The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-05

e % ccupons e ne vssy s;ss o0nys.isn:s 6 -
p people mors sssn e 1nsd
securities They have fecsivsd and dsbuTssd from Tic
revenues q ~ 600 900 Of public moneys Tree a.
The expense Of transporting and concentrating for ds
out the agency Of national banks, would have been, Il
moderate estimate, mot less than IS, 00o,0 900.
the net loss sustained By the government through sh
money! WIN probably not exceed 5000 900, or abous
ons.thrtleth Of one per cent Of tho total amount in.
COS, NC to do the business without the AID
From this statement Il viii be evident that national
banks although organized and managed by indviduao
Tor their own pot arc yet capable OF rendering import
and have demonstrated their entire winruess 70 per-
form such service and thats losses have occurred
the through r., their the amour. 70
necessary 10 carry on the business without them
DISTRIBUTION OF tn. CIRCULATION AUTHORIZED BY Law.
The original act Of March 25 1885, provided for a. an.
poronmcnt OF tho national currency TO the several
States and Territories foows-S150 COO 600 accord.
ing 70 representative population and $3.50 600 40
cording to banking capital, resources and business
This requirement was repealed by the act Of june q
COMPTROLLER OF the Currency. By the smsndmen, 'a -
March 1885, the clause requiring an apportionment to-
be made reenacted. but At the an anend-s
me to section Of The Internal Revenue act provided
that all existing banks should have the right be-
national banks and should have the preference
organizations up 70 the first day Of July 1865.
These two amendments were not in harmony for "
the apportionment made required BY the amend
ment to section FL the State banks then In existence
could not have been converted without exceeding In
many instances the amount Of circulation apportoned
to the different States But, a. seemed 70 Do the n-
tenton and policy OF the TO absorb all existing bank
ing institutions rather than TO create banking
teests in addition thereto, the Comptroller Of the cuT
conversion OF State banks without limitation The effect
OF this action was TO mako very unequal distributions
they entitled to by apportionment and leaving
but very limited amount to be awarded TO the South
ern and some Of tpe Western States.
Now, as the government has assumed entire control
Of the currency Of the country involving direct super
vision Of s banking interests 1t becomes the duty Of
the government to provide adequate banking facilities 70
all sections The States lately rebellion not ing il
condition to avail themselves Of the privileges granted
In the National Currency act at the time when they
offered, and when still possible TO obtain
them left almost entirely destitute Of currency
Of great enence and loss 70 The people Of those
States and very desirable, for many rsasoDs thao
IL should be supplied
Frst-It is important that all sections Of the country
particularly to the Northern States that the South
should be supplied with all the facilities necessayo1
cause the export Of these staples would reduce the ex-
portation OF gold.
piled by capitalists from other sections for the produo-
tons Of this region, yet the supply Ks not equal the
demand, and foreign capitalists thus enabled to OBJ
tain entire control over very large proportion OF valda
BILE products, yielding large profits TO themselves and
leaving the country barely the cost Of the production
This state OF naturally much discomfort and
dissatisfaction among tho producers.
THd-Prosperous Industry IS the most speedy ana
sates Il will a ia bitterness q esns
with the results Of tho var, and promote con
tentment among the people The assistance thas
end by local banking associations would be
portant both in character and extent Besiaes, n
interests would bring into exercise element OF
great power for the assimilation OF the aims purposes
tension Of the national banking system throughout the
entire Union would bring about such identity Of In.
teret in the credit OF the government and Of the entire
system of banks, would secure the active and
jealous cooperation OF all sections toward the preservs
ton Of such credit unimpared.
methods have been suggested by which tho,
Southern States be supplied with banking facilities
One IS by equalization OF the circulation already su
thorized by among the different and Terrific
this plan there serious objections-Frst
the question arises as 10 the right Of Congress 70 recnd
any portion Of the contract made with national banks
the time OF their organization by sbrogAting
sricting any Of the rights secured by them IN compile
with the law. 1t true that congress expressly
served the right any time TO "anend alter repeals
the National currency act The act Of February 2 1881
under VIII CHI quite number Of banks were organized
peane act contained this saving clause repeal
shall not affect any appointment made, acts DONE ~
proceedings had the organisation acts or proceedings
Of any association organized In process Of oganza-
ton under the act aforesaid thus recognizing the phu
cpe that the repeal should not affect any rights secured
under the former act.
II not proposed into snyslsborate arguments
upon this question, but merely 10 suggest the doubts
which may in with any legislation look
ing TO an equalization OF the national currency by with
drawing from banks which have secured the right N
strict conformity with law.
OF Congress TO withdraw circulation as above stated,
the plan s mpraccable a. measure Of present relief
sufficient Of circulation within the necessary
time. National currency notes, when once put in circS
laon are scattered from the Atlantic coast 70 the
Rocky Mountains and from The ST. Lawrence to tho
Gulf. No ono ever hooks 70 see by what banks tho
notes are issued and there being NO established System
the bank Of Issue until they become % mutatsd 10
make them difficult 70 circulate.
The second plan suggested 10 by an increase OF the
amount of circulation TO DO issued This plan By
the hst It would tend directly 70 further in
naton Of the currency. But this objection may be Oh.
waited by proper adjusting the increase that b
shall not IT any time, or In any month"; exoecd ~
amount BY which legal tender notes are diminished n
stood, and tho necessity Of placing our currency
permanent bssis-cihsr Of specie legal tenders WHOA
cated there would diHcalty In providing for ths
proper reduction Of the volume Of legal tenders -
currency, and vet secure net reduction n ne ~Soi
volume OF the currency
Tho well known views Of the Secretary Of the Treasury
this subject based upon the soundcst principles %
financial policy, only need 70 b seconded and carried
out by Congress- in order 70 make the plan suggested
entirely safe and feasible. #s4
Bearing In mind tho regular monthly reduction q
legal tenders at the rate Of $1,000 600 per month. -
exceed SOS oo0 600 10 be issued Of o0o
81 0O0, 900 per month. would probably meet all Ne
wants Of all the states for two years % come As THE
pshmeut Of generally admitted 10 Be desirable
end u Is respectfully recommended % the favorable
consideration Of Consrcss. IT. eventually, the national
currency thus increased appears 70 exceed the require
OF the country, the system Of rcdsmptons
mended will unerrnRly correct the evil and ultimately
bring about that equalization of currency among
the different States and Territories which cannot b
effected BY immediate and arbitrary measures
AUxNpMKurN
There are many requirements and restrictions con-
tanned tho national currency act strict eompIsnce
with which essential 70 the safety and tho
system The Comptroller Of the Currency IL expected 70
the provisions of the Law enforced but
majority OF instances 10 left without the power 10
pei obedience OF persistent neglect wui dis
regard Of the law tho part Of The banks To remedy
this defect certain amendments suggestcd:-
Rr--An amendment to section Is authorizing the ap-
pointment Of receiver whenever satisfactory evdcn
In furnished that any association carrying tbs
proper business Of banking; that any Of M reports
CURED by law have been false fraudulent: that Ito
funds have been wilfuly msappied BY the officers %
directors in violation Of law, that u has committed
act OF insolvency.
Secdad-An Annendrnant 10 sectlnn "a Attending TIN