The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-10-23

amount OF govsrumsn. deposits at that date Of
Sss 20 ose o. The average amount Of non interest
bearing legal tender notes held by tho banks duvng the
past fiscal quarter was tlO2 4Sl 800 The national
banks have ON deposit at the National Treasury TO
s25l, ~, $50 aud Ave per cent bonds amounting
$50 100, being total Of $40 100, $50 with which
national banks that have failed since the inauguration
OF the system are nine having aggregate capital OF
ST. 0OO Twenty-three other banks have voluntarily
gone INTO iiquidaton their aggregate capital being
Regarding the failure Of national banks word 10 suf
hcent 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 Is 10 impossible TO
guard q all times against the cupidy and dishonesty
with the funds OF bis bank II 70 difficult TO sec what
remedy there could be under any system. But under
ns si0s system the security against % o.
vast improvement over the old plan. For under the
present system tho bill holders completely
dent while dspostors have far greater security
than under any former system. Nine-tenths OF
the p:ops az, Are directly interested only ,n IN
these are in every mans pocket and they cannot be AZ
fscted in value BY anything the banks may do the gov.
instructive 10 note the very small number OF failures
since the change from tho old system 10 the nsw only
nine ont OF nearly seventeen hundred having failed IN
v. SUPERIORITY OF THE NATIONAL RANK sYsrEx
The superiority Of the national the State bank
system has been quite fully discussed in my 70
previous questions and only recapitulae here The
State system involves this grave error that Il gives
thrty-nx mutually independent powers control over
vital public interest which Is ndivsible and
strictly national in its character II the currency Of
one state never circulated in another but always
confined within ts own state mlts then State system
might be the proper one but these State bank notes lin
the event OF the OF bank sys-
seml whether good Q, pad would become part o. tns
be equally interested to have them well secured which
would be entirely impracticabe. subject which thus
interests all tho people OF the country equally, and
which in lis workings pays attention to State lines,
should surely be under national CONTROL in order that
there may be unity OF purpose and order that all the
people may share In determining through their central
government the character Of the they must
use.
Under the State system there Is no check upon undue
expansion or contraction, and thus degree OF
tanty Is constantly given to the financial future Tn
der the national plan the volume OF the currency Is de-
termined by Congress and is only increased dmin-
shed the needs Of the people and the business Of the
country require. Thus stability and comparative GER
tainty are secured and public confidence maintained
Under the State system the currency question places
constant temptation to corruption before thrtysix diff
ferent Legislative bodes under the national system the
corrupting power OF banks II they have any at all
is confined 10 single. national legislature
and as the present law is framed, and with
the gaze OF nation concentrated upon Con-
grcss corruption regarding the currency Ia
next to impossible there Under the State system
and so insecure as TO bring constant and heavy loss upon
billhoders. who emphatlcally the people; under
the national system the currency is uniform in appear
ance has the same value in all parts of the land and is
30 perfectly secured that bholders do not and cannot
lose anything
As to the superiority OF the present system over the
United States Bank, little need be said few any
advocate return TO the latter But the National sys-
tenn possesses all the advantages. with few, any, Of
the Objectionable features Of tho old United States Bank
Indeed, the nations! system Is golden between
the State system and the United States Bank combining
the excelences OF both II combines the unity OF action
and general control, and the uniformity OF currencv-
which were the best features of the United States
Bank-wh the diffusion Of issue and freedom In local
management which characterize the State system Con-
sidering the present extent OF country and the
present and prospective magnitude Of Its business in.
teress regard the establishment and maintenance OF
United States Bank next 70 financial impossib ty.
Besides Is not the province OF any government to be
the banker OF the peope. The people do their
banking best: but government should far interfere
a. TO systematic, control and regulate the banking in
stitutons Of the country and to secure TO all tho peo
pie safe and uniform currency. This Is all that
government does through the National Banking oct,
and all that It proposes 70 do.
The National Banks totally political In their
Organization and tendencies. Ny observation has been
that mon OF all political parties are found among bank
ocsrs directors anA stock holders Ia about the same
proportion they found in any branch Of entsrpnse
industry This fact renders simply impossible
for any political party movement to be organized In,
through or by the National Banks
vi. WHY SHOULD THE NATIONAL BANKING SYSTEM BE FER
PErUATEDY
Ny answer 10 this question may be inferred from all
@ Dn 81 w
Of sound and wen regulated system OF banking No
country be prospsro and keep up with shs march
Of civilization which has not such system.
In conclusion, would earnestly urge on al parties
and persons adoption OF tho idea that the perpetua
ton Of the national banking system should not be
regarded party question. but subject which al
alike deeply interested. II any better system Of
finance be originated democrats and republicans
alike Interested In Its substitution but u Ia my rrm
conviction that. after few contemplated amendments
shall have been made TO the present banking law tho
national system will DO nearly perfect as II Is possible
TO render any system OF banking.
II the reasons have given above shall In any way
concuce the withdrawal OF the subject the
OF party strife help TO strengthen the confidence OF the
friends OF the system and to gain TO II the good
will OF the masses who deeply interested In ts
perpctuaton, shall be gratihed at this opportunity Of
JAY COOK
To Messrs A. II. Moss and L. s HuBnARD.