Evening star., 1869-12-06

pos,, 10 Luy aHd sel real .stste, - slap gOos
10 .OI'isn pvt, - 10 syt5e at, or pryasOfs 1ay
yy,,BlLfifs oitro.i5G. The ba>inC>s OF banking,
property contacted. = iltsl sure, and just A.
safe. as any otAcE business, haf il m - b. csu-
fined tO lts puWtr al.d gitInlt. ~ultre. Ma
ii, nal banks arv authorize among other thing,
''to reostcs d,F0sifs;" Tat =, when money .,
brought 20 them Jaey agr authorized to re'eiy,.
it. They are not, however. authorized % hare
deposits, and the law does not contemplate TIA,
they should solicit loans, under the gaISe OF IL
posts by the otter TO pay intcrCt on them. tn.
practice, however, prevails extensively.
The amount loaned by the National Banks ca
age about 500 ,0O0,0oo. As a general thing, Ma
tional Banks lend money 10 their eU>tonsgs al
about the legal rates; though, Of course, there
are exceptional cases. Sou,e 81 the earlier
banks. which sold their gold inter- al from itl
TO $50 per cent. premium, and which sold five
twenty bonds for the agents of the governme1:
10 the amount OF millions, realized very large
profits. But that day has passed. The svcrage
dividends made by the banks during tie last
year will probably not exceed ten pCr cent. UpOn
their capital, after dedueting taxes and eNprn-
ish, and the national banking system shall he
made free 70 all who are able and choose 20 COM
ply with its conditions. the average profit all
conform 10 the law which governs al business
Ii will be a fair living profit, and no more.
The Comptroller SGys that the present cur
rency of the United States possesses re tier OF
the requisites 10 sound currency" conyerti-
bilty and elasticity. During the past year il has
neither increased nor diminished, but stands
aboat II did this time last year--F1. .Hp1.a10
issued by the government, and >-So1.Go).")a
issued by the hanks-neithcr releemab,e nor
convertible into Anything more valuable, AMI
therefore not susceptible Of reduction hy any
ordinary process; each Issued 70 the fIll limit
allowed by law, with 40 pONer Of expansion n.
The whole amount must b. employed. N1sthcr
it Is wanted or not, ami the limit cannot l,e
exceeded, no matter how urgently ElUte 2Iay
be required.
There are two kinds of curreIicv n Use. ono
issued directly by the government. tie other is
sued by the banks. o,ic kind wogli Gem 10 u,
enough. The best should bc preserved and per-
foctel. the ether " Nit'lirawn. A. TO Tie c1mpsr-
atiyc merit Of the two fjnls Of c,lrr,r-cy, AN
impartial consideration would probably decide
in favor of bank circulation, principally be-
cause II would possess thc power OF adapting it
sell 10 he cNigcnC;GS % trade. II government
issues could be made to possess the same power
OF adaptation, the verdict would hC in their IA
Vor. Only a sound currency viii prctlutc the
material prosperity of the people; and the gov
ernment can realize no prOnt from ANYTHING
detrimental TO their interests. Ii, however. L. is
impossible for the government TO comPIy with
the conditions necessary in order Ia furnish n
sound currency, il can at least provide for the
withdrawal Of its own notes, and prescribe the
conditions upon which, and the agencies through
which, 4 better currency may be provided.
The present banking system may have inn
perfections, the Comptroller SAYS, but most OF
them can be traced TO the evils of an irredeen-
able currency: and as observation and cxpe-
rience bring To light defects. they may be cor
rected 10y judieous legislation. ANY radical
changes now would AFFECT so many and such
great interests that il would be safer and wiser
to build upon and improve the present system,
so az to bring il fully up TO the requirements OF
the age and the country than to undertake to
build up new one. 1t may be made the
means OF supplying a safe, convertible,
and elastic currency in any volume that may
be required by the business OF the country.
No human intelligence can fix the amount OF
currency that is really needed for il is continu-
m;, AMY saTsg T ana sses never T NeG If Go
who Will be dissatisfied, and who win seek legis-
latiOn either for the purposes OF contraction or
expansion. And 30 long as the volume OF cur
rcncy depends upon legislative enactment. un-
certainty and instability will peryale all iinan-
cial operations. a scf-adjusting system OF cur
rsncy is the only one that is adapted 90 the
exigencies of trade, and 10 the wants at the
country: and il is a vital question at this
time whether this result can be reached before
the return OF specie payments. If possible
at all, it is only possible through the agency OF
national banks and upon the adoption OF pol
icy which will tend gradually bat surely 10 a
resumption OF specie payments, by the increase
OF bank notes and absorption OF the legal
tenders. As lawful money became scarce, t.
value wouli be enhanced, and would gradually
approximate to pan with gold tbs specie
payments may be reached through he agency
of the national banks, and by the operation OF
natural causes. The process will not be rapid
or spasmodic. because il will in all IFS stages,
and in all its .ails, be governed hy >oIId
principles and conform to established laws.
With details properly adjusted, banks may be
established with authority 10 issue ani pas ia
| 10y the ability of the banks 70 comply with the
necessary conditions, ami To redeem their is
sues. Some provision OF this kind IS prob
ably necessary IN order 10 supply the
Pacific and gold-produciHS States with a
paper currency. circulating medium.
cheaper and more convenient than coin.
has hong been necessity IN those Statcs.
and would undoubtedly 10 much to I,-o-
mote activity. enterprise. and Development.
Experience has demonstrated TO <lIen that \
currency composed exclusively OF specie is NOT
exempt from the iluc,uItons to which money
and trade everywhere are subject. ami has
awakened an anxiety on the subject which
may lead 10 the Introduction of pal,er
money, ii the opportunity j. afforded. BY
the establishment ri banks on q specie basis,
the resmi mition of specie payments is only anti
cipate.l. aud familiarity with gold values viii do
much 10 relieve the subject of the mystery with
which il j. ASSOC lated i'm the minds of MANY.
Looking fcTN ard 10 the day when uniform val
ues shall again prevail, il may be that. by wise
legislation now, banking system can he estab-
lished truly national i'm its character and scope
which viii furnish a sound currency OF uniform