New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-10-23
THE NATIONAL BANKS.
1ErTER TRONi LAY COOKE

aBd IN complying with your request as far as am aue
90 SO the more readily because regard the National
BANKING system as standing upon It's own merits md
not in any sense party gres,on, WIZ y0 GeGPy
OF Gnanre manfesting itFeh In so many quarters,
arc now apparently most antagonisc 70 the National
Bsnks if they had given as much thought TO this great
foremost defenders OF system which trust Is destined
70 prove Itself wise and bonefcen-a permanent basis for
9esons in the order IN which they occnr your letter
I,-O,igin of The National Bdnking System.
baDs STeTSd the several state having
Laws peculiar to itself for the establishment and govern
At uniformity in bank legislation the banks Of state
standing basis entirely different from those o. an,
other In some cases the banks were held 10 strict
accountability and required at all times TO furnish reason
able evidence of solycncy while ~ others the currency
mitted to look after their interests they could
The banking systems of York. Ohio. and possibly
chaotic rucJ As very few State bank notes passed at
par in all parts Of the country the notes OF each o
same bank had different values in dinctnt parts
Of tho country at the Same time. The currency
often rejected uneurret i'll another This state OF
things rendered exchange he Las" ana iG Wts
failing constant loss upon the business men OF every sec
ence; G6Entcpfets flooded the country, often dcceyng
the experienced judges, and rendering unsafe ioI
notes of their own local banks uness accompanied Ivy
guaranty without consulting an expert Failures were
upon the blholders who least able to bear IT. It
was impossible tell what banks were sond ana what
ONES Vtre on the brink Of bankruptcy. The whole sys
tenn was wrapped in cloud OF uncertainty ana the pun
Tic mind filed with apprehension more eIuoi w.,
and unsatisfactory financial condition could NOT wen 10
imagined ,- -.. .,.o,
AZ ouch time and under such circumstances the ma ma
tOn was engaged in suppresslng great rcDcnn 1'u
was forced omeet expenditures utterly nnpaaieeu ~
empty: hosttics were in progress, and public confidence
ina tho financial situation at it's lowest chD Inc 3ov
existing banking system for with the exception OF tho
noble response of the New York Philadelphia ana Bos
|
loan the Secretary OF the Treasury sought in vain ior
that concert Of action and financial strength among inc
banks of The country necessary TO meet his daily Dcreas
ing wants. The only manner in WHICH the oid system,
could have been made even tcinp9laIE M , mcu
issue. thus flooding the country win an fedeeDS'
and TO great extent unsecured paper currency which
LONG beloc the close of hoStes, must have lea TO man
DIAL disaster and collapse For not Only would the theh
existing banks have greatly increased thelf t
but hundrcts OF others would have been established 10
profit by the confusion Of Tho tines rms cdeSs , "
banks would naturally have been greatest III mos 5',e Wa
where the greatest license OF circulation prevailed ana
where there were cwest checks upon Irresponsible bank
ing. AS the oEly means OF bringing naiia otuo GU. u
chaos OF giving the country safe aud uniform currency
of restoring the confidence Of the people, and above an
atcd organized and put in successful operation, mat
did much 10 enable the nation TO meet lts enormous
pegoues, fight the war 20 victorious close ana Wcn
stil remains-One of the nObleSt fruits OF our great
Tic plan thus devised and put in operation was not de-
signed as Temporary cXpCdientto meet great emer
gency aud die With but was meant to be permanent
financial system. which should not only strengthen the
through many years OF peace.
Before introducing system IT necessary TO
remove tic old and the latter induced TO leave the
fed partly in consideration of the beneficial features OF
and priyeges we're prOdercd by the Government to the
old banking corporations they would surrender their
State charters, retire their eirculatloh ana organize u,
der tic uniform plan known as the National Bank
ing system Where these inducements were insuMceht
to etC the change the stimulus OF iOrce was IN
the shape Oh a special tax on the cCniaOh OF an clhIo
banks One Of these conditions on which the STATE BANKS
surrendered their charters and cOnfOimcd themselves 10
the National plan the pledge from INC government
that they should be permitted to issue certain amount
of circulating notes Particular mention Is here made OF
this one condition Of the change from the Ola sy,tem 10
tie now, because from 1t IS drawn inc ehci arsnent VI
the opponents Of tho National Banks ana as IN oisr
that The condition mentioned may ~ INC outset appoar
s true character - ono OF Tue terms oi Ny
tween the National Government ana inc ola banking COT
pOrati0ns. 49,, 4. A., - $780,. ,.,,, =, n,
conDlcte The immediate results Of the change, although
important beyond measure may be skCtched III slhge
was at once uonge in appearance unstable In value,
and with few exceptions, Insecure in character ana SUD
wbere equal in worth. and safe the Republic selt
II secured for the Government an immediate and much
three hundred millions OF bank capital,
and established throughout the country sixteen hundred
most efficient and responsible agents Iop ,he ION
glad Of this opportunity or bearing witness To the iact
sonrifcn million loan of FivcTwentics but particu.
isriy In the negotiation Of the eight hundred
largely Indebted the NatonalBans forthe prompiness
with which the National Treasury was supplied withsorcy
should understand that at a tmo when their monthly
pay was LARGELY In a5ears the money not only Tor ae
active and earnest co operation Of these same Ma
Such was the origin Of the Natinal Banking system
U-ChGracte7 Of the National Bank Currency.
rcaa g e1 IN ., ood cfcuans medium As already re-
marked, they are uniform In appearance everywhere
equal in value and just as secure us public ana private
First: This uniformity in the appearance Of tho Ma
cannot read TO recognize the currency wherever met
and feel perfectly secure in receiving it, without tho
Weekly Baik Noe Reporter. brokers' clerk Owing
TO the fact that entirely different plates and designs arc
| Impossible TO alter National Bank notes from lower
determination to higher And the Treasury Department
| perfection OF its workmanship, has so far sue:
SsSs III Eat Src not o% one
dangerous counterfeit extan where under the old system
Is over the old Condition Of affairs let the thousands Of
Woodworking men answer, who, in the days OF mixed
and badly PP Bo % S d ss sV eheap their
Secod The uniform value of the National Bank cur
feature which Of itself annually the people millions
Of dollars II removes every obstacle 70 system OF
try 6y giving TO the currency Of every state and section
the same value and credit abroad that II mas at home
Western village is Just as current In New 9rk or New
the other hand, the note OF National Bank OF New:
York England is accepted by the farmers west OF
notes of their local bank whose officers and stock
holders they personally know Let ths people compare
these facts Mltl INC %
say If they have gained nothing by the change.
Third TO prove the perfect, mpregnable security OF
the National currency II should only be necessary to cite
the laws by which the National Banks exist 10 is simply
impossible for National Bank note 10 become worthless
or even TO deprecate value, long the Govern
ment shall exist and continue TO fulfill It's pledges In
deed in one very important particular the notes OF the
National Banks may said 20 DE safer than the green
backs if such thing possible or desirable for while
dorsed by any special pledge Of private capital the
National Bank notes are the promises to pay Of private
public and private credit being thus united tosecure the