The New York herald., 1863-02-20

4 banki9e Asssciasions y ~sSss 1.-THE organization
S.s$ 80 s1sS ssss;s;s ssssai:S1 .s.ss ,s'1'ss ,a
SID ou. y ,hs ~ 10 conn., ~ additional advantages
iassd ospV 70 induce rich men, men o. accuma ,1.
the oD' enCy are-1 The national character gwen 70
ssar 90 circulate At par in all parts Of the United
sovernment, except customs, and payable 10 the
army and navy and all other creditors Of the
government. s. The banking ASSOCIATIONS are to be
exempt from all State and United states taxation and
only pay two per cent for engraving paper and
printing their circulating notes. and which is TO include
All otne expenses OF the currency bureau at Washington
On full review of this proposed plan of national cur
rency win be seen that II s based public and pr
nation with the rich individuals belonging to it, Men Of
surplus capital only proftaby engage the business
Of banking Money lenders, not money borrowers, can
successfully organize and manage banking assocla
tons under the provisions Of this act How far
it will se found practicable to extend the or
CARNATIONS OF associations the credit Of the public
and Of individuals under this can only be asceraned
by tho experiment banging association OF 500 900
capital an pad n by business men, and firmly established
the city OF New York. and acting the fiscal agent Of
the Treasury DEPARTMENT would be most valuable sup
port 10 the government might be made the depository
the public money derived from loans from customs and
Internal taxes and dsburse all these moneys to the cred
who are stockholders in the bank an immediate pc
cuniary interest IN uphoidng the credit of the govern
ment similar organizations In Poston, Phadephla,
New Orleans and other principal cities Of the Union
might be made with less amount OF capital and in IKE
manner become the fiscal agents OF the government in
those cities The Bank OF Eagland is a striking example
oi the combined power Of public authority and private
influence in sustaining the credit OF government We may
safely proht by this example. This bank has Deen
ment in the long and exhacsting in which
IL has been engaged The Bank of England is the fiscal
is bank Of discount, deposit aud circulation has thus
far received and dsbursed the public moneys without the
loss Of dollar Of the money entrusted to it. Is Is also
well known that our government lost any Of the
money deposited in the first second bank of the United
states They were both fiscal agents Of the government
All the pubic money was received and dsbursed by them
with fidelity and usefulness to both parties Sound and
wel managed banks tend 10 increase public and private
credit, and TO extend well TO facilitate
with States and individuals. They stimulate industry,
commodities are multiplied, agriculture mining and
manufactures flourish These constitute the true wealth,
prosperity and greatness OF the country have doubt
that the trainers Of the constitution contemplated
tiona currency adequate TO the wants of the general
government and that for all national purposes it has the
10 control and regulate the currency In all gov
ernent transactions has the right only to provide
by law io issuing the kind Of currency that shall be re-
ceved for taxes custom duties and all other dues 10 the
United states, but also the kind Of money that shall
be paid to the army and navy and all other creditors OF
the government. II there had been established years
ago sound national bank OF 5000 900 900 capital which
had been in full operation the fiscal and financial agent
OF the government the time OF the breaking out of
the present rebellion what valuable support 1t would
have been in sustaining the government the present
timel The Independent Treasury law unnecessarily so
lated the government from all the capitalists and the
cumuaed capital of the country At the very outset Of
the rebellion there was money In the Sub Treasury,
and now manifested towards State banks, tho govern
ment obliged to resort at the state banks
New York Boston and Philadelphia for money TO prose-
cute the war The states had ostered and aided in build
ing up strong State institutions, while e general govern
ment had been vacilatng and weakened by conflicting
views and opinions TO the consutionay and policy
OF national bank. The stern necessities of have
made 1t apparent that the policy advocated by Alexander
Hamilton, Of strong central government, was the
policy. strong consolidated government would
most likely have been able to avert this rebellion but If
not able to prevent it entirely il would have been much
MOI Oupf he trail
vocates Of secession and STATE rights who have forced
upon this unnatural and bloody sound national
bank, upheld and supported by the combined credit Of
the government and rich residing in all the States Of
the Union would have been strong bond Of union
fore the rebellion broke out and sthl stronger support
IN maintaining the army and navy put it down. The
United states government has thus far established
gold and silver Ever since the adoption Of the constt
tion there has been conflict OF opinion among the apest
statesmen Of the country upon tho question o national
currency Jefferson opposed the creation OF all banks,
both state and national Alexander Hamilton proposed
national bank during the struggle for American ndepen
dence 11S0; but his suggestions then adopted
During Washingtons administration, in 179l the rst
Bank VI the United States Incorporated manly under
the influence Of Mr. Hamilton, which continued in opera
tiOn until 1911, when its charter expired. No
tiona bank was in existence during tho second Warj
with Great Britain. That carried by loans
and the issue Of Treasury notes In 1916 the second Bank
of the United States chartered and continued
stence until 1885, when its charter again expired All
will remember the decided opposition or Genera Jackson
70 its recharte and the fierce struggle that enscd be-
twocn tho friends and opponents oI Unted States Bank
irends OF sank Hnay beaten when jackson
elected President in the tall OF 1892 The friends
~ United States Bank again rallied IN lSlO4l but
again defeated by the veto Of John Tyler. IN 1916 the
Independent Treasury law was finally passed. by which
established that the operations of the government
should thereafter be carried wholly with gold and sill
coin, and that the money the government should
thereafter be kept separate from all banks and all bank
ing transactions Thus the Law continued to the session
OF the present Congress No settled policy has as yet
been established by which the government has assumed
permanent cohtro the national currency state banks
sti go on issuing circulating notes. receiving dcpo-
SITS selling exchange and dscountng bills and promissory
notes, and the Sub-1reasury law is still unrepealed
national currency adequate 10 the operations Of the go
vernment In peace and war has got 70 be established II
seems that the present propous time to enact this
great measure permanent system and that the duty
Of the government, in providing adequate national
rency ought not any longer 10 be neglected The govern
mcnt OF the United States ought not 10 depend on State
institutions for the execution Of its powers In tho
administration OF the high prerogatves conferred by the
constitution this government need not depend nc all
state officers state authorities or State laws. It's
powers and its own means. !! brought into active cx
vernment was established In the long interval a peace
many Of the powers granted in the constitution have not
been fully exerced, was II necessary during poace u
put them into full execution. But now when engaged in
a gigantic war-when the very existence Of the go
vernmcnt is in such imminent peril--it is Of tho
highest importance that II should exert all these
great powers TO maintain ITSELF preserve its
own dignity and enforce IT'S high prerogatives. Con.
gress ana the Executive fail now 10 do all their
power to the government restore tho national
Union. This government has power issue national
currency entirely Independent d state authority power
To raise and support armies independent Of Governors Of
states ana state laws power 10 provide and maintain
navy III like manner power 10 regulate with
foreign nations among the several States aud th the
Indian tribes These great powers may. by means Of
proper lsgslaton BE- made 10 directly upon the
people independently ~ stale boundaries state
regnty Under the power Ito raise and support armies
may provide for calling able men Of the
directly into the army OF tue tned states and without
the ad o the Governors OF states and IN like the
navy may be Bcreased. A. necessary means fot sup
porting such sn army aud m,ntninins'i such navy,
may provide Tor tls issue OF a national currency
through the agency Of banks, by the legal
tender notes directly from The Treasury. Either mode
WIN require about the same amount %. currency to
be issued and ronseiuenii, the imitation will he the
same whether the Issue be iegsi tender notes
or hapk notes. kiter mode will be r1nstitu onal and il
~ the discretion Of Congress which the best
mode Tor providing the tor carr, ing the gov
ernmeni ~ the present cNigrncS. An the powers con
ierred uh the general oscinme sell acting seu
sustaining ANA wholly ndcpondeut o state authority and
when nsfce ,y neu u wal, strong nerves cngbtesed
seq reliance, energy aud ability .u1cient put ucm
INTO "tNe exercise Ne iuly adciuate TO the putting
down u Tins gigantic rebcir0 and maintaining the
aiiHion aud laws over az tho hHiy four ami Tor
rt"ries Included IN ilie saena rnfn. The duty put
ting the-c constitutional lrwor. artivc exercise de-
wolves nfon tonsress and the Executive. Congress