The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-04

/ considerable
affect the prices in ALL Not with paper currency
which local in It's use and in It's inauence Its advan
when sh sss &. yo1us Or en,rsncv con
rather enterprise than prces Its convert
bility prevents expansion, while IL larger volume gives
labor But when paper currency IL an neon
veriiblo currency and especially when, being So
tender i become. prolific Of %sch. Then spscs
becomes dsmonetizsd, and trade Ia uncertain .. es
results because the basis e auous,ips sen prices i'd
as they advance furth.. additions g the circulating
surcb.@ 4 The expense Of the nany tnsn nSusy
| declipss, and extravaganos 10 wanten then, with
nminution OF products, aaa Consequently or exports
required on account Of the general expansion which
they, in their turn, give nsv stimulus and support
ind - 70 e
tive by the expansion This notwithstanding our large
*. @ r. e: q "a
sta,e. and the important question srses What the
remediesy Oh tfA CNr4 ak4 s.. U. .l.4 m
sssts that they are 70 be found = *
their Ut the Atlantic cltiss or what would "a rat
ter at single oity 1910. .....
required hy isgsaAass 60 AaalsAfui trade 80
TARd-ln caeeful rsyissa Of thA tariff for the Dur.
pose % hnraatsag II -wtsh iaisnai iaxss-resaov
branches Of industry and relieving sgsthes or aresy
relieving, raw materials irom taxes Ia 0rdsr tSas ths
o. lssos may b eahaaosd and probation aa
fbxrth-In the issue of bonhs, payas,s il moi over
twesty years and bearing interest," a the Of NOT over
I'VE par cent. payable IN England Germany, to an
amount suacsnt 70 abaorb the s,x par cent hcnds now
hed Europe and to meet the demand there for actual
ana permanent Investment: and .............l|
Eta 10 the rehabilitation Of tho Southern States
First The utility Of compelling national banks 70 re-
deem their notes at commercial centrss as we'll AZ Al
their counters Is apparent The object OF Congress-
In the establishment OF the national banking system
was 70 furnish tho people with solvent currency Of
Ohnnt fha IynttoA ds>s-~
vency Of the notes Of the national banks Is secured by
deposit Of bonds with the Treasurer Washington but
many Of them In places difficult OF access redcmp-
ton Of their notes at their respective counters not
all that t. required 70 make them through
is true that the notes OF all national banks
arc receivable for all public Dues except duties
the banks which Issued unable to redeem them but
II will not be claimed that the notes OF banks although
perfectly solvent but situated interior towns are prac
cities 49,
Il may be urged that to compel remote banks thus to
redeem would be . hardship, but as very few well
managed banking institutions in the United States fail
70 keep accounts and balances in some Of the Atlantic
imaginary rather than real But il il should be hard.
ship would be necessary one and the interests Of the
sides without such tSe. o. ne peops BE-
none At all AZ least until So clio payments resumed
and when there are no assumptions there is always
constant tendency TO imitation and legiiimao banking
The frequent and regular return their notes Is needed
to keep the business Of the banks In healthy condition
stockholders than TO the public Unless the banks shaI
be compelled 70 redeem United States notes many OF
them viii neither lend their influence in favor OF re-
turn TO payments nor DO prepared for them when
without Their agency specie payments shall be brought
about II the determination Of the question was loft to
the Secretary all the banks would be required to redeem
In New York, the Acknowledged commercial metropolis
Of the Union The destination OF that city as the re-
deemng point for all national banks would not only give
ab-oute uniformity their circulation but would so
actate tho asserting and returning Of notes that
practical .sss and general redemption would be en-
certain that il viii b. unless ali banks shan be COM
ected TO BY the banks IN other Atlantic cities on The
ground that world sggrandize New York at their ex
meruai emporium Of the Union Most OF the interior
banks keep thcf chief aances In that city, because
they are more available and valuable there than else
where and In compelling all tho banks redeem at the
metropolis Of srte, Congress would be only yielding
an ynwrttcn bat controlling law TO which statutes
compel those s,onai hanks whose business Is based
upon the products Of the country and these must always
.y Their. 'n or uo e n
changes between that city and other cities should be In
favor Of the latter ts redemption BY their banks would
BE- made ut their own counters, and no sacrifice
but that or local pride would Be involved in
their beng required ~ iaw TO redeem at the common
and PhladsIpkh the notes Of The Boston and Phsdei
phia banks wfiEc home, and TO New York for pay.
redemption o. the notes Of all the national banks To
effect this lsoa prds should b sacr6ced and minor In
terests should Be dsregardsd wha. IL said upon this
subject By the acting Comptroller Of the Currency d
fully eud0reed -----
Tho second remedy suggested is cur,ailmsnt Of the
LOCAL r1xDEns NOT nvuDsp PERMANENT CIRCULATION
The view OF Vie secretary upon tho question Of re-
pressed that only necessary now TO consider whether
the curalment should be OF tho United States notes or
Of the Notes . Of the national banks. On this
subject his opinions have undergone no change
since he communicates them In his reports Comp
iroller Of the Currency. banks Of issue, organized
under State laws have been In existence since the
formation Of tho government BY tho decisions Of the
highest tribunals Of the country their constituiionay
has been affirmed and they have become so interviewed
the business u the country and such large invest
ments have been made In them that their destruction
would involve consequences Of very serious character
whether OF not the country would have been pros
porous without them-whether the stimulus they have
given 70 en,erprss and the facilities they have extended
artificial prices which they have created and the actual
losses which shspsope have by crises they
ures-it Is too late 10 consider. When the
National Currency act was passed by Congress-
state onnxs were iu orsrsiion and not less than
as capital In some States by udcious legislation and
careful management, they had afforded local circua.
reliable security In sucent security had been re-
CURED for the protection Of the public and their man
agement had been connded 10 or dishonest
hands, there had been numerous failures and neavy
losses had been sustained by the holders OF bo notes
Soon After the commencement Of the rebellion II be-
created the interest and principal OF which could only
DO paid by general system Of internal taxes, involving
necessity for q circulating medium equal
in value throughout tho country ana safe for
the government 10 receive In payment Of dues
This subject, Of course, demanded and received
tho earnest and careful consideraiion OF The
distinguished gentleman at that time the financial
minister OF the government who DO prepared
and submitted 20 Congress abil so provide q national
currency secured by pledge Of United States bonds and
provide for the circulation and redemption thereof
which, arer having been carefully considered aud tho
roughly discussed. became law 18th OF February
1868 Prior to the passage Of this act by the gov
eminent had been authorized and largo amount OF
government notes had been put into circulation. But
there nothing In tho authorizing their ISSUE or in
the communications Of the secretary the discus.
sions Congress- TO justify the opinion that they
intended 10 be permanent circulation. On tho contrary
the provisions In the law for their into bonds
and the Arguments OF the advocates OF issue afford
ample evidence that they regarded merely
porary and justinabie only by emergency which II
Was supposed nothing else could so adequately mect
Had been proposed that these notes should be- per-
manent Circulation and take tho place OF bank notes