The Wyandot pioneer. (Upper Sandusky, Ohio) 1853-1868, 1867-12-12

nished circulation, deprecated 1t
| is true, Ike the United States notes,
but eolvent beyond question, and
current throughout the Union. 1t |
has aided in regulating domestic
exchanges, end furnished the Gov
ernment with valuable financial
agents. Had It not been sdontsd,
State B.nhs would hare 5sea con
tinued, es long as they were So}era-
ted, TO turni;h the country with
bank o tes. In most OF the States
| BANKS were aotresui-cd to depo-it |
stocks for tAe securities OF their
notes, and in those Sta.3s where Sc
curity was required, there W1s 20
limit 10 the ,.ulourt OF notes tnat
might he put iii circulation. In 9th |
CIR States their was no security be- |
yond the capitals of the banks, fre-
quently unreal, and the partial liza
bility Of stockholders, generally de-
ceptive, Who can estimate the ex-
tent of the injury which the people
of the government would have sus-
tanned if the State institutions, with
out any other restrictions than were
enforced by State laws, had been
permitted during the war to occupy
the field? All having suspended
specie payments, and th ereby being
relieved from the necessity of fur
nishing evidence Of solvency, banks
unwisely or dishonesty managed
would have stood on level with
those which were managed wisely.
While the latter would have found
it difficult to keep their Issues with
IN reasonable limits, the former
would have poured out their ire
demable promises until distrust Gre
ated panic and panic disaster.
. That the national banking system,
with its limited and secured circula-
ton, and its restricted provisions,
by superceding the State system has
prevented a financial crisis, there
can be but little doubt. Eor this it
is entitled to credit; and for this
and for other reasons suggested it
], should be sustained until better
, system shall be devised, or the coun
try is in condition to dispense with
, banks of issue altogether. The ar
guments in favor Of compelling the
banks to retire their notes and yield
{ ing the field to the notes Of the Gov
, crnment, are based upon the suppo-
sition that if $500, coo, 900 of United
States notes were substituted for
, the S300,000,O00 Of National Bank
notes. now in circulation, the Gov
ernnent would save some S16,O00,-
| 600 IN interest which is now & gratu2
/, ity to the banks. That there would
> be no such saving, nor auy saving,
by the proposed substitution is
clearly shown by the Comptroller OF
, the Currency, in his accompanying
f report, to which the attention OF
Congress is especially asked. Ifan
: account were opened with the banks
and they were charged with the in
, terest on 3300,000,C00, and the loss
r sustained through those that have
: failed, and credited with the Interest
: on the United States notes held ty
i them as a permanent reserve, Will
: the taxes paid by them to the Gov
o ernment and the States, and with {
@ commission covering only what has
+ been saved in transferring and dis
i bursting public money, it would b
n ascertained that the banks were no
J. debtors to the United States. It il
e not necessary, however, for the Sec
r retary to dwell on this point, as bis
main objection to the substitution
o would not be removed if a saving o
Q interest would be effected by it. Re
garding as be does the issue Of tht
q United States notes in the first in
> stance, as having been a misfortune
: and their continuance as circula
} ting medium, unless the volume
n shall be steadily reduced. as fraugh
Y with mischief, the Secretary ca,
O conceive of no circumstances tha
# would justify q farther issue. Thes
: deprecated but legal tender notes
; Notwithstanding the reduction tha
J. has taken place, still stand in tn
u way OF a return to specie payment
\ q substitution Of them for them fo
G bank notes would lie regarded b,
G him and by the country rs dcclar
d alton that resumption had been in
J. definitely postponed. If those nov
h outstanding shall be retired at the
V rate Of four millions per month, tn
~ amount in actual circulation will
70 soon be so reduced that they ma,
i not seriously retard the restoration
n Of the true measure Of valune. II
s. on the contrary, under any pretenc
l. or for any purpose whatever, thei