Delaware State journal and statesman., 1867-10-25
SUPERIORITY OF Tun NATIONAL
RANKING SYSTEM.


jay Cooke, the celebrated Banker OF Phil
adelphia, in a long letter, recently publish
ed, reviews the present National Banking
system. and thus expresses himself respect
ing the superiority Of the national system
over any and all others yet devised, and es-
pecially as being preferable to the State
Bank system:-
"The superiority of the National over
the State Bank system has been quite iuilY
discussed in my answers 10 previous ques-
nnns, and l can only recapiiulate mere
The State system involves this grave error,
that il gives thirty six mutually independent
powers control over vital public interest
which is indivisible and strictly national IN
its character. If the currency of one state
never circulated IN another but were always
confined within lis own State limits, then
State system might be the proper one; hut
these State Bank notes lin the event oi inc
establishment of the State Bank SYSTEM
whether good or bad, would become a pari
of the Nations currency, and the people oi
all the States would be equally interested to
have them well secured, which would be
entirely impracticable. A subject which
thus interests all the people OF the country
equally, and which in its workings pays no
attention to State lines, should surely he
under national control, in order that there
may be unity of purpose, and in order that
all the people may share in determining
through their central Government the char
acter Of the currency they must use.
"Under the State system there is no check
upon undue expansion or contraction, ana
thus degree OF uncertainty is constantly
given 10 the financial future. Under the
National plan the volume of the currency
is determined by Congress, and is enly III
creased or diminished as the needs OF the
people and the business OF the country re-
quire. Thus stability and comparative GER
tainty are secured, and the public confidence
maintained. Under the State system the
currency question places constant tempta
tion 10 corruption before thirly-six diteren
Legislative bodies; under the National sys
tenn the corrupting power OF the Banks, J
they have any at all, is confined TO singl'
!. National Legislature, and as the present luN
is framed and with the gaze OF a nation con
centrated upon Congress, corruption regard
ing the currency is next 10 impossible ever
il there. Under the State system the cuirenc'
q is unlike in appearance, unequal IN Valn
:, and so insecure as 10 bring constant AM
y heavy loss upon bill holders, who are EN-
l. phatically the people; under the Nationa
It system the currency is uniform in appear
'. ance, has the same value III all parts of th
~ land, and is so perfectly secured that bill
~ holders do not and cannot lose anything.
'e As 10 the superiority OF the present sYster
lie over the United States Bank, little need b
said, as few, II any, advocate a return TO til
-, latter. But the National system possesst
:, all the advantages, with few, if any, of I'll
" Objectionable features, OF the old Unite
Ia States Bank Indeed, the National systei
is is golden mean between the State systei
II, and The United States Bunk, combining I'll
excellences Of both. II combines the unit
le of action and general control, and the un
is fOrmiy of currency-which were the be
T. features of the United States Bnnk-wit
the diffusion of issue and freedom in loc
management which characterize the Sta
" system. Considering the present extent
our country, and the present and prospect,
magnitude OF its business interests, regal
the establishment and malntainance of
IA United States Bank as next 10 financi
" impossibilty. Besides, il is not the proyin'
IN Of any government 10 be the banker of Ii
yO people. The people can do their own ban
ing best; but government should so far inte
lere as to systenlize, control and regulate Il
hi banking institutions Of the country, and s
Il cure 10 all the people n safe and uniform Gu
he rency. This is all that our Government do
! through the National Banking Act, and /
that il proposes to do.
se "The National Banks are totally non-po
81. tical in their organization and tendenciI
My observation has been that men OF
Il, political parties are found among bank Of
- GERS, directors, and stockholders, in abe
hg the same proportion as they are found
'rk any branch of enterprise or industry. III
nf one fact renders it simply impossible for al
- political or party movement to be organic
"a in, through, or by the National Banks.
iIe