Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1864-01-04


capital Of Si0,OO0l
Section 10 requires the payment. semi annu
ally, to the United States, of half of one per
cenfum on the amount of circulating notes, say
one per cent year Section 20 declares that the
notes shall be received par in all parts Of the
United States in payment of taxes. excuses, pub
lie lands and all other dues to the United States,
except for duties on imports and also for all sal
aries and other debts and demands owing by the
United States to individuals, corporations and as
sociations within the United States except inter
est on public debt
Sections %, &c, 81 and %. provide for the pro-
test by the holder, and redemption by the United
States. the circulating notes of any bank which
may tail to redeem them, at the Office of such
association, in "lawful money of the United
States" Section Al requires every such asso-
citation TO have on hand at all times, in lawful
money of the United States an amount equal to
at least twenty FIVE per cent. of the aggregate of
its outstanding notes of circulation and its de-
posts: provided, however, that clearinghouse
certificates shall he deemed to be lawful money
in the possession of any such association: and
provided, further that any balance due to any
ISOLATION, organized under said Act, 0other pla
ces. from associations i'm Boston, New York,
PHILADELPHIA. and other cities named, may be
deemed part of the lawful money required to
the extent of three-ffths of the said twenty five
peRcentum
our COmmtttee Oeliefe the iOregOlilS audiy-
teal summary embraces the substance of the
"Act TO provide National Currency" The
| bills are receivable by the United States for all
dues except for duties on imports, and may be
paid by the United States to all individuals, cor
poratons, ard associations except for interest on
public debt But they not legal tender be-
tween man and man, nor has any banking insti-
tuition legal right to pay them out in discharge
OF its debts TO an individual or corporation.
This disposes of the first inquiry-"What is this
scheme" &c.
To the second inquiry. "What will be the eff
feet of the proposed currency the interests of
the peopleT" your committee respond:
Perhaps the most attractive feature, with re-
gard to the national bank currency is the preva-
| lent idea that it is to be currency of uniform
value all over the United States, from Maine to
California; and, indeed, its being secured by
/ United States stocks, favors this superstition
Look at the practical working OF the scheme,
and see whether this be we'll founded or falla-
cious
1t must have been observed by all, that the
applications for banks under this law, though
numerous. are for small amounts, many of only
S50, 900 or S6O0J0 capital Your Committee
know of very few which designed TO do a le-
Ultimate banking business. There may be others,
but from the small amount of capital of more
than hundred of them, and the localities of
several. your Committee strongly suspect them
of being intended for banks of circulation only,
not regular business banks for deposits and dis
counts, but what arc known in our Western States
by the expressive term wild Cat Banks" It
will be borne in mind that the bills of these
banks are not redeem bile at an agency, like the
country banks of New York State. but only ''at
the office of the association" There the bills
must be presented for payment, IN lawful money
of the United States, and if not paid, protested;
then taken to the Comptroller of the Treasury.
in bn aft 1a ia hnn nd
redeem them.
But how are the people to make such presenta
ton? Or how can even any institution, if it
we're disposed, afford to do il? All the bills, W
are told, are 10 be printed from the same plate,
having only the locality and number distin
gulsh one from another Now, is it TO he pre-
sumed that any person will be able TO discrtmi
nate between them when all look lrly alike?
If not. what is TO prevent a largeamount of bills,
having their legitimate homes in Minnesota, Ne
vada or California but their places of issue
among the brokers in Wall street, from being
circulated in New York or any neighboring city?
Suppose eight or ten millions, belonging nOmi-
nally in rs many different States, to be put float
in New York. how the city get rid of them?
By what process procure redemption OF this un
current money? Whose business will il be TO
save a hundred dollars of this bank and thou.
saud of that, and send them to Wisconsin or d.
kOta only to be protested, returned TO New
York, then sent to Washington and after thirty
days redeemed there at par?
Or suppose the man in business has taken
these bills, aud has note to pay at bank; the
bank cannot receive his national currency be
cause it has no leAgle Sht to pay it out to either
depositor or bill holder What, then. can he do ?
He has but one source Of relief; he must take
the bills to the uncurrent money broker-peThapS
the very m IN who issued them-lud submit to
a discount of from TO five per cent.
according TO the distance of the place where the
bank is sup, osed to have "a local habitation"
and number The man vino thought he had Il
currency of uniform value all over the United
States, finds, when he leaves the brokers Office,
that he has one or two hundred dollars less than
when he entered there. But it is not merely the
business man who is TO suffer. This deprecated
currency will become the general medium OF
trade The laboriDg man aud poor woman when
they make their small purchases, will hud five or
ten per cent. added 10 the price they would be
required to pay, provided they could offer legal
tender notes. Is it fair To throw this unnecessary
burden on The poor aud ignorant? Who is bene-
fted? Only the man who perverts the legitimate
use of banking law of the United States which,
however, 10y its own imperiections, has stimulated
his cupidty and nstigateJ uasound banking.
If more currency is required for she legitimate
business OF the country, why shoulj not the gov
ernment avail itself of the opportunity to issue a
furnish currency Of uniform value less the
expense Of iransportation-in every part of the
Union Whereas the National Bank currency is
not lawful money, and. being payable in differeat
parts of every State, must be subject to the laws
of exchange. which are as infaiIihle AS the laws
of gravitatiOn and nece$sitate discount en bank
bills payable at Il distance from business centres
even when redeemable in spe,e Paper currency.
J merely, IS poor enough at best; why then should
the government be Nilliag 10 give the people an
inferior paper currency, when il commands a
! superior one2 That is the question!
: Another uoint deserves considerations The
total amount Of currency authorized by the Ma
e tional Bank Act is three hundred millions of dol
lars. Does any one believe that so large sum
can be added 10 the present paper circulation oil
this country without causing undue imitation oil
J price in every commodity?
e The amount of legal tender notes in circua
ton may be set down at......... 800 900 ,0OI
? In May last the bank note ci:cula-
J ton of the loyal States amounted
TO-. .....'.''........... ioo,4VU,VV'
Total. NEUTRALITY-SUSPICIOUS.. S56s, 400 ,0Ot
Now, if you add to the foregoing 1900 ,D00 600
J National Bank currency. will hot the inevitable
tendency be to great depreciation of paper, rs
comptred with gold, ere ,ting enhanced prices
and increased expense OF living to every class oil
5 society? 1t must be remembe cred, too. that we
are the eve of further issue of illegal ten
der" in the form of treasury notes bearing five
per cent. interest. These notes are legal tender
j for the face of them. Fifty millions have recent
" been sold by the government, under Law
$ authorizing the issue of S4O0U0O, 900; leaving
$3.50 .0n0 ono vet at the disposal OF the govern
: uemt Can Il be considered wise or prudent, "a
create large amount of new bank currency
under these circumstancesf 1852