The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1865-11-02
Nat1omal Dank Law,
We clip the fslloving from the Pittsburs Coz
s.ercinf Of Snknranv l>st-

~erciai Of SsGsaay lest:
SO nAuy singular misappreAensions exist in
refervDoe 70 the national banking law that -
have grouped together come Of the most noticeable
provisions for the benefit Of that larger clses OF
persons who, while they Sssl intsrsse in this IN
important subject, have not, however, xiteu X the
minute examination - necessary to . full under
standing of the Law itself. The term United State,
bonds, as used in the law, means only reo;.f~rea
bonds Hence there is little danger Of any whole
sale abstraction Of these securities from the hand.
of the United States Treasurer, where. according
to Law. they are placed, and though sone writer's
have recently suggested such liability bsnk
association may be formed Of any number OF per
sons not less than Eve; three fourths Of it's NOT ess
than I'VE Directors must reside somewhere in the
State in which the Bank il located, and the othsr
onefonrth may reside in any portion Of The United
States. One-sixth Of the notes Issued BY Matte
81 Bank may be below the denomination of ave
dollars, until the resumption Of specie payments.
After that none will be issued under Eve
National Bank must pay to the United States
IN January and July tax of . half p cent. ON the
average amount Of its notes in circulation. and 4
tax Of quarter Of one y cent. upon the avernse
Amount-of it, deposits. Il must Also pay tai 81
quarter of one y cent ON the average amount Of
its capital stock beyond the amount invested in
United States honda, and must reserve. semi-.n-
nualiv, onetenth Of the profit Of the preceding six
months ~ . surplus fund until such surplus sh.ll
equal twenty p cent of the capital.
The arrangements Of the past fortnight in the
Money market furnishes lesson which ought not
to BE- overlooked by the Secretary of the Treasury.
nlle ne u correct IN his views regarding the I'd
Visibility OF returning to specie payments Il has
been made apparent that the contraction which
must precede II should be 90 gradual - 20 avoid
inAicting any shock upon the trade or industry Of
the country. It took Great Britain eight ysArs
ffon u tins q ths hatsls q Watasioe = rss.ns
sPscie paymnts, and even theu Il vas discovered
that the rssumption had been undnly hastened
and series Of violent monetary and Commercial
convuisions vsre tbs conseqasncs, and it was mot
until 1880 that England escaped from her financial
oimcuitics consequent upon approaching the chr
reney q pa. We have nofs neutral s1vsstalss
than she had to assist ~ in restoring the currency
to sound basis; but, at present, while the trade
OF the South and tho rest Of the country il rscu.
perating from the Frustrating effects Of the late
VA, the currency ought not to Be ccntysctsd moro
U oar quarter than it il expanded in another.
Thus the National Banks arc adding to the volume
OF the paper money afoat at the rate of more than
three millions . week, and they have hundred
millions more to ISSUE while it is highly probable
that Congress will authorize another two or three
hundred millions Of national currescy. to be arr
gloyed in the creation Of new Daaks ct the South.
Ihis Is direct imitation, and some countcrpoise To
II should exist in the form Of gradual funding Of
an amount ofthe interest bearing notes equivalent
to the amount of the new currency Issues. but no
more. This would result in the volume Of the
currency being kept 1t its present level, ana no
disturbance Of trade would result from it. But II
the Treasury Department goes prematurely to
worn to contract the currency In excess Of the
ability Of the country to Adapt itself to the change
It viii create widespread embarrassments and "a
~ The return to sPseie payments. The naatrs1
growth Of the prosperity Of the country must Be
auowsd to assist in the pFocess and eli spasms Of
ne Money market must DO religiously guarded
efesnst II wesfe to avoid the evils which u -
SAnsiend during similar period to the present in