Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-12-16
The Comptretier OF the Currency ON
BANKING.


Tn. Cemptre,ier OF the Currency ON
BanEinE.
Mr.. Huan McCULLooH. nov comptroller -
the national currency. but until recently the
President Of the Bank Of the State Of Indiana,
has suddenly. and. ve may add. most marvel
ously. changed bic views upon banking For
many years the people Of tbs State have been
blessed. or cured. We do sot knos which, and
Mr.. McCULtocH's remarkable conversion does
not relieve us from the dilemma. with two sys
tens of baking IN direct sntagouism What Is
tesm~f the Free Banking System resembles very
nearly In is operations the present national
banking system, which now ha. the cordial IN
dorssmsn, Of the late President OF the Bank Of
the State. Previous To his transfer 10 his pres
ent position. Mr.. MoCrLtoeH vas most deci.
ded opponen, of the free banking system lie
could noe sec any virtue or advantage in L. A
a practical 6naneier. OF large experience in none
tAry affairs be regarded Il a. a humbug--as of
no practical avail On the other hand, he IA.
vored the State Bank system. and pronounced II
TIE pirfecIIon Of financial wisdom and sagaciiy
The free tank system required the deposit OF
Government or State bonds With the State
Treasurer. with sufficient margin 70 secure the
redemption of its circulation. The State bank
system required no such security for the redemp
ton of il circulating notes. but their payment
was left 10 the integrity Of The stockholders, and
the mutual responsibility OF the branches
combined individual aud partnership responsible
~. But change. IL appears. has come over the
matured wisdom and long experience Of II Nc
Cu1Locu. Esq he does nots-lor some reason
which We will not attemp, TO analyze, entertain
the views which he advocated with so much APP
parent earBe.,uess and zeal before hIs transfer 10
his present position. We shall not attribute this
change ca he transmission from the head OF a
State ban king system 10 the eomp,rollership OF
the national currency.
Mr. MeCuLLoou made a report the other day
upon the condition Of bis department OF the gov.
eminent and he regards IL. IT NO read him Alright,
as tho main spoke if not the hub Of the national
wheel We make the following extract from the
document TO show how he nos looks upon The
banking system which be 40 recently represented
to the people Of Indiana a. not only secure. but
the most advantageous for the public and the
business intefests shat could be devised. lie
SAYS.
A lous - here wss any uncertainty in regard
"a ne saoces ol the national banking system. or
the populAs yss.sct upon is mcrlts aud security
did Itof fbei n, liberty to recommend discrimin
stng legislation against the State banks IL Is
for Congress To determine IL there IL ANY longer
reasonable uncertainty on these points and II the
time has not arrived when all these institutions
should be compelled To retire from circulation
IL i indispensable for the financial success of the
treasury that the currency OF the country should
be- under the control OF the government This
cannot be the case long a. State institutions
have the right to flood the country With their
issues A. a system has been devised under
which State banks. or At least a. many of them
as are needed. be recognized so that the
government can assume rghtful control over
bank note cir, ulatioa 10 could hardly be consid
cred oppressive IL Congress should prohibit the
further issue OF bank notes not authorized 10y IT,
self and compel. bs taxation (which should be-
-. hcien1 90 effect the object without being op
pf, avsl - silhiAwaI Of those which have
eesn. ..ss-ay issued. Ny own opinion Is that
this should be done, aud that the sooner IL Is
done The betterit will be for the banks themseve
and for The public A long the two systems
are coutending for the field (alIhOugh tire result
Of the contest can be no longer doubtful) the
government cannot restrain the issue OF paper
money: and - the preference which is every
where given 90 a national currency over the note.
of the State banks indicates what IL the popular
Judgment in regard to the merits Of the two sys
tens there seems to be good reason why
Congress should hesitate To relieve the treasury
OF serious embarrassment. and the people Of
an unsatisfactory circulation
he nov proposes. a. Il will be seen by tn,
foregoing recommendation. to strike down thu
build upby burdensome congressional Legislation
against IT, gtrdless Of the interests OF those hi
encouraged 10 invest their capital in those insti
tutions Tie bases his opposition to State bank,
uDon the ground that the financial success Of the
treasury renders il indispensable that th,
currency OF the country should be place.
under the control of the government. In othe
words. he advocates the suppression OF al
State banks in order ccntrslize and consolidat,
power in the federal government This IL III,
plain idea OF Mr. McCrLLocn's financial views
and he evidently desires to make the moneyeC
interests of the country tributary to the politcs
schemes Of the party 10 power The comptroller
II We read Alright the sentiments he erprcsse- il
his report. representing tho views OF the admins
traton. would DO willing to see not only Stat,
institutions but State governments stricken dowr
II they stand 10 the way OF the successful estab
lishment OF our overshadowing central power