Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1864-12-15


Total Sl0S 1854, 597 rs $65, e64 $50 $8l96l, 450
The Comptroller says that the spprehensions of too
rapid increase of National Banks have been much essened
by the recent action of many State Banks.
THE Legislature of Pennsy lyana, following the
Pile of the Legislatures of Massachusetts Connecticut
&c. has recently authorized tho banks Of that State 10
reorganize and The indications unmstakable that
the time far distant when the people of the United
States will be every where relieved OF bank note ercn
laton OF limited credit and uncertain value and supplied
with uniform credit and solvent the nation
II has been the earnest wish Of the Comptroller that this
desirable result should be brought about through the
agency of existing banks rather than by the organization
of oneF, so that the national circulation might be
introduced with little increase 0 banking capital
possible" .s>
The Comptroller adds:
1T an interesting fact that this great change taking
placehis great financial revolution If may call it.
being accomplished without disturbing the business Of
the country state Banks, whose conversions faci
sted by enabling acts being daily reorganiaed without
curtailment of discounts or temporary derange
ment of their affairs Nearly all the banking capital of
Philadelphia has been recently nstionazed with scarcely
interruption Of the business of the Banks for single
day. In States where enabling legislation has been
obtained the change from the State to the National system
is attended with difficulty But even in these States
by the organization Of National Banks by the
OF State Banks and the transfer OF the assets of the latter
10 the former the change has been already in many in
stances effected without loss to the owners and with very
little practical Inconvenience to the managers.
1t is also interesting fact that the stock of State
Banks which have been changed into national associations
has not been deprecated by the change the contrary
the shares of most OF them have been appreciated and
know of instance in which their real market value
has been inuriousy affected by it. This fact sufficiently
efutes the charge sometimes urged against the system
that it being forced the country to the prejudice
of the stockholders of State institutions.
1t may be proper for to state another fact in this
connection Of interest to the public which IT, that the Ma
tona Banks are without any known exceptions In SAFE
although Of them are in inexperienced hands and that
the fears that the national banking system would be the
Of og the country with banks of fictitious CAPT
tails and be reproduction, large scale of the stock
banking systems Of States which they have proved be
failure, if not fraud from present indications with
out a real foundation"
The Comptroller remarks that he is nstnting system
Of examinations which will do much to expose and check
improper practices the part Of the bankers and viola
lions of the wholesome provisions Of the law OF the bank
ing interest generally, he says:
The banking interest of the United States impor-
taDt it has grown with the business of the country
and has been largely instrumental in developing the
tonsl and in increasing the national wealth
Banks Of issue badly and dishonesty many OF them have
been managed and disastrous have been the failures
which bad management and dishonesty have produced
have still been of unquestonable advantage the people
Tie capital Of the country has been largely and good
faith invested IN them and thousands of stockholders de-
pend upon the dividends upon their bank stock for support
1t interest which has stood by the Government in its
struggles with gigantic rebellion and now when it is
Indispensable that the Government should control the
Issues OF paper money there has been created National
banking system not to destroy the State Banks but to
absorb them and that too without prejndce to their
stockholders"
OF the tendency to imitation, he speaks as follows
But, while the national currency act is restrictive in
s general provisions and is expected when generally
adopted to prevent expansions there still danger that too
much capital will be invested under il during the suspen
son of specie payments and in the existing unsettled con-
dition Of our political and financial affairs When money
is plenty and fortunes being rapidly acquired the
country always in feversh and unhealthy state This
10 especially true at the present time The enormous Ell
pendltures oil the Government and the great advance
prices since the commencement Of the war have made
many persons suddenly rich and upon fortunes suddenly
acquired have followed reckless expenditures eItraya.
ganee waste Speculation IL taking the place Of sober and
perseyerug industry and thousands deluded with the
notion that the wealth Of the nation being increased by
the increase Of its indebtedness The Inauguration of
system Of banking, under such circumstances h Do
cuarly hazardous and have been from the time of my
appointment, more apprehensive that too mapy banks
would be organized than that the system would not be uf
fcienty attractive to induce capitalists become con-
nected with It, The Government the great borrower
Its obligations compose large portion OF the discount line
OF the banks which making large profits on Govern
men securities at little apparent risk and the danger H.
that the national banking system with all it's restrictions
may during the suspension Of specie payments and IN,
continuance Of the war add TO the plethora of paper mo-
Rey and that when the is over the banks deprived
OF the eIstng means of investment Government obliga
tons, and finding legitimate use for their CAPITALS NAV
be tempted 10 use them in encouraging operations that will
eventually prove to be Improbable to themselves s
double
poss, therefore, Of keeping down the national circulation
a. far as has seemed possible to do it, consistently with
the establishment of the system throughout the country
and preventing an increase Of banking capital that might
hereafter be instrumental in keeping up the imitation and
retadDg the resumption OF specie payments or prove I'M
profitable to It's owners have felt it to be my duty to
discourage, 10 many instances the organization Of new
banks and 10 instances to refuse my sanction to thu
increase of the capital Of those already organized In do
ing 80 may seemed TO have exercised power not war
raed by the act but if not sustained by its letter have
been by l spirit and willing TO let the future decide
az to the correctness or incorrectness Of my course
But while entertain the opinion that the currency Of
the country already too much expanded and that it would
be calamity If the national banking system should be the
Of materially increasing must not be understood
sanctonng the notion generally prevalent that the
high price of coin is TO be altogether chiefly attributed
to it. that gold and silver at the present time the
standard Of value in the United States When gold sold
in Wall street. the 1s Of July last 1t eighty ve
premium, many Of the best stocks well productive
real estate we're higher than they have been upon
coin basis.
BY referring 10 the gold market In New York during
the past three years will be perceived that Its value has
been regulated by other than the imitation Of the
currency In January, 1902 gold 10 New York was at