Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1867-11-12
OUR NATIONAL BANKS.
LETTER FROM JAY COOKE,
THE BANKER.
The Origin Of the RatiOnal
Ranking System.

The Origin Of the RauOHAi
Banking System.
The Present Position Of the
Banks.
r1-cHAEAcrERs OF THE NATIONAL BANK OOi1
RENCT.
The notes of the National BANKS pos
sees eyery element required IN Boou
circulating medium. AS alreauy 10
marked they are uniferm in appearance
everywhere equal in value ana Just 1 -
secure as public aud private ereui' eoi
bined can make them. -
Frrsf-Thjs uniformity In the appear
ance of the National Bank notes enables
everv one, even those who cannot rea'i'
TO recognize the currency wherever met
and 10 feel perfectly secure in receiving
II without the preeauti0n lately necessary
Of constantly consulting the Weehiy
| Rank Note Reporter OF a brokers clsfh.
/ Owing to the fact that entirely dineTeht
! mates and designs are used IN printlng
! the bills of different denominations, IL Is
| impossible 70 liter National Bank NOTES
| rom a lower denomination to hlgher.
| And the Treasury Department, by lts
numerous checks and guards, and tue
/ elaborate perfeetiou of its work mansnlp,
/ has so far succeeded in producing cur
reucy incapable Of being counterIeited'
! that there is not now one dangerous
counterfeit extaHt where under the oio
gystem, there we're hunuTeu- %"
] great an Improvement this IS over tne
/ old condition of affairs, let the thousands
! of hard working men answer, "hoi III
the days OF q mixed and badly prlnIeo
currency, have found perhaps theif last
| five dollar note to be WoFIhlsss ChSse' ss
,Sscond-The uniform value Of the Ma
tionaI Rank currency in all parts Of the
country and at all times, Is feature
| which of itself annually saves the people
millions of dollars. 1t removes every
obstacle to g syatem Of cheap exchange
/ between the various parts Ofthe country
/ nv giving to the currency of every state
and section the same value and credit
abroad that il has at home. The note
/ iesued nv the National Bank OF an OBJ
scure Western village is just as current
| in New York or New Orleans as the note
| NJ a National Bank in Wall street, and,
on the other hand, the note Of National
| Rar,k of New York or New England IS
/ accented by the farmers west Of the Mis-
/ sjssiTpi inst as confidently as they accept
/ the notes of their own local bank, whose
/ offieers and stockholders they personally
know, Let the people compare these
| facts with the state Of things before the
war. and say il they have gained moth
ing by the change.
TIird-To prove the perfect, impreg-
nable security Of the National currency,
IL should only be necessary to cite tue
laws by which the National Banks exist.
II is simply impossible for National
Bank note to become worthless or even
TO depreciate IN value, so long as tue
GoveTnment shall exist and continue to
fulfl it's pledges. Indeed, IN one very
imnortant particular the notes Of the
n National Banks may be said to be safer
than the Rreenhacks, If such thing Is
nossible or desirable, for while the green
backs are the Nations promises to pay,
uuiudorsed by any special pledge or prl-
vate capital, the National Bank notes
are the promises to pay Of private
corporRtion of capitalists, lndoTsed by
the Nstion-bOth public and private
credit being thus united to secure the
navmeut of these notes held by the
ne0ple. The double and triple character
/ Of the guaranty by which the circulating
notes Of the National Banks are secured
ia well Illustrated by an accident occur
ring in the early days Of the new
National system.
In 1868, shortly after the organization
of National Banks in Harrisburg, a solid
Dutch farmer, of whom Pennsylvania
mas MANY. and whom / shall call Mr.
Schmidt, entered the Harrisburg Ma
tionaI Bank aud signified to the Cashier
Mr. Wier, that he wished to draw oul
5000 Of his balance. Mr.. Schmidt, Oy
the way, was a stockhOlder in the hanB
to the amount of $4,000, besides being
depositOr; and it was his habit, as II II
Of many Of his class, TO keep his balance
al bank comparatively smsii, by draw
ing ont his funds and storing them IL
various odd places about his dwelling
This was done for the double purpose o
preventing the " boys" of the family
from learning the precise amount OF pa
terual funds on hand, and to satisfy {
sort of vague belief that money wa
safer in his own hands than in anybody
eIse's. The Cashier stepped to his desl
and filled IN check for Mr.. Schmit Il
sign. and then handed him two on
thousand dollar gTeenbacks or Ireasur.
notes, clesn and bright from the printer
hands. lust such Is the old gentleman
! had until now preferred. The bank OIL
Ger ygas not a lie surprised to see hl
customer return the notes with the re
mark.
. "Tank you, Mr.. Vier, I tink mot wan
} dem dis morning, I take same you
, Nash'nal Bank notes dis time" =.
Certainly" replied the cashier, tn
bank having Just received its circuiatin
] notes from Washington, and he counte'
> out the required amount in the notes o
his own bank and handed them to Nj
Schmidt. The latter deposited the neV
? currency carefully in his Walstcoa
] pocket, pinned it fast and was about L
? depart. when il occurred to the cashie
: to ask him why in the world he shoul'
prefer National Bank notes to green
backs. The farmer took the protfere'
r chair and proceeded to state his reason
/. somewhat as follows:
"Vell, Mr.. Vier, bin readin the laN
= Of Congress, vich autOriZe these Nash'n ms
[ Bank, und 1 bin studyiu it, too. Den
bin studyin Mr.. Cookies leetle bOol
q apout how to organize these banks unI
! set 'em going. Und / tells you vat
finds-I finds the Nssh'nsl Bank note
= ish te pesht-petter as gTesnbseks."
"What in the world brings you to ths
conclusion ?'' said Mr.. Wier, TO whom th
view was new one.
"Vell," was the reply, gTeenback
{ ish goot, very goot, goot enough for any
I body, but | belief the notes of you
, | Nash'nel Bank ish leetle peter, becaus
I l finds in the law that pefore lis ban
h can issue one tOllar Of circulation it mus
I deposit mit 10 Treasury st Washington
one tollar and ten cents in GJveTumeE
bonds, and so If lis bank wants to i=su
| one hundred tUGssud tOllsrs II must de
posit NIT MT. Spinner, United State
s | Treasurer, one hundred and ten tOusan
= toliars in bonds to secure that cirCuls
ton 80 if the bank runs away uUd dom
: ysy the notes the government will pa
i iem. Und this margin OF ten per cen
+ must always be kept g3Ot. If the bond
Il GOES down Ia the market den te bank
I must deposit more NIT te Treasury {
keep te bonds always wort ten per cen
j more as te circulation. Veil, that max
0 te Nash'nal Bank notes joost so goOt {
a greenbacks anu ten per cent. more, Onl
: ihey ish not legal tender. Den, NJ
{ Vivr, finds on der Nssh'nal Bank mote
? te great seal of te Government mud
Y names of Mr. SPINNER und Mr. Colby
q te same which is signed on te greer
n backs; und desc gentlemen say on q
" the bank notes that desc notes Will pc n
e ceived by the United States in paymeI
Of ali dues except gold customs, und vi
pc paid out py To government IN pay
x ment Of all debts except gold lnteres
Veil, that makes 'em so gOot as greer
- backs twice.
3 "Den, Mr.. .Vier, I looks on desc Nash M
Bank notes in mine bOcket und SCI