Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1864-04-21
BANKING AND THE CURRENCY.

/ .
Inc principles of currency and banking have OF late
atfaoted earnest attention, and. from the point Of
view which he takes have found an able exponent in
that experienced fnancier, JAMES GAILArIN. ESQ
'he President OF the National Bank of New York He
mas recently addressed letter to the Bank COMMITTEES
OF inc Legislature OF New York upon the subect OF the
general banking law, before Congress with view TO
suggest some OF the consequences Of the financial policy
embraced IN that law The bill has since passed the House
IN form somewhat improved, but still probably liable to
some OF the objections urged by Mr.. Gallatin. 3.
Alterations he remarks, OF the general banking law
being now discussed ia Congress, would submit a few
cai policy embraced in that law and now being carried
me legal tender paper issues aad the funding system
Witnout adequate taxation The hesitation displayed by
majority OF The members OF Congress to resort to ade-
quate taxation for support of ths Government credit
during The war ol8l2 created great and
was one OF The great termination Of that war
we nad accomplished the principal object for which
vas underlaKen Government credit is at this moment
sunsrng public confidence in the financial policy growing
weaker from the seeming Indifference of Congress in
gard 70 measures Of taxation and from the apparent dee
10 rely upon excessive issues of paper money
During the of lsl2-I5 Congress was exceedingly
cnary OF taxation for the reason quantity expressed
old Mr. Smile, prominent republican member of the
House from Pennsylvania that the people would not bear
war and taxes at the time" The case ia very diff
feren now for the public sentiment favor of adequate
axaon s undoubtedly ahead Of the action Of Congress-
prominent objection to the law it stands is thus
stated by Mr. Gallatin: Ee
Nothing in the banking law requires the Government
banks to hold any ,ohaeDer long as Government
paper money continues afoat The law does not there
lore recognise the practical operations incident to trans
on from paper money system the restoration of the
real money standard Of value To have or to use real
money seems to be impossible long banks are by law
authorized to dispense with it, Hence the proprety of
requiring the Government and all other banks to begin to
accumulate some coin at future time with view to
eventual resumption" ~ sti
If the legislation of Congress shall force the local banks
i1to liquidation bring them under tbs new national sys
teE it is apprehended that the gold now held in
by these institutions will be rapidly sent away from the
country.
Mr.. It. presents another objection 10 the law no.
table feature Of the new law sAy) that which sane
tions loans real estate:
Land banks have always failed taa~ ~ NJ exoep
toD, either In America Europe. We 40 s.A IA this
State the land-bank system in part the Eassp being
secured Ia part by mortgages land e.ns GA land
being sanctioned to considerable exten sa tn~
which followed, the most memorable ,ng th,t ~ The
North American Trust and Banking Compsns are not vel
forgotten by the public Banking lsnd under the sane
eioh OF the ueueral Government allowed by the
law would directly expose the Government crd,t non
which the circulation based to the consequences Of
wild speculative mania in laud; for although the crcua
ton limited to three hundred mlions In All the hanks
augment their capitals to total of nine hundred mil
nous as the law stands this latter sum would be
sufficient to put large part of all the land 10 the country
market within single creating mania which would
outva that OF the year 1886 when our people
Industrial for speculative pursuits failed to prodoce su
Gent gram to make bread and we were
forced to buy food in Europe. The idea of inauQnratDg
such mania, at this Time worthy Of those crazed intel
ects which constantly devisng schemes for the inau
guraton OF the rebel leader in President Lncolns place.
In regard to the ssue currency for the purpose of
promoting the funding of the Government bonds he re-
marks that the imitation of prices has been and ia threat
enng to gain the mastery and undermine the foundation
upon which the Secretary his theory and he con-
cludes as follows:
Ii Is one which encourages the rebel chiefs TO persist
In ther mao career; the total failure of their own
paper money scheme grasped at by theu as the drown
ing mao grasPs at straw because they argue that our
Issues are gong to the and the same resu
We all know the vast extent national and
can cnhdenty anticipate the completes subug alton of the
nsurrecton II these resources be skfuly employed for
that purpose; and obviously great error 10 persist
IN ahnancia policy that directly calculated to draw away
our people from productive occupations as the economi
cal power needed to put down the rebellion eectually is
destroyed or dsspated through those speculative
and nonProductve channels the increase of which only
undermines the foundation upon which the Government
credit Is or should be maintained lit is very much to be
desired that the banking law should be by Con-
gress aud do earnestly hope that immediate attention
VIII be given in Congress to the amendment of that law as
suggested to the pressing need increased revenue and
10 the more rapid funding and reduction of the
issues OF the measure of prices"