New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1864-01-05
system Of Government finance. 1t was Oh

eminent sue makes part, national currency
can De regulated TO the advantage OF the great
interests of tho country without the interven-
ton OF Congress or of the Secretary Of the
Treasury under legislative restrictions.
Tie direct abolition of bank issues by tax or
prohibition impractcablc two years since, IS oil
doubtful feasibility now. TIE banks would
make the same violent resistance; Congress
Vs. uld be the scene of severe struggle, the
result Of which would BE uncertain. Gov Chase
had therefore to submit some plan for National
Currency which woull have the advantages of
the original United States lcgal-tender issue,
and at the same tine be acceptable 10 existing
institutions. The result of his efforts was
The act TO provide National Currency So
cured By pledge of United States stocks, and
to provide for the circulation and redemption
thcrcoi''-which was approved by Congress-,
February %, 1868" This act provides for an
| issue Of $500, 0G0, 900 Of circulating notes.
Adopting the main features of the admirable
banking system of the State of New-York, it
orders that all banking Associations which shall
deposit United States bonds bearing six per cent
interest or their equivalent with the Controller of
the Currency, shall receive circulating notes to
the extent OF 30 per cent Of their current mar
kct value, not exceeding par These notes are
receivable for all United States dues except for
customs and interest Oh the public debt. The
banking associations are required to redeem
such circulating notes ain the LAWFUL mon'y Of
tie United States" which now includes the legal
tender United States notes above referred TO.
Those Associations are further required to main
tain ldrfH money rescreo of - per cent OF the
aggregate Of their outstanding notes of circula-
ton and deposits. Banks organized under State
laws existing at the time Of the passage of the
act are permitted to become Associations under
it, provisions, and all banks then so organized
which shall hold one-haf of their capital stock
in United States bonds may receive eighty per
cent Of the same IN circulating notes on transfer
Of such bonds to the Controller of the Currency.
The act of March 3taxed all banks one per cent
eaoA year on their average circulation above a
certain amount. appOrtioned on sliding scale
commensurate with Their .avaral CAPITALS and
issues, and of one-half per cent each hnif year
on all amounts up to the point at which the
higher tax begins TO accrue. A prohibi.ory tax
is put upon the issue Of notes Of fractions Of a
dollar.
The Controller Of the Currency, in lis report
70 the present Congress, asks that these acts Dc
so amended that the rate of interest to be
charged DO made Uniform throughout the United
States, and that the National Banks shall De re-
quired 20 keep their notes a, par in the CONNER
cial cities Of tie country. lie proposes also
that I" the banks Of the large commercial cities
of the seaboard States be relieved in certain con.
tingencies from all penalties for usury, in order
that they may prevent, as far practicable, by |
raising tie rate Of interest, excessive impor.a-
tions Of foreign merchandise and heavy exporta-
tions Of the precious metals"
He further AXIS Tat the section Of the act
authorizing the sue Of circulating notes to
State banks be repealed. This last recommoD- /
iaiion may or may not be adopted by Congress.
There viii be no doubt strenuous opposition
to /, on the part of the State banks. A. the
law stands, duplex system Will result, TO
which there are many and serious objections.
We do not see how the Secretary could have
proposed any better scheme. We do not con-
ceal cur regret that he did not feel that it was
practicable 10 confine himself to the present |
United States notes, and drive out the State
ifsues by TAXATION. The experiment was worth |
the trial-but it il hard to contend against long
usage and powerful financial system, when
The only issue Of the struggle must be the total
humiliation Of that powerful system. The
result Of such course, If practicable, would
be 10 leave the currency wholly to the Govern
ment. repeal of tie usUry Laws would
onobic The banks 10 regulate foreign commcrce,
by Using tho rate of money when Necessary.
4 gradual funding Of United States notes, when
a favorable opportunity presented, would raise
these notes TO specie level. reserve of coin
would secure conyertibity, and permanent
and secure currency be finally established, to
the measure of which commerce and industry
would soon conform their operations. II is true
that the strings Of the purse would be held by
Congress, aud unwsc legislation might cause
distress--but there is nothing perfect in human
affairs.
The system of tho Secretary has its weak
points also. The Controller finds that even the
best system needs careful regulator. Power
must be lodged somewhere to relieve the banks
Of the seaboard from the penalties of usury, in
certain contingencies. What are these coniin-
gencies how define theml Where shall this
4. l., Ia. t,,l.