The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-06

devise be thrown around the currency II win soon be
ISSUE and banks win be likely 70 redeem the former
as those Of their own promulgation
THE BUREAU on TINE COMPTROLLER TO M REMOVED 10 Hxv
YORK.
By the first section Of the National Currency act
the bureau under which It's operations were TO
be carried into effect is made an adjunct
OF the Treasury Department, and OF course
located at Washington. During the inc'piency of
the measure thore many rendering con-
tguty 10 tho Treasury desirable and proper but now
that the system has become operative, and what
theory the first has been reduced to practices there
many which render IL expedient that tho ope
ratons OF the Currency Bureau should be transferred
the great financial and business emporium OF the
try the city Of New York Not only would the conve-
nience of those concerned in the business OF banking
promoted by the change OF location but great saving
in expense would thus be effected Nearly two hundred
thousand dollars per annum in express charges alone
would be saved 10 the government and the banks by the
change of location proposed while the risk loss Of time
and personal expenses which would thus BIO obvated
large in the extreme When the circulation now In
by the shall have become worn, and require
newal by exchange OF old for new the Inconvenience
loss OF interest and expense will be increased to mani
fold extent
The government already owns the buildings in New
York which transfer of the Office would require for its
accom- modalon that rented for about the sum
the Treasury Department Is paying for equal amount
OF room outside of the Treasury building that would be
vacated by the removal of the bureau. am satisfied,
therefore that the interests OF the government, the
public and the banks would be subserved by transfer
OF the bureau 10 New York at an early day.
With system OF redemption properly enforced, the
banks located out OF the cities named as rcdeemng
points should be relieved from the obligation TO keep
reserve equal to fifteen per OF their circulation and
deposits constantly on hand II would DO hardship to
require banks TO be prepared 70 redeem both a. nome
keep idle reserve OF fifteen per cent against contn-
gencies.
provision it exists When bank fails neither money
in any shape would be found on hand, ana
the sooner those that improperly conducted are
organized for other than a legitimate banking business
closed up the better will It be for the system and the
public
sthat every association formed or existing under the
provisions of this act shall take and receive at par for
any debt liability to said association any and all notes
bills issued by any association existing under and by
virtue of this act"
The provision is anomalous in its character To COM
pei bank 10 respond to the demands OF Its creditors
lawful money, and yet compel II to receive from
its debtors such currency they may choose TO oier
be warranted by equity sound policy
1t Is questioned whether national bank Is com
PEELED TO redeem its circulation at ALL in lawful money,
II presented by an ASSOCIATION organized under the same
act as any debt or liability may DO discharged by It's
notes notes OF other national banks when that
"debt or liability bconys to any other association ex
listing under and by virtue Of the National Currency
acL The intention and scope OF the statues evidently
against such construction of its provisions, but all am
bcuity in reference 10 i, should be removed All the
banks should be required to redeem their notes and pay
their balances in lawful money as well TO each other as
to the public.
have encountered in its first inception II is no longer
den cd has nrcnched itself strongly in the feel
ingS a3 IL has commenced itself 10 the convenience anu
interests of the whole people Coming into conflict with
local prcudices and assumed to counter to private
interests 1t natural that its practical operations
should have been regarded with jealous suspicious 1t
Is not among the least ~ the triumphs OF the
system that in period Of war, amid monetary dis
tsroances caused the gigantic REQ len, =,
practical experiment in the most satisfactory manner,
vndcating the partaties Of its friends and overcoming
by its beneficial ects the hosties OF It's most deter
mined enemies.
In a country already celebrated for its commercial,
manufacturing and agricultural activity, no want could
be scnsibly felt than that of HOMOGENEOUS cur
rency, OF equal value ut the circumference as at
the commercial centres Of our extended country This
could not be obtained under the restricted operations OF
State laws could II be furnished by ns lions neces-
srily circumscrbed in their fields of operation diverse
in the extent and character Of their liabilities to the pub
lie and without recognized basis OF credit adequate
to insure the public confidence In sections remote from
the locality where such Liabilities were payable II Is
denied that the State banks have been Of great not
Indispensable service In the development OF the resources
Of the country 1t not designed to underrae their use
fulncss 10 question their patriotism, or assaii the
integrity Of the banking institutions Of the States;
but In all enlightened communities there will BE- pro-
grcss and Improvement cannot be regarded as nvid
Gus claim for the national banking system
superiority the more limited system Of state nst
tutons nasmuch Il furnishes safe and convenient
paper circulation, based upon tho national credit, aud
which thus has bcen aud with slight amendment to
the may continue to be- OF uniform value throughout
the length and breadth OF the land Not only the
regulations by which the national banks governed
Of equal applicability not only are they based upon ac
tual capital and individual sponsIbity carefully en-
forced but underlying these safeguards there Is foun
daon OF unparalleled security in tho government bonds
which thcy required to hold system thus
anchored, In which the whole community has q common
interest," cannot fail TO subserve the highest object Of Its
creation to be regarded with favor BY an intel
ligent people.
While, in conclusion il Is allowed me TO congratulate
COsgress and the country the popularity which the
national banking system has achieved would add the
hope that these institutions may never become subject
the schemes and caprces Of political parties but that
In them and through them the public faith and credit
may be upheld and tho prosperity of the country greatly
promoted FREEMAN CLARKE,
Comptroller OF the Currency.