The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1865-01-10

| eurrepcys Inc PreSS yesterday 10 most SoiO
ful 20 deny that the government have added
Or intend to add single dollar to the volume
of paper currency now swelling all the cur
rents of trade. But while the government
with the pressing necessity upon It Oh oil eA-
nenditure to save the national life OF some
thing like s., 600 900 per day, ana thas' IN saw
ing interest on its promises 10 pay' saves IL ior
the people in the shape OF lessened tax
alton IL Tins scrupulous, the real evil lies I'M
not;cad in another quarter. Two thirds of all
tho naner money in circulation is issued by
nrivate corporations under the control OF
State legislation, now by the legalized Gus
pension of special payments, and the virtual
suspension of all other restraining laws at
liberty to issue their irredeemabe promises at
their own discretion. Much of this anxiety
about the re, issue of greenbacks comes from
large stockholders in banks DESTROYS to know
whether profitable monopoly, that is secur-
ing an unusual return of gain, is likely to be
disturbed by competition. Already on the
mild suggestion of the Governor on the gen.
eral subject of Banking, some friend of these
corporations has introduced the periodical
order into the Legislature to suspend for one
year the provision of the act imposing pen
atty Of twenty-four per cent for failure fifteen
days after demand to pay lawful money for
notes issued by the State banks.
Why renew the passage of that order2--
When it was first passed it was necessary to
check the inevitable flow of gold and silver
from the country, and to save the banks from
bankruptcy. Since then Congress has author
lied, and the people have welcomed and hon
ored national currency, which is just as much
legal tender for the payment Of debts as gold
and silver was at the time specie payments
were authorized by the legislature to be sus-
pended, Why relieve the banks in any way
except to permit that the lawful currency OF
the United States may be paid or rendered in
all cases where specie was required by the
Revised Statutes during such time as the Bos-
ton Banks may suspend specie payments. This
will strengthen the banks, giving their cur
rency basis in the national faith; it will en-
nance the credit of the national currency, Civ
ing it legislative endorsement as the equiva-
lent ofspecie; it will restrain over issue by i'm
posing soma limit to the extent to which
banks can put out their promises to pay (; and
it will diminish the volume of paper money.
partly by thus diminishing the issue of bank
bills, and partly by the absorption as the SUBJ
stitute for specie basis; of a considerable
portion of the national currency.
Nor is this all the Legislature ought to do.
Never under any Government we believe,
have such enormous privileges been awarded
by legislation to private corporations, as are
given in the Congressional act authorizing
| banking upon the basis OF the United States
bonds. Many corporations have been formed
to take advantage of these privileges, and
many existing banking corporations have
| reorganized in accordance with the provisions
| of this bill. But many bank corporations have
delayed adopting the national system, not be-
cause they doubt its safety, and public utility,
or because they do not intend ultimately to
avail themselves of its privileges, but. be-
cause Tor the present, they can make larger
| profits by avaiIing themselves of the tempora-
! ry advantages which the utterly lawless and
chaotic condition which the legislature has
sanctioned or overlooked, has produced, than
than they can by becoming bound by the re-
straints which the new system imposes, or
the severer restraints of the old system, which
the legislature has thrown OF. Nor are these
all the abuses from which the community are
| suffering. The very banks which have adopt
ed the national system, and surrendered their
charters, are said to be Issuing the bills OF
the suspended corporations in addition to all
that the national lou authorizes This prac-
! tice demands immediate and summary redress.
We hope, among the two hundred gentlemen
who compose the legislature, there are ten
bright men, who are neither Presidents nor
large Stockholders of banks, who have been
constituted joint Committee on Banks and
Banking. We hope that such committee will
proceed at once to summon before it, the
the Cashiers and other officers of the banks,
with their books. as are suspected of such
practices, and after a thorough investigation
and an erpiict report, the legislature will pro-
| coed to enact:
First, that all banks, accepting the benefits
of the national banking act, shall be consider
ed to have surrendered their State charters. "a
| Second, that any officer of any bank that
issues bill or note of corporation whose
charter has been surrendered, or OF corpo-
ration that shall have accepted the benefit of
national banking act, after such surrender,
or acceptance shall be punished criminally.
By TIE adoption of such legislation, the
banks will be secured in doing safe and le-
climate business; it will become at once their
interest to accept better basis Of their circu-
lation; the volume of the national currency
will be to some extent reduced; a correspond
ing diminution in prices will ensue; the ex-
penses ofwar will be lightened; the necessity
of an ever increasing scale of taxation will be
avoided, and the burdened people will be re-
lieved, TO some extent, at least.
n