The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1864-03-13
The National Bank Sysfem---It is Rap
idly Absorbing Capital.

idly Absorbing tapRal.
A Washington correspondent Of the
n. y. Herald; writing under date Of
March 9Th, informs the readers Of
that Journal, that the whole number
Of national banks authorized TO that
date, was three hundred and two, with
an aggregate capital Of s40093,200 |
During the preceding week there had
been fifteen new banks authorized,
with an aggregate capital Of 81, $4,000
Although in accordance with the pref
yerence expressed by the Secretary Of
the Treasury, the style Of the banks
authorized under the National Bank
ing act has thus far been first, second,
&c, national bank, still, should the
State corporations desiring to organize
under that act wish to retain their cor
porate names, there being no provision
in the law to the contrary, they viii
probably be permitted to do so Many
Of the national banks already author
lied are transfers from State corpora
tions already existing. In the Eastern
States, where there exists a sufficiency
Of banking capital for the requirements
ofbusiness purposes, it is neither desired
nor desirable that the capital employ
ed in the business should be increased;
but in the Western States, where, from
the winding up Of the State banks and
from other causes, there is a deficiency
of banking accommodations, the in
crease of the number of banks under
the National Banking act will be
public convenience Hartford, Conn,
has now a larger amount Of banking
capital than the great State of Ohio,
and the State of Massachusetts, more
than ali the States and Territories west
of the Alleghanies. There seems 20 be
growing disposition among the State
corporations to avail themselves Of the
privileges and facilities afforded by the
new law, and, as the tax on the circula-
ton of the State banks viii probably
be increased at the present session of
Congress, at is believed that in a COM
paratively brief time the bulk of the
capital employed in the business, par
ticularly of banks Of circulation, will
be registered and operated under the
provisions of the National Bank act
and they viii become national instead
of State institutions.
II is not a matter for regret, that this
process Of absorption is going on with
unparalleled rapidity; on the other
hand, it augurs well for the commercial
future of the country Gold and silver
are too cumbersome for commercial
purposes; and those who have been so
long contending Cor a purely metallic
currency, have always shown their want
Of faith in its efficiency, by their acts.
They have invariably encouraged the
organization of local banks; and fire.
quently have been their largest stock
holders.
At this time, we presume there are
none but admit we must have paper
currency; and instead of making war
upon it, it becomes the duty Of the
people to place it upon a firm, and en-
during basis
The friends of paper currency have
never been the parties responsible for
the worthlessness ofso much Of the bank
circulation which has flooded the coun-
Try. In States like Kentucky, where
the majority of the people have formed
"a settled determination to have paper
circulating medium, banking privileges
were coupled with strict safeguards, to
protect the bill-holders; but in Indiana
and Illinois, where the party which so
long held sway was nominally opposed
to a paper currency, but always ready
10 vote it into existence, under some
preteace. the country has been flooded
with worthless notes, causing an annual
loss of millions, and periodical distress
of great magnitude.
As long as we have banks chartered
by the States, we msy expect to have
numerous wildcat swindles; the desire
to secure local institutions, viii always,
in some sections of the country, over
ride all other considerations; and the
interest which should be absorbed in
rendering their circulation secure,is con
fined TO the desire TO get them to opera
ting. It therefore becomes absolutely
necessary that we should have some
general banking law; and the sooner
institutions framed under il supply US
exclusively with circulating medium,
the better
The nominal opponents Of a paper
currency have helped the good work
along amazingly, by their foolish course.
They have taught fnanciers that they
must look beyond local and irresponsi-
bic factions and they therefore gladly
avail themselves of the opportunity
i. al, National po,,l-;,r low