The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-03-03

TO ESTABLISH A NATIONAL CURRENCY.
| The present system OF national banks,
though an acknowledged Improvement upon
the State corporate and private banks, to
which 1t has succeeded, is avowed by finan-
cial thinkers to be but an approximation to-
wards the establishment OF a national cur
rency. Nothing but the enormous bonus
held cut By our distressed government, in its
deadly peril, could have lured the timid capi-
tai invested in these institutions, within
reach of such salutary legislation as will yet
make 1t, at all tunes, the basis OF private
prosperity and the support of the. national
| credit.
Ii it be asked why not maintain with the
national banks the hard bargains hastily
made under the pressure of the severe me-
cessities OF the war, the answer is: .'ra 4
1st. Because they hinder rather than help
the establishment and maintenance OF spe-
Gle payments, which is the first condition oil
national honesty, credit and prosperity.
I'd. Because they are too expensive, re-
ceiving from the people a large gratuity for
performing function, which they have not
| performed, and which it is evident, without
| the assistance Of the government they can
not perform. r
3d. Because they are not adapted to assist
the government in time OF national peril
| like lebel.ion or foreign war.
Let US consider what are the essential re-
| quisites OF a national bank or an association
| of national banks. They are first to supply
| convenient paper medium ofexchange to sup
| ply the demands OF business, which shall be
| sufficiently secured BY pledge of the cred t
OF the government upon a deposit OF public
| stocks, aud the value OF which shall be kept
up to tho standard of gold aud silver by the
| prompt payment OF coin to every bill holder
demanding it., mso- Tas
| The first of these functions the National
| Banks have performed; their paper is ev-
erywhere current at uniform value; it's con-
! venience is recognized and its security tor ul-
| innate payment is as complete as it could be.
| The last mentioned junction of safe and
solvent bank they have never performed, they
| evidently cannot perform. Looking at the
act Of Congress authorizing Banking Associa-
| tions, 1t looks like an arrangement whereby
| such associations were to invest their whole
capital in United States bonds, and in consid-
Grafton that the United States would furnish
them an equal amount of circulating notes
and would make them current as money. and
would continue to pay interest on such bonds
they agreed to redeem such notes in coin
when presented. Each bill stiRuiates that
the corporation issuing it shall pay tie 6eare,
on demand .fre, ten, .fffy or one hundred dol
lars. HlI .-.rE
But this, though TIE ostensible, was moi
the real transaction. The real transaction
was, that tor the present and tor an indefinite
term the United States would continue tc
supply the currency, end pay tull interest up
on the bonus, and the banking associations
need not give themselves the slighte st con
cern to pay any bill holder dollar. True
there is provision, whereby the holder OF 6
national bill may demand a greenback oil cor
responding amount, but as the sagacious pub
lie. though debating the question much, have
never been able to tell which was wortl
least, the note OF a suspended Treasure. or of ;
suspended bank, the exchanges from culren
cy to greenbacks have not been frequent no
onerous to the banks.
The TACT is the banks had virtually failed
at the time they commenced business as thu
financial ageuts of the Treasury, and tb,
Treasury, having Jailed before, was in no po
sition to taunt them for such failure. Th
situation was precisely that OF bankrup
! who, finding his notes not negotiable, employ
another bankrupt to endorse, circulate ant
, redeem them. -
The banks however are not to be blame'
for not paying their bills in specie, thei
weakness being incidental to their connection
with the government; tor though the govern
, ment has the excuse OF its inability to la!
, and tire banks have not lost capital, but have
been growing rich and paying large dividends
yet so long as The government paper Is force
g by law into circulation, and not redeemed
and gold is changed from money into incl
3 chandise, 1t is very evident that the bank
i cannot iu:t ate specie payments.
But the difficulty is that the present CON
plication of suspense raising as have show