New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-09-23
THE BANKING FUTURE.

THE BANKING FUTURE.
The MULTIPLICATION of Banks, and the increase
Of private bankisg-houses, when the foundation
is not endangered by fictitious shifts, are held
to be evidences of national prosperity. When
the growth is gradual and steady, not stimu-
lated beyond the concurrent wants OF the COM
munity, Trey are undoubtedly so. But there
have been periods in our history when the in
crease was so sudden, a. well as so absurd, as
TO precipitato upon the country the series OF
disasters which are insoparable from excessive
banking. When the renewed charter of the
United States Bank was vetoed in 1882, vast
and sudden increase Of banking institutions was
the consequence. The reasonable plea was that
the 300, 900 Of capital thus to be Withdrawn
from public accommodation could not be dis
pensed with by the business community. Banks
were therefore chartered with what may be
termed an insanc facility; Tor while in 1850 the
whole number IL the country was only $50, With
capital amounting 20 Sl;5, Goa, 600, yet in ic3e
the number had swolcd to 80 with $3i7,Ooo
900 Of capital. Thus The retiring of So, 90, 600
belonging 10 the National Bank was made the
stalking horse Of gamblers and spectators ID
almost every section Of the country, under
whose do1terous engineering Si72, coo 900 were
added to the banking capital of community
which bad been signslly prosperous with a cap
tai Of only sli5. 900. II Is unnecessary u
rccite tie incidents OF the catastrophe which
almost Immediately succeeded. IL was fore
.een and predicted in the planest language by
statesmen Of the time; and when IT iell upon
the community. Is crushing power was so ire
mcndous a. 10 compel the enactment Of Bank
rupi law, under which hundreds Of millions OF
indehtedncss were wiped out.
individual States have unwisely plunged into
kindred exirayagauces, and been almost impoy-
erishcd BY kindred experiences. But the M
ton, o. u WHOLE has escaped ,he repetition OF
similar disaster. The increase OF corporate
banking has Of late yeArs been so well graduated
10 the actual wants Of The country as not TO be
excessive, while within ten years the additional
check Of large Infusion Of private banking
capital has been applied. "a the spasmodie in
creasc has been avoided, 80 the country la
fpa mode Disaster. This reformation
Of old abuses had placed all cmploymcnts on
foundation too solid to be shaken by anything
short of a widespread rebellion. But even
iha, desoa,ing o.deal appear to have is com
pensa,ions while IL cuts up the grea, national
incubus by the roots, il is purifying the moral
nd financial atmosphere. II Is inaugurating "a
reyolai on in The entire banking system Of the
country. which is destined 10 give strength,
simplicity. conference and stability to the cur
rency. guch ~ nothing but such a CONFUSION
could have induced the nation To adopt. once
NOR, tie people viii have u currency OF equal
value In every part of the Union, with an as
surancc lhsi H. pcmanency is not to be de.
pcndcu, on tie partisan caprice OF headstrons
President, Iu, that H. continued existence Is 10
bo permanent institution, so long At least a
the national deb, remains unpaid.
The new National Banking Law is now fairly
In operation Many institutions have been or
ganizcd a. ii directs, o,hcc aye constantly being
formed and some are already in operation.
From hi. small beginning il will DO interesting
10 trace Tie process of expansion OF this fixed
financial measure Of The Government. The fol-
loving table affords instructive data for the
future: