Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1863-09-19

We have published some articles showing that
n was the intention of the Administration 20
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 despotsm 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
s,heme:
The banking law passed at the asst session of
C,ngTess u now about 10 60 practically into
effeci A. greet Government political machine
IN control the Curiency. and through the cur
rem " the property and business of every man in
the Union That there might I've mistake n
20 the object of the scheme. the Superintendent
has openly avowed that all the institutions are
under central control ~ Washington, and
all State institutions are 10 be crushed out
What we're charged against the old United Ststes
Bmk ~ crimes for which IL mcrited subv er,iOu,
are ci,imed 10 be desirable principles on which
the institutions to be based The old
United States Bank in the infancy Of the coun
trv w,- the f>cai agent ct the Government IL
received on deposit the nstonal revenues. and
paid ont Ia own notes for III Government ex-
penses on the drafts at the Secretary of the
Treasury IL had branches in the chief cities
and into their hands paid al Gov eminent To-
cal due, AMI from them howei all Government
payments in the notes Of the United States Bank
IL followed from this arrangement that the ex-
chsnges of the country we're mOnopoEcd by the
- Il -
on any Of the Others. and the rates ct exchange
were low For the same reason al collections
Of mercantile debts made by the United
Saes Bunk, hecause accounts for collection
could be lodged with IL NJ any branch TO be col.
lecied 40 any OF the others
A consequence of this state Of affairs. the
branch in e,ch city vas always the creditor of
the local hunks The branch in New York. for
instance. received: L. Government due-; 2 paw
rpents for all collections due Other cities: 2 pay
nents for all drafts sent here All these paw
ment. Ia IL we're made in checks upon the local
banks and brought them all in debt il each
morning IL thus held them all in its grip. NJ a
controlled itself only by the necessity of paw
ing specie This necessity compelled il 10 confne
Ia operations within such a compass AZ would
enable Il TO pay. Nevertheless IL had the powe
OF making money cheap or dear in any locality
lift vigorously demanded payments money would
be dear exchange and products low and is
friends availed Of the circumstance This dear
res was soon followed by relaxation, chearnes.
o. money and rise in prices very profitable TO
the interested To m,ntan this position it be
came = political machine. under the guse OF !,
commercial bank. or. IN the emphatic words Ut
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 ~
organize the banks entitled TO issue $500 600 600
Of currency. nearly ten times the capital of the
old hank. These banks are: First. Ia be con-
troled at Washington: second. the notes A
legal tender for all Government receipts and pay
ments. third. they TO be the depostaries of
the public monev. with nominal security; fourth.
thew not required to pay in specie These
being the leading powers OF the biuks, We have
only tn bear in mind that the expsn iitures Of the
Governments now II 900 600 O00 per annumn.
Instead OF S2n .0o0 0oO per annun, which vas the
average under the United States 4 NIX. AMI that
abe business ofthe country istwenty times greater
than then.
To form some idea Of the vast power which v IN
be yielded by This gigantic monster" over one
thousand other banks. all selected on the prime
pie Of .'loyalty " for although any person NV
apparently start bank. the power rests with the
Secret .rv 20 distribute the facilities" including
the privilege of hpliing deposits: consequently.
all chances 81 profit depend on him; these bank.
are all 20 have name. With number at
tselsd 10 10. corresponding 20 the Bosri