New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-04


1890 when Of com and bank notes were on am
600 would have made It excessive Throughout con,
siderable portion OF the best grain growing sections OF
the United States there has been during the past year
great complaint OF scarcity OF money and yet no shgo
sold there for which there not purchaser 40 more
than remunerating, II eXorbtant prices There was
10 lack Of money in these sections but lack OF products
10 exchange for It, The hard times complained OF we're
the consequence OF short crops and not OF deficient crcu
ation To the farmer who had little 20 sell and much 10
buy increase of the circulation would have been an
injury; curtament OF 10 benefit And yet, by men IN
such circumstances the policy OF contraction has met
with condemnation second only 20 that which IL has
received at the hands Of spectators in stocks Next o
the Stock Board OF the commercial metropolis, the Oppo
t0n 10 the policy of contraction has been most decided
in those sections where by OF short crops e peo
pie have been prosperous than heretofore Unfort
natey in the same sections harvest has been again
unsatisfactory and the demand, not only for Cessation
OF contraction but for an increase OF paper money may
thus be more pressing than This demand. no mat
ter from what quarter comes, or by what interest ss
tanned should In the opinion Of the Secretary be nfeX
IDLY resisted by Congress To increase the volume OF pa
per money for the purpose OF giving relief 10 the country
would be TO foster the order 20 cure the disease
To stay process contraction this year Will but
pare the way for an increase OF circulation the next
Whenever the policy Of reducing the paper circulation OF
the country with the ola return % specie payments
shall be abandoned II 70 be unprecedented that the 1e
mand for an increase will I've irresistible, and that the
country will plunge into bankruptcy The specie stand,
ard must be OF later restored whether inns sna
be acroinpshed by elevatng the currency by essenng
its Volume or after lessenng its value by increasing its
volume 10 is for Congress 10 determine Ihat TINS qes
ton win be determined promptly and wisely inc Gee,
been made IN the right direction during the past year. but
there is still in the United States plethora OF paper
money II this Is not how happens IL That com com
mands premium OF 40 per cent over legalteDder
noesi-that high tariff has proved powerless 10 pre-
vent excessive mportaons THAT capitalists hesitate in
regard 20 the which they shall put their surplus
means THAT business Is speculative and uncertain !
that expenses of living are driving thousands into crime
and making dishonesty excusabe, WINE hOnOrapie men
OF limited means are Indignantly and justly complaining
that they cannot live on incomes that formerly gave
them handsome support Money may pe lnacuNe pV t
It not It's inactivity Is m fact the result OF s
discount OF 30 per cent and which may Dy chaDge Oh
policy be Increased 10 GO per within the next year.
with " hat safety can men engage in enterprises which
look into the future and which are needed to develop the
dollar truly represent the dollar in don Let OF cap
tal and enterprise feel that the currency has lme or Is
steadily coming 10 the "hard pan" OF specie and there
will be a stimulus given enterprise and labor which
will banish all complaints OF scarcity OF money =
excessive the question arises Why should not the
traction be applied TO The notes OF The National BANKS
instead Of the United states notes. and thus large y
ing OF interest 20 the Government be ehected This
question has already been answered nferentay but IT'S
Importance requires that 1t shall receive more oenIe
y Prior to 1863 the banking institutions Of the country,
with the exception Of the Bank or the United states
created by States and were subject to state author
Ivy alone They were state n5ttuton over %hch tns s
General Government exercised no eohtTol lnv ils ~
the create and 10 manage them had been so Og
conceded that interference With them by Congess'
and no decision OF the courts adverse to the constitution
atty Of their issues. were apprehend9d,.
soon after the commencement OF war II became mani
fest that system Of internal taxation must be adopted
FOR the support OF the Government Ind the maintenance
OF its credit and that this would involve the heeeeSsi
OF national currency OF UNIFORM vsue ana aidounea
solvency. To meet this Deccssityftnited satesfotes
being then regarded as only temporary expeoenp
the National Banking system WAS created: n9t 10
destroy the state banks nor iRuousyto ahect tneI
business but 10 furnish through then agency ana mat
Of new institutions which might beorganleu unGer u;
a permanent national bankn0te circulation Had IL
been supposed that the object OF those no g
measure 10 bring the state banks under me cOnlro
OF the Federal Government for the purpose OF deroyDg
them, that such would po It's eject II Woa never
tended By lie friends, and no such eeet%as anilSRstea
20 marked Characteristic of the people Of the North
during the Of the state banks rem
privileges possessed by them under state laws and IN
connection with the new banks organLed under inc raw
becaA efficient aids In negotiating the pubic loans ana
Sustaining t I NOTES are issued there are grave
Object lions and II there none in existence in the
United states the Secretary would hesitate TO recomnend
ar 70 ndorr even the most perfect that has been devised
Tbe uuestion now 10 be considered, however, Is not
whether banks ~ issue should DC created Dut NhSsr
the National Banking System should be sustained In
the present condition OF the country, ana IN
view of the relations that me national ban ah
sustain 10 the Government dgnoring IA lhS con,
necton the question Of good faith the secretary Pas no
difficulty in coming 20 the conclusion that they shOuu De
sustained. They are 50 interviewer win an orahches vi
business and directly connected with the credit OF
the Government that they could not be destroyed Win
out preclpatne upon me country nhanelal Ioun.rs
which II Is IN no condition 10 meet AZ some more
proptous peuod when rho mon shal nave oSeH llIy
restored, and AT the staes shall nave atancu tha SUI
stantia prosperity which their great resources ana he
energy OF their people must sooner or aer sscre ior
them, may perhaps be wise Tor Contrese 10 'os9er
whether the National Banking system may not be ais
pensed with The present Is not favorable tine 70 con,
sider This question The condition OF our political ana
financial ahars critical 10 Justify any action that
would compel the National Banks or any coasiderabe
number OF them call in their loans and put Their bonds
upon the market for the purpose OF proyng ne heAis
OF retiring their circulation Conservative legislation is
indispensable. The pubhc mlnd II 700 sensltl We.
business unsteady, and the poluchl future Is 700
uncertain to warrant any hna0rai eSIcplinehS svs
tuuaely none arc required Tue Natioha bdIhns osss
TEN has accomplished all that was anticipated by US ed
vocaes and more II has furnished circulation t GePe
beyond question aud current throughout the lh!Vn; ~
has prevented hanknote pancs ana saved more nouers
from losses III mas a1eu III Iesu.,ns 4 ISH,
changes, and furnished the Government with Nauhole
financial agents Had not been adopted, state banks
would have continued as long as they were tOeIaed 20
furnish the country with bank notes In most OF inc
States banks not required 10 deposit stocks Tor be
security OF their notes and IN those states where security
required there Limit 10 the amount OF bonus
that might be deposited, and consequently no llt 70
the amount OF notes that might be put 10 cTouatoh IN
other States they security beyond the capitals OF
the banks frequently unreal and the partial Liability OK
stockholders generally deceptive Who can estimate the
extent Of the injury which the people ana tue Govern.
any other restrictions than enforced by state Jaws.
had been permitted, during the war, TO occupy the nedi
relieved from the necessity OF Iushing eIlusnee .,
solvency. banks unwsely or dishonesty managed would
have stood on a level with those which were managed
wisely aud honestly. while the later WOULD nave
found 10 difficult to Keep their ISSUES within reason
~ ,ssne freely by the necessities OF the Govern
ment and the increasing demand for money, which is
always the result Of an increased supply the iorme.
would have poured ont their irredeemable promises unt
distrst created panic and panic disaster ihat Ihe IA
tiOnal Banking system, Win lts
cuaton and It's restricted provisions by supersedng the
state systems has prevented financial Crisis thIe can
be but little doubt For this 10 Is entitled TO credit ana
for this and for other suggested should De sus
tanned until better system shall he devised or me cOuh-
try condition TO dispense with banks OF issue ao
gether. -, -. A.. -.
The arguments favor Of compelling the banks to re-
tire their yielding the field 70 the notes OF he
Government. are based upon the supposltion that
II $500 OF United states notes were substituted Ior
KO OOO OF National Bank notes now In clrcuati0n the
Government would some tsO0O0O In interest when
is gratuity 10 the banks Ihat mere Nou 40 40
such saving any saving ny the proposed suOsttu
ton Is clearly shown by the Controller OF the currency
In his accompanying report, 10 which the attention OF
Congress especially asked II an account were opened
Oh