Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-09-07
From the New York Journal of Commerce.
The Financial Comb To be

While the act to provide a national currency
was under discussion, there were many efforts
made to show its evil tendency, and to prevent
its enactment. That labor is now over, and the
only good which can come from an examination
of the law, is the prevention or mitigation of the
evils which are most to be dreaded from its exc
cution. In our last, we pointed out the dangers
which were likely to occur from a collision be-
tween the old and new systems. and called at
tention especially to the purpose now avowed at
Washington, to establish the new banks upon
the ruins Of State institutions. The object of
this substitution il declared to be, the desire of
the General Government TO have the moneyed
institutions of the country under its control and
supervision. The danger of such "A connection
must be apparent Ia every rejecting mind. His
tory teaches that there are no means so potent as
the unlimited use of the public funds.
The original draft of the act under discussion
restricted the Secretary of the Treasury in this
particular: he could deposit the pubic money in
any of the banks. and to any amount: but he
must in all cases take an equal amount OF the
national stocks as security. After much ~fnesse,
this restriction WAS removed. and the power of
the Secretary over the funds of the Treasury was
left without limit. We called attention to the
danger from this source; but our warning was
met with the assurance that the money would
always be safe, as the Secretary without legisla-
tive promoting would exact ample security for
every dollar of the public money. H
We are now only on the Threshold of the ex-
pertinent, and vet we lean from the organs of the
Secretary that he has taken the verv course
against which our warning was uttered. He has
concluded, or announced, TO exact 10 per cent of
the capital stock in stocks. and to take. in add
ton. a bond from the stockholders t,-the full
amount of their capital! Who would lend indis-
criminately. one hundred thousand dollars on
such security? Ii is easy to see that the foster
Ing care of the General Government is likely to
bring into being a majority of blanks of circula
tion. started chiefly for the purpose of distribut
ing currency and availing OF the government
deposits. Several gentlemen with limited means
borrow $l00. 900 in government stocks. paying a,
commission for their use, aud thus secure $780, 900
in bank notes from Washington. They open a
bank, receive deposits. and may then paw off the
original loan. The Secretary of the Treasury
deposits 500, 900 with them upon 10 per cent.
security and their joint bond to make it good.
They loan it out. honestly intending to make
good use of it. and to save the principal harmless
to be restored in due time to the Treasury. But
they are new, and have few regular customers in
a legitimate business. Besides, the very fact of
their connection with the Treasury will send them
a throng of political leeches, who always expect
a little accommodation for their influence. Thus.
with the best intentions in the world. their invest
ments cannot be realized when the Treasury
uttQr ~ luutiS. Tue OuI VI Dttu u ilWAte "A
bad hour tor collections. They cannot respond.
The stocks they have deposited, il may be. viii
not sell for enough to redeem the circulation;
their bond is worthless; and the public funds are
lost. +
If this danger exists where the associates do
not intend any fraud. what will cover theEisk of
dealing with that swindling fraternity who hang
around the banking system of every State, seek
ing an avenue to evade the laws and prey upon
the publicf Will no such rogues avail them
selves Of the new act. and enter this ungaarded
way to the public treasury? frt3 is--s..
But who is TO distribute the patronage among
these several institutiops7 On what principle is
il to be divided or conferredf 1.-THE Comptroller,
in his circular, already alluded to, promises them
that they are TO become the financial agents OF
the Government" What conditions viii be ex
acted Of themf What service are they to render
forssuch asdistinction3 Will all. alike share in
the profits of this connecticut These ara not idle
questions. They must startle every thoughtful
patriot with their terrible significance. Tue
Government has this moment over thirty million
dollars of money in its chest { All Of this. save
The specie, and as much more rs shall be accu
mulated, is to be earnered ID Is said in these pet
institutions. and thus let out upon the country,
like a great tide Of corruption. corroding the body
polite with its inevitabie cnfsker.
Il Is not yet too late TO avoid this great danger.
The sub.treasury Is a safe place of deposit for
the public funds, ard that well tried system should
never have been encroacbed upon. IL Is not
necessary to the establishment of these new
banks that they should be the custodisns Of the
public funds; and we cannot see how any good
citizen can fail to shudder at the danger. both
financial and political, which must attend on such
q distribution. But IL the bargain must be kept.
and the money, for political reasons, must be