The Conservative. (M'connelsville, Ohio) 1866-1871, 1870-12-23

approved by Congress, it is of great i'm.
portance that an act authorizing the
changes be passed without delay
Since the first of July, the currency
balance IN the treasury has been mus
ually, and for immediate purposes, un-
necessarily large.
NATIONAL BANKS
The act of July 18th, 1870, authoriz-
ing an increase of national bank notes,
imposed upon the Secretary of the
Treasury Department the duty Of pro-
vidlng for the redemption of equal
amounts of their present certificates.
The certain though progressive de-
crease In the revenue, both of coin and
currency, made it my duty to receive a
sum sufficient to enable the Depart
ment to comply with the law without
resorting to extraordinary means. Hap
PLY, the financial condition of the
country has not been unfavorably af-
fected, owing to the accommodations in
the Treasury. During the year ending
September 30th, 1870, national banks
paid in interest, the sum of SC, ,4S6,172,
Sc. It is estimated that of this sum
81, O00, 600 or more were paid to private
parties. 1 cannot doubt that the prac-
tice of paying interest, except upon
balances due from one Government to
another, is means by which large
amounts of capital are directed from
extreme portions of the country to
the commercial and financial CEN
tres to injure business severely. The
province of bank is to loan money,
and its property is by loans and dis
counts to facilitate and develope bust
ness IN the neighborhood of its location.
AS matter of fact, under the present
system, banks are agencies by which
capital is gathered and sent away. to
distant cities, there to be loaned on call
and used for speculative purposes.
Complaints are made from all parts of
the country that bills of national banks
are worn and defaced to such an extent
as to be no longer fit for circulation.
As many new banks are soon to be or
ganized under the act of thelast session
Of Congress, / respectfully recommend !
ed that an appropriation be made and |
authority given to issue new bills upon |
such paper and In such form as may be /
designated by the Secretary of the
Treasury. The Comptroller of the Ccr-
rency, In his report in 1869, recon-
nended the establishment of an agency
N the city of New York, under control
1f national banks for the redemption of
heir issue. The substance of this rec
seems to me not only
proper but necessary. The expense
should be borne by the banks. With !
his recommendation 1 take the occa-
non to say that the banking system of
he country appears well managed, and
9 answer reasonably the purpose for
which it was established. It is no doubt
rue that Treasury notes representing
n equal amount of the public debt ,
Without interest, are the most economi-
al circulation of the government, but
{ should be considered that the bank
ng institutions of the country are agen-
les by which business is established /,
nd fostered- Upon the whole, thesys- !
em of banking should be extended I.
My for the purpose of meeting the de-
lands OF business; but when. the de- /.
lands are urgent; concession should be !.
lade, upon the ground that the pros !
erity of business is more important :
nan the mere saving of interest from :
le circulation of treasury notes. !