Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1866-08-02

iCOlIAfUNICATED.


To the editor of the alexandria Gazette
I enclose an extract from an article IN the
Baltimore Gazette, on the National Bank
system, which in my opinion forciby exposes
some of the errors and evils of that system.
Although firm friend of the interests OF the
Southern people, with whom | sympathlze
most cordially in their present condition, l
have always believed that their interests are
iuseparab|y connected with those Of the people
of the whole country, especially as regards
financial matters-and the result of the pre-
sent Banking and Financial policy will aston
sh some who disregard the South, before
many years roll by. NEcKAR.
"The weaker must necessarily be tributary to
The stronger, and SO long as the financial power
is kept in New York as it will be, so long as
the Natiooal Bank ssystetn prevails, and SO
long as it, in fact, is the great centre ofredemp
ton. so long must the South be tributary to it,
The idea that Northern National Bank cur
rency is currency for the South is absurd, and
it is fully to suppose that Northern capital,
sent South in the shape Of National Bank
notes. is going to remain there aud to Supply,
for any time, the wants Of the locality to which
it is forwarded.
The South must have its own indigenous
currency, issued at home, redeemed at home,
aud kept at home. l5 cannot prosper on
currency Which is snapped up at every mo
ment by debtors who wish to remit to North
ern creditors 1t must have some means OF
making currency moderately abundant, OF
reducing the rate of interest, and Of giving
Wholesome stimulus to enterprise. 1t must
have it's private bank system fustered and en-
couraged, and not warrcd upon The Nation
al Banks in any shape are curse to the South;
but the tax Of ten Per cent. on other bank cir
cnlatiOn Is an lnlqnlty. Under the present
Organization the National Bank system Is a
vampire, preylng upon the financial vitality or
the South, and draining from IL the little life
blood that is left No better commentary upon
the system can be given than the TACT, that
in many districts cotton planters to-day, While
money is plenty at the great centre, New
York az anu ) per CT per anuun, freely pay
ten, fifteen, even twenty per Cent per mouth
for nouey IN small sums, to enable them to
cultivate and secure their crops There is bur
little currency there, and 30 quantity can be re-
tanned there while systeuG is maintained which
attracts it and concentrates ii at distant
point.
The fatal evil of large issues of counterfeit
notes Of all denominations, with which, as re-
ported al the Ire ,sslry Department, the South
ern States are now flooded, IS the direct end
dangerous consequence Of the National Bank
system, as at present organized. Currency Il
some kind is Indispensable Tor the purpose OF
facilitating the interchange OF products, and
Government detectives have actually found
that Southern merchants, in their absOlut"
need for some such representatives or value,
forbear to scan 100 closely the quality OF the
notes in circulation. La several instances the
contents Of the ''tiiIs OF large merchants We're
found 10 be at least one half counterfeit. This
currency-ior currency 1t ISIS kept o1ioat
with ease in the South, because 1t has no cen
tral place OF redemption. 1t is retained, While
the notes which have central place 81 redomp-
ton, naturally flow back to it. l"4 <.g'
l. is a sad commentary. indeed, on the work +
ing Of the banking system OF the country; that
90 issue can be kept aAoat in some Of lis most
important districts but d counterfeit Issue; and
that the merchants and trades,rcn of q large
section, are virtually Obliged to submit to this
as the only means Ct facilitating active later
simple fact. The people OF the south are for
hidden 10 employ State circulation. They are
denied the privilege Of making an effort to
e. tablish financial independence, anu they are
compelled to accept The situation OF CONNER
cial vassajage IL the North. The National
Bank system no: only acts as chalk and an
incubus upon them, hampeTing and retarding
them, but it has virtually forced upon them a
large amount of counterfeit currency, which,
though it may be Of service for time, must
eventually be thrown out as valuc;oss, and
thus infict heavy and material loss on the
very people who are least al lie 10 sustain it.
The true uoIicy of the Government should be
10 faster and encourage the Southern people IN
their efforts TO establish themselves, and not
to hamper them and isnpoyerlsh them, Or TO
permit them to become prey to raFacLouS
systems Or sections.
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