The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-07-02


We give in another column leta'r from
Nashville on the national banks of that city
This letter shows, as the letters of our c. 'rre-
| spondent have done before, that the banks sare
mismanaged; that they do not meet tn
simplest and most vital requirements of the
law on which they stand; that they boldly neg
lect, not to say defy, those fundamental points
which are supposed to be the safeguards of the
pe> ,ple in their relations with these institutions.
Undo. ubtedly this severely reflects upon the
manage. nent Of the banks; but 1t reflects more
severely I'LL upon the Comptroller of the Cur
rency, who, by the published statements of the
banks themseA. yes. is clearly guilty of q grave
derelictlon of du..v in not keeping the institu-
lions within the law. 1t is his duty to compel
a strict observance OF the law in the manage
ment of these Institutions and he cannot depart
from that strict line OF dub- without more or
less danger to the general financial interests OF
the people.
Congress should not fail to consider at its
coming session the relations Of the national
banks to the national credit Within their
proper sphere the banks are useful. We have
no objections to urge against them as banks,
If kept where they belong, and managed as
the law requires; but Congress should radi-
cally change the law in so far as it makes these
banks practically part Of the Treasury Depart
ment. Congress has the power in the consti-
tuion to make national money, but it has no
authority to delegate this power as is done by
giving these corporations the right to issue notes
more or less directly related to the public
credit The quasi relations between the national
treasury and these so-called national banks
should be absolutely abolished and the banks
should stand on their own feet as private insti-
buttons. As matters now stand, these private
corporations have the power to issue currency
that has national character, and they receive
out of the taxes twenty million dollars per
annum for this exercise of power given
strictly 10 Congress. This is the simple, literal
result of The system of issuing notes on de-
posted security on which The government pays
interest. 1t is easily seen what o vas. centripe-
tai force there is in this system-how it tends
to concentrate in few irresponsible hands
the power to Cypress the people at will through
the financial machinery that the masses under
stand 80 little.
The power to issue notes should be with
drawn from these banks and the equivalent
amount of currency should be issued by the
government itself; then the nation would not
pay twenty millions per annum that some poll
ticians and ockjobbers may have concentrated
in their hands the power of welding at will
the whole money interest Of the country. This
done the currency should be left alone. We
have touche bottom in financial troubles, and
have been at the lowest ebb, and must 90
steadily forward to improvement Our dis
turbances have been but little compared to
what has been elsewhere. We are in condi-
ton requiring no Interference but to put the
currency on its legitimate basis The natural
laws of trade will do all the rest, and with the
inevitable development of our resources we
will grow up to the volume Of money aaoat.
and thus restore in the safe and right way the
normal relation between the currency and the
wealth 1t represents.