New-York tribune., 1870-04-09
THE OPPOSITION TO THE FUNDING BILL-A CARL
FROM EX-CONTRoLLER CLARK.

FROM EX-CONIROLLER CLARK.
To he Editor Of The Tribune.
SIR: Nv attention has been called to a no.
tice in your paper not observed by at the time of
letter written by Senator Sherman under date of March
H. and published in The Cincinnati Commercial In refer
ence to the Funding bill recently passed by the Senate
The following paragraph quoted by you from the letter.
evidently refers TO me:
The mover eut against TIE from the West bot
from the who have sectional monopoly Of The bsAi9s m ,ae
ana chiefly from gea'5aa aho T..a oG5 s hI I % % S
and New.York"
TO rcfue the above unwarrantabe charge In reference
10 the distribution 4 the national bank currency, have
only the OF Congress under which the ap
procuring their adcptij. and the manner in which the
laws executed by me- all OF which are matters OF
public record. The original National Currency act con-
tanned the following provision: : - II. ,n, ,mor,, n,
ereo,G 1. abo,e to issued sha he spptond to ,sso
the the District Of Columbia and 10 the Tenio
according rresegaye population and The remainder shall be
oo9d 1y as serI M Of p, ,sg ,IoSs 1 'i,TsSS, % formed
having due % to the eIi1g baking capital resource And business
The above provisions were omitted in the general
vision the 1884, but roGnacted In 1865 10
the New England States and the state of NewYork had
reOrganzed under the National Currency act II was,
therefore, deemed important by the Secretary OF the
Treasury ard the gentleman who then occupied the posi-
lion of Controller of the Cnrrency and was subsequently
Secretary OF the Treasury that In order that tie country
might derive the full benefits OF the National banking
system should be taken by Congress TO induce
the retirement OF the State Bank notes, and the reorgan
cation Of the banks under the National act Senator
Sherman and other Senators and members OF Congress
were consulted II was concluded the eectual
mode 10 accomplish the object IN view would be to tax
OF the State Bank notes. with assurance,
as nducement for the Banks TO reOrganze that they
should receive the amount OF National Bank circulation
10 which their capital would ene them The following
provisions therefore adopted In the amendments to
every Baking Association State Bank state Bank
ing Association shah tar Of on the moant notes
any Bank state Banking Association. paid out BY them
THAT py si.ns oTs.u,d under the Law. any h,v
g ps capital of not less than 5o which shall apP before
e irs day July for aaite become National Bank under
pledge United bonds I eireq,,Oo AMI
redemption thereof approved June 3 1854 and shall with all
Currency be good standing and credit receive such
authority preference associations applying for the same"
| At the time the above act under consideration
Senator Sherman Chairman Of the Finance Commit
tee OF the Senate and such had charge OF the BILL ad
tho XXXVIIIth Congress was appointed by President
Lincoln Controller OF the Currency. did not, however
accept aud enter upon the discharge OF the duties OF the
Office until the 2lst day OF March, 1860 No Applications
from the New England States State OF NewYork for
new banks with circulation granted from that date
BY the lst OF july 1865, under the provisions OF law
made application for conversion 10 the National system.
No application from any bank In any other State than
the NcwEDgland States or State OF Now York whose con-
dOn came within the requirements of tile National Cur
rency act ever refused by me- Now, claim to have
faithfully and impartiay executed law in the enact
| mont of which Senator Sherman mainly instru-
mental. II, therefore, the State banks OF the New
England States aud the state of EoWYork have sec.
monopoly of the banking franchise 1t through
his nstrumehtay rather than by any violation VI law
/ Dy mo- as he alleges.
! I viii mGHtiof, further that Senator Sherman, as
Chairman OF the Finance Committee. had charge OF the
bl providing for the app0rtonment Of the currency
wei as thc bill providing for the taxation OF State bank
notes. @c The former passed both Houses and became
law before the latter, which did receive final
until within an hOurOf the termination of the XXXVIIIth
tongrcssthe Attn OF March, 1866. IT, therefore, there
any provisions IN the acts inconsistent with each other.
lhe last act That became law would operate repeal
| OF such provisions in tho former act.
dorchester, ". L., March 81, 1870. FREEMAN CLARKE.