The Portland daily press., 1865-01-13
The Banks and the Currency"

The Banks and the Currency"
Mr.. Editor: have read with good deal
of interest the communication in your issue
of Tuesday on the Banks and the Currency.
The article has some good points, but the
writer is evidently ignorant of the subject of
which he talks SO glibly, and from his manner
Of treating the question, I should judge he
was educated for the Law in some country
store, where he learned book keeping by sim,
gle entry,-hence his erudition.
If your correspondent had called on any of
the State Banks he could have learned the
reason why the circulation is SO high He
would have found that large part of the in
crease has been to assistthe Government
State and National. If the State Banks had
refused to pay out their bills the last year,
the bounties to the soldiers could not have
been paid. They came forward and furnished
the bills much against their will, and then
paid the Government tax on their circulation,
largely increased to aid the Government, and
this at q time when the money could not be
used to any advantage.
@The Government Pay Masters came here
and to Augusta with greenbacks of the de-
nomination of $500 and 81 900, and the State
Banks were obliged to change them or they
would have been worthless for paying the
soldiers. Your correspondent could also have
been informed Of the large amount of money
it takes to do the ordinary business Of the
State. He would have learned that to buy
10000 barrels of -four or 100 boxes of sugar,
i. takes more than twice the money it did be-
fore the war. III there had been no increase
of the circulation where would the money
have come from to do the business? for we
have no increase of Bank capital II
Our business men must per force do good
deal of business for their family expenses, and
their Unconstitutional, State and Municipal y
are nearly quadrupled, and how are they to
be paid II their facilities of trade are to be cut
of? All this and more could your correspon-
dent have learned II he had asked any of the
Banks; and more, he would have learned
| that they have been foremost in supporting
the Government, and while he and his like,
| held back, fearing to take the Government
loans, the State Banks came boldly forward,
subscribed largely for the National Bonds,
| thereby endorsing them, and now he advises
the Legislature not to extend the law allow
| ing the suspension of specie payment to the
Banks, but would, Jacobin-like, hound on
the bilfholders to sue the Banks, collect the
penalty. and destroy the only means that
thousands in this State have to subsist on.
And then he sneeringly says that 1t is the
large Bank stockholders that are crying out
against the Government circulation. Why,
Mr.. Editor, we have no large stockholders in
this State. Our 5000 600 Banks have from
$50 to 600 stockholders each, and the smaller
Banks even more ia propoition. am willing,
as one of the largest stockholders, to give up
to the General Government all the circulation
Of the country and have no Bank issues at all,
either State or National. 1t would save the
Government the interest on from $500, 900, 600
to $l,0OO,000OO0. But your correspondents
the Nationl Banking system would prevent
his going so far s~g 5s.~v1 I1Ei
Iagree with your correspondence what he
says abont the National Banks re-issuing the
bills used by them under the State charter
This 10 where the redundancy of the cur
rency in this State comes from, for they have
notonly filled the State of Maine with their
| old bills, but they have also filed this State
and the West with their slawfal money! and
l honestly believe that the Government,
through the Government Banks is doing more
to cause a redundancy" 10 the currency than
the State Banks ever did, or ever will do. I
agree with your correspondent that the Leg
islature should make the re-issuing of bills OF
Banks which have surrendered their charters,
apenal offence, and l say this as Bank di-
rector, who win vote for his Bank to change
into the Government system the moment the
Legislature enacts law so that it can be
done In lawful and honorable way. By the
present State law, the Banks have two years
to redeem their circulation. How long, Mr..
Editor, can Banks that surrendered their
charters last winter, continue to reissue their
/ old bills with safety to the community, when
after next winter, they are not obliged to re-
deem them? 81 sisi3ao1
trust, Mr.. Editor, that you will have no
more such correspondents. Men who write
TO incite the community against the institu-
lions that are doing SO much to sustain the
Government, are, and should be, very small
10 number. @, DIRECTOR.