Bedford inquirer. [volume] (Bedford, Pa.) 1857-1884, 1869-12-10
Report OF the Comptroller OF the Cur.
TeneF.

WASHINGTON, Dec. 5.-The annual re-
port Of the Comptroller shows 2, 620 banks
In active operation Their condition is more
gratifying than formerly. The opportunity
afforded spectators to manipulate the mon
ey market is almost entirely done away with,
and 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 ten
der notes for outstanding circulation, and
take up their bonds deposited with the
Treasurer of the United States as security
for such circulation within sixty days from
the date of the vote Of the stockholders to
wind up. He also recommends that all tax
es on banks be made returnable and payable
| to the Treasurer of the United States, IN
cluding the special tax and dividend tax now
payable to District Collectors; that the com
pensation of Bank Examiners be increased
and provision be made for its assessment
upon banks examined, and an increase ia
fair compensation of persons employed un-
der him in the Currency Bureau.
The recommendation looking to the es-
1 tablishment of a central redeeming agency IN
| New York in his last annual report IS re.
uewed. The Comptroller says the legal
prohibition to banks TO hire deposits is not
sufficiently explicit or positive to prevent II.
and hints at legislation TO that end. The
| Comptroller argues in favor of the National
/ Banking system as the cause of the ease IN
the money market and lower rates of inter
/ est than would otherwise be obtained. tie
| thinks the Government circulation, which is
not convertible and therefore not elastic,
| should be withdrawn and substituted By
| National Bank notes, which are nominally
redeemable and are certainly amenable to
the laws Of trade.
No check or limitation should be imposed
on the latter other than the law Of supply
and demand A self adjusting system
/ Of currency is the only one that Is adapted
/ to the exigencies of trade and to the wants
! Of the country, and it Is vital question al
this time whether this result can be reached
before the return of specie payments II
/ possible al 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 50 only upon
the adoption of policy which will tend
gradually but surely to the resumption OF
specie payments. Ii must be gradual de-
/ veopment of process which shall absorb
| legal tenders and put in their place paper
currency which shall at all times and under
1 all circumstances De eAcDangeaDi6 lOI Culut
either of paper legal tenders or of gold-a
paper currency which shall gradually in
crease while the legal tenders for its re-
demption shall gradually decrease in such
ratio as a healthy demand for banking ia
cilities may determine While free banking
may thus be established with safety anterior
to specie payments, conditioned only on the
withdrawal and cancellation Of legal tender
dollar Of bank currency issued, free banking
upon a specie basis may also be permitted
with equal safety and without delay. With
details properly adjusted banks may be es-
tablished with authority to issue and put in
circulation gold notes limiting the amount
only by the ability of the banks to comply
with the necessary conditions and redeem
their issues by the establishment of banks
on a specie basis The resumption of spe
Gle payments is only anticipated, and famil-
iarity with gold values viii do much to re-
lieve the subject of the mystery with which
/ it is associated in the minds Of many. Look
ing forward to the day when uniform values
shall again prevail. it may be that by wise
legislation now banking system can be es-
tablished truly national in its character and
scope, which will furnish a sound currency
of uniform value in every State of the
Union.