New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-10-23

~ NC orc Kindred foue9d tcars st must deposit NIT
Mr. spinner, United States Treasurer ono huoiea .i
Zen Ou.aud tCllars In bonds TO secure thnt Cfcul h
IL the bank rms away md dort pay nc ho,, ~
Government ta Iay en- Gnd ~, ne hnrds Goes Goyn
In Inc market den to banks must dcpost more inlu 70
Treasury TO bGfp to bends always MOtt w div bank
notes inost COot CrccnhackS ana ten per COM lOo
only they sh rot legal tcrdcr Den, Mr IeI' mn, MS
ON der NasHa barkno'cB r. great seal OF tI 10yel,
mont und to names OF MI SPINNER uud Mir; Colby
men saw on al To- bannOtes that desc notes WI pc
received by the United States in payment o. az n uuTs
ment m pnyncn Of an debts except gold interest Ve
that makes 'Cm so goot az greenbacts intce o,.s IN
"Deu Mr.. Vccr. lOOka on desc Nasl ai pahk hooS ~
,nho hccke, md secs your umd rs name o. Mr.
Kerr de president OF ds pnk und hoSe you Po1 notes
g uy. % @ table Tor de nav mrnt lust as mooch as If
de- Goyernmcnt vas not held for'em. - ao.,ot,rr
GVcL finds all dis is true, Mr.. Necr, una soinelmHs
more finds dat every stOckoldcrin dir anR is aDe I9r
te notes ind debts Of dc pank TO de amount OF ger soek
S ESd qa mvlc Snd n SE my farm s Osagc
dc bills II dis pauk. Den knows most dc otcf s,oon
holders Of DIS pank und dy s gcot solid mem nlt prop
eriv 60 Won Zee Mr. Veer dat before my Nnsfnal paik
notes caf yrokc de- Government bonds, MI Yen per eY
margin must git wort noting at all; dc United Siaes
Government must lt bankrupt und 20 sconndrei 700;
do property of do Pank must all pc oS uu w
dat Mr. yeer ish w calls te Nash mai pahA HUGS W
pesht" =. ,.os b.a received
from the sbread old farmer new views OF the Nhonu
Banking system, and fuller appreciation Oh tnI Pob c
tpn which this system throws around mo peVPV ~ w..
holders Of the National currency. In word, the Na0ha
Bank notes are to all mtons aud purposes lole VVSt
ton acting as u lien upon tho Treasury @
upon ali the assets OF tho banks as eoIoialons any D
the private fortunes OF me oah n"onie realize
that in this currency they have the most seculo
ing medium ever DEVISED or keg 70 pe cause sIs
But suppose that National Bahk rom ,F hccncs of
mend business, and go ont OF existence Nhut ~ no
before Wholly unaffected by the suspension or destrnc
ton Of the bank whose name thcy De ioI o ,cair
Sts,eS pos ,Ge Sotana Treasury aud will remain
until the scattered notes are gathrltu UP anu
In This connection may as well refer to the remark OF
Mr.. Treasurer spinner that inc n9 9 =, one I'm
one important regard tis saying Is tInc ana " oooo'
law TO three hundred millions and that amount u aeauy
issued hence banks organizing uleI te n ~ ,p
horc ~ ,ircntio mill Congress shall extend tho INIT
When, therefore, National Bank haNg 'o -;
charter and goes out OF EXISTENCE W ~
9iossa up 10y ,o 10y ar Of crcnltio by getting tpc-
cial permission from the Treasury Depart Inebt anu 10y
gathering up the scattered notes o thc ucluHc6
lion ard prrsentg them the United States Treasury
t o,,clpten can have the amount OF circulation thus
Cancelled transferred TO itself Ia tnA up ~ ~
fer premium Of from two to five per Gtlt ior t, us
making tho.l for the time being worm inO'o 'i" '0
iii Sbsifuion OF Gree backs for National Bdnk Notes
Your third QUESTION touches part OF me sniyeo, Nhoh
most interests tho people sc the present me ana when
- most discusssed and least understood by certain
class OF politicians. My answer Is ils: .
eirhteen inions annually into tie Golfers OF The National
Banks which could as well lie saved TO nc people py
substitution of gteenback currency YET IL Womb DC II
at,cr 10 nav this sum than TO have tho greenback or
Treasury note system permanently mslehed upon ,n1
country regard the issue. 10y the government Ol HRh
tender notes 10 be used circulating Medium as an
anomaly IN finance II was purely W,I hlcas,ue just
fable becnuse necessary 10 The mo OF thc N"toh anu
ike other war inca should end with the return ni
prosperous peace. IL l. not drsisnte ,i te Ire
be Immediately suddenly withdlaHh Dut tnoy SnIt
he gradually and surely replaced with currency WHICH
is legitimate and permanent. , A.. o,,.. ,o,,goo,,
III IL was an important part OF inc contract bc"rch
the Government and the Old state hanks when the lattes
surrendered their state cnarcr, 's a,ld he enteJ
TO n certain proportion ~ circulation rms was Mso luc
principal nduccnent offered i9I VIC tolht'iJn ~
banking institutions. without tLs pledge OF Sleuaton
few II any OF the old banks wohu nave mn
state charters and It would nave geen il4sspIe "
establish the national system AZ an ih2t y,
cannot now be taken away without papDo piehrn oI
faith toward the combined captal on tlo s ,
breach OF fniih would ever ni,et Ieu,t eapal
cautious and backward in it's dcaln WIN goyernmcHt
which could thus disregard lts hledges honCH ,
bic the proposition may seem the peuo cahnol Pus,3
be benefited by any huahclnl mr'eNIe Mlc.' Pi"o"0''
repndiates the contracts OF ane d nia.t any svs
tenn OF banking for the actual point of INC argument -
that so long As there shall DO national dent tho Govern
ment ought TO supply all the clhi.iHJ ~ nv cVi',y Va
order TO save interest. suppose le nu SAlo bhh ~
tenn voS now ia existence, with S0O0d0O OF compare
lively unsecured circnhtOn mere Mou ~ s,i
ren s6ns why the Government should force tho siaio
nv ded c,,rency The people would. IN issupposcd
case save just much Interest as iey W9d now salo
by retiring tic National bank notes Hence th1 rear
0xeston Is shall we have any banking system AZ all ior
n tho present excellent system nc 'esIo}cl Woi
10 tinns Ian exciuycly grconbsck
rency be adopted 81 course We ,l nl'v 10 sysso ~,
hams either state or National having inc privilege OF
Nv Bnt il is not true that the Government woud annu'
oIiy ave any part of That SUM- ~ destroy
Inc the National Banking system and Issuing gretlOac
in place OF the National Bank currency now IN
% th1s snhicet Il understood by those who the most
persistent in their attacks upon he present system VI
II Is not question whether the Government ought or
ought not 10 pay TO the banks the interest the United
a.. lion l,y
ION 10 secure their circulating noes Those bonds are the
Of individuals who have thrs united their means IN e-
climate busness. and no matter who held these GoycIn-
securities the Interest would nave 10 De paia az ao
the interest the United states bonds they have bought
and paid ior az sg se on inc bonds held By them
II bclng plain, then that inc Government eoheis no
special prv,ess nRod sStes bonds thew hold bcomss
necessary 10 look further for the fayOrsm and lo's 10
made above being necessarily admitted. twill be claimed
that the National Banks are permitted 10 issue tnree
hundred millions OF circulating notes which amount they
Loan M their customers at an average Interest OF six per
cent-thus In reality receiving double interest on
single investment OF three hundred millions Of dollars
Then follows the additional claim that the Government
may lust as well supply this three hundred millions OF
omonnt Of United States bonds hUs saving TO the people
the eighteen millions OF annual interest,
showing the banks stand charged with eighteen millions
Of interest derived from their circulating notes
which amount 1t really be- received and no equivalent
be rendered by the banks, IL virtually giatnlty or
special privilege enjoyed by the National Banks TIE IN
teTet on Government bonds has nothing TO do with tho
subec-the vortism" such there be, Is connected
exclusively with the circulation OF the banks
But reply, the National Banks do not receive any
thing like eighteen millions OF interest on their three
hundred millions Of circulation. What they do receive
the following facts which accessible TO oil, will show
The very law which authorizes the National Banks TO
issue circulating notes at all also requires and coDpels
them 10 keen constantly hand IN their vaults aver
age of twenty per cent twenty-five per cent In cities and
fifteen per cent the country Of the amount OF that cir
culaton as a Here sixty OF the three hund
red mons of circulation, lying idle In bank the year
round and amount which the banks can receive
Interest ia thus reduced to two hundred and forty mil
lions.