Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-12-26
Senator nerrie,os, cn the CurrencI

Senator nerris.o,1 on the Currency.
On Tuesday last, while the specie
payment and currency question was
being discussed in the United States
Senate. Senator Merrinlou said
Mr. President, beg to say word
before tho vote Is taken. l concur
most heartily in what has been said
in opposition 10 privnco banks. They
ought to be regarded rs a curse to the
country rather than blessing. The
national banks without issue have the
advantage, in the frat place, OF having
the sanction of the Government. The
pub ic ara Interested IN them because
OF the security that they afford to the
depositor. This proposition. SIS [ IN
,lerstand il, IS to reduce the security
that the public have in banks OF the
character under consideration.
Now, let rs see how II bank of this
kind operates. By the way, in Il small
town II national bar ( may be crested
with $50, 900 capital. aud the whole
amount of stock must be paid i'll
Ihereupon the corporation has the
ght 10 receive deposits and to pro-
cred With the regular business of
banking. except that they cannot iseus
notes but they may receive G"CosltS,
and may receivc-them t. any amount
Uuder the national banking system
now, what protection. has the depos-
itor? First, lie h IS the security OF the
integrity of the Board II Directors and
the officers of the bank; next, lie has
the security of the paid up capital;
next, he has the reserve Of - per cent
N greenbacks constantly kept on hand;
next, he hus the security of tho
amount Of national bonds which the
bank is required to keep on depos /
with the Government, the minimum
amount OF which low is $50, 900. This
affords great and important advsn'-
age to the pnblic. I understard that
| this proposition g to reduce thar
! amount to $1,000 80 that a bank ~ {
of issue may pro- ID to business with Il
d. .pOsit OF $4,000 Of Government
bonds in the Treasury instead of
! 5000, thus cutting down the se-
! curity to the public. Now, what is the
motive for that? What reasopabler1e-
nand is there on the part of those
| who desire TO engage in the business
of banking that this security TO the pub
lie. 10 the depositors, should thus be
cat down?
It is said that the present require
ment of the law is unreasonable. and
| that is the only consideration l have
| heard yet suggested for il. Now, sir.
| | insi that the suggestion i un-
founded that the requirement i not
unreasonable that, on the contrary,
! 50 far fror. being unreasonable, il
| would he reasonable OH tho part OF
the Government, in behalf OF the
pnhlio god, IL require large de-
! posit OF bonds when suoh privileges
are rnanted. NJ y: The banker,
while these bonds are al, deposit i;h
the Government, has Tot dead in
| vestuent Twice & year Re receives
h. iutprea: ut the rate IF j ar 6 pei
cent on the amount of his bond Qe,
posit With the Government, and. ii
vieu or the present monetary condi'
tion of the G untry, and the condition
that it has been IL since the close oi
the war, every one OF these bankers
from, one end of the country 10 The
other, has realized from , 10 ! or :
per cent ,1rOSt on the money they
bank upon. tt3 deposits that they re
csive. and they have equally paid ths
legal rate O: interest III many instance;
to deI ost p, and then made large in
comes by reason of the deposits pIsced
with them.
The point ] rose to make il that this
is r propo-iticD to reduce the security
to the pablic, To reduce the security Il
the dep0sitor, ri 4 to that extent TO Il,
that much iniur,. to the business Of th'
country; 70 that eStaut to detract from
the wort, 81 the national hank ng sys
: tenn; t., that extent to cut down the Sc
> curity that is provided by the nationa
|. banking law. | am, therefore, oppos
ed 10 II. The dcnland is unnecessary
and i is unreasonable, because th
) banker who desires to bank in thu
manner has all the reasonable prof
! that he ought TO command.
/ have another objection which
will mention. but one which I will 10
! enlarge ,,pon ut ti1ia moment. ant
t that is; this: think ii IS very mani
: fest, not only from what We hav
Witnessed here in tbs Senate to-da.
: and during the present session {
5 Congress. bat also from what we 50
2 manifested III the newspapers. TIA
! thore is to bo a decided change III th
= monetary system of the country.
+ trust there will be for wniis belieV
t that the national banks have BEEN
D great blessing to the tountry, wh
t they have contributed very much t
1 promote the industrial ins. rests of th
country, ] think the time has corn
= when there must be Il change, an
@ when 2 different system OF banking !
t this country must be adopted and
a that IS so it seems TO me that it IS 6,
n eeeiin9ly unwise to burden the CouI
- trv with a great number of banks which
Il we are told, will be created if til
e measure shall pass. ] truat, sir, th'
- tho hill will not nasa