, 1864-03-08
To his E1cellemcy, b. MAeorr1N, Frankfort, Ky.
AMENDmENT6 TO TIE NATIONAL,
RANKING LAXYa

There are three amendments to the Ma
tiona1 Banking law demanded By capitalists,
and until they are made, the Act, 1t Is
thought, will not work well: LIST, The rate Of
interest should be made uniform, or nearly
60; seven per cent Is the nate suggested
Some say sir per cent for the Eastern States
and seven for the Western. As the law
stands, there Is much confusion and inequali-
tt. 4 national banker in New York may
charge seven per cent where money is cheap,
while in Illinois he can take but six per
cent, though by special agreement ten is
allowed to be collected by private bank
ers. The act provides that the banks
may charge the Interest already established
by Law, In the States in which they are loca-
ted. I'd, The old State Banks that want to
change into National Banks desire to retain
their present distinctive titles !; they arc very
tenacious on this point. A dispatch from
Washington enys: .,......
Officers Of some Of the largest banks In New
Ways and Mems SUBJ b-Commlttee charged with the
amendments OF the National Banking act, 10 effect
a change in one Of the FectioMs 80 a. to enable
Se 'Se Saonsi % Bank 81 comme1ee, o. lie National
Bulls Head Bank This change will probably be
conceded to the Northern and Western banks that
require It. And very soon the banking capital OF
ihe country win Be transfer1cd to work under
Chase'F law.''
sd.-The most important amendment
proposed Is that Of central redemption. It
Is held that unless all the National Banks are
required to redeem their issues. at some
common financial center their uniform value
will not be protected; hut the bills Of the
country banks will depreclate and fall below
par In proportion to the distance the bank is
located from the point OF National exchange
which is New York. Therefore, in order to
give uniform raluc to them, and cause them
| to circulate At par in all parts Of the United
States, they should be made redcemahle In
| in New York as well as 2t the counters OF the
! banks Issuing them. There is no doubt as to
| tho soundoess of this objection to the law as
it now stands. The uniform experiences Of
! The :past in banking shows that unless the
notes of the country banks are redecrna-
BILE IN New York they will fal into discount
SO badly as to loose character as currency;
the brokers make widest Of them.
Already the Associated Banks Of New York
have resolved that National Bank notes and
checks should not be taken unless the banks
izsuing them were represented in the Clear.
Ing House through an Associated Bank. This
I is the real beginning Of the war between
the State and National Banks, which must
ripen as thcseyeral new banks now orgauiz-
ing in that city get Into tull operation. The
following arc the resolutions:
Resored, That tho banks composing the Clear.
Ing House Association agrec to receive nom their
Banks a1e guaranteed to be redeemed at par in law
fnl money Of the United States By any bank mem
be5 one N noEk ang A9Tss re- s @
deemed ahnll be considered and treated a. uncur-
Exsa1td Tha. r xtll sese1ysen :, deposit ss!tt;
s 6apE %eanser oitsa m Poeded Thst
spe1 ave1g osss s
that viii be responsible fur such checks to the ex.
y ne The
In rcetr1pg to the above resolution, the New York
| Commercial AdftstiseT sayf:
| The number OF banks now In operation under
snd s TIE tie ssp.sl I about md !hey aIs max
Ing prGpalataons Tor stgofou. csTpalgn, % The pe.
them legal tender between the Government and
the people, and also requires the banks to redeem
their notes On demand n lawful J., money It T. does M
locality and another. Thus the holder has the right
TO demand payment at the counter Of the National
counlcr is not aeceesIble to the holder the right
conferred by the Law is neuttalized- The Treasury
mar practically tAko this right awsy from tn: bill
holder altogether Thns it collects Its internal rev.
enuc in oregon IN the National Bank notes Of that
stctitn and its revenues hero in the notes Of The
| New York banks. it may pay on the latter n ore.
e very plain that soldiers family in New York
holding oregon no,cs. cannot get them redeenediu
4eerbaeks. This is an extreme case 70 Illustrate
Inc dfcnjtv In euch cases the notes fail into the
hands oi brokers who make a business Of get
tinc them redeemed, and they charge rite of dis
csant propo1tioncd to ths distance and tIoaoe: 2,
ttrupent ior paying out the noies OF irresponsible
| bapks where they cannot be redeemed