The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-10-23

OF dollars Il removes every obstacle 10 system OF
By giving 70 the currency Of every state aud sec
ton the same value and credit abroad that II
has at home The issued by the national bank OF
an obscure western village is just a. current in New
York New Orleans as the note OF national bank In
Wall street and on .ns osnsT napo, TIE note o.
by The farmers west OF the Mississippi just conf
IDENTIFY they accept the notes OF their own local bank
whose officers and stockholders they personally know
Let the people compare these facts the state OF
things before the war; and say II they have gained moth
n;yd To prove the perfect, mpresnable security Of
the national currency, should only be necessary TO
cite the laws by which the national banks exist II 10
to become worthless. or evon 70 dspreciate
in value 90 long a. the government shall
very Important particular the notes Of the national
banks may be said 20 be safer than the ereenbacks
such thing Is possible or desirable for while The green
any special pledge Of private capital the national bank
the promises 70 pay Of private corporation Of
yats credit being thus united to the OF
these notes held by the people The double and triple
az tns national banks are secured is we'll illustrated by
an incident occurring 10 the early days Of tho new ma
IN 1883 shortly after the organization OF national
banks in Harrisburg, solid Dutch farmer OF whom
Pennsylvania has many: and whom shall call Mr.:
signl0ed to the cashier Mr. wier that he wished to
draw out 50 600 OF his balance. Mr. Schmidt by tho
way, was stockholder 10 the bank TO the amount Of
a. i is many Of his class 70 keep his balance At bank
comparatively small BY drawing out mis- funds
his dwelling. This was done for the double
purpose OF preventing the "boys" Of the family
learning the precise amount o. funds on hand
in his own hands than IN anybody else's- The
cashier stepped 10 his desk and filled check for Mr.
Schmidt 10 sign and handed him two one thousand
dollar greenbacks treasury notes. clean and bright
from the printers hands just such the old gentleman
had until now preferred. Tho bank officer not
anrn hS customer
with the remark -
Tank you, MI. vler, tink ! not want dem dis
si@e'" A' ''a'' ''1' 1A'' ~ '-nA A''' -
Certainly" replied the cashier, the bank having
he counted out the required OF his
own bank and handed them TO Mr.. Schmidt The latter
deposited the new currency carefully 10 ms ~asscoa,
occurred TO the cashier 10 ask him why In the world he
should prefer national bank notes 10 greenbacks The
took the proered chair and proceeded to state
his reasons somewhat follows
swell, Mr.. vier bin readin the law Of Congress, vch
autorize these nashna bank, und bin siudyin it, too.
Den bin studyin Mr. Cookies leete book apou how to
organize these banks und set em going. Und tells you
var nnds-I finds the nash'nal bank notes sh to
pesht-petter greenbacks."
"what Ia the world brings you to that conclusion"
said Mr.. wier. to whom the view was now one
goot, goot enough for anybody but belief the notes
Of your nashna bank ish leete PETER because finds
circulation 1t deposit NIT te Treasury Washing
ton tolar and ten cents in government bonds und
SO II tbs bank wants to issue one hundred toussnd
toars must deposit init Mr.. SPINNER, United States
Treasurer, hundred und ten tousand toiars
in bonds 10 that crcrlaton II the bank runs
na nnd pay ,ns notes ns
be kept goot II the bonds goes down in the market
den e banks must deposit init 10 Treasury to keep
to bonds always wort ten per cent circulation.
Vell that make 10 nashna bang notes joost goot
sgreenbacks and ten per cent more. only they sh not
bank notes t. great seal Of to und ,e names
Of Mr.. SPINNER und Mr. Coiby-ts same which is
signed on 70 greenbacks und desc gentlemen say all
the bank notes that desc notes will received by the
United States In payment OF all dues except gold
toms und viii paid out py to government in payment
Of all debts except gold interest VEIL that makes sm
Dsu Mr.. vier looks on desc naslAai bank notes in
mine booklet und sees your name und 70 nome Of Mr.
ish soos honest men, und knows your names os S Do
notes makes de pank liable for Dc payment just mooch
vs Ss "d. % S Sss not he, held 70 for y.
finds dat every stockhoder In dis pank liable
for % notes und debts Of Do pank TO de der
stockholdsr myself aud nnds my farm ish mortgsgsd
pay the bills Of dis pank Den knows most DO other
% as 1 Sank snd Gy W. sSC o% U
nash'nal pank notes can proks. de government bonds
mil ten Der cent margin, must git wort noting At al dc
United States government must git bankrupt und be
scoundrel too de property Of de pank must all lost.
und de properly Of ali desc stockholders must % used
Dat Mr. vser, W calls 10 nash'na pank notes to
pesht."
Wtor experienced banker Is ne WA9, nn0 received
from the shrewd old farmer Of tho national
banking system and fuller appreciation Of the proec-
ton which this system throws around the people the
holders Of the national currency. In word, the
onal bank notes 70 all intents and purposes joint
obligation, acting first lien upon the Treasury De-
partment upon all the assets Of the banks corpora
ons and upon the private Of the bank stock.
holders to the Of their stock. Do the American
people realize that In this currency they have the most
secure circulating medium ever devised or likely TO be
devisedf
But suppose that national bank, from any cause,
OF is Circulating notes. They continue % pass q. par as
before wholly unaffected by the suspension desruc
ton Of the bank whose name they bear for the United
States bonds pledged for their redemption still remain
deposited In the national Treasury and will remain
until the scattered notes gathered up and redeemed
at par BY the Treasury Department
10 this may as well refer to the remark OF
Mr. Treasurer Spinner that 'the notes OF broken
tonal bank are better than those OF solvent one In
one regard this saying is true and u becomes
true 10 this
The volume OF national bank currency Is limited BY
law TO three hundred millions and that amount already
issued hence banks orpauizing under the national
system, as well as many old ones deprived of their
share OF circulation until Congress shall extend the
limit. When, therefore, national bank having crcu
laton surrendsrs its charter goes OF existence
or is closed up by the for any any
getting special permission from the Treasury Depart
ment and by gathering up the scattered notes Of tho
deiunct institution and presenting them at the United
Stairs Treasury for cancellation, have the amount
OF clrcuat ION thus led transferred to itsel
thus gathering up the scattered Of extinct bank
W
per cent for them, thus making them for the being
wor, more than the notes Of an existing solvent
bank.
m.-srBsrrruoS oRKExpAcKs roa NATIONAL HANK
NOTES
Your third question touches a part OF the subject
which most interests the people at the present Tine
and which II most discussed aud least understood BIZ
certain class Of politicians. Ny answer Is this
Frd-Even ~ n uere true that tho government Ia
paying egnteen millions annually into the Golfers OF
national banks wh ch could well be saved 10 tho
people by SUBJ gton OF gresnbsck csrrencv vet IL
would bs tar .~-ef 10 pay this than to have the
grcenbsck u Treasury note system permanently fas-
tened upon the country regard the issue by the gov
eminent OF legal tender notes TO he used ms circuat-
Ing medium. AZ an anomaly In finance II was purely a
measure justhsbs because necessary 10 the lie OF
the nation and like other measures should cod with
tue return Of prosperous peace II Is desirable that
the eeubacks be Immediately suddenly Withdrawn,
but shev should be gradually and surely replaced with
currency which - legitimate and permanent
Sscondt was an important part OF the contract be-
tween the government and the old State banks when
the latter surrendered their State charters that III they
organized under the new national system they should
be entitled certain proportion of circulation This