Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1866-12-07


meuts shall be brought abDnt.y H. the de-
terminatioR Of the question was left to, the
Secretary, all the, banks would be required
to redeem in New York, the acknowledged
commercial metropolis oftlIe Unionl What
is said upon this subject by the eacting
Comptroller of the Currency is fully in
dbrsed. -----..-----
b CURTAILMEST or THE CURRENCY.
The views Of the Secretary upon the
question OF a reduction of the currency
have been SO frequently expressed that iG
Is only, necessary now to consider whether
the curtailment should be of the United
States notes or of the notes OF the national
banks. On this subject his opinions have
undergone no change since he communi-
Gated them in his reports as Comptroller Of
the Currency. Banks of issue, organized
Under State laws, have been in existence
ever since the formation OF. the govern
ment. State banks were in full operations,
and not less than four hundred millions of
dollars were invested in them as capital.
In some States by judicious Legislation
and careful management, they had afforded
q local circulation satisfactory and safe.
In other States, where no reliable security,
or insufficient security, had, been REQUIRED
for the protection of the public, and their
management had been conlidcd to incom-
petent or dishonest hands, there have been
numerous failures, aud heavy losses had
been sustained by the holders of their
notes. n.-s r-o Ifto, a. -., III -,,.,
The national banking system was not pre-
pared by its author, nor adopted by Con-
gress, to destroy the State banks, nor to di-i
vert capital from banking,bat rather to COM
pei all banking institutions Issuing notes as
money to secure them, beyond any conceiv-
able contingency, by deposits with the
Treasurer of the United States; thus, with
out the agency of a national bank, provid-
ing national currency which would save
the government and people from losses, Of
which there was constant danger, from a
local and unsecured circulation. The ma
tional banking system was Intended, while
not invading the rights of the States nor
damaging private interests, to furnish the
people with permanent paper circulation.
The United States notes were intended TO
meet temporary emergency, and to be re-
tired when the emergency had passed: The
present Secretary was not the advocate of
the national banking system, ana claims
only the credit of having used his best eff
forts, as comptroller, TO put it into success
tul operation. But heIhas no hesitation in
pronouncing it u vast Improvement upon
the systems which it superseded, and one
admirably adapted to our peculiar form Of
government. There are substantial objec-
tions to all banks of issue, and if none eX-
isted In the United States, it might beVery
questionable ii any should be introduced;
but having taken the place of the State
banks, and furnishing as they do circula-
tion as free from objection as any that is
likely to be provided, the Secretary is of
the opinion that. the national banks should
be sustained, and that the paper circulation
OF the country should be reduced, not by
compelling them to retire their notes, but
by the withdrawal of che Uuited States
notes. Anxious as he is tOlighten thepub-
lie burdens and reduce, the public debt, he
does not hesitate TO advise thai these. notes
be withdrawn from circulation, and that the
furnishing of what paper currency may be
required be left to corporations, under eX-
isting laws and such amendments of these
laws as experience may dictate for the bet.
ter protection and advancement of the pubs
lie Interest," Howrapidly they may be re-
tired'mus depend upon the effect which
contraction may have upon business and in
dustry, and eau be better determined as the
work progresses. The reduction could
probably be ihcreasetli from four millions
per month, as contemplated by the act of
April 18th, 1866, to six millions. per month
for the present fiscal year, and to ten mill
lions per month thereafter, without pre-
venting steady conversion of theinterest-
bearing notes into bonds, or ipjuriously af-
iecting legitimate business. No determin-
ate scale OF reduction would, however, in
the present condition. 0tOUr affairs, be ad-
visable. The policy of contracting the cir
culation of government notes, should be
definitely and unchangeably established,
and the process should 90 on just as rapidly
as possible without producing financial
crisis or seriously embarrassing those
branches of industry and trade upon which
our revenues are dependent. 'There is a
great adaptability in the business of the
UniIed States, anu it will easily accommo-,
date itself to any policy which the gQVern--
ment may adopt. That the policy indicated
Is the true and safe one, the Secretary is
thoroughly convinced II it shalt not be-
speedily adopted and rigidly but judicious-l
lY enforced, severe financial troubles are in,
store for us,
! NATIONAL BANKS FOR THE SOUTH.
/ The Secretary cordially approves what is
said by the acting comptroller OF the cur
rencyi in his report in regard to theimport-
ance of furnishing the people OF the South.
with the bank-nOte circulation which their
in the opinion which he expresses of the
beneficial alyresults--po financial and
secial--to be effected by the organization of,
national banks in the Southern States, but.
he cannot recommend an increase of the
bank-lote circulation Of the eouiitry bel'
yond three hundred millions of dOllars.a and
hopes thag the necessities of those States
may be supplied rather by reduction of
the amount awarded to other States than by
an increase of the volume OF currency ~
TARIFF REVISION AND FREEDOM OF TRArE.1
On the sixteenth Of July last, Mr.. David
"A. Wells was appointed special commis4g
sloner OF the revenue, and instructed to-
give his chief attention to the tariff, with
the view of ascertaining what notifications
are required'to adjustit to theasystem Of
Internal taxes, stimulate industry, and
make labor more, productive. Thelability
displayed by Mr.. Wells in the perforimance
forthe revision of the Internal revenues
laws, and the heartiness withrwhieh trhe is
Prosecuting his Investigations, giye the
best assurance that he will perform the
work in a manner credible to HIMSELF and
satisfaetorylito Congress and the peOpleE
The SecretarYlad addressed to him on thefourrs
teenth. day of September, 1866, a letter,
from which, the followingi is extracted:
-nIh viewiOf the fact that the revision Of
the tariff iscertain to engage the attention.
of Congress atits next session, i consider
it especially desirable that the Treasury
Department should be prepared to f1rflish1
as much information pertinent to the sub
jeet as,can be,obtained and collected within
the Limited time available for the necessary,
Investigations. You are, therefore. hereby