The Wyandot pioneer. (Upper Sandusky, Ohio) 1853-1868, 1867-12-12
Should the National Bank Cur
rancy be Curtailed.
Secretary Mccullough devo

CccTeSafy McCullOuSH NSEOtSS
considerable space in his Report to
the argument that the volume of
currency is in excess OF the public
need, and should be curtailed. He
defends his course in gradually con
tracing the Legal Tender circula-
ton, and answers the question Why
the circulation OF the Nstiona, BANS
should not also be cuctsilei. He
says:
''If then, It be adAlitted that the
paper circulation is excessive, the
question arises why, should not tile
contraction be applied to tie notes
of tie National Baa!ss instead of
the United States notes, and thus
large saving OF interest 10 the Gov
ernment be effected T? This queS-
ton has already been answered in
ferentially, but it's importance re
quircs that it shall receive more def
mite consideration.
Prior to 1853 the banking insti-
tutions Of the country, with the ex-
ception Of the Bank Of the United
States, were created by the States,
ard we're snbjectto State authority
alone They were State institutions
over which the General Govern
ment exercised no control. The
right Of the States to create and
manage them had been SO long con
ceded that no interference with
them by Congress, and no decision
Of the courts adverse to tke consti-
tutionality OF their issues we're ap-
pretended. ----
Soon &fter the commencement OF
war, it became manifest that sJs-
TEN Of internal taxation must be
adopted for the support of the gov
ernment and the maintainance of its
credit, and chat this would involve
the necessity Of a national currency
OF uniform value and Of undoubted
solvency. To meet this necessity,
! UNITED States notes being then re-
garded es only temporary expe-
pient) the National Banking system
was then created, not to destroy
the State banks, nor iniuriously to
affect their business. but to furnish,
through their agency and that Of
new institutions which might be
organized under it, permanent
national bank note circulation Had
it been supposed that the object of
those who advocated the measure
was to bring the State banks under
the control Of the Federal Govern
ment for the purpose of destroying
them, or that such would be its ef-
feet, it would never have been adop.
ted No such object was avowed
Or intended by its friends, and no
/, such effect was anticipated by the
banks. With that spirit of patriot
ism which was SO marked charac-
teristic Of the people Of the North
during the war, stockholders OF
: State banks relinquished, at the re-
quest of the Government, the great
er privilege possessed by then
under State laws, and in connection
| with the new banks organized under
the law, became efficient aids in ne
gotiating the public loans and sus
tanning the public credit. To al
banking systems under which circu
lating notes are issued, there are
grave objections, and if there were
none in existence in the United
T States, the Secretary would hest
= tate to recommend or indorse ever
: the most perfect that has been de
vised. The question now to b'
considered, however, is not whethe
, hanks of issue should be created
but whether the National Bankin.
system should be sustained. In tn
present condition OF the country
and in view Of the relations that tn
Natianal Banks sustain to the Gov
] ernmeut, IGNORING in this eonnec
g ton the question of good faith,
tie Secretary has no difficulty il
coming to the conclusion that the,
should be sustained. They are 81
j terwoven with all branches O
, business, and are so directly COZ;
f nected with the credit of the GOV
E ernment, thrt they could not be de
stroyed without precipitating upol
the country financial troubles whicl
o it is no condition to meet. Atsom
: more proritious period, when th
e Union shall have been fully restored
and all the States shall have attain
\ ed that substantial prosperity whicl
: their great resources and the enere7
;, of their people must sooner Or late
secure for them, it may perhaps b
- wise for Congress to consider wheth
. er the National Banking System
S may be dispensed with. The pres
+ ent is not favorable tine to con
slider this question. The condition
nf our politioo1 op6 financial ofFa;r -