The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1870-05-05
Treasurer Spinner on National Banks
and Specie Payment.


bis views On some points respecting ma
tional banks and the resumption of
specie payments. Abiding to state
ment made by his correspondent that
the national banks derive their pres
tige mainly from the circumstance that
their currency has qualified govern
ment endorsation in the United States
securities lodged in the Office of the Con-
troller of the Currency" he says:
Now, the fact is, that the securities are
lodged in this Office, ard that the endoraaton
that you speak of is BOT qualiiied, but PEI
feet. The Treasurer Of the United States Is
required Try law to redeem the notes Of a ma
tional bank that may fail, and it is immateri-
al whether the securities lodged with him
Tor the purpose are sufficient or not. If
there is loss, Ii is to the United States, and
not to the billbeldcr. In this respect the
National Banking law differs from the Bank
ing law Of the State of New York. On the
failure OF national bank to redeem it's cir
cuiatinG notes, the Treasurer of the United
states virtually becomes the cashier of such
bank, SO far, at least, as the redemption OF
its circulating notes is concerned The
more than banks in good standiuc because
they can be converted into greenbacks, while
COED bank notes cannot be so converted.
This fact is now what prevents the rcsump-
tlon OF -pecIe payments. The government
could at any time arrange matters SO as to
be able to resume in ninety days were it not
for its endorsement of the national bank
notes. Bat the banks are not prepared, and
they manifest no disposition to prepare them
selves, for an honest resumption of specie
payments. Should the government resume
under such circumstances, and the banks re-
fuse 10 do so, the effect would be TO throw
the redemption Of all the circulating notes
Of the banks go refusing upon this Office.
Such load at such time would probably
be too heavy for the government to carry,
and a-relapse would follow. So Won see the
banks have it in their power to prevent re-
sumption They viii probably so prevent
until they shall deem it their interest to per-
nit, or until they shall be forced into it by
an act of Congress.
Having these facts in view. have, there
fore, favored the passage of a law to compel
tie banks to be prepared for resumption on
a day fixed in the future Without some
such enactment: fear the day of resump-
ton of specie payments is further off than
you and wish it TO be. unless your project
OF Withdrawing all the national bank notes
from circulation and replacing them with
United States notes succeeds.
Whether the Treasurer is correct or
not IN his views upon the resumption Of
specie payments, those views are worthy
Of consideration as coming from a promi-
nent officer Of the government, and one
who has devoted much study to our f.
nanclal system. We think that he is
rather severe IN his structures upon the
national banks. and not altogether Just,
respecting their disposition in regard to
the resumption Of specie payments. We
doubt If the banks, as a general thing,
are as hostile to the resumption OF specie
payments as he represents: composed Of
shrevd and intelligent business men as
these associations are, they must see that
there can be no substantial and steady
prosperity until our currency is placed
upon a solid base, one that can not be
rocked by every combination of the gam
blers of Wall street, and if they realize
this, they eau not be strongly opposed
to the resumption of specie payments.
The correspondent to whom the Treas
urer is replying in this letter remarks
that prior &c the war the gold and silver
coins Of the United States were at par
with each other; that silver coin being
now at discount when measured by
gold, is evidence that its supply in our
market is greater II IN the supply Of
gold, or, in other words, the foreign de-
mand for gold has been greater than
that for silver, and hence the difference
in value. To this Mr.. Spinnerreplies as
follows:
You seem to have overlooked the fact that
golc aud silver are both legal tender in the
United States. So far as know our coun-
try IL the only one that persists in maintain
ing dual standard of values In other
countries either gold or silver is the legal
standard, and they have changed from the
one TO the other. In our country our silver
standard was below the value fixed in com
merce. The consequence was that our silver
coins lett our shores and went to foreign
countries. Congress instead OF making gold
The legal standard. kept up thed oubla stand
ard, and on February 2l. 1852, passed
law reducing the silver half dollar from 209
grains to 1872 grains. and all the lower de-
nominations of the silver dollar in the same
ratio. All this fractional coin was, however,
declared to be a legal tender only for
amounts under five dollars. The silver dol
lar asserts itself to-day, Ii cannot be
bought at par with gold dollar. The frac-
tional parts Of the silver dollar coined be-
fore 1853 are still worth more than their
nominal equivalent in gold. The reason
why the fractional parts of Il dollar are not
at par with gold dollar is, therefore, be-
cause the two half silver dollars of re-
cent eoinages are about seven per cent.
short of a silver dollar or the fractional part
of silver dollar coined before 1853, and
not because the supply in our market is
greater than the supply of gold.
Protection VS.. Free Trade-The Case Of
Canada.