Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-01-01
s5sS.4DOu

New Yolk city banks. for several months. past,
has not exceeded twenty millions of dollars, al
though those notes nOw constitute the reserve
or meiium OF settlemeDt-in place of specie.
Had this currency been superabundant, IL would
have shown itself--as it certainly has not-n
large accnmulations At the principal cities, New
York. Boston and Pnadel pha.
Various CAUSES combined nave created an ill.,
creased demand for currency; and Stiollowing
may he regarded as among the priHipal ones,
namely: 9st), the wthdrawal OF specie from
commercial and mercantile TRANSACTIONS; CD,
the advance in prices of all commodities; I'D.
the shortening OF credits in every branch of bu
slness; AM. the large payments 10 the army
anu navy, aud other disbursements
This leaves out of the account the whole Vest
ern countTy-which, by the annhila.ion, two and
hall years ago. OF its banking institutions
BOUNDED State stOcks.) was COMPLETELY
euptiei of paper currency, and had to be filled
up anew, not only TO the measure OF its former
+ luuess, but tar beyond 1t; Tor the United Suites
has been bayng largely of almost all the products
OF the " est; and not only the United States
Government, but Europe also. has been pur-
chaser. and ali has been paid for in LEGAL ten
ders' Indeed. the demand from the " est Tor 7
THESE notes Is constantly increasing. being larger
TINS autumn than ever before. This currency Y
the people are satisfied with Il is a direct prom 4
lac Of the Gov eminent, pure and simnie It holds
every dollar OF propertvin the country corporate
aud individual. pledged Tor its redemption BY /
act OF Congress i is a legal tender and has re 4
Gently been 80 pronounced bv the highes, tribu.
nal in the State OF New y ork As lawful money!.
1t i as gOod between individuals as between tie
! Government and an individuals tpays bank debts
} az we'll as shop debts without ANY discount what
ever
but, 1t has been pertinently asked, would YOU /,
continue this paper currency in the form of Legal
tender. loreYer2 is this issue. made from the ne
cessity OF the case TO become perpelualI Ger
: tainiy not. The iemedy is very simple When
2 the war ends, the disbursements Of the Govern
| ment will be at once reduced one half 10 two
! thifds. Ot course, then, the Government, %
that extent, ceasing to pay out legal tender, the
volume OF circulation will decrease The notes
will also he converted into Understanding secu-
e rites Of the Government, and then cancelled-
the United States having no further for them;
q and thus, in two three years, the legal tender
notes will be reduced to minimum amount-ao
: as low sum. that Is, the people may desire
lie when they may be redeemed in specie by the
re Government, and re issued or not There Is 10
IL necessity, therefore, Your Committee CONCEIVE
BE ioF The creation of a national bank currency-ls
~ has been suggested in Washington-in order Il 1T
N IL may be substituted by the Government tor
G gai tender currency. Besides If the legal tender
u should be Withdrawn 10 make room for the "A
,e uonal bank currency, what then will be left with
n. which 10 redeem that national carrencv at lie
IS counters OF the banks! Not specie surely for
they will hardly be expected to buy that at forty
: 10 ATTY per cent premium, Or to pay out Al par
II III the redemption OF heir bills, And it may be
justly feared that these national banks will come
10 create powerful interest throughout the coln
j. try IN favor OF protracted suspension Of spece
N payments, which II would be To their advanta re
% 70 continue ior an indefinite period. This il n
y very serious consideration. and is of itself saffi
ceut 70 excite great apprehension in view of such
2. probable result. IS 1t AZ safe 10 have a bank pa
/ per circulation without any specie at all in the
banks. a II Is 10 keep bank currency which i
protected already BY handsome specie reserve
bandg
~ the proposed substitution of bank cur
al tender. would be direct los. or
oyernment Suppose, for in
il Ell millions bank currency
lgeRnment in place of aaike
fl ender withdrawn, WOULD not
q the lose the interest on that sum
!, winch. A. pr centum, amounts 10 eighteen
millions annually? Besides the Government
; being obliged 10 hire money. in some other way.
the people must he taxed Tor the interest on it.
2 IN addition GO what they now pcy. The Govern
ment certainly requires Ill the nd that can be
got from the of It's legitimate credit The
) people nave, therefore direct pecunlary inter
5 est in this question; tor the treasury would not
(; only lose thereby annual interest OF eighteen
millions OF dollars, but II would lose 'he pse OF
three hundred millions which il now has without
interest, derived IRON that amount oil regal ten
der notes; except, indeed to the extent it might
dispose of its securties-in compeiiuon with
other seliers-for such bonds as NAV he lodged
for national bank currency The people now
supplied with satisfactory currency, bnt in the
national bank currency they would have one that
Is 70 become more or less Deprecated - It's
? ~ery nature. Can any one doubt. then, the eff
iect OF the proposed currency on the welfare of
the people of this country would be extremely
, injuricusg
. l. now remains for your Committee TO present
their views under the third head, viz: What will
be the probable consequences of the currency 10
; the National Government! This is by far the
most serious aud important consideration of all
i Currency may depreciate. Individuals may lose
or suffer and the nation still continue prosperous.
But il the credit and integrity OF our National
Government shall be impaired by the operations
OF stupendous banking scheme, unwise in its
inception. uniimey in lis birth, and iranght with
tendencies of evil consequences. il were better,
far better, that it had fallen still born
That your Committee may not even seem TO
exagseTate, they viii state what appears 10
them II be the simple state of affairs which.
under the circu instances. or later, IS sure
TO exist.
The United Ststes will hold, in charge of the
Treasurer 1t Washington. its own bonds for the
security aud hnal redemption of the circulating
: notes of the national banks, under al express
provision, that after protest the Office of EMS
. SIGN. the Government will. either by a sale OF
such securities, or by assuming them, redeem the
protested notes. For time all may go on
swimmngy. The banks will get cut their cir
: custOn. ard increase. from time to time, till
! bank. originals OF $50 900 capital, will have
swollen tS nominal capital ana increased its cir
} cuatns notes to S5U0 900. wIihou, perhaps ever
: having redeemed. even with legal tender SO,
GOO. n Is remote home office But panics have
petiodh ,ly come upon u, They viii probably
always come. Au increased volume Of paper
currency Is surely no guarantee hat we are les
subject 20 them now ihan have heen hereto
fore On the contrary, i not The public credit
more liable TO collapse than il ever VAST And
besides, this law permits the establishment OF
new 'pe. bank system, (the first phase OF which
is already seen in this cisy.) which is liable 20 10
far harm. public and private. shan even the
old one did.
Ar la panic. the b of banks are sent home for
= redemption The OF merely circulating |
Il banks whesf er under Il national Law or under
the law of the State of'yew York. sre likely TO