Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1864-04-10
/. THE National FINANCES.
gtate Banks and National Banks
Reviewed. .5ss
National Associations Declared TO be
n Means of ConcentratingiP Power .
I'm Washington. -r....g
New York Legislature Two to One
Against Secretary Cbase's
Schemes of Finance.


New York is the center of the great f.
nancial power of the country. There is no
disputing about this. Accordingly, re-
port made in the House of Assembly of
that State on the 1st inst, from the COM
mittee on Banks, in opposition to the bill
to authorize banks, banking associations,
or individuals, Incorporated under the laws
of New York, to become banking associa-
ntions under the laws of the United States,
created profound sensation at Albany
The report was made by three Republic
cans aud one Democrat and ON test ques-
tion. the vote stood-sixty-two for, and
thirty against the report, The report con-
demns Mr.. CHAsE's whole financial scheme;
and, if adhered to, is likely to be produc-
tive of the gravest consequences. We
make some extracts: GOOD
STATE AND NATIONAL BANKs.-Mr. A.
Andrus, Chairman of the committee on
Banks, in the Assembly,, presented the fol-
lowing report against the bill providing
that State banks may become National
banks: ,~-., ~... IN. 20.
IHC GNllS TcoulJiilS lIOlli u pdp6T
cy arc SO multifarious as to forbid enumer-
alton. 1t is needless TO speculate how vast
ly our public debt has been increased
through this cause, or what would have
been its present amount had all the transac-
tions of Government been conducted OH a
specie basis. But it Is pertinent inquiry
whether the issues of currency by the Gov
ernment to an unnecessary extent have not
been chiefly productive of the present re-
dundancy, and whether measures are not
now in progress, under the auspices of the
Secretary of the Treasury, to produce still
further initiation of the currency. Il
During the pendency of the 6 per cent.
loan-known as the five-twenty bonds
the receipts of the Government from con-
versions into this stock were equal to the
daily expenditures. The currency issued
by the Government in the shape Of legal
tender notes was thus exchanged for this
stock to the extent of more than $2,000,000
per day, and the banks of New York were
literally drained of Government notes to
meet the demand for conversions. So great
was the demand that in short time the
unprecedented sum of five hundred mill
lions of dollars was sponged up by the OPP
Grafton. There are cogent reasons for be-
lieving that this absorption might have
been continued to the present time, had
the Secretary of the Treasury not been
,.bitten by rage caninen for borrowing at
less than per cent Hence twas the
market was kept denuded of stock, whilst
the expenditures of the Government could
only be met by a continued issue ofcurren-
cy, certificates of indebtedness, and such
other temporary expedients as lay within
the means of the treasury. But the curren-
cy brine was not yet of sufficient Intensity
to bear up the Secretary's egg and hence
followed the infusion of $50,000, 600 reserve
legal tender-the addition of one and two
year interest bearing notes, together with
the issues of the national banks. h1ti ~
Is it strange that under such manipula-
ton. with no outlet by way ofyconversion,
the currency should be sufficiently inflated
to float q 8 per cent. stock? What matters
il that the price of commodities should be
enhanced, and Government and people lose
ten times the cost that they save in interest?
Are such considerations to be weighed in
comparison with the financial renown
which must inure to him who borrows at a
less interest the deeper the country is
plunged In debit And in case of popular
discontent may it not be safely predicted
that the redundancy of the currency is
owing to the $l80,Q00,000 issued by the
State banks rather thanh the $500 100000
issued by the Government? toa 'a8
mo astute financier will, for moment,
maintain that under the wasting destruc-
tion of war and the withdrawal of nearly
two millions Of menfr0m productive indus
trial pursuits, the country can have pro-
gresscd in real wealth since the outbreak OF
the rebellion. Such Is our present
condition, superinduced by the excessive
issue of irredeemable paper.
A greater attenuation of the scurrency
would probably induce the public to accept
-four per cent, whose interest Is payable In