Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-12-06

among the new DIS introduced IN the
House Of Representatives, Monday, was one
a. Kr, Boutwell,, directing the Secretary Of
he 1reaary 10 cell 100000 of gold
very MoaHay, in parcels not exceeding
RIG,0OO each. One-ffteenth of one per
- ,leEL is the commission allowed to the per
sniFs making the sale-which would give
81 1888 80 for the half hours work.
t&yE Secretary McCulloch recommends to
J-u9gress that the National Banks be com
PEELED to redeem their notes at the Atlantic
c1iicS or what would be better, at a single
p eaty- AS his argument in favor Of this pro-
position wilI be interesting to bankers, we
7eproduce it here as follows:
Ths obiec, " Congress in the establishment Of
he y ati0nal banking system was 10 furnish The
people with a solvent currency Of uniform value
throughout the United states. The sOlvency Of
he Bates of the National Banks is secured by q
deposits of bonds with the Treasurer at Wash
.HEtsH: but, the banks are scattered through
- 1Ut the country, and many Of them are in places
sut cUit OF access, redemption OF their notes ~
heir tee pective counters Is not all that ls re-
,yuIred 90 make them, throughout the United
~tNfef, par circulation. IL Is true that Tie
1ates of all National Banks are receivable for all
GUhlHs dues, except duties upon imports, and
must be paid by the Treasurer in case the banks
Ehch issued are unable to redeem them, but it
will not be claimed that the notes of banks.
although perfectly solvent but situated ia ia
tsEiar toEns, are practically As valuable as ne
CIatGs of banks in the seabOard cities.
II MAY be urged that, to compel remote banks
thus 10 redeem, would be hardship: but as very
.Srw well-managed banking institutions in the
: uited States fail to keep accounts and balances
m FOmc OF the Atlantic cities, this hardship
81 v0uld be found, upon trial. to be imaginary,
-atheT than real But if il should be hardship,
would be q necessary one, and the interests Of
she banks must bend to the interests of the pCO-
lie. Beside, without such redemption, there will
sc practically none ut all, at least until specie
gsayWs nts are resumed; and when there arc 10
rcdemptiOns, there Is always a constant tendency
70 iU2 alton and illegitimate banking. The irc-
yUeut and regular return Of their notes Is needed
90 Keep the business Of the banks in a healthy
condition, and thus invariably proves no less ad
outrageous to tae stockholders than TO the pub
ne Unless the banks shall be compelled TO re-
iecm in United States notes, many Of them viii
neither lend their influence in favor Of 4 return
80 specie payments, nor be prepared for them
Wheu without their agency specie payments Sh2iI
be brought about. II the determination OF the
question was left to the Secretary, all che ban ks
Uouid be required to redeem in New \ Ork, the
acknowledged commercial metropolis Of the
Union. The designation OF that city rs the &c
4 eeminE point for all National Banks would not
TpSy give absolute uniformity to their c!-cula-
tScH, but would SO facilitate the asserting and re
teruing Of notes that practical and general re-
iempriou " Md be enforced. II Is certain that
dis will not be done under the existing prOvis-
uHs OF the law: Il is not certain that II will be,
zulesse 4 banks shall be compelled to redeem ~
1-siuFle point. This might be objected TO by tha
hanks in other Atlantic cities on the grouLc that
Z would aggraudize New York at their expense.
Nat New y ERIK is already the financial AMI com
.HeTciaI emporium of the Union. Most oftEC In
frri0r banks keep their chief balances IN that
,fTy, Because they are more available aud EalL-
shic there than elsewhere and in compelling al
thc hanks 70 redeem all the metropolis OF trade,
Congress would be only yielding to an unwrltteu
hut controlling law (Which statutes should con
FORM. The course Of trade cOmpels, and WIN
.-aylIDcl those National Banks whose business is
4seJ upOn the products Of the country tand
these must always constitute majority 20 Keep
thcir chief bal 8usGs IN New Ork, whether tley
-,edcem there vy OF.
The Secretary of the Treasury also re-
Commands the curtailment OF the currency
90 the amount required by legitimate ard
EseaIthful trade, and he advises the with
4rawal from circulation of legal tender
1ases and that the furnishing of what paper
,grreRcy may be required be left to corpor-
zlTUus- under existing laws and such
amendments Of these laws as experience
nav dictate for the better protection and
advancement Of the public interest. lie
lids
How RAPIDLY they may be retired must de-
v,eud unon the effect which contraction may
. ave upon business and industry, and can be
letter determined a the work progresses. The
-cAuetion could probably be increased from four
yuiIIions rer month, a. contemplated by the act
81 mil II, 1864. % six millions per month for
tArPresent fiscal year, and TO ten millions per
-uath thereafter, without preventing steady
diversion Of the iutcrest-bearug notes INFO
Eeudg or injuriouSlv affecting legitimate hu-I-
-sr-s- No determinate scale of reduction would,
T0wevcr. IN the present condition OF our affairs,
.ulation af gsveTnment notes should be dehnlteiy
md mechanically established, and the process
shaEia 90 on just a rapidly as possible without
-,r,rSUrIDr a financial crisis OF seriously embar-
-r-sfur those branches Of industry and trade
--psC witch our revenues are dependent. There
- s. gurat 1daptahlllty IN the business o. tn'
Tod States and il will easily accommodate
,sr{ffo any policy which the goyernment ma,
dow. That the policy indicated Is the true anS
90 one the Secretary IS thoroughly convinced
1..-. -1,,IT ,,4 he sppclilg adOpted and r-Vtlil