The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-11-20


There Is, a usual at this time Of the year,
considerable speculation - to what the Secre-
tary Of the Treasury will recommend In BIZ
forthcoming report to Congress, although Il
really matters very little what he says, =
there ID no doubt that the financial policy o.
the country will continue conservative, II
accordance with it's interests, and that al
propositions favorable to radical measures a.
contraction will be promptly tabled In both
houses whenever presented. What Congress
should 6rst consider after meeting, however,
Is the currency, question, leaving the general
financial problem, including the funding pro-
cess, for subsequent discussion; and thers 4
one important element In this which CLAIMS
prompt and serious attention. We refer to ths
national bank notes, Of which there are already
moro than two hundred and ninety-seven
millions issued, as security for the ultimate
redemption Of which more than three
hundred and forty millions Of bonds
have been deposited with the Treasury q
Washington. By the time the full amount q
three hundred millions Of notes 10 issued tho
bonds placed as security will aggregate, say
three hundred and fifty millions, the interest on
this sum at six per cent In gold being twenty
one millions per annum, and, with the exception
Of few millions Of ten-fory bonds ct Eve par
cent, all the securities thus deposited bear
interest at the rate mentioned.
This large amount annually expended, We
need hardly say, is absolutely thrown away BY
the government TO fatten . dangerous financial
monopoly whose circulating notes constitute
the weakest part Of our whole financial system.
They are not legal tenders, and act as stand
ing incubus at this and other monetary centres,
and whenever we attempt to resume specie
payments, in FIVE or perhaps ten years hence,
they would, If permitted to remain in exist
ence, prove the most formidable obstacle in our
way to resumption. There is no compromising
advantage to the government whatever in this
annual payment of twsnty-one millions In gold,
an amount which, IL placed at compound int
rest, would be sufficient within no very long
period to pay of the whole Of the national
debt.
Most Of these banks are paying enormous
dividends, as for instance the First National
Bank Of this city, which has paid at the rate Of
twenty per cent per annum in cash to Its stock
holders since its organization, besides carrying
twenty per cent more to Its surplus fund. We
therefore call upon Congress to withdraw tho
subsidy 1t is now paying these institutions, BY
amending the national currency act 90 ~ 70
substitute three hundred millions Of legal
tenders for The three hundred millions
Of national bank notes outstanding, and oaa-
eel thereupon the bonds now deposited ~ .
basis Of circulation to an equivalent amount
Then we should have uniform currency based
upon the credit Of the government. and with
no banks Of issue In the country every baak
would have to do business upon legal tendera
The weak element In our currency system
would be thus eradicated and the government
would be saved twenty-one millions In gold
annually. This is the important question we
shall call upon Congress to consider and cot
upon when It assemblies.