Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1864-05-05
THE RELATIONS OF THE STATE BANK
CURRENCY.

The New York Evening Post, in its number Of
the 18th of April, earnestly pressed upon Congress
the duty of "taxing out of existence" the bank
paper issued by all banking institutions estab-
lshed under the authority of the States. And
this recommendation our contemporary based on
the assumption that it "is the State bank paper
which has caused the present imitation" of our cur
rency. If this paper is not to be "taxed out of
existence" the Post urged upon Congress the
duty of effecting "the same object by SO amending
the National Bank bill as to induce all the State
banks, big as well as little, to become its friends,
and get to work promptly as well as efficiently
under itsprovisions."
To the latter recommendation we have no objec-
tion but, when it's recommended to tax Gall State
bank paper out of existence" the alleged ground
that it has caused and is causing the present ina
ton of our currency it to that the friends
of the National Banking system weaken the real
strength Of their position, by bringing to its sup
port species of argument which every body must
see is transparently fallacious
That the National Government has a right to
take command and control of all the monetary cir
culation Of the country will not be denied by those
who perceive the necessity or believe in the expe-
diency of such q policy. But the vindication of
this right or the enforcement OF this duty does not
require to be buttressed by such unfounded alega-
tons as are brought against the State Banks in
order to represent them the sole source and seat
of the malady under which the country is laboring
Il
1t may be doubted whether there has been any
sufficient expansion of the State Bank currency to
have an apprcciable effect in unduly initiating the
currency. 1t may be desirable to remove this cur
rency in order to create new vacuum into viii oh
the OVERLOOKING volume of our irredeemable ma
tonal currency may rum but to say that this State
bank currency is the cause of the redundance wit
messed in the latter is to invert all the sequences
of events and all the laws of proportion which or
dinarily govern the judgments Of men in determin-
ing the relations of causes and effects by the in.
ductive method of reasoning.
We have means Of judging how far the State
Banks are responsible for the over-issue of bank
notes that has helped to swell the present volume
of the currency, but every one knows that such
overssue as indeed the entire circulation OF these
banks is small in comparison with the issue and
circulation Of United States Treasury notes, United
| States certificates Of indebtedness, National Bank
notes. &C., rendered necessary by the prodigal ex-
penditures for which the Secretary of the Treasury
has been called to provide 1t is certain that the
Banks Of the State of New York have not con-
ributed by any overssues of their notes to create
the financial initiation which it is sought to reduce
by their extinction or by their conversion into
National Banks, (though how the same volume of
currency issued by State Bank converted into
National Bank will help to reduce the aggregate
volume Of irredeemable paper currency in the
country, we have never been able to understand. }
In reference to the State Banks Of New York
Mr.. Van Dyck, the Superintendent of the Banking
Department of the State, has recently made the
following exposition:
1.-The public should be that all the plates Of oil
the banks in this State. corporate associated and ind
vidua are possession sealed against use and securely
locked from reach Of the banks Not dollar can be
printed without order from this department, and not
dollar IL furnished upon the dep~sit of security
Hence our books furnish data Of the amount
OF currency delivered TO the banks And what do find
the result take the close Of the f,cs year for ten
years past criterion by which to Judge the present
| and it shows follows:
/ Capital Circulation