The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-24

imprisonment in the Ponltenuary WOulu %
different matter. Again we ask, Why are not
these cases prosecuted oriminallyH
National Banks and their Circulation.
WE published yesterday the able letter of Jay
Cooke, Esq, on the subject of our finances in
general, and more particularly referring to the
workings of our national banking system. II
is thorough and complete defense of the
organization, and proves oonclusively that
much of the feeling abroad, and which is
being used by politicians against the banks, is
founded on misapprehension. The COM
plete protection thrown around the receiver of
the notes of these banks is well shown in
homely conversation with a Pennsylvania
Dutchman, who sums up his reasons for pre-
ferring them to greenbaoks with a clearness
which does credit to his financial ability
80 you see dat pefore my nash'na bank notes can
prOke de Government bonds, init ten per cent.
must Ell bamKqgpt and Pe e soSuST
100 de 9roPeTy % m ot DC ps9k must al pc lost und dc
In fact, SO nicely and carefully is the whole
system of these banks managed, that under no
possibility could the great masses, the holders
of the notes, be injured, but at most the loss
would fall on the few who act as stockholders.
In fact, Mr.. Cooke shows the curious instance
of the notes of broken bank being above
those of the banks that are good. He says:-
"In this connection may as we'll to the remark
OF Mr. Treasurer Spinner that the notes Of broken
In one important regard this saying true aud It be-
1.-THE volume OF national bank currency is limited
by law to three hundred millions and that amount is
the national system as we'll as old ones are deprived
tend the limit. When, therefore, national bank
having circulate n surrenders its charter and goes
for any cause any national bank hsylag is share
treasury Department and by gathering up the scat
tered notes OF the defnct Institution and presenting
can have the amount OF circulation thus caaoslled
tered notes Of an extinct bank, parties sometimes
offer premium Of from tTo TO five per cent for them,
than the notes OF existing solvent bank"
1t is seldom that country can exhibit such
an anomaly as the notes of an insolvent bank
being sought after at a premium.
In discussing the great question in regard to
the withdrawal of the notes and the issue in
their place of greenbacks, Mr.. Cooke shows
that the banks do not really cost the Govern
ment SIS, 900, ,000 by reason of their interest on
deposits, but proves by figures that the taxes
paid by the banks really show a balance in
favor of the Government of nearly $l1 900, 900;
or, as Mr.. Cooke adds, after giving all the
| fgures:-
1t shows that not only Is the eighteen million
subsidy swsoWed up by the very terms and strn
If SssH M to he b ~ the banks for
vengeance. And let the people remember that until
ment took entire control of the curTency revenue
or GeHSS
The letter is a full examination of tho merits
and a candid statement of the demerits of the
system; and after weighing its advantages
and its evils, Mr.. Cooke rightly deduces the
conclusion that, although some national banks
have failed, and others will do so in the future,
for the simple reason that in any business
and with any system it is impossible to guard,
at all times, against the oupidity and dis
honesty of agents, yet, under the national
system, the security against accidents of every
kind is as nearly perfect as practicable, and il
vast improvement over the old plan, the
bill-hOlders being completely and always
secured against every possible accident, while
depositors have far greater security thar
under any former system.
The letter, coming at the present moment
is very timely, and we'll calculated to coun
teract the evil likely to be done by the mis-
representations of the Democratic politicians
1t is clear exposition of facts, and is writer
in style that all can comprehend. Coming
as it does from one so well versed in that de
partment of finance, it is authoritative