The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-07-01
FINANCIAL VIEWS Of A STATE AUDITOR.
70 THE EDITOR OF THE HERALD.


BosroN June rs, 1881
Although personally unacquainted, l think tha
common interest in the welfare of country, ant
certain coincidence OF views In relation TO national
banking system, will when taken in connection with
long continued and somewhat intimate acquaintance
with the financial affairs Of Massachusetts, as first cerk
the Treasury, State AUDITOR Chairman OF the Fnsnce
Committee In the Legislature, and more recent, ono
OF the Allotment Commissioners justify address,
ing you as briefly possible about this question Of
banking upon which people diner so much, andwhich
NIL that to me, after many years study one OF
the simple presented to the mind of business
man.
Banking as understand it, is one Of the natural fruits
Of our efforts exchange the surplus produss OF our
labor and Just much belongs 10 the individuals and
communities who make use Of II as an instrument, rs
railroads, insurance. or newspapers. Government as
such, has more right TO NEEDLE with your nnk than
with your furniture can with any propfc'y enter
into the bus OF banking, or even afford Keep and
dsearse its own revenues any more nh can any s cor
Institutions which created by the people themselves
IN accordance with the natural laws OF trade fr precisely
this kind OF service which they can perform fr US better
and cheaper can do II ourselves.
for sixty constantly sed one OF
more OF banking Institutions its fiscal aget, rather
has done all people have deposited or revenues
and checks the FUNDS deposited and never
lost dollar, nor had any delay In payment turing that
whole period IL has also received ineres depos
its and temporary ioans anticipation OF IL revenues,
Just the general government always should
And this could ALWAYS have been done put for the
foolish notion that gold and silver which cc so much
labor In production and subsequent handling should be
used "a the representatives OF other products of labor
instead Of paper which as much better as it's cheaper
What want and eventually Will hav is cur
rency which shall always 90 convertible inc whatever
wish purchase NJ the price tina u could be
done with specie which Ia always be the standard
Of transactions, but never, ., general
The question ia how we are to secure inst this result
and that rs tho point 10 which shall conlne myself
Syina the idea publicity. and thus boneai hecountry
assume. hrst, that each banking institution, however
small, the natural financial centre Of ccran number
It's actions and necessarily affected BY It's movements
Eycry one OF these banks has its own natural
cai centre which its business and especially It's
notes. surely the npds the scean and u
Is at this point that, under sufficient pen'ty all bank
should be promptly convertible into specie or ts
equivalent shat any place the whole section
which flows this centre the notes should DO equally
IL this prompt par convertibity which for more
/ than forty years enjoyed all over New England BY
Of .S %, rU' ou OF hs
tendency Of New England merchants and bankers TO nnd
aud make OF the best possible means 70 accomplish
n this system had been made universal each portion
Of The country recognizing s CENTRE ard all OF these
centres bnding common one at New York, We might
have saved thousands Of millions OF money, and oil The
confusion and distress consequent upon nnations and
suspensions which come Of the irrcsulsr hap,nassrd
There no more be order under such loose con-
dtions than thcre could In solar system without SUM-
Just make u absolutely imperative that IN all cases
where 10 be issued shall be only BY nsttu-
tons which will deposit In the control Of the govern
ment In addition TO- and not part OF their working
capital, amount Of valuable. productive properly,
sufficient mako 10 certain that under any and all CIR
cumsaucss tho circulation to be redeemed, not only
without finally but At once so that not one holder
shall lose by delay apprehension This the sin
GLE SIMPLE equitable condition upon which The notes ar,
| 90 DO bad and this being complied vph, merchants anc
capitalists 10 be left IN freedom establish as MANI
basks invest ~ much capital, issue y mav noses ant
take much interest the laws ~ trade under con
| stantly changing conditions indicate 10 DO right.
Congress knows nothing about these qucsuons ans
has 10 discuss them sfer having declared
there shall be notes issued be used ~ money
instead Of coin, which are not redcemab's - hav'
| proposed. =.
| shall have not only paper curreuy a. par over on
country but redemption The sse principle In Lon
| don. Paris and Frankfort, and tho government fune
| shall be kept safely and paid promptly whenever An
wherever wanted not only without cost sul prom
both BY the interest on deposits ans " you say g.
reasonable all the notes n circulation. which eha
| Do paid BY the banks into tfs geasrai treasury
| And this II Just what We have been doing her
for many years a small scale, which now shoui
| be extended not only all own wide country
| ouIy . truly national but International system
banking which shall equally To- the remotest an
smallest ~ for the largest and most tentrAi ioca0ns
This, seems 10 me, with International coinage
weights and measures the case that VIII satisfy you
nd on The subject and shall be much tisappoinse.
& 700 do take hoa and help 10 The work % muc'
II ycu ma worth While 70 pupss the subject en-
desire any further explanations froa ne or think ca
sqppIs anyshins whil weslA ssr ~ bssr''0a 10 III