, 1865-01-10
VAN DYKES REEORT-DECLIN
OF Tlkfi OPksOSIEl0N TO TIL; Ma.
sTf0NAL RANKING SYSTEM.


which could operate on public man to op-
pose it with all his might. He has done SO.
Notwithstanding the conclusive manner in
which it has been shown that the banks of
New York have dcnc as much to inilato the
currency by tlcir paper issues as they had the
business capacity TO do, i, c., that the rural
banks have put out as many Of their own
notes as they could keep anoat, and the city
banks, while withdrawing their own notes.
have enlarged their discounts three or four
hundred per cent during the war, Issuing for
that purpose the very surplus Of bills thus
put forth by the country banks, each thus in
IN equal degree tending to the imitation of the
amount Of paper circulation, yet Mr. Van
Dyke repeats. in his present annual report,
his worn out statement that the aggregate of
bank note circulation, leaving out the dis
counts, hos decreased some two millions
during the past year:
Without this explanation, the following
statement, and the figures by which it is sup
ported in Mr.. Van Dykes report, arc calcium.
1atcd to deceive rather than instruct the
people:
+But 1t Is Interesting to note that at no time dur
ing the cru Of prodlgal Issue Of paper money,
which has distinguished The present dispersion oi
abused the privilege accorded to them. On the
contrary 1t IL conelusyely shown tha, with large
ton ss not 1iacn to whst it was il ISL I and isss:
and that 1t ie now less by three millions eight
hundred and forty three Thousand nine hundred
dollars than It was ten years sco. The charge Of
IN ovcr-lssuc OF currency whicn has been 10 s.du-
lously urged against State banks, Ii shown to 10
groundless in respect to the well-mann:cd iusutu-
lions OF New 4ork.n
1fAr. van Dyke had presented the figures
49, .1,43o
alone he would find them inflated beyond I'LL
precedent aud several times beyond their cap.
ital. lin presenting the total for the State
lie had included the discounts as well as The
note circulation of The city hanks, one Of
which tends as much TO imitation and financial
revuision as the other, the same result would
appear.
Whatever decrease has occ1red is owing to
the fact that some forty or fifty millions Of
The notes Of New York and other local banks
have been driven wholly ont Of circulation in
the Northwest by the demand Of our people
fora sound currency expressed BY the patriot
ic Board OF Trade, and hayin, its origin in tho
persistent opposition Of the Chicago TRIBUNE
tc the attempt Of the local Banking System
out-ltyc the Government. As mnch as posi-
bic Of THIS currency driven out Of the
West has still been kcpt ahoat
in the East, the effect Of which ie, that while
we have mainly greenbaeks the business Of
the East is still done largcly on wildcat cur
rcncy. Still, Us has been seen, two millions
out Of the So ,!s59 4Gl Of note circulation OF
the New York banks Tor about one sixteenth
the entire sum- have been permanently drawn
home to their source. When Mr.. Fesseuden,
ut his entrance upon the Secretaryship, went
to New York to negotiate u loan Of $50, 0,O03,-
600. lc found TINT the hanks Of New York
city lad but ST., OK, 600 OF groenhacks all
told, the remainder uf their business being
done on wildcat bills. These are mostly Of
the country banks, us the older, stronger and
eounder city banks have found 1t their poll
CT 10 withdraw their OWN bills from ciscula-
tion, since The wildcat banks will furnish
them with all they need for discounting, to
which they contlne themselves as more prof
table and less precarious. How long the
Eastern and Middle Suites will accept an i'll
ferior currency TO that enjoyed, because de-
1nandcd, by ihc Western States, remains to
be sccn.
Notwithstanding Mr.. Van Dykes partl<an,
Official and personal hostility to the National
Banking system, his experience Of its work
ings co,npcls him to report facts which, though
gnrb1ed by the language of an ctete cnmity,
still constitute the triumphant evidence of
an able but unwilling witness in its favor.
he says:
ts1t appears from the report Of the Comptroller
.or the Currency, made 70 congrcas at The opening
<'slions have tcen organized In this State under
"the &C, Of Congress 10 provide national curren-
Tlta hafns sieaaos sap e & Il 81
"ganzationz, and to tLis extent an aadluon to the
.ne1s Siiiia, u he 5 STATE I Whether requifsd by
..the necessities Of the e. community, OF whether
s s se brasen u Il Rssa:s; RSsnss se dms'sss ss
..eystcm has ~ come measure the attraction
..Sestowmert ] I of currensy. tic M + fcecpt and pay
ment notss In ~ sove.nmsnai mt tp opsrs
.seel TO take cognizancc oi The met that comes
:. into existence on wave q puhlic expenditure
s1sh o. has mere. ne;n Witnessed a. i, 10 tals, aud
+*that it IL doatcd urou an ocean Of irredeenable
..paper. whose chb and how no human INTELLECT
no tasieesee 1iS ean ;uiis detcranee. @ Mn Without
t.waittng ior the return OF the business Of the
to ,,nsnq s normal "a ,%s the
(Which followed thc war 81 1s!s-1h and
switch has crowned every iuortinate ex-
arrived nt The conclusioa taat tic Congressional
.ttyatem u banking PROMISES profitable results,
crush into it With ut the 4mpetuostx inherent In
i" taaes ouer The unstcu1ed circulation 1nhich has
tprecoited u etAtr Statts. ks ts.fnttoE ttatsret
81. .tions, and doing for other states sraa our owa
q 60 isr as m It stimulates sSe creation Of Banks Of
+stssuc, and increases the already exaggerated
tamont currency, is effect Is to be depfecated.
show t ift sysfe edopted ~ saag1tes ia.
t*fakxn q strong hold upon the public mind aatl
"1tds r, tatr to become The settled policy orfAe
The State Of New York would not be SO
eager to claim the National Banking system
rs It's offspring, as indeed, 8 Transcript Of
jts own lnws," il 1t did not possess at least
Ill the virtues Of Its rcputed parent. II 80,
New York can lose absolutely nothing, but
will gain for her currency the national credit,
and the other States, whose banking systems
have all betn inferior to that Of New York,
will gain everything BY the universal and
exclusive adoption Of the national system.
The Superintendent recommends the repeal
Of the old laws making The formation Of Ill
banking institutions by other than the State
authority illegal He further says:
NF1feen banking associations have given notice
their 3ntenuo1 to close the busIuess Of banking
1ndeE the state iaws The most Of these haya
ding under tie law Of Conersss Manv athsrs nT<
xMoUn to b pstJsctang aTran9enaeafs for sisuJ-
I1S trdls;ttot. There are many considrratinna
which render Il desirable that thc intended chsnee
should be rendered as expedition and pith a.
little istarnance to existing business 1slations. n
practicable" -
BE therefore recommends legislation ena-
bling State banks to become national with.
out going into liquidation, and that instead
of being required to furnish onc-thind New
York state stock those which shall continue
State banks be permitted to furnish United
States stocks rs their basis for banking. HI
also opposes with considerable force the ex
cnption Of United States stocks from taxa
ton.
The whole report is interesting rs showing
the authoritative abandonment by the STATE
ofNew York ofjts old position Of hostility *
Tie National Banking system. We do no
complain Of that hostility now, though v,
regard It as having been very prejudlcial u
the best interests Of the country. By its in
fation Of the paper medium ithas deprcc1atet
The Government currency and securities, ant
maintained geld from so TO IS per cent highc
than need have been. We rejoice In the fac
That Ibis barrier is giving way. We trus
Congress will now act on the recommends
tions Of the Comptroller Of The Currency, 0