The Burlington weekly hawk-eye. [volume] (Burlington [Iowa]) 1860-1876, 1865-04-08

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\. The National Currency.
a writer IN popular monthly magazine,
~ho il re are not mistaken. has consist
s,f,v. aud we are bound to believe tsonsci-
eniionsly, opposed TO the National Bank
snu system from its incipiency, has an .ssr-
ticie in tho last number of the periodical
reserred 10, which would be euaanently cal
eulatsd to misleai the public mind, were
n not for the fact that the public mind has,
1nring the past couple OF years, been toi-
srably, 2ell educated ii affairs appertain-
rs ia nance. and particularly to Governs
saent fi8ance. The National Banking Law
Is declared full of defects, and that section
recurring the National Banks to receive the
Hlis Of other National Banks, is particu-
larly speci6ed as enc OF peculiar demerit.
NHow,'' the writer asks, s'can q bank be
ae5ely managed and get be compelled to re-
oeive notes which may be at att shades Of
discount in payment Of its debtsf"
4. Our readers will bear In mind that Ma
lional Banking Law was designed, and IL
eminently calculated, TO check over.issue
81 the new Banks. and = possible depre-
citation Of theiE notes, by requiring securi-
t. in United States Bonds for every dollar
nut into circulation-the law restricting
tho circulation to ninety per cent. Of the
bonds on deposit with the Treasurer. while
ii prohibits banks from issuing notes to an
. amount exceeding their bona fde paid up
capital-thus basing The credit Of each Ma
fioual Bank on the credit Of the nation |!
! Our readers can, thvrefcre, Judge as to the
psrtinence OF the above query.
Il Banks 10 increase, and the United
States legal tenders to diminish, 1Etil the
latter are worth Y .)ref1;um-a contingency
which the writer thinks Qilise likely to
happen -he says that osie notes which are
most depreciated would be selected TO pay
delta to the bank, when the bank would
be overloaded "with bills of far distant
banks which IL mpAt receive but can not
disbursew Why Eut! The issues Of all
National Banks arc alike secured by the
UnAed States bonds and. tho section Of tue
law recurring every bank to accept the
issues of other National Banks will have
tendency to prevent their depreciation
and the National Bank bills, which are re-
ceived, can be as easily paid out. In the
improbable case Of 9 material depreclailon
1 of the National Bank Notwithstanding
United States legal tenders as the standard
tho depreciation would ofeourse be gem
eral. not local. Besides, the law explicit
" requires every interior National Bank,
apart from it's obligation to redeem It's own
notes at its own crurtcr, to redeem. at par,
At some commercial center, thereby pre-
the different sections (and thus saving mill
lions Of dollars annuslly]. Again, in case
Of the failure of . National Bank TO redeem
its notes according 20 the provisions of the
law, instead Of being s'depreciated,'' they
are Immediately redeemabie ''in lawful
money ut the Treasury Of the United
States! And yet we are told that this de.
feet ia s'preventing the reorganization Of
some Of our soundest and safest State In
stitutions under the National laww We
would here remark that we have heard q;
no instance In which the stock of any
State Bank has been deprecated by
the change to the National system,
1 while, on the contrary. It is well known
that the shares Of very many OF them have
81 That violent opposition to the national
banking system was expected and mani-
hsted, particularly by the State banks, and
those who were inimicai to the present Adj
ministration We need not now repeat. But
tho national character Of the new system
was its chief recommendation to popular
favor, and the public mind, fUreseeiug the
vast benefits to he derived from the super
!. seizure Of the locs. By the national system
Of banking, At once gave in its verdict in
favor Of the latter. And the fuller exami-
nation Of the banking act, and more Gen-
oeal observation OF the able manner in
which II Is being administered, have but
1fved 70 confirm the eaSliee Judgments
fadgment'--to quote FROM The Comptrol-
ect one, nor free from dangee Of abuse, but
= hat Ills n saser system; better adapted to
the nature 0f our political institutions and
TO our eommescial Necessities, giving moro
strengths O. the q oresnment, with ,less risk
uf its beiag used by the Government
sgsisSsS The yust rishts,nf the States OF. the
rights o. the peopls than any aystom yet
fhn