Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1864-01-04
The National Currency system

a meeting OF Dank olncerS was neld IN new
York city on the 5th of December last, at which
the following report OF the committee previously
appOinted-Messrs. JOHN <. WILLIAMS and JOIN
L. EvERETT-to report on "the National Bank
Currency Act as to its prospective effects upon the
currency of the nation and the national credit
was read and adopted. The committee discuss
the proposition submitted with great ability, in
good spirit and with evident sincerity The
currency system of nation affects all of its
citizens. and is one of vital importance not only
to the national creoit but to individual prosper-
ty Hence M new system should be attempted
without due con sideration. This review of the
National Bank Currency Act is most searching,
and we think clearly demonstrates that it will be
disastrous in its operations upon the currency of
the nation and the national credit We have re-
garded the report of sufficient Importance as a
clear exposition of the workings of the new cur
rency system, TO place il before our readers, and
we think no one will rise from It's perusAl without
being interested, aud enlightened in the topics dis
cussed.
The Committee report as follows:
At meeting of hunk officers held on the 9th
of October. committee was appDintei TO report
On the NATIONAL Bunk Currency Act, as to its
prospective effects upon the currency of the ma
ton and the national credit aud report what
action, il any. devvlves upon the banks ia the
premises.
The undersigned members of a committee thus
| appointed, beg leave to report as follows:
The system referred % in the foregoing resolu-
ton. is authorized by au act passed at the last
session Of Congress entitled, IAN Act to provide
. National Currency secured bv u pledge OF Uni
ted States STOCKS. and To provide for the circuIa-
ton and re 1nptlon thereof"
How cIdysly this subject may be connected
! with vested interests corporate or individual now
in existence. your Committee do not mike the
object of their inquiry. A scheme Ito provide a
national currency secured by United States
stocks" IS oil two vast importance 10 toe whole
people and government OF this country to be
dwarfed by any partial or mere professional con-
sideratiOns.
As men, therefore. accustomed TO investigate
questions of finance just as business men study
their affairs, your Committee desire submit the
result of their researches Not in any spirit Of
| cavil. fault findHg-far from it-but with deer
convictions that the subject is so grave and
/ fraught with possible consequences so moment
Gus, that the best thoughts of your COMMITTED
may fail to do il justice.
<
passage of the Act, but not adopted: they may
be incorporated hereafter; OF. the lac MAY Be re
Deated altogether, but for present purposes il must
be regarded as it stands on the Statute Book
Three important questions demand seriou.
consideration:
lst What is this scheme to provide a ma
Iiunal currency'l
81 What will be the effect of the proposel
currency on the interests OF the people?
Sd. What will be the probable consequence:
to the National Government
First, as to the plan Section 5 of the law pro-
vides that any number OF persons not less thar
five. may become association for the purpose
of banking. Section enacts that the capital in
cities shall not be less than 800 000 but ia the
country t may be 600 Section provide:
that 80 per cent at least OF the capital stock shall
be paid in at the time Of commencing business
and the rem sinder in 10 per cert
instruments as often as once in two
months thereafter. Section ~ declares, FOR ali
debts, contracted for circulation. deposits, OF
otherwise, each shareholder shall be liable To the
amount. at their par value OF the shares held by
him, in addition 70 the amount invested in such
shares" Section Is provides that every asso
citation shall transfer and deliver to the Treasure,
of the United States. any United States bonds
hearing interest. to an amount not less than one
third of the capital stock paid in. Section Is de
eiare5 that. upon making such transfer. the as
ISOLATION sliallreceye circulating notes to Oh.
amount of ninety per cent OF such bonds
BY way OF calculating the foregoing provisions
your Committee will assume thai national bank
with capital Of $50 900, il TO be organized. Tn.
am unt required TO oe paid in, is thirty per cert
thereof, say. sis OOl
One third of such paid in capital is to
be invested in bonds. ssy-....... 5000
Leaving a capital Of ............. $lO.O 0(
On depositing the s. 900 in bonds, circuIat;ns
notes TO the amount Of ninety per cent are To bt
issued TO the bank. say. "a 500 Thea fourteen
months are allowed in which to complete the pay
ment of the capital, say ten per cent. or IS boo
every two months. During which time. the banl