Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-09-07
Tne Financia, COMBAT.


The Combat.
The following article develops a new phase in
political affairs and a new agency in the attempt
making by the party in power to obliterate State
lines and State Institutions. and establish a
central despotism. Ii appears that all the cor
rupting influences at the control of the Govern
ment are to be used for these purposes, and one
of the most potent of which is the scheme for
establishing a national banking system. more
powerful and corrupting than the old United
States Bank. which General JACKSON crushed
out Ii it is possible TO destroy the liberty Of the
which experience has proven to be admirably
adapted for the protection Of popular rights, the
Administration will leave no means untried to
accomplish that purpose, and there can be no
more potent agency TO that end than the control
of the money power of the country. The follow
ing developments. therefore, in the new national
currency scheme, have a significance well worthy
the attention of the people:
Hostilities have fairly commenced. When the
"act TO provide a national currency" was under
discussion in Congress, we warned the people that
its design was to crush the State institutions,
which had contributed so largely to the growth
and prosperity of the country. and to build on
their ruins a gigantic political machine controlled
at Washington, TO be used as the old United
States Bank was in its last DAYS. to corrupt the
heart of the nation. Our first proposition is now
fully admitted by the authorities at Washington.
Those editors. therefore, who took US to task for
our prediction, and who insisted that there could
be no antagonism between sound, well managed
State banks and the financial pets of the Treas
ury. will please to review their logic, and recall
their denunciations
We have the very highest authority for saving
that it is the design and intention of the Govern
ment to shape its action so as to force all existing
banks in the United States to wind up their af-
fairs and withdraw from the field. in favor of
institutions to be established under Mr.. Chase's
system, and controlled at Washington.
For this purpose the new "Comptroller of the
| currency" under the direction Of Mr.. Secretary
Chase, has already set his machinery in motion
to drive the State banks TO the wall. In a cir
cular he has sent to the faithful, be says that
there will not be, for long, two systems of corpo-
rate banking in the United States. One or the
other. he asserts. will fully occupy the field. "ard
il requires no spirit of prophecy to predict which
of the two is destined 10 give way" Banks
whose issues are secured by the Government. and
which are TO become the financial agents of the
Government, will. IN my opinion. ere long be the
only ones that will be tolerated." With strange
logic be declares this antagonism between the two
systems to be unnecessary but inevitable 1t Is no
wonder that the assertion Of this impending con-
fict called out some stirring questions from those
interested liz the former system. We have copies
of some of these queries. with the Comptroller's
answer.
Perceiving the hostility ofthe authorities toward
the State banks. one of them asks IL the Comp
troller does not mean 10 furnish them with the
national circulation as required by the actf He
replies that this is IN law and must be obeyed
if insisted on: but that he shall execute that
portion of the act with reluctance, as he consid-
ers it ga great mistake" to have permitted them
this privilege. He hopes that the prohibitions in
State laws will prevent the State banks from
availing themselves of this provision; but if en-
abling acts are passed by the State Legislatures,
he shall only furnish the currency when "com-
PEELED, /" and with great "regret."
This is singular language for a sworn officer OF
the government, at the head of a great depart
meut. TO use in reference to an act of Congress
He dislikes that portion of the act which grants
any privileges to existing State institutions
deems il a mistake. and will only execute it when
compelled, and then with regreti We warned
our readers of the despotism to be exercised by
the national authorities over their financial affairs
through this medium of lar reaching and most
oppressive enactment; but we never once dream
eli that the onslaught on the banks where most
of the nations moneved capital is treasured,
would be commenced after this reckless fashion
The head Of this department. set apart for this
very purpose. openly announces that he will moi
even show these banks the little grace given
them by The act itself, except upon compullion'
But why this hostility to sound. we'll managed
State banks, If there is no necessary antagonism
between the systemsY Even this is no longer a
State secret. They are constitutions. /" exclaims
the Comptroller. "over which the Government
can exercise no supervision or control" This
then, is the object Of these schemers. They will
have no banks nor bankers, but such as the poll.
ticians at Washington can supervise and control
The old Institutions were not facile enough fol-
partisan uses. Capitalists were willing To lend
their personal influence to carry an election, but
they hesitated about placing their whole banking
machinery at the disposal of the wire. pullers
Hence The "antagonism The intention Of
the new law. this officer elsewhere declares "a
be. TO provide for National Banks, which
should be subject to Gcvernf,e nt supervision and
controI.ssa f f ls
He warns the existing institutions not to break
up this pleasant and profitable Arrangement. b,
attempting to thrust themselves into the circle
with a desire 20 remain partly under State anc
partly under national control. II they insist up
on 10. he admits that he must obey the act, but
they will l6Dd no favor atbis hands. He declare,
that he will first supply bis pets With currency, SC
that he cannot consider their case at any rate
until next year. Before this time be hints tbal
"a judicial decision, OF an authoritative opinion,'
may cut them of altogether. He plainly tells
them that s'it would be better TO wind up theiI
present State institutions, and organize new as
sociations, independent Of the old ones"
To show how completely these State banks
some OF which have been landmarks amid thu
------- -L..L - 49,
are TO be bIotted out without even q token Of
memory, we will bring forward at present buI
one other leaf from this startling correspondence
One questioner, who seems TO have ~foreseen how
futile would be any opposition to this despotis
crusade. ssks. tremblingIy. whether by surren.