The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1869-08-27

Of Pennsylvania The bank wa
y we'll managed, and performed valua
n bic service to the country during tho
IS closing years of the war. and until thc
s Constitution was adopted. After i
# ceased to be 4 United States bank. II
continued its organization as a State
bank. and is now in vigorous life un-
G der the National Banking law.
5 In 1871, under the lead OF Alex
G andor Hamilton, Congress establish
ed the first United States Bank
t Washington signed the bill, in oppo-
e sition to the opinions of Jefferson and
Randolph.
! The law authorized central bank
, to be established IN Philadelphia.
5 with branches in other places. Its
capital was ten millions of dollars,
, one quarter coin, and three quarters
, United States stocks. One-ffth of
the stock was to be held by the Gov
, ernment, and five Of the twenty-five
Directors were appointed by the Gov
ernment.
Whatever may have been the Opin-
ions Of our fathers in regard to the
wisdom of the measure, it has become
a part of our history that this first
United States Bank gave the country
4 paper currency always convertible
into coin, and in soundness aud uni
formity far superior to any it had be-
fore possessed. By means of it.
Hamilton was enabled to carry out
his mastery scheme Of funding and
reducing the public debt.
The charter of this bank expired
in 1911, and the bill for its renewal
was defeated by the casting vote of
President Of the Senate.
Then followed five years of chaos.
No man can read the history of the
war of 1925 without pereeiving
the fact that not only the currency
of the country, but the finances of !
the Government, were, to a great ex-
tent, abandoned to the mercy of |
banking corporations, which every
where sprang up, and flooded the |
country with irredeemable and worth
less paper.
In 1916, under the lead of Madi- |
son and Dallas, the second Bank of
the United States was established, |
with a larger capital than the first,
but based on the same general prin-
cipals. Though this bank did not
drive the State banks out of the field,
yet it will not be denied that during
its twenty years ofexistenco, the peo-
pie never lost dollar by the depre-
citation Of it's notes, and that it pow
erfully aided the Government in re
ducing the public debt.
As the debt was paid off in 1896,
there was no LONGER 4 pressing ne
cessity for paper money, so far as the
Government was concerned, and the
Democratic party refused to re-char~
ter the bank. There were features
in its plan which could not be defen-
ded, but it was perfection itself com
pared with the system which preced-
ed and followed.
From 1886 to 1868 the Govern
ment practically abandoned all efforts
to regulate the paper money of the
country Though the Constitution
plainly forbids any State to "emit'
bills of credit, or make anything but
gold and silver legal-tender,' yet
the Democratic party, by its refusal
to furnish a paper currency to the
country, permitted the system of
State currency to develop and engen- |
der evils, the like OF which can )
scarcely be found in the records Of |
civilized nations.
From these evils We were rescued
by the National Banking Act of :
1868, and now the Democracy of d
Ohio proposes tn plunge us hack c
again, by the absolute repeal Of that :
act.
OF THE TWO SYSTEMS.
Between these two systems, the t
State and National, the people are
called upon to choose. The Demo I
cratic party elect the former, the Re :
publican party the latter. Let us
their merits by the fruits i
they have borne; and in making this +
let it be remembered b
that the qualities of a good paper :
are :
First-That it shall be based on r
ample security. a
Socond-That it shall be Of uni 4
form value throughout the country. =
Third-That it shall be eonverti- h
bic into coin at the will of the hol- 81
Ter. a
OF course, no system Of paper )
money can possess the last-named Il Il
quality during a general suspension l.
'f specie payments. il
We have seen what the National d
system is, and l will exhibit the b
State currency in its best condition, :;
With al! the improvements and safe
guards which half a century Of ex- a,
,erience had thrown around it. re
On the 1st day of January, 1862, n
here were IN the United States ,496 y
,anks that issued circulating notes. O. O.
Their aggregate capital was $3.50 p,
100000, and their circulation was A
'194, 100000. They were establish al
ID under the laws of twenty nine diff p
erent States, granted different privi- a,
eyes, subjected to different restric- o.
ions, and their circulation was based
N a great variety of securities, diff 81
erent qualities and quantities. In Z,
Ome States the bill-holder was Sc II
.ured by the daily redemption of et
lotes in the principal city; in others o.
~ the pledge of State stocks, and in =
'thers by the coin reserves. But as c
State stocks differed greatly in val 10
lie, all the way from the repudiated
,onds of Mississippi to the premium Fl
took of Massachusetts, this could II
i've 40 uniformity of security, and "
he amount of coin reserves required &C
n the different States was so various n y
IS to make that kind Of security al "
most equally irregular. "
1t required the study of lifetime re
o understand the various systems. =
There were State banks, with branch a
IS, Independent banks, free banks,
Individual banks, banks organized m
Inder a general law, and banks with g
pecial charters. y
They represented all varieties of II
ondition and credits. They were b,
olvent, suspended, closed, wound &C
lp, broken, according as the fuctua~ "
ions of trade, and the wisdom or fol- -.
Z. the rascality. Of their managers :,