New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-04-05

OF this tho banks lend to the people only t25ooo9oo,
showing q clear inappropriate sum noe lent 10 tho
sttutiops OF the country Of something over sCOOCo
The banks compelled 10 carry a5 dead weight, ether
Of coin legal tenders in Ctes % pr cent ana 10 per
cent in town. with the provisions for allowances on PAL
would give IT'S say :ll50OOGo) Tor that purpose We thus
have this state OF facts as result: Ray whole crcu
Weight s075 Coz Oo leaving more than 800 O9CDo the
amount of the legal teIGors not appearing Were
LEGAL tenders arc right across our pathway, aud
so situated that If attempt their removal unless we
country, We must bring down tho banks; II We
allow them to rema ,1 must d nave df fG
Banks, and thus force into tho market the Government
the only basis Of credit or currency entirely unFo
ductvc, and H. must be the largest money-!ealcr in
money must continue dcirto the borrowers indeed the
pr must 20 on unless we substitute currency
tsndtrs can and utilize the Idle money in the
treasury BY the LfcheqneF we can ~ r, @G
ting its ana credit behind properly organized
Institution would give lis currency. which instead OF
try would he useful in every quarter OF the world Our
national dignity or manlon as people. our PRIDE.
soil, aud find It's nfrrofty marked BY every broker as
compared TO the notes OF the Bank OF Engand by The
requirements AZ the act Of 1864 the banks leave with
the Government "a bond or 500 for every so
in notes. aud beside they must, must hold as q re-
II In cities and per cent IL in iowa with 35th allow
city deposits which L. except in the large com
mercia perfect estOppe upon the loans Of the
banks and virtually defeats the great object of all
banks to increase tho available crds of the country,
and let that pass money which has behind il solvent
private obligations, and is convertible into coin when
needed So long as the Government Was 6uying sup
Ing its paper In large sums IN almost every form In pay
ment, tao system would work well enough but when
this immense customer is out OF the market and instead
of throwing enormous amount of currency into the
tons, the weak point in Tho system is touched. and the
strain must sever the materials and the supersructurc
tumble down from The fact that tho foundation is
removed or disturbed
Credit in human affairs Is the greatest Of agents IN
deed Governments have originated IN the confidence,
the faith the trust the credit OF the people orgauzed in
such form as the people demand We can use credit ad
vantageously in finance, but in everything else
currency must Je in such form as to command respect
all action respecting 1t must be truthful 1t must be up
right, 1t must be faithful and equitable just and fair
and that which al ow to pass money and those who
make must have clean hands, aud be open and above
suspicion and the ability to perform all they undertake
must be beyond question.
The Exclequer offers as a capital one hundred millions
OF dollars onefourh In coin, threefourths in legal ten
dersOnef0urth than the capital OF the Bank Of
England It's provided in the charter that note
be issued until onecurth in coin and threeourths in
per bonds Of b the unsd ss Of tine sad
appointed by the authority Of the Government Of the
United States and the State i'll which the office is To-
all giving security for tho faithful performance
OF their duties to the Exon equer This will give Gov
ernmct the key which locks against every hand except
the holder Of the Obligations OF the Exchequer the means
for the redemption Of its notes; thereby surely and
its ability aud integrity such form obviate every
question as to the safety Of oil It's issues the known
make them at all times quite as liberal rs the
source OF profit to tho proprletcrs which
will be so lucrative as lending out is according
to the Charter All the notesof the Exchequer Will bo
redeemable at Office aud also in New York. giving
to them unqualified availability for all commercial pur
poses In every quarter Of the country and every note
OF tho Exchequer will be legal tender for any debt due
to the Excheque NO matter when Issued or where pay
able
But the present banks have rights and cannot be
party TO yhing which will harm them. The ENChcquer
certainly will not hurt them bat sustain aud help them
lections But like the Bank Of England. the Exchequer
notes being the most widely known. its notes and ob0
lions would circulate In orr domestic and foreign trade
WHILE like the Joint stock banks in England, the notes OF
the present National Banks will hold their present
field, certainly for tme they would 10 convert
bic Into cola legal tenders ut the option of the holder
and received by the Exchequer In It's deposits 50 long
they were redeemed In coin aud legal tenders and thus
harmonic and mnglo Ia the markets OF this country
the terms but for all uses ont Of tho country
the Exchcquer notes would be preferred.
The charge for negotiating loans for the states IL 1im
tied to quarter of one per cent and there is inn
bon against charge Tor ANY business done Tor the
United States. And while every citizen may feel some
pride In tho fact, announced by the Secretary
than tho bonds OF any other Government in the
world, those whose opinions entitled to respect
coll vt the Thought that for any reason we should have
the necessity Ia let our bonds out oI the UncdStatcs
Oar true policy ~ 10 ind market here, aud let that
which taken from the and and labor of tho country In
tile way of taxes 30 back To tho country Ia the shape
OF interest Upon the establishment OF the EXchequer,
as large an amount or four pes cent bonds VIII DO
needed as has boon sold or five per ccit., although
thousand hands hvo been used To place TINT amount;
ana III the course Of the negotiation new word In
finances mas Doen necessary 10 carry ont the SAFE There
can bt no doubt The resumption 81 clsA payments, and
tho establishment al tno ENcdc1uer would greatly assist
the icidndng Of tno National don't; i1dyed think 1t
WOdlu cO.uptaIa IL.