Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1863-06-02

The NATIONAL BANKING LAw.-Hugh Nc
Culloch, the comptroller under the new ma
tiunal banking law passed by last congress,
has written letter to Morris Ketchum of New
York. describing his reasons for accepting the
office, and why that system would gradually
superScde, and, as he says, ''should supersede
the existing corporate banking institutions in
the United States" -
81. BY this law the faith and resources of
the nation are pledged for the redemption of
the national currency. The notes to be fur
mis- he'd to the associations organized under it
are made receivable for all public dues, ex-
cept for duties on imports; and in case of the
failure of any of the associations to redeem
the notes that are to be supplied to them, the
government is bound promptly to redeem
them at the national treasury so that the re-
demptl)n OF this national currency is not only
made certain, but not dollar of it can ever
be even temporarily deprecated in value
For the first time the government has under
taken judciously to regulate the currency,
and to do its duty to the people, who have
been virtually compelled by national and state
legislation to regard and to use bank notes as
money. By this law the government becomes
responsible for the character and the redemp-
ton Of the currency Of which it authorizes
the issue.
be received for all public dues except duties
upon imports, and is secured by the govern
ment itself, will give to it uniformity Of value
throughout the country which the notes of
state institutions can never possess, and cause
1t to take the place of the circulation of
the thousands of local banks which are now.
III existence, whose issues, even if there is an
available security behind them, (Which the
people have so frequently learned, to their
sorrow, is not always the fact), can have no
certain and reliable credit. except in limited
localities. The national system of banking
has been devised with a wisdom that reflects
the highest credit upon its author, to furnish
to the people OF the United States a national
bank note circulation without the agency of
national bank. 1t is not to be mammoth
corporation; with power to increase and di-
minsh its discounts and circulation at the
will oil its managers, thus enabling a board of
directors to control, to a large extent, the
business and politics of the country. 1t can
have no concentrated political power. Nor do
| see how it can be diverted from its proper and
legitimate objects for partisan purposes. 1t
will concentrate in the hands of no priYi-
legged persons a monopoly of banking. 1t
simply authorizes, under suitable and neces-
sary restrictions, any number OF persons, not
less than five in number, in any of the states
or territories of the Union, to engage in the
business of banking, while it prevents them
from issuing single dollar to circulate as
money which is not secured by the stocks and
the resources of the government. Its, there
fore, in my judgment Gas far as calculation
Is regarded) not only a perfectly safe system
OF banking, but it is one that is eminently
adapted to the nature of our political institu-
tons. 1t secures the bill holder beyond a
Contingency protects depositors to a greater
extent than they are usually protected by
state legislation, offers equal facilities to all
VINO may nave the capital and the disposition
to form associations under it. and promises
fair, if not large, returns to their stockholders
| on the investments.
8. This system of banking, if it becomes a