Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1864-02-01


The National ssStump-taiI" Banking
Scheme-A Searching Exposition OF
its UnsOundness and of ats Perni-
cfous Effects upon Public and Pri-
vafe port of HI. HI. Van
Wyck, superintendent of the hank
Department in the state Govern
ment of New York.
I'VE subjoim those portions of the late report
of II H VAN WICK, Superintendent OF the Bank
Department ia the State Government of New
York, relating to the new National Bank scheme
only promising that Mr. VAN WICK is a Re
publican in politics. and is in his present position
by appointment OF the Republican party
The people and banks of New York cannot
but look with apprehension at the palpable ind
cations from Washington OF design, on the part
of the Secretary of the Treasury and his suboT
dinate officers 10 foster oppressive legislation by
Congress toward the institutions OF this State
with the apparent purpose of compelling aE
abandonment OF their present organizations and
an adoption Of the NATIONAL system IL is einl-
esrly to be hopei that no seeming advantage in
this direction will cause the National Legsla-
ture to adopt policy that must resort in serious
arrangement OF the business interests of the
country. well as in evoking more deter mined
hostility toward system which ought to win
its WY 10 success through other mediums than
largesses on the one hand and punitive taxation
on the other. We already have u currency az
amply secured as thar proposed under the act of
Congress Our banks hold United States stock
far mOie than Commensurate 10 secure their en-
tire circulation. and no further absorption OF
these securities could be obtained by enforce
ment of the national system. A sufficient num
Der OF government banks will be organized TO
furnish repositories for the public revenues, ii
the State Institutions are not regarded safe in
this respect. Hence there would seem TO be no
apology for driving the institutions of this State
into unnecessary contraction of their accom-
modations TO the community and the govern
ment, as must be the case under cOercive and
discriminating legislation. The first obvious eff
feet of the national system must be the inor-
dinate multiplication Of banks of small capitals
throughout the country The slightest familiar
itv with the locations OF those Institutions must
enforce the conclusion that they are not estab
Iished i'm accordance with the requirements of a
legitimate business. adequate to the support of a
bank. but that they are designed merely as con-
duits through which the circulation received
from Washington is to flow out upon the commu
nifty. Men hi,h in authority have inculcated the
idea that the mates thus sent forth by petty cor
porations to possess all the attributes OF a
currency issued 1y the nation tself-that they
are TO maintain an illimtabe round Of circula.
ti0n--be of equal par value at home and th0us
ands Of miles from the point of redemption-and
that their curative fathers will never be called
upon To fulfill the promise Of payment until
columbus" discovers another continent, on
q De Soto" calls at the bank on his way up the
Mississippi. Under these seductive influences,
aided by the hope OF becoming repositories Of
the public funds. it il not improbable that the
number Of National Banks will be rapidly multi.
piled; and that large accession 10 The ire
JeemabIe currency already ahoat will serve
further to illustrate the problem of rising prop
cries OF gold and the sinking propensiues OF
paper Who that remembers the lamentations
OF the Secretary Of the Treasury over the ia
fitting influences OF bank issues, will not wonder
at the avidity now manifested for the creation OF
associations whose influence must be to postpone,
TO a still more indefinite period, the resumption
of specie payments For the inevitable effect oil
engenderng brood Of banks. at time when
gold commands a premium in paper of fry per
cent. AMI of dispensing the specie reserve now
locked up IN the vaults OF existing banks by the
distribution OF their assets. can only operate IN
this direction. Besides. a truly national curren-
cy, TO the amount Of S400, 900 900. has beeu al
readysizsued bs the government Tothis extent
it is loan without interest on the part Of the
people, satisfactory as me lium Of exchange.
aud within the control-Of public authority
rs 20 its diminution or increase. The economic
considerations involved in substituting for this
currency an equal amount Of government bonds
bearing six per cent. interest. and giving to
banking institutions the benefit of circulation
equivalent 10 an interest Of SIS 900 900 per an.
nun, is far from being apparent. One OF the
Distinguishing attributes of the national cnrren-
cy" from which great benefits are anticipated II
uniformity OF appearance. That Is 10 say, all
the notes Of each denomination furnished to he
various banks are to be printed from the same
plate. the only variation being in the designation
af a. ,.,,,,.- "A l,<..f;on ~ the hank hv wb;ch