The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-26

promises to pay based on 6s (or adding the
margin Of 10 per cent, 75) cents in gold AZ
security, can favor or otherwise than hinder q
Ielurn to specie payments.
From the Cleveland Leader, 23d--Repu5lfcan
The intimate and prominent connection of
Mr.. Jay Cooke with the financial history of the
Government during the inception of our present
financial policy, and his well-known relations
with the system Of national banks, will give his
views on this subject, here expressed, a value
and interest quite apart from their great in
tTinsic merit, and Mr. Cookies cogent reasoning
and clear presentation of facts Will be widely
read and deeply pondered by all who are can
didly seeking the truth in this matter. On one
point, however, Mr. Cookies argument seems to
us one-sided and unfair. 1t is his enumeration
of the taxation, State and national imposed by
the Government upon the national banks.
He figures up the total taxation upon the
banks together with q six per cent. interest
upon their reserves held for deposits and for
circulation, at S2S, ,943, 600 while the interest on
the $500, 600 in circulation, which the oppo-
nents OF the national banking system claim
would be saved to the Government by its aboli-
ton, amounts to $4,000 900, leaving balance
OF profit TO the Government, in this view of the
case, Of $40, ,S43, 600. In order that we may not
do MIR. Cooke injustice, we quote his words:-
THE American people, by destroying the ma
tional banking system, retiring the national
bank currency, and substituting greenbacks
therefor, would lose more in net revenue alone,
now paid to the Government by the banks than
they would gain in the cancellation of their own
Understanding bonds"
Mr.. Cooke, however, fails to present the
other side Of the case. If the national bank
system were abolished, and greenbacks substi-
tuted, the business of issuing notes by banks
would be abolished but the deposit and bro
kerage business would continue. Every bank
would be tran sformed into bank of deposit and
brokerage, and the revenue from taxation upon
these branches of business would be as large as
ever. Our readers will find Mr.. Cookies table exhi-
biting the taxation OF national banks in another
column. Let us examine 1t, and see how many
of these dra " backs are attributable to national
bank currency, and how many would exist were
that currency retired.
In the first place, all these banks would have
to keep, as at present, reserve of legal-tenders
for their deposits, and would be compelled by
State laws to keep, on the average, as large
reserve as at present under the national banking
system-twenty per cent. The first drawback
therefore, of interest on reserves for deposits
would exist as much after the national bank
note currency had been retired as before. The
taxes on deposits, on banking capital not in
vested in Government bonds, the license tax of
| two dollars thousand ON capital invested, and
| the State taxes paid by national banks, would
| exist as much, and would yield as much revenue
after the withdrawal OF the national bank cur
rency, as before.
/ From the Washington InteLigencer 2Ih-Jotn-
son Democrat
The letter OF Mr.. Cooke is an able and interest
ing exposition of the origin Of the national bank
| ing system, the character of its currency, its
| present position, and its relative merits in COM
parlson with other systems. The high character
| OF Mr.. Cooke as banker and fnancier, and his
| intimate relations and familiarity with the
| whole system OF national banks eminently it
| him 10 explain the questions propounded to
| him, aud entitle his views to earnest and candid
| consideration.
From the Springfield tAfaSs.) Republican, 2iM-
| Rational Democrat
In answer 10 letter of inquiry from several
| national bank officers of Sandusky, Ohio, Jay
| Cooke, the great seller of national bonds, has
| written long letter explaining the origin,
a IVA, 81 kInN al haN
and defending these institutions against the de-
fractions of their opponents The letter IS timely
and conclusive, and will have the effect to re-
assure many timid and ignorant persons who
NAV have lost faith in the national banks
through the persistent assaults made upon them
by their enemies.
From the Ne,g York Herald Of the 25t,-NationaI
Weathercock' Grant johnson = Anti Negro'S'9-
| TrGge Democrat
| tive character-that is, he argues that the old
| state banks were not good, were inefficient ana
| insecure were not uniform, and gave currency
! which had not the same value in all places ana
therefore the national banks must be excellent;
| There were defects, undoubtedly, in the old
system of State banks, though not SO many or
| Of such magnitude as is represented. The banks
| of this c1tv and some other cities, for example,
| were su bstantial and answered the purpose very
| well. . - -,
that under the changed state OF things produced
hv tbe war and a great national debt IL was
necessary to have new and improved system
of banking, with a uniform currency, does that
Droye the system actually adopted to be good
oneY Does it prove that it is better than the
otberY If there are not the same evils con-
Dected with It, there may be other and greater
evils. one plaster applied to wound may not
heal IL. while the application OF another and
different one might be still more injurious. We
maintain that this is really the case as to the
hanks we have substituted a worse and far
more dangerous system, on the whole, than that
which existed previously.
Mr., Jay Cooke lays great stress upon the SER
| vices of the national banks to the Government
| during the war. If we rightly remember, the
| first aid the Government received-aud that,
| too in its greatest need-was a hundred and
| afty millions from the old banks of this city.
Mir. Chase, then Secretary of the Treasury
| could have received more-could have received
| all he needed-from our bankers and the bank
ers of other large citles,. had he carried out
| the plan first agreed upon Of selling his oonds
| In the market from time to time, ior Whas
they would have realized Then we should
not have had an inflated currency nor nor stSpen
| sion of specie payments Instead OF tno naIlonal
| hanks aiding the GOYerDmenti y was ihe otner
| wev-the Government aided the banks. The
Treasurv Department issued both the ponds and
] ne currency, The national banks did not sup