Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1863-02-05
NATIONAL INTELLIGENCFR.
THE NATIONAL BANKING BILL.

with added difficulties and embarrassments when
the resources of nation are subjected to sudden
and rapidly increasing demands by the exigencies
of war. Indeed, these complications appear to
grow with the Importance of a safe and sound mo-
notary system. Yet, by happy law of compensa-
ton the necessity creates the remedy, and history
furnishes numerous instances in which, out of
these complications, have arisen the most splendid
structures of national credit. England, during
her twenty years conflict against Napoleonic
sscendency in Europe, furnishes an illustrous ex-
ample Of this truth, which is confirmed by the
earlier experience of our own Government.
May we not hope, that the lesson of history will
be again repeated, and that out of present pc
cuuiary troubles may be evolved lasting legacy
of goodl Heretofore, although one nation, bound
together by the ties Of consanguinity, Of common
lans uage, and an interstate and ntersectional COM
merce, we have been separated by diverse systems
of currency, bounded by State lines, and as widely
variant as those which mark the alien and often hos
tile Principalities and Powers of Europe. London
and Munich, Paris and ST. Petersburgh, are not more
inaccessible to each other except by the friendly
bridge Of g exchange" than are New York and st.
Louis Boston and Chicago. This monetary alienation
has existed not alone between the people OF different
States, but barrier has been placed between the
Government and the people. Local banks, created
by State authority have practically furnished the
people with circulating medium which they have
used In all their transactions with each other; but
in their dealings with the Government another and
distinct medium-gold and silver coin-was made
imperative. Thus We have had one currency Tor
the people and another for the Government.
The outbreak Of the war was followed shortly
by the suspension Of specie payments and the
issue of United States notes, which were made a
legal tender not only for private debts, but for all
debts due from and to the Government. Thus,
waving as we do in this view the constitutional
obje ct;ons interposed by some persons to the
legal tender policy, it may be justly said that
the necessities Of the war induced single step In
the right direction-the formation of currency
practically adapted to both the people and the
Government. But it was only single step,
planted in the midst of fresh and peculiar diff
culties. and another must be taken in the same
direction before the feet of national credit can
stand upon a safe and solid foundation. This is
the step proposed by Mr.. Secretary CHASE, in his
National Banking System, wherein currency is
provided which will not only be for, but of the
Government and People combined. The present
infStion Of gold and depression of Government
securities is traceable, in great measure, to the
plethora Of paper issues from distinct sources
from the Government and from local banks-each
acting independently Of the other, rivals in the
race Of expansion.
Without contemplating any invasion of the just
rights or franchises of existing banking institu-
tions, Mr. Chase's plan, as we understand it, pro-
poses system of organizations in which they and
the Government shall both become parties inter
ested, and by which the evils alluded to may be
corrected. Such system will rebound to the
mutual advantage of the Government, the Banks,
and the People The People will be the imme-
diste gamers, in the safe, sound, and uniform
curreucy afforded them The Banks will be bene-
fitted not only by the liberal provisions of the bill
which are offered as an inducement to reorganize
under the national authority, but in the removal
Ct the restriction which at present debars the use
Of their issues In all transactions with the Federal
Treasury. The Government will secure to itself,
without violence or injury to vested interests, a
prerogative which it has too long suffered to rest
in abeyance-the practical exercise Of its theo-
retical authority to regulate the currency 1t will
be able to check excessive issues Of bank paper,
to interpose its protecting hand between the people
and frauds, to guard against inequalities of ex-
changes between sections, and LUX itself By the
most intimate and constant relations to the private
capital and monetary interests of the country,
This last point at the present period is one of
peculiar force and significance The alienation
between our once united and happy family OF
States calls for every effort of rational Cancellation.
While there should be no relaxation in the stern
purpose to quell rebellion, it were unwise to take
no thought of provision for the return of the dis
affected States to the relations they held With their
loyal sisters and to the Federal authority before
they assumed the attitude Of secession. The bank
ing systems of the Seeded States have not escaped
the general wreck of commercial ADD financial pros
perity within those States When peace returns
vast region Of country-the whole area Of the
Seeded States-will be in reality without cur
rency of any value. It will become the duty and
~ 4 4. 80 20 oh