Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1865-03-21
NATIONAL BANKS--AN OPINION
EROM HEADAUARTER

More than little has been said of late
concerning Paper Currency" and the
advantages of introducing the system into
this State has been enlarged upon yolu-
minously, by the only editor in Nevada
who understands the subject" Our
utter ignorance of the matter has been so
forcibly demonstrated by the editor of the
Union, that we have bsgged our head in
utter modification and discontinue. The
following remarks upon the subject are
from the pen of man, who, if he "does MT
understand the subject" ought to be turn
ed out of office or put to death without
benefit of clergy. Hugh Mccullough, the
present Secretary of the Treasury, is the
individual who makes these remarks:
Now, what is needed in paper circulating
medium is, that it should be convertible into
coin that it should be sufficient in amount
to answer the purposes of legitimate bust
ness; that it should not, on the one hand,
BY being over issued, encourage extravaganza
and speculation, and give an artificial and
unreliable value to property; nor. on the
other hand, by being reduced below the
proper standard, interrupt business and I'M
settle values. 1t should be supplied to just
the extent Of the demands of healthy trade.
II should be increased as the regular buSi-
| ness of the country may require its increase,
| and be diminished as the proper demand for
| it is diminished.
1t is not pretended that banks of issue
bod nd F,fn ~ Il
has been the bane OF bank-note circulation
that it has been expanded BY the avarice OF
! the bankers, and contracted by the distrust
that Over-iSSues have created.
| Now, this objection to bank-note circu-
lation applies with much greater force to
! Government issues. There is always induce
ment enough for banks to keep up full cir
culation, and against excessive issues there
are the restrictions of law and the liability to
| redeem. Government notes, in the issue
thereof, would be regulated only BY the ne
cesSities of the Government or the interests
Of the party in power. At one time they
might be increased altogether beyond the
needs OF commerce and trade, thereby en-
HANGING prices and inducing speculation; at
another they might be so reduced as to EN-.
barrass business and precipitate financial
disasters. They would be incomparably
worse in this respect than a bank-note cur
rency, because the power that should control
circulation would be the power that furnishes
| il. Supplied BY an authority not in svmpa-
| thy with trade, they would not be accommo-
dated to the requirements of trade. They
might be the fullest in volume when there
was the least demand for full circulation,
! and the most contracted when there was 4
healthy demand for an increase. They
would eventually become an undesirable cir
culation, because there would be no way i'll
which the redemption of them could be en-.
! forced they would be q dangerous circula-
ton, because they would be under the con-
troll of political parties an unreliable circu.
lation, because, having no connection with
trade and commerce, they would not be reg
ulated BY their necessities.
While the National currency act is re-
strictive in its general provisions, and is ex-
pected, when generally adopted, to prevent
expansions, there is still danger that too
much capital will be invested under it during
the suspension of specie payments, and i'll
the existing unsettled condition Of our politi-
cal financial affairs. Speculation is taking
the place of sober and perseyering industry,
and thousands are deluded with the notion
that the wealth OF the Nation is being in
creased BY the increase Of its Indebtedness.
ing, under such circumstances, is peculiarly
hazardous; and have been, from the time
| of my appointment, more apprehenSive that
too many banks would be organized, than
that the system would not be sufficiently at
tractive to induce capitalists to become con-
nected with it. The Government is the great
borrower. Its obligations compose a large
portion OF the discount line Of the banks,
which are making large profits on Govern
ment securities at little apparent risk, and
the danger is, that the National banking sys-
| TEN, with all its restrictions, may, during the
suspension Of specie payments, and the con-
tinuance Of the war, add to the plethora OF
paper money. For the double purpose, there
fore, Of keeping down the National circula-
ton as far as it has seemed possible to do it,
and preventing an increase OF banking CAPT.
tai that might hereafter be instrumental in
keeping up the imitation and retarding the
resumption Of specie payments, or prove I'M
profitable TO its owners, l have felt it TO be
my duty to discourage, in many instances,
the organization OF new banks, and in more
instances to refuse my sanction to the in
crease Of the capital of those already organ
lied.
These are the views of a man, who,
prior to his appointment TO the Treasury,
was at the head of the National Banking
system; and if his opinion is not the best
in the nation, he is out of place in his
present position.