Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1863-12-25
seport OF the comptroller.


Report OF the comptroller.
We have received from the Hon Hugh McCul-
loeb who II at tie head OF the new Banking DE
partment NJ Washington. copy Of hls first
annual report. Like everything we have seen
from him, IL is a clear, outspoken documents exr
pressing bis views without a shadow OF reserve
or Discrimination IL all the friends OF tie
system had been m frank as The Comptroller, IL
would never have been adopted by Congress.
But il has nov obtained poSer. because it has
hold ol the national purse, and there is DOT force
enough in ali of tue preseus banks, or their.
friends check its career eurtail is authority.
Whether fur good or IN. II has now 10 be tried
There a time when Iudicious discussion of
the system, and thorough exposure OF it, true
character hy the " hole press OF the country would
have insured its defeat. But at that day few
would listen 10 discussion To oppose IL was
10 oppose the Secretary OF the Treasury and to
oppose him vas TO prevent supplies Tor the war,
and this was treason. There is the history OF it,
success.
The clamor against opposition, and the epithets
freely bestowed upon those whose principles.
cherished for a lifetime, did not permit them to
ind0rse the new system were sufficient 10 deter
a large majority OF public writers and speakers
from expressing their true sentiments. or even ia
timating their dissent from the Secretary policy
We did not yield TO this clamor. and, In the face
We placed on the record. calmly and fairly. our
views of the whole question. showing clearly
what the projectors of the new plan intended. and
why We objected To il When il was adopted
our active opposition ceased. and submitted
20 the test OF trial. Now. when tie mischief Is
beyond recall, We have communications from de-
vOut Republicans, beseechnG Us 70 interfere and
save the nation from this infection. They see
he arm Of authority lifted against all State in
how he k form cd rsee
Williams pamphlet as wild cat" institutions;
they find the govern ment funds deposited in them
with little pretence of exactng "a security tlfey
can see that the first step IS likely 10 lead on 10
their own ruin: and they would even turn
against MIR Chase or denOunce the AdmInistra-
ton in tones that would drown the voice of the
loudest "copperhead,' ii 10y this they
could stay the progress of the new invention
But it is too late The hungry politicians have
scent Of the spolls. aud they will not be turned
aside
VIC do not suppose that the system viii
work unmixed evil. although il has in it th,
most cOrrupting agency tie country has evel
known. Some OF its features desirable il
themselves. aud IN superhuman hands Il might b
made a blessing to the country. Ii il true tha
il j. despotic power ia finance; it gives the con
troll OF the nation capital To a large extent int,
the hands of politicians. But despotc power il
immaculate hands i the most benefcent govern
ment We object 10 the system, as we Away,
desire constitutional limitations OF governments
authority because the perfect administrator can
not be found among men and because oppor
tunity tor corruption aud nlismanagement vii
always find those who will avail OF IT, But on
opposition to this system has at time beer
factious or unreasonable Many worthy men d,
not discover the evil hidden in it, and seeing onl,
it's capabilities for good, its earnest advocates
They have obtained IT, and we now unite with III,
Comptroller IN desiring that il may be made a
perfect rs possible. Ii our views are correct, j
will work evil enough to Justify the original op-
position il, after all the amendments have beer
adopted
There have been organized under the law. g.
banks, OF which 90, with capital of 81 ,1s4.7I5
are noticed in Che Comptroer's report Thu
officer suggests great number of amendment
To the law, most OF which are designed To con
sOlidate the system, induce the organization O
new banks and give the Treasury Department
more complete control of them. He recommend
that section AZ, which limits the amount of mone'
60 be loaned to any person or firm to onet third o
the banks capital. be stricken out. leaving tn
bank To loan all its money to one individual i
the directors 50 desire. He would allow one thir,
of the bank directors to be non residents of tn
State where the bank is located. He desires tn
failure of a national bank 10 he made prima faci
evidence OF fraud throwing the proof of homes
dealing upon the managers. He urges the striknj
out OF section 81 requiring an additional secuIit
for circulation when the United States bonds tai
below 90 cents at the New York Stock Exchange
He suggests that no bank should be allowed 4
commence business with less than $50 900 CAPT
tai paid in
The Comptroller further recommends that al
these banks throughout the country be above
10 charge per cent. interest, which is boil
stroke OF policy 70 draw into them the capital q
I New England and other States where the laws q
the commonwealth allow bus six per cent. II
also urges that departure from this rate sha
only work forfeiture ct the interest taken AN
not involve the principal. He makes anoths
suggestion ia this connection which NAV well a
tract attention. He recommends that power b
lodged by Congress in the hands of the Secretar
I OF the Treasury, or commission TO he create
Tor tina. purpose. ~ absolve The national banks j
all our large cities from the penalties Of the usur
laws and allow them To charge whatever rate q
: interest may he deemed best when IL il dcsirab
20 check speculation or discourage imports Thi
instead oi being tree trade IN money is the yer
hight of despotc power, as II would place th
financial resources OF our large cities completed
i'm the hands of the authorities At Washington
but il is in keeping with other features of th
measure. already adopted
he suggests the repeal of Section Is. whic
provides for semi annual reports. and the adoI
lion Instead, OF a clause requiring the banks
carry one sixth of their 6rohts To the surplus nc
count. until that shall amount to thirty per CEN
Of the capital. The sections e., 63 and o.
which allow the State Bank TO participate in th
new circulation. he would repeal. thus con
polling them 70 Wind up and organize under th
system
be recommends that the national banks 30
required to prevent their notes from being d.
preciHted ia the commercial cities ofthe country
! This Is good suggestion. although the objec
may be at times a little difficult OF attainment
One objection 10 the law he proposes 10 obvisi
b, nobe promise on the part of the Tfeasur,
/ he states that II the banks fail, and the bono
ui the Government are dep ressed or the mark,
the notes OF The national banks must be rsdectre
IN full ~ the Treasury OF the United States
II this promise can be a all times made goo,
/ then indeed We have found the Philosopher
Stone. and the golden age is reached. here al
questions which crowd ,hckly upon US. as tn
I glowing promise rings in our ear. bat We will u,
ask them now. Mr.. McCulloch is earnest an
sucere aud will meet problems enough 10 solv,
eveu u nanics and financial crises never ~ retur
tovex him ~ Y Jour IT Commerce
sT-It is understood that the Committee o
Ways and Means will report TO the House a
important bill increasing the revenue tax upo
articles ct luxury. This tax il i reported vi
amount 10 so cents per pound OF Leaf Tobacco,
70 cents ngF gallon IN mali Eauorx rant. a