The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1867-11-01

SIaIc BANKS Tile widest license o
Issue, thus flooding the country wit
an irredeemable and, to great ex
!, tent, unsecured paper currency
which, long before the close of hos
tilities, must have led to financia
disaster and collapse. For not only
would the then existing banks hav,
greatly increased their circulation
but hundreds of others would have
been established to profit by the con
fusion of the times. This increase
of banks would naturally have beer
greatest in those States where tht
greatest license of circulation pre-
vailed, and where there were fewest
checks upon irresponsible banking
AS the only means of bringing finan,
cial order out of chaos, OF giving the
country safe and uniform currency
of restoring the confidence OF the
people, and, above all, of furnishing
the sinews of war. our Government
originated, organized, and put in sue.
cessful operation, that splendid sys-
tenn of National Banking institutions,
which did much to enable the nation
to meet its enormous expenditures,
flight the war to victorious close,
and which still remains--one of the
noblest fruits of our great struggle.
The plan thus devised and put in
Operation was not designed as tenn
porary expedient, to meet a great
emergency and die with it-but was
meant to be permanent financial
system, which should not only
strengthen the nation during cost
ly war, but also benefit the people
through many years of peace.
Before introducing the new sys-
TEN. it was necessary to remove the
| old, and the latter was induced to
leave the field partly in considera-
ton of the beneficial features Of the
new system, and partly by compul-
sion. Certain rights and privileges
were profered by the Government
to the old banking corporations if
they would surrender their State
charters. retire their circulation, and
organize under the uniform plan, now
known as the National Banking sys-
tenn. Where these inducements were
insufficient TO effect the change, the
stimulus of force was applied in the
shape of a special tax on the circula-
tion of all State Banks. One of these
conditions on which the State Banks
surrendered their charters, and con-
formed themselves to the National
plan, was the pledge from the Gov
ernment that they should be permit
ted to issue certain amount of cir
culating notes. Particular mention
is here made of this one condition of
the change from the old system to
the new, because from it is drawn
the chief argument of the opponents
of the National Banks, and also in
order that the condition mentioned
may at the outset appear in its true
character, as one of the terms of the
contract between the National Gov
ernment and the old Banking Corpo-
rations.
The change from the old plan to
the new was rapid and complete
The immediate results of the change,
although important beyond measure,
may be alzotohod IN @ s.Asl~ ---t@s-~-.
1t swept from existence q currency
which was at once mongrel in ap-
pearance, unstable in value, and, with
few exceptions, insecure in character,
and substituted therefor a currency
uniform in feature, everywhere equal
in worth and safe as the Republic
itself. s-- d
1t secured for the Government an
immediate and much needed loan OF
three hundred millions of bank cap
|ltal, and established throughout the
country sixteen hundred most efli-
cient and responsible agents, for. the
negotiation and dissemination CT
other and far greater loans. / am
glad of this opportunity of bearing
witness to the fact that, not only in
negotiating the first five hundred and
fourteen million loan of Five Twen-
ties, but more particularly in the
subsequent negotiation of the eight
hundred and thirty millions of Seven
Thirties, the country was largely IT,
debted to the National Banks Cor the
promptness with which the National
Treasury was supplied with sOrely
needed funds. And the late soldiers
of the Union army should understand
that, at a time when their monthly
pay was largely in arrears, the mon
ey not only for their wages, but for
their subsistence even, was raised
through the active and earnest CO.
operation Of these same National
Banks.
Such was the origin ofthe National
Banking system.
H. Character Of the National BamA
Currency. -
The notes of the National Bank
possesses every element required in
! a good circulating medium. AS al
ready remarked, they are uniform in
appearance, everywhere equal in val.
ue and Just as secure as spublic and
private credit eombined can make
them.
First-This uniformity in the ap-
pearance of the National Bank notes
enables every one, even those who
cannot read, to recognize the cur
jreney wherever met. and to feel per
fectly secure in receiving it, without
! the precaution, lately necessary, oI
constantly consulting the Weekly
Bank Note Reporter, or broker s
| clerk. Owing to the fact that en-
tirely different plates and designs are
! used in printing the bills of the diff
j ferent denominations, 1t is imPossi
I BILE to alter National Bank notes iron
j a lower denomination to q higher
j And the Treasury Department, b,
/ its numerous checks and guards, anC
the elaborate perfection of its work
manship, has so far succeeded in pro
ducing a currency incapable of being
counterfeited, that there is not nov
+, one dangerous counterfeit extant
j where under the old system ther
? were a hundred. How great an i'm
: provement this is over the old con
1 dition of affairs, let the thousands O
hard working men answer, Who, i
: the days Of a mixed and badly print
1
), ed currency have found perhap
4 their last five dollar note to be
e worthless cheat.