The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1868-03-11
THE NATIONAL RANKS.

In our article In yesterdays issue we spoke In |
advocacy of that feature of the National Bank
system which secures to us uniform currency
Of certain and equal value In all parts oil the
country In this and future numbers we pro- |
pose to present what appear to US to be the
superior advantages OF our present system OIL
banking over the old and former METHODS |
Before the war the patchwork and fragmentary
systems In the different States were. In their
diverse operations and ill-advised methods, as
far removed from uniformity as 1t were possioie
to conceive. Any man, when hundred mhes
from home, often found, to his serious ineor.
yeniencc, that the bills in his pocket were un-
current and he was under the necessity often Of
changing them for gold, and this, too, at loss.
Then, when one offered bsnk-note In payment
for some article Of merchandise, before he could
get his change the bank-note detective must be
consulted to see whether the bill was good. 1t
was arst necessary to ascertain whether the bill
was counterfeit or not, and then what was the
character and condition OF the bank; II New
England bank how II stood at the Suffolk Bank;
and moreover, ifthepossessor was some distance
from home he was obliged TO give asmall broker
age in the shape Of one or two per cent Ihis
DELAY and bother is all avoided under our present
system. Nobody now looks at a National Bank
note to ascertain whether II Is good or not. IL
is of no account 10 ascertain where the BANK Is
has failed or is In good working order. The note
is redeemable at the United States Treasury,
and this is enough. So far, so good. What we
wish TO ask Just here is, whether the grumblcrs
will undertake to furnish US up to this point a
better or a safer system' 1t must be admitted,
for II Is patent to all, that the bili.holders are
perfectly secure under our present banking in
situations against every possible exposure to
losses except what may unavoidably grow out oil
counterfeits, and not much has been or can be
lost IN this way.
We have heard some people denounce thes'
Institutions as great moneyed monopolies, man
aged by overbearing and purse-proud nabobs
with whom Il Is very dihleult to do business. II
is not easy, say they, to effect loans. You
must give satisfactory security; In short, you
must plank your eollaterals. Very likely this
latter statement 10 true; but instead OF Its being
an objection to the management Of these institu-
lions, on the contrary 1t is the strongest argu-
ment that can be adduced In favor oil the present
banking system, and the principles upon which
they loan their money. Who has any right &c
money that can't buy 1t with labor or with
adequate security II one earns dollar IL II
his. and he has a right to II against the world
home wants money that does not belong to him
but does belong 10 other people, he must give Al
equivalent security for Its use till he can retur'
the same to its rightful owner. II these be no
lust principles and fair dealing pe'weeh ma
and man, we submit that we do not understan
what is the honest course in business.
The difficulty to effect loans with the nationa
banks upon unsatisfactory notes, unsecured
undoubted collaterals, Is, aswe have said, one
the strongest reasons in favor OF these institu
lions. II proves the soundness OF the system
because in this, as in all other instances, no ma
in his senses ever loans his bona fde cash capita
without ample security, and that this sort OF I"
curity 10 required Is indubitable proof that thes
national bank notes represent real values Inv
cash capital upon which the bank rests Is IN IN
vaults Of the United States Treasury, and tn
men who have placed 1t there in order to d
banking are not disposed to throw 1t away upo
any uncertainties. A man or aninstitution ma
be willing to loan you his or its credit ana ~
some risk and this was often the case under IN
former system of banking for In many cases an
in some states not dollar Of cash capital wa
paid in. 1t was all credit; and woe to the OH
holders when these wildcat institutions whic
had loaned money to everybody burst up. Doe
anybody wish the return OF that state OF things