The West Virginia journal. [volume] (Charleston, W. Va.) 1864-1877, 1865-08-09
The National Banking System.

tional Currency, contains SO many strik-
ing and interesting suggestions that We
conclude our space could not be better
employed than by giving an abstract Of
the views presented. After stating the
reason why the Government resolved
not to use the currency Of the loyal
Northern banks, which was freely ten
dercd in the shape Of bonds, the result
is intimated in an appeal to the people
direct for loans, the issue Of green backs,
whose redemption was based upon the
nation faith to meet the present emergency,
and finally national bank notes, based up
ION United States bonds, and guaranteed
by the government, redeemable at all tho
great commercial centres, and Of nearly
equal value in all parts of tho country,
as a permanent national circulation, to
superccde IN Tie end State circulation and
greenbacks, with national banking sys.
tenn to provide Tor the circulation and
redemption Of the notes, and supply
proper and safe repositories of the gov
ernmeut funds, and provide fiscal agents
to be used in the collection and disburse.
mcnt of the revenues levied to pay the
war debt.
The difference between the present
National Currency and the old United
States Bank system is thus: The United
States Bank was an immense corporation,
by many esteemed huge monopoly"
controlled BY few men welding power
sufficient to control legislation aud the
politics of the country-a dangerous
power and liable to abuse, without rails
ing the question whether it was in fact
abused or not. There were no securities
pledged for the redemption Of its notes
no guarantee Of Government for their
payment. The National banking system
on the contrary is open and free to all.
Any five respectable persons, having the
requisite means to pay in the stock, may
organize a bank at any place in the
United States where banking facilities
asc required, aud not only are the notes
and Government deposits secured, but
reserve Of lawful money is required to
bc kept BY the banks for the safety OF
individual deposits. The National Banks
are owned and my mspaged by men OF all
parties. Three -fourths Of the Directors
must be residents ;of the State where
bank is located, and, as rule the owners
are residents in the vicinity ofthe bank.
No combination can, therefore, exist to
influence politics, and if single bank
should lend its influence to aid any polit.
ical party, the probabilities are that Il
bank would be Immediately organized
by men Of opposite opinions to counter
act its influence, or by prudent manage
mcnt to drive it from the field.
So far as known, the stock OF Nation
al Banks is all owned BY citizens OF the
United States, aud it is likely so to re-
main-thus avoiding the dangerous for.
cicn influences existing in the case OF
the United States Branch Bank, BY rea'
son of the application to Foreigners to
help make up her immense capital
While, however, the National Banks are
thus free from partisan politics, they
have an important political influence IN
one respect. The banks are required TO
own and deposit large amounts Of United
States bonds as security for circulation
and deposits. The circulation is based
upon National bonds alone. For every
dollar in circulation, from one dollar
and ten cents to two dollars in bonds
are on deposit with the Treasurer OF the
United States, thus forming an immense
home market for our own securities,
and preventing their being sent abroad.
Every stockholdcr and every bill holder
has therefore direct, tangible. pecuuia.
ry interest, not only in the maintenance
Of the Government and the union Of the
States, but also in maintaining the faith
and credit Of the Government. There
is no danger Of Reputation while the
National banking system is in force. 1t
is safe to say that had there been such a
system before the war, there never would
have been rebellion. The banks could
not have beeu brought to make war
upon the Government, and the sinews
Of war could not have been procured
without their aid.
The holder Of a National Bank note
would lose nothing if the bank were to
fail-the Government would then pay it
on prosecution, or accept it in payment
Of taxes or other dues than customs, and
every bank is bound by law to receive it
at par in payment Of debt. The Gov.
crnmeut would lose nothing, for it holds
10 its possession its own bonds amply
sufficient 10 rcmuncrate itself. But
some one not acquainted with the details
of the law may ask, May not dishonest
clerks Of Government employees steal
these bonds deposited in such immense
amounts, or may they not be destroyed
by fire or other casualtics?'
In answer it is only necessary to cx-
plain, that the bonds arc all registered
bonds, issued to the Treasurer of the
United States in trust for the bank, and
containing upon them j memorandum
Esigned by the Comptroller of the Cur,
ency, stating that they are deposited
81 the Treasurer as security for the
u