The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-05-26


mcdaiey procure adictment for suborning to per-
jury, which would be fraugM with moro serious cohss
quenoes 70 tho omoer than sasp'ns's from is ioros
Blr. Spinner ON the National Bank Cur
~ remcy.
~ TO TIM EDITOR or TUE H1RALD. stg ,
Ny aitcn.ion has boon called 70 an editorial article
which appeared THE Nsw YoRK HsnALo OF Friday.
the 18th inst. headed "Mr. Sf1Aner's Luminous Views
tho National Bank Currency" being crrticism
my lcter Of tho 10Th Inst 10 the Cashier Of tho Mer
chants National Bank OF Memphis, ronn $500. which
article by its numerous direct questions me-
invite an answer. That II would have been just
TO 10 have printed, In connection with your
ments the whole Of my letter. and ahat have reason
for complaint that this not dose think you will
admit upon rspsrusal Of the letter and article oues
But, wsiying all matters Of personal character,
my main objc.t In answering objections that may no
urged ny tho press. from whatsoever motives 70 the
banking system Is 70 advertise 10 the people
this fact WIZ that national bank notes have the
bes secured bank paper circulating medium that has
ever been devised.
The HKRArD makes issue with the remark that the
Of national bank that has failed rahor bet
than those Of bank In good standng;r but my
pmnation rs to why they are betsor was not gwen 10
wit. III away from tho business marts commercial
Of the country for the that tho Treasurer
OF the United Sta becomes the cashier Of such default
ing bsnk and w through his assistants and al other
government officers, redeem such circulation" II tho
Giro a,ing notes Of bank in good standing must be
sent distant place for redemption, tho Of
dcfaulng bank being redeoinablo at four hrndrcd
different government Offices scattered throughout the
country nj their face value, obviously rather bet
ter than those OF . bank In good standing" Your
article further says
Mr.. Spinncr's correspondent asks very prrtinent
question, upon which tho Treasurer does not throw
HI hat ata
would have IN the even; OF the banks falling and tho
bonds Deposited sho aid realize enough to rodss tho
Is the government bound redeem tho notes at par
Notwithstanding the bonds deposited should not rcaxc
sufficient sum with which 10 redeem ucfnr That "
the question. Mr. Spinner docs answer II directly.
He smIy says tho government has nsst and perma-
asus Ds .a S:se 90 p s1 SD sseSn s
BIT Mr.. SPINNER snpp 90 there 70 no assets-and
% .ss s e BE- Sss 2 a * I'M c
dcc ency of the Treasury Tba Il tho question the
correspondents put and ,he question which has noe been
answered. fN HaF 70 M ta. =
You subsequently rcmsrk =
wc ghtly remember the act creating thcse banks,
the Is not bound TO the note holders beyond
what can realize ont OF the banks No Congress c,uld
sSSs Sn s"sn u pas; wan 'sm rs. ssas
Treasurer Spinner think the legal tender bestcr
government Is bound for that 70 is fun value whatever
crisis may como
Now, did answcr The question OF my correspondent.
which you state In the above quotation TINT failed to
answer and the reply In these words: ~ therefore
answer this question anhrnsssiveiy" -
As TO ia, Law creating this syslcm and providing Tor
tho redemption Of national bank notes. docs appear
from yo r satemcnt of Il thai n 'more lnmnous expo
sitou han has been given by either OF might be
cepac To noiehodcrs In tho forty seventh section OF
tho National Currency act Is provided that In case or tho
failure Of national bank thc Comptroller shall declare
the United bonds aud securities pledged by such
association fort ed 10 tho United ss'es and INC same
the Comptroller shall oinedist-ly gvo notice. In sush
mann lie rcsry Of the Treasury rbsil by general
ka - es asccr,S 20 pIc.cn, Se Tor psy.
mcnt at th lrea 1ry Of the Unit States aud the same
; Ts,,0 a. s sss Apa nv any asacienoy Ia the
pro eeds Of the bonds peigcd by such ssAocAon he
United States shah have nrs, and paramount lien upon
IL ems clear enough thai the notes OF national bank
In liquidation liabilities OF the goycfnmnt ana are
reeuablc al sight by and al OF tho hundreds OF
desrnacd dcpcstarcs " tho United States and most
people In commercial circles Understand this liability OF
| Hated ate i, therefore clearly locally buund
deem every dollar of tho rcuiaon ~ deiAulng ma.
iopa bank The se'enmes' Virtual onasIses r ars
other vi It's bond. made Of equvssnt vsne-deposted
BY national tanks 20 secrr e s'ae% , ,n ., @
ference between such par value Of the bonds At wh,c,
ibsy are received and the lesser ameast Q cireaa'ias
guarantees 70 iask good dsaoiency to
the notehoder Il agrees 20 redeem al such notes from
wh. .n aa seedr,cs Deposited Tor that pufpo O.
with tho that may DO Afterwards realized from
a.sss Of such deis..ng bank sn. De sse ,
the capacity of joint trustee OF the national banks and
tho holders their notes TO pay The latter such sun. n
| II may rra.izc from the sales OF Tire securities OF the
former but II stands the perfectly secured end rer
OF osery uiatng note issued BY national bark The
fact that all natlons bark notes legal tender ~ the
royerpment for al duos cxcept would be snn
Gent to cstsbiIsh th liability, even there bad been