The New York herald., 1865-02-27
OUR NiIi8NiL FINANCES.
The New Secretary Of the
Treasury.
HUGH McCULLOCH.
HIS FINANCIAL VIEWS.
The Effect of an Inflated
Currency.
GOVERNMENTS SHOULD NOT Be BANKERS.
TIE Dangers Of a Country Like Ours
Issuing Paper Money.
SPECIE PAYMENTS NECESSARY.
TEE NATIONAL BANKING SYSTEM.
UNIFORM INTEREST AND USURY,
&c., &C., &c.
GOVERNMENTS SHOULD NOT Be BANKERS.
The Dangers Of Country Like Ours
Issuing Paper Money.
SPECIE PAYMENTS NECESSARY.
TEE NATIONAL BANKING SYSTEM.
UNIFORM INTEREST AND USURY,
&C., &C., &c.

&c., &C., &c.
having nov become pretty well settled that Mr..
Hugh McCulloch, the present Comptroller of the Cur
rency will become the head Of the Finance Department
of the government after the 4th of March next give
some from his reports speeches and letters in
order to show his position and sentiments in regard TO
the financial situation of the country These extracts
will also oreshadow his policy and future course
In his report November 2s 1863 he speaks thus Of the
NATIONAL CURRENCY ACT.
The national currency act although admirable In Its
heading features, is not altogether symmetrical in its
arrangement clear il it is consistent in all OF its
provisions respectfully suggest, therefore that the
DC carefully revised that those parts OF that reie
the subject be placed in juxaposon and that II
be relieved OF rtain obscues and apparent nconsst
that render Of its provisions OF difficult
structon law Of so much Importance as this which
Is to he Interpreted by many people, and is TO be tho
charter Of SO maay banking Institutions, should be me-
thodca its arrangem Mt, clear in language and COM
probensye and consistent in its provisions In these
respects the national currency act is somewhat defective
Sections relating to the same subject are scattered
throughout tine net. Words OF different significance
sometimes used as II they convertible. Many pas
sases ambiguous in language If they do not contain
Inconsistent provisions.
OF sRs or BANKS INSTEAD OF STOCKHOLDERS OUGHT TO BE
RESPONSIBLE.
Ins lead of the liability Of the stockholders many of
whom have little voice in the management OF their
banks, would suggest that section II be amended
shat the failure Of national bank be declared prna
whose administration each Insolvency shall occur be
personally liable for the debts OF the bank, and be
Punished crminaiy unless u sha appear upon nvest
aation, that its affairs re honestly administered.
UNIroRxRAf OF INTEREST
The expcdcncy Of making the rate Of interest uniform
throughout the country Is manifest me oplecton 10
national legislation upon this subject Is that the States
supposed to have the exclusive right to regulate the
interest upon loans Of money II is that the power
70 regulate the Of interest at which money shall be
loaned has always been exercised Except ia the ease of
fhe United States Bank by the States; aud it is
hat th4 l.trQ nnAn
different States have been various and cangable There
ely States in the Union whose interest laws
exactly alike, Few things have been more enbar-
rsssng the trade between the different sections Of the
country and have been more prolific OF litigation
and conflicting judicial decisions than the different and
value Of the OF money. Whatever opinions may
have heretofore obtained upon the Subject there now
very fow intelligent business men of the country, who
have watched the effect upon trade and exchanges Of the
efforts OF the States to establish by law the
rates OF interest, who not agreed in the
opinion that the regulation of commerce between
the states cannot be perfectly accomplished with
Gut the establishment OF uniform rate OF interest
throughout the Union. The commerce OF the country
ignores State boundaries, and Congress has the excu-
n right Of regulating it. Congress ought tn refore,
T. have the Incidental power OF preventing The States
from embarrassing commercial intercourse between the
people Of the Salcs which Is done to no little extent, by
such power exists Congress IL ought 10 be exercised
In my Judgment is demanded both by considerations
Of public policy and public convenience But whatever
opinions may be entertained in regard TO the general
authority OF Congress regulate the rate Of interest
upon loans Of money there be but little question OF
Us power to regulate the rate which shall be charged by
the banks through which a national circulation Is to be
issued and which are organized under national law
Unless It possesses this power the national government
divide with the states the control of the Affairs of
banks created 10 carry out Its rghtfu acknowledged aud
necessary functions As the law stands banks in
New York and Michigan can charge seven per cent on
theiro while those of New England aud most other
States restricted TO six; and State laws can be 80
framed as TO attract capital TO be invested IN national
banks TOO largely into particular States or TO prevent
such investment OK II In such states altogether
usUKY.
After recommending that the penalty for usury be a
forfeiture OF the interest instead OF forfeiture OF the
debt on which more than the legal rate is taken, and
that the banks tho large commercial cities be relieved
IN certain contingencies from all penalties for usury, Mr.
NcCuloch says
Few questions have been more frequently and tho
youchy discussed or IN relation To when There mas
beel greater difference OF opinion among intclii-
gent men than the question OF usury. Much OF this
difference OF opinion has arisen from the fact that men
have viewed It from different sandroins The opinion
Of who has lived In Germany or England where CAPT
ta Is abundant aud usury laws have existed Tor years
will, cf course be very different from thai Of one who
has lived 10 Minnesota or California and noticed the e us
which have resulted from the high rates which money
has commanded Ia those States
vArrE.
Notwithstanding the fact that money s the standard Of
value II is not free from the operations Of the great rcgu-
latng of supply and demand money GbHRdJt
sis cheap kre isdar. and no legislation has been
o5e q to,yot ne eeg ofis general tr There Is
cessy for usury laws in Q the States at the present
tue, because money Is abundant and lenders are plenty
and borrowers are scarce When the war is over and
baaess back again 10 Its accustomed channels and
The disbursements OF the government are largely cur
tailed borrowers will be plenty and lenders Be
usnry laws not needed now does not follow
that they VIII not be required at very distant day nor
docs IL follow, because Legislation las not been
abe absolutely TO regulate The value Of the
frequently evaded, that, therefore, these laws
are ineGicacious and unwise usury laws, no matter
how much they have been eadcd have had the elect OF
OF money There is scarcely banker money lender
In the country who has not often restrained IN his
charges FOR the money he has leaned by he usury laws
which have been 10 force In all countries, m which
there Is not serabundance OF capital usury laws hay
been found necessary protect those whose interest II IL
70 borrow money against excessive charges for II by
shosc who have II 70 lnd, and the experience Of the
nations Ia not 20 be dsrgardcd. Money whether " be
n the form OF the precious metals or on bank notes
created by Law. Gold and silver not money until
cointd ana msoe such ~ the authority Of the govern
mcn II ia not like merchandise other personal pro
yerty the result OF mans industry, but creation
Of The government and government, which hxos
che value that shall be placed upon II, has
the right 70 say and n h its duty 10 say, wh, shall be
charged for the Of IT, OF course solvent bank notes
whether issued by national or state authority depend
for their value as money upon the value of the cn OF
ihe United States Tho only question, then, which Il
necessary 10 consider IN this connection y what penalty
shal DO attached 10 violations OF usury laws On this
point an OF Ehe opinion that while tho penalty should
he such AZ win protect the borrower fren oppression,
should no. be of such character s to tempt too strongly
his honor or to compel both the lender aud borrower
shirts for s evasion, which make none dearc
70 she latter than II otherwise would be- Inc avs .
those States .het make void all usurous contracts ever
IN the hands OF innocent parties, aud punish usury as
crime, are imEcc and unwise; those laws ,ha. mas \
valid contracts for any Of interest which may
agrecd upon scarcely less 20.
nrcoNMksps THAT THE sscRErARy or THE rRsAsuSY nav
rowia 70 RELIEVE rus RANKS PROM THE PENALTIES rof
usURy
Inasnuch as the history of all commercial nations ba
shown II TO be occasionally necessary for the regulation
f trade between them aud other nations the rate
interest should be under the control an authority les
arbitrary than statutes further recommend that th,
Secretary of the Treasury, commission TO be create
by Congress be authorized temporarily 10 relieve h,
rasiona banks In the cities Of Philadelphia New York,