The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-23
IMPORTANT LETTER FROM JAY COOKE
Origin of Our Banking and
Currency Systems.
THE PRESENT STATUS OF
NATIONAL BANKS.
Greenbacks VS.. National Bank Note,
Etc, 'Gto., ETC., Etc., Etop Etc.

The ssuausky (ohie) Register of Saturday, oc.
tober 10, contains the following important cor
resp Jndence, which we are gratiiied to place
befo re thereaders OF THE EVENING TELEGRAPH,
une abridged, this afLernoon:-
3 ANDUsKY, Oct. IL, 1S67.-Dear Sir:-Permit
US US 10 ask you TO give, at your leisure answers
10 the following questions
i. What was the origin of the national bank
} ng system? .,-,,.,-
III. What is your reply TO those who claim
that the Government could and should save
the eighteen millions of annual interest now
paid on the United States bonds deposited by
'Ay retiring the three hundred millions OF
national bank notes, and issuing like amount
Nv. What is the present position of the ma
.tional banks2
system superior to the old United States Bank
or The Stale bank system?
vi Why should the national banking system
II seems strange that such lack OF informa.
merits OF the national banking system should
prevail all over our land; and we are convinced
politicians OF all parties they would cease en-
deavoring to damage IL by drawing 1t into the
identified with the national banking system
from the beginning, we have taken the liberty
of submitting to you the above inquiries, be
lieving that your replies to them Will furnish
much of the Information needed by the people.
PresidSent dS % First National Bank, San iGsE'y
President Second National Bank, Sandusky.
To Jay Cooke, Gibraltar, Put-in-Bay, Ohio.
Reply OF Jay Cooke.
GIDRALTAE Putin, Bay Ohio. Oct. H. 1867 Gentle
mp wH as rsgSsd as % 9e 9 nadna d
bankng system standing upon its own merits anu
not in any sense party qnestio9; MIN YOU; deePy @
ten Of finance now N se ,ass IN SO Of msG noy
parties who apparently most antagont rtic TO
The national nsy had 9ye1 Ss mSS9 o
be amOng the foremost defenders OF system @ when,
"a permanent basis for our future prosperity small
which they occur in your letter.
I.-oRIGIN OF THE NATIONAL BANKING SYSTEM
to sS our paper G GTrreRSy o @
having peculiar TO itself or the establishment
was 10 attempt at uniformity in bank legislation, the
banks OF one state standing on OASIS entasg ss Ine
banks held 10 strict aydenee emo Of
soeDcy while Others m the G@sfsaGs eGs peTmed TO
TAXI ser Of ab Itself 6 Sno S as Sesp they
tbe banking systems Of New York ohG and PG}Ss
20 this chaotic ruie) AS very few state bank notes
each bank had different rate OF Discount and ,6s the
notes OF the bank had different values In dlher-
ent paris OF the country at the same time, -,
The currency oi State, although good At a. home
ofthings rendered exchange between the ESss Snd ana
veSaon 'ee constant loss upon The business
of every se ton The notes OF no 96 IwG Sanhs fh
conHtry Often deceving the most perienced judges.
d Fendsng IL pRse tban b eT notes Of
banks unes accompanied by guaranteed SSd
disastrous the loss usually falling first up3n the 6iIl
possible 70 tell what banks were sound and what ones
Was wrapped in cloud Of uncertainty, and the public
mind ed with appTehensiS3pp; 36 more a ehS0G
Al such a lime, and under such circumstances, the
nation was engages 10 ~ i exSenpTes utery 2n
I'm history
treasury was empty hostlities were in progress and
lowest ebb, The GoveTnment could not % TO any e1-
tent ayai st OF me tnsn ne & e2hg g noss yS s
New York, Philadelphia and Boston associated @ f
Secretary Of the Treasury sought In vain for that
o. eoungy necessay 10 oa
wants The only manner @ In Which the old sy1sem
wGnld have been by grantsg me state b oanSs tee
with an irrede mable and, to great extent.
unsecured paper currency which long before the
disaster and eolspse for not only would the then ex-
but hundreds OF others would have been established
10 Pioht by Lhe confusion OF be times dns Increase
States where The greatest license of circulation pre-.
ggoGs p banking. AS me only means Of bringing
safe ss OTS ., OS q, 4t gWpg ba %
Ufthe eople and abyve all Of furnishing toe sinews
PS IN sreesssDl 9PeHt9fH has & sPen9d d system Of
enable the nation 20 meet It's enormous expenditures
and tight The war TO victorious close and which still
The plan thus devised and pnt in operation was not
designed IS q temporary eNpedlent 10 meet great
SmeItency and die with H. but was meant TO be per
Inantht financial system, which should not only
S,Ieng!hen the nation during costly war, but also
Deneht the people through many ears OF peace.
before introducing the system II was necessary
" remove The Old and the latter induced 10 leaS
the htld partly In consideration of the beneficial eR
tnIss Or the new system, and partly by cOmpulson
ss.thln ght5 and privileges were prOhered by the
SoSteInment 70 the old banking corporations n they
nVltu surrender their State charters, retire their cir
& &SuiEs0n' H. ana organize under the uniform plan nov
Known US the national banking system. Where thesI
lnducPmeplb ere Insufficient effect the change
the sumuins OF force applied In the shape OF
special TAX on the circulation of ali State banks.
One OF those conditions which the State bank
surrendered their charters, and confOrmed them
selves 10 the atonal plan, the pledge from thu
Government That they should be permitted to issu
certain Rnount Of circulating notes. Particula
mention ~ here made OF this one condition Of tn
RhaDRe from the Old system to the because IRON
IA M drawn the chief argument of the opponents O
fh4 National Banks. and also In Order that the con
dILon mentioned may at the outset appear In It's tru
rharscter as one OF The terms of the contract be
tween the National Government and the old bank
mR cOrpOTaiiODBs . ,.,--- A.. A., -. -. -. -,
Ana complete com l,59, Ih9 bsyond measure, may 6