr theif capital 10 the new banks pro.
posed BY the Secretary.
"G. To relieve the new banks from oil State
az. In lieu thereof to impose moderate
| Federal tax on all bank circulation, as 8 bo.
nus 10 be paId cheerfu1l7 bv these hanks for
the great privilege Ct furnishing ultimately
the whole paper currency Of the country,
and the otter advantages tecnred By these
bills.
UTtis tax, as proposed by the Secretary,
was enc Der cent. semi-annualJy. which b
tftct, would have reduced the intzr.st oo our
pti1 cIpal locrs from Six to four per cent, pei
annum, so far us those loans were made The
bstis Of batk calculation. Congress, how,
eyer. fixed this Tux at about cne talf. thut
TaEiro the Interest an s,,cb 1oans eo1,ivalcni
in faci 70 i've per cent. per annutn. 20 far d.
tuch IosnB, st The option Of the holder, are
made tie basis Of banking and Of bans circu,
| 1atinn' This is a priyilere which eriVea Gre
| additional Yalue to these loans. for the ftgh,
fn itsne the hank paDer circulation of The cnl n
rrr fire. from State or municfpal taxes +
worth far more tLan one.half uer cent. sem;
annnally. to be paid on snch circulation
Th,t thfs n,ir;jere IA xrori}, 1on,a tI,an ~.
hansa s1e already being e orranized RAJ led % Under T TIL!
srstem' IN and hr ti,c f,174hfi fact that NOR: .n
f5sn SIN m I'M NJ ie@n1 tantis,, 10 hava ~
reacy been funded In tiis stoeEs ard thc nro
cess cnnfinnes at tl,c rate az ram ons ~ n f tw,
millions Of dollars per day. I: viii i,e f,h
|
keep rhem. iftheg nlease. disconneeted viii
ali panks. receiving the principal at maturity
as wei AL tho scmf onnual interest in goid
free fiom all taxes
"But, besides tbs financial benefits to the
Government Of MI. Cnase's system, its Other
II oi.place our whole State bank system aud
circulation, ard give us q national currency
hasfd On nrnpfe nrivate capital and Federa]
stocks, a currency Of untfo,1, value through
out the country. and alwaYs certainly convert
lille on demand fnto coin. Desides. by dis
bank-1ote currency Of the UnIon viii be based
on The stocks Of tie Government, and clye to
| cyerY citizen who holds the bonds or the cur
rcncy (which VIII embrace the whole coiamu
uity IN every s,ate1 direct interest in tht
ma}ntensnce Of The Union. '@N'
aTha annnal losses which our people eus,
ta1n under The separate bank system. in the
rate Of erchanre. ia enormons. what the
Constant nnd eyer.recu7ripg insolvency Of sd
mnry { fthtse institutions. nccompanfed by
ejeht general bank suspensions Of specie nay
me1t. lave from time 70 time spread ruin and
devastation throughout the country. 10
Icye that, in a period Of twenty years, the
ssyfrg to Tie people Of the United States, by
fha snbstifntion Of lie new sTstem, noult
reach sum very nearly approaching the to
I'll amount Of our public debt, and In time
largely exceeding It. As q question, then, O
ra:loEal wealth, as well as national unity.
belieYe The gain to the country in time by ii,