Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-09-28
The National bank Bubble.

We have published some articles showing that
it was the intention Of the Administration to
break down all State banking institutions and
substitute in their stead Federal banks, with a
Federal paper currency. This national bank
scheme is additional evidence of the attempt being
made by the party in power to change the Gov
eminent into central despotism by removing all
those checks upon the Federal Government and
the Federal authorities which have thus far pre-
served the liberties of the people and popular
institutions The following article, which we
copy from the New York News, still further
develops the objects of the Government banking
scheme:
The banking law passed at the ast session of
Congress is now about 10 go practically into
effect as a great Government political machine
to control the currency, and through the cur
rency the property and business Of every man in
the Union. That there might be no mistake as
to the object of the scheme, the Superintendent
has openly avowed that all the institutions are
under central control at Washington. and
all State institutions are to be crushed out
What we're charged against the old United States
Bank as crimes for which it merited subversion
are claimed to be desirable principles on which
the new institutions are to be based. The old
United States Bank, in the infancy Of the coun
try, was the fiscal agent of the Government. 1t
received on deposit the national revenues, and
paid out its own notes for all Government ex-
penses on the drafts of the Secretary of the
Treasury. II had branches in the chief cities
and into their hands we're paid all Governmental
cal dues, and from them flowed all Government
payments in the notes of the United States Bank
1t followed from this arrangement that the ex-
changes of the country were monopolized by the
bank, because each bank could draw at pleasure
on any Of the others. and the rates of exchange
were low. For the same reason all collections
Of mercantile debts were made by the United
States Bank, because accounts for collection
could be lodged with it at any branch to be col
lected at any Of the others
As consequence of this state Of affairs, the
branch in each city was always the creditor of
the local banks. The branch in New York, for
instance. received: 1. Government dues; 9 paw
ments for all collections due other cities; g. paw
ments for all drafts sent here. All these paw
ments to it were made in checks upon the local
banks and brought them all in debt to il each
morning 1t thus held them all in it's grip ard
was controlled itself only by the necessity Of paw
ing specie This necessity compelled il to conine
It's operations within such a compass as would
enable it to pay. Nevertheless it had the power
Of making money cheap or dear in any locality.
lift vigorously demanded payments money would
friends availed Of the circumstance. This dear
ness was soon followed by relaxation. cheapness
Of money and rise in prices very profitable to
the interested. To maintain this position il be
came a political machine under the guise of
commercial bank, or, in the emphatic words of
General Jackson. "a monster" Its evil ten
dency was so manifest that il was destroyed with
the consent Of the whole nation.
Mr. Chase has now, under the law, power TO
organize the banks, entitled to issue $500 900 900
of currency, nearly ten sines the capital of the
old bank. These banks are: First. to be con-
trolled at Washington; second. the notes are
legal tender for all Government receipts and pay
ments: third, they are to be the depositaries of
the public money. with nominal security; fourth.
they are not required TO pay in specie. These
being the leading powers of the banks, we have
only to bear in mind that the expenditures Of the
Government now 81 900, 900 900 per annumn,
instead of 800 600 900 per annum, which was the
average under the United States Bank, and that
the business ofthe country is twenty times greater
than then.
To form some idea of the vast power which will
be welded by this gigantic monster" over one
thousand other banks, all selected on the princi-
pie Of loyalty" for although any person may
apparently start bank, the power rests with the
Secretary to distribute the facilities including
the privilege of holding deposits; consequently
all chances Of profit depend on him; these banks
are all to have spne name. with a number at
ached TO it, corresponding to the Board
of Control at Washington Through them as
fiscal agents will pour out one thousand millions
of dollars to army and navy contractors and
other creditors of the Government, and into these
concerns will be paid the taxes and other reve
nues of the Government. All these transactions
are to be in their own bills, inconvertbe into
specie. redeemable only in greenbacks. The
checks and drafts Of the Department on all Of
them in all sections of the country, to the extent
of $4,000 900 per day, will determine the ex
changes, and the irredeemable currency Of these
banks will be the only circulation
We shall then have all the currency of the
country furnished by at least one thousand banks.
not required 70 redeem their notes, but all de
pendent upon the party in power for the pos
session of the Government deposits, for which
they ara required to give only ten per cent. secu
rity. The example of what is required at the
postofice and the custom house on the eve oi
election IL conclusive as 70 what will be required
of these "6scal agents under the same circum
stances. They will not only be required 70
support the Government" at elections, but the
"bank facilities" of every business man will de-
pend upon the degree Of his .loyalty to the Gov
ernment" The Government is at this moment
the great employer, and we have before called
the attention Of our readers to the exnltation with
which the profits on Government business are
counted up In the Official returns of New Eng
land IL will pay all in the notes of the new
banks.
We have also called attention TO the fact thai
the Government owes over four hundred millions
that viii fail due year The whole of tba,
will be met IN similar manner. The holder oil
Eve per censum certificate Of deposit in New
York. if be asks for bis money, nav get Il !,
the notes Of the National Bank (No 900 na va
BILE In gFeenbacks 1t Bloody Ruu. Kansas, Tn.
holder Of aoneysar certificate viii get simiIa