Bedford inquirer. [volume] (Bedford, Pa.) 1857-1884, 1869-12-24

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/ the Secretary Qf Var, and The Secretary
Of Internal Reraue.
WASHINGTON, Dec. 5, 1869
REPORT OF TIE COMPTROLLER or TUE CUR
RENCY.
/ The annual report Of the Comptroller of
/ the currency shows 1920 Banks in active
/ operation. Their condition IS more crafty
ing than formerly The opportunity afford
ed spectators to initiate the money market
is almost entirely done away with, and the
banks have more complete control Of their
affairs.
The Comptroller recommends the passage
of an act requiring all banks that 60 into
/ liquidation to deposit legal tender notes for
their outstanding circulation, and to take up
their bonds deposited with the Treasurer Of
the United States as security for their eircu-
lation within sixty days from the date ofthe
vote Of the stockholders to wind up. He al
so recommends that all taxes on banks be
made returnable aud payable to the Treas
urer Of the United States, including the spe-
cial tax and dividend tax now payable to the
District Collectors; That the compensation
of Bank Examiners be increased, and pro-
vision be made for its assessment upon the
banks examined, end an increase to fair
compensation Of persons employed under
him in the Currency Bureau.
The recommendation looking to the es-
tablisbment Of a central redeeming agency
in New York in the last annual report isre-
uewed
The Comptroller says the legal prohibi-
tion to banks to hire deposits is not sufi
GENTLY explicit or positive to prevent 1t, and
hints at legislation to that end.
The Comptroller argues in favor Of the
National Banking System as the cause Of
/ the case in the money market and lower
rates Of interest than would otherwise be
obtained. He thinks the government circu-
lation which is not convertible, and there
fore not elastic, should be withdrawn and
be substituted BY National Bank notes,
which are ncminally reieemable, and are
certainly amendable to the laws Of trade.
| No check for limitation should be imposed
on the latter, other than the law Of supply
and demand 4 self adjusting system of
I-currency is. the cnly one thatis adapted to
/ the exigencies of trade, and to the wants of
the country, and it is a vital question at this
time, whether this result can be reached
before the return Of specie payment. If
possible at all it is only through the agency
Of National Banks. The machinery of the
Government is not adapted TO such ends /,
and further, if possible, it is so only upon
the adoption Of policy which viii tend
4 gradually, but surely to the resumption Of
specie payments Ii must be a gradual de-
velopment Of a process which shall at ali
times and under all circumstances, be ex-
changeable for coin, either Of paper, legal
tenders orof gold. A paper currency which
/ shall gradually increase with the legal tend
ers for its redemption shall gradually de-
crease in such ratio as a healthy demand for
banking facilities may determine, while free
banking may thus be established with safe
/ ty anterior to specie payment, conditioned
only on the withdrawal and cancellation Of a
/ legal tender dollar for every dollar of bank
ing currency issued. Free barking upon a
specie basis may also be permitted with safe
ty and without delay With details prop
erly adjusted, banks may be established with
authority to issue aud put in circulation
gold notes-limitng the amount only by the
ability Of the banks to comply with the nee
essary conditions-and redeem their issues
/ BY the establishment of banks on specie
basis, the resumption Of specie payments is
only anticipated, and familiarity with gold
values viii do much to relieve the subject Of
the mystery with which it is associated in
the minds Of many looking forward to tue
day when uniform values shall again pre-
vail It may be that by wise legislation
now, banking system eau be established
truly national in its character and scope,
which viii furnish sound currency Of uni
form value in every State in this Union.
GEN. SHERMAN S REPORT.
Gen. Sherman, in his report, which will
be submitted to Congress on Monday op.
poses any further reduction OF the army.
He says the entire army is on duty, and he
has constant calls for more troops. which
cannot be granted. He calls for the Presi
dents earnest attention to this matter, that
/ Congress may be appealed to not to dimin-
ish the military establishment, because OF
the great extent of country, the unsettled
character of a large region measured north,
south, east and west, BY thousands Of miles;
the acts of the Indians who inhahit this re-
gion, and the growing necessities Of ofFord-
I ing greater protection to the roads that tray
erse this region, and the mining and agricul-
tural interest therein. While the nation at
large is at peace, a state of quasi war con-
tinues to exist over one-half Of its extent,
and troops therein arc exposed to labors,