, 1864-05-03
RANKING Is PARr OF THE WAH
MAKING POWER.

Banking implies two elements, both ol
which are almost Indispensable, and alwnyt
valuable to any government in time Of war
VIZ: loan from the people, and currenc,
Tor the people. In all considerable war
gold disappears rs medium OF currency AMI
exchange, and the paper Of the war-mnkin:
power must supply it's place, for no govern
mcnt can pay the expenses Of q heavy war Al
they are incurred. Hence the power to ron
banks ofissue and to create paper currency
is OF necessity one Of the attributes Of the
wnr-naking power. Indeed this Is the main
origin of banks Of issue and deposit The
necessities Of the governments engaged In
the wars Of the Crusadcs, gave rise to the
Bank Of Venice, the first bank in Europe,
founded In III. The necessities OF the En-
glish government during the reign of WI Nilliam
and Mary, and the extreme difficulty it expe-
rienccd In raising funds for conducting the
war with France, then pending, gave rise In
like manner to the Bank OF England, estab-
lished In 1GA, the capital OF which consists
mainly Of permanent loan, now amounting
to about sl2, ,000, GOO, By the people through
the bank to the government, represented By
certificates Of stock {consols in party and BIZ
bills Of The Bank of Euglnnd The restric-
tlons on The other ancient banks Of issue,
md against all new ones, are such as sub
stantially to limit to the Bank Of England,
!. e., to the English government the priv
lege OF taxing the people, by furnishing the
realm with paper currency.
The Bank Of France, with It's branches in
The principal towns, monopolizes the bank
f.. :.nC r
Of discount as Of Issue, and has been for
century end ha1f put Of the constitution of
the Government. Both the Bank Of England
and the Bank o1 Fsance are elements Of in
conceivable strength. stability and nerm,.
nency to their respective Goyernmcnts ne5.
tbcr of which couid afford for mo,nan+ +o
-ar+ NTH thesc sconrcas ~ ~. .,n.1,.s ~
ror ~
r.o ,,-orr;r+or, ;,,4oro.+ -, a..
4heso R"nts 40 thn ho,dsss ~ e.a.,. NV psupls ~
. ~ ~ ,,s ~.,,,a ,,non +,,a ,na;r.a.ssi"
th,,r resncct,re q corerr,nsnts h,nss 49, ..e -
~ ond Govcrrmcn@ tooather h~ 10 s+.as,
lies which attarh n creditor ia NJ. dehtoF
ind 1nsures those powers alike nca,nst ,ntsrs
change dyuasties, but The nationality ~.
mains. and no ATTEMPT has ever been made
to d,arnnt and divide them IN enrh vov oa y
occasion rcpudlatiou Of their national deht
or currency.
heavy war with either Great gr;t,,n -,
France at anv time durinr the mast INV 20, 10
wou1d have comnc]led ns Ia eytennor,ze a
National n,n1,n1 ereta,o wb,.. x.oria ,>1a,.
ma as nearly as noas;hlc on n a,.nc,a1 ~,
With Them. II WAS for want OF snch a sve
4cm that the continental naner If onr Rero
lut,onarv Nar bccame worthless almost rn,n
insv onr cause. Before the close of the war
. however. on Nav II. 17sl. plan foE M
tIopal Bank was brought before Congress- b,
the most skinfnl of our Revolutionary finAu
<iers, Robert Morris OF Pennsylvania, m,
adopted. ait formed most important au1fl
iaIy In aid Of the finances Of the govcrnmen
to the final conclusion of the war.''
Notwithstanding that the earnest nd rocac
of Hamilton secured the adoption Of NOR
imnroyed National Banking system upon tb
adoution Of the coustltutio,, ,, and which th
fpnnc,al sacacity Of Gal]atIu would fa'n 1,ay
cont,nnea thr 1sxitr of neacr 1esscnea IN
s.-s.a,t ,oaa ~ c1,,o,a, st,onnth T. ~,
-, o,o1anrnant oDd tha h.3r- ;5,od 8,
,e1, -. =. o.n,.st;o, ~ SC ohar+ar
Ao1a ~ s'sai.sa. 1as ~ " t,1a ~ .,a. ...;.,. c,.,
@ s t1a,o ~ 80. ~ sa,-.. 49, ~ :. ~ .ss
a.' o.an.s.,s. .u 1,Eh s,rna, .a..n.ae. - ~ ~
INTO opefauon WIN s!snal aosan''.se Val " ~
nhances oi 'ne counttS "neu 1o'o' "hen ~
tendency 70 aoate from Inc powers OF In