The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-05-22
MIR. BIcCuiIoch's Now Dodge TO Favor and
Bolster Up the National Banks.

| MIR. McCuiI0ch's New Dodge TO Favor and
| Bolster Up the National Banks.
The Prin ing Bureau Of the Treasury Depart
ment having completed the printing Of the
three per cent certificates, to take the place Of
| the compound interest notes, the Secretary of
| the Treasury is about to issue them to the ma
| tional banks for the purpose of forming por-
| ton Of their reserve fund. The law establish
ing the national banks requires them to have
on hand at all times an amount OF lawful
money of the United States equal to at least
twenty-five per cent of the aggregate amount
of their notes in circulation and their deposits
that is the banks in the large cities are required
to have this amount of legal tender reserve
fund, and they are the most important. The
small country banks are required to have ff-
teen per cent. The intention Of the law is,
undoubtedly, that this reserve fund for the re-
demption of the national bank circulation shall
be in legal tenders or specie; but the banks
have used compound interest notes, thus draw
ing interest on their reserve fund as well as on
their bonds deposited with the Treasury. In
stead Of making these institutions give up this
compelling them to use nothing but non-inis-.
est bearing legal tenders as reserve fund,
Dir. McCulloch is going to issue these three per
cent certificates for that purpose. Instead Of
having twenty-five per cent Of legal tender re-
serve fund, the issue OF these certificates will
reduce it to about eight per cent. The banks
will draw million and q half dollars interest
year from these fifty millions Of three per
cents, whereas they ought to draw no interest
from their reserve fund. 1t is clear violation
Of the principle Of the National Bank act. 1t
is gross favoritism to these overgrown and dan
gerous institutions, at the expense Of the public.
But the question arises here, do the national
banks need such bolstering ups We. are dis
posed to believe these are evidences Of weak
ness, and among the first indications Of gen.
eral smash up of the whole system. Certainly,
if the national banks cannot be sustained
without violating the act creating them, and
without fleeing the public so enormously the
sooner they smash up the better.
Are We to Have q General Indian Ware
All along our frontier, from Northern Mime
ANCuk"Sn0p
westward to California, the news pours in that
the discontinued Indians are preparing for war.
Throughout Arizona the Apache and Comanche
tribes have already commenced their depre-
dations. On the plains they are threatening
forts Sedgwick, Saunders and Phil Kearny.
Generals Smith and Custer have already
opened war on the Sioux and Cheyennes found
between the Platte and Arkansas rivers
General Sherman, after his tour along the
frontier, states that we can have . general
Indian war or not, just as we please. Although
General Sherman Is . somewhat cratic genius
we are inclined to believe him in this instance.
He told US that it would take two hundred
ley during the rebellion, and much as his opin-
ion was then derided we afterwards found it
true; 30 now, in this threatened Indian war
fare, we are inclined to believe that judicious
management on the part Of the government
would restore oil the tribes to an orderly con-
dition and prevent the immense outlay Of
treasure which must otherwise follow. The
harpies who focked around our treasury
during the rebellion learned that war gave fat
contracts, and they therefore leave no means
untried to plunge US into struggle which will
only result in the same treaties which we may
to-day make with the tribes at variance with
US.
An Indian war can be productive Of no good.
Our troops know nothing Of Indian fighting.
Only few days since several pieces of artillery
were returned to one of our forts, they being
found too heavy for use on the plains How
much longer will it be before we learn that an
Indian will not wait for piece of artillery to
overtake him? II we have war it will be
because the Indian Bureau either does not
understand its business or else understands
1t too well. Every four years we are obliged
to ill the pockets OF q new set of Indian
Agents, who get their appointments, az a
general thing for no other purpose, except to
swindle the miserable savages out Of the
limited annuties allowed by the government
radical change should be made in the
management Of our Indian affairs. They should
be turned over to the War Department, where
they belong. Our people are tired of these
immense drains upon the public purse, which
add to the already overburdened tax list, and
all to no purpose.
Sporting by Telegraph.
We gave yesterday by special telegram
very full account Of the result of the French
Derby. II this event had come off to-day in
stead Of on Sunday the report of it would ap-