The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-10-22
RUTLAND MORNING OCTOBER % 1873

hot hafc ltF MUST II be locked up to
await the time when that portion of the
country is so far developed as to need
1t, and have men who can manage it {?
The provisions for the distribution of the
remaining one hundred and fifty millions
OF dollars of circulating notes are worse, if
possible, than the former, and furnish,
also, powerful argument in favor of
throwing the doors for banking open to all.
The remaining half-the whole being limit
ed to three hundred millions of dollars
the twenty-frst section says 'shall be ap-
"portioned by the secretary of the treasury
among associations formed in the several
states, in the district of Columbia, and in
" the territories, having due regard to the
"existing banking capital, resources, and
Cuisines Of such states, districts and ter
ritories." So that, as we have already
seen, one-half of all OF our currency
throwing treasury notes aside as SIC would
gold and silvcr-is absolutely apportioned
to the states according to their population,
without regard to their business interests.
Any one but dolt could see that the little
state of Rhode Island absolutely needs more
banks, banking capital and notes to circu-
late as money. than the states of New
Hampshire and Vermont combined, yet, by
the provisions Of the first part of the clause
of the act Vermont and New Hampshire
receive nearly three times as much Nei-
thcr, if we examine the provision, Is the
matter cQualized by the distribution of the
remainder As would at first glance, appear.
Saying nothing about the arbitrary power
given to single individual the secretary
of the treasury and supposing that it is
honestly and conscientiously exercised, it
must be apportioned or distributed among
all the states, Vermont and New Hamp-
shire receiving their due proportion the
same as Rhode Island, reducing, to be sure,
the disproporllon. but still leaving dspro-
portion. In one sense of the word, popu-
lation and the amount of business transact
cd has nothing to do with the number of
banks required, or the banking facilities
necessary or even with the bills-that is
currcncy-to be issued to circulate therein.
Portions of the country can be found
where by the strict construction of the
law, both in its letter and spirit. some half
dozen or more banks with proportion
ate amount of capital and circulating notes
would be located, yet where they would
be no more needed than at the north pole.
Take the same number of inhabitants. Of
different class, and the same amount of bust
ness, Of a different kind locate them in "A
business center and twice the number Of
banks would do rcmuncratyc business
and still not afford all the facilities re-
quired. Banks cannot be located, nor
their capital and circulating notes appor-
TONED upon any such absurd hypothesis,
and yet this is the theory of the national
banking law. We have said nothing in
reference to the additional power granted
to the secretary of the treasury to with
draw from the banks havingthc largest cir
culation, twenty-five millions of dollars of
circulating notes for the purpose of rc-dis-
tributon, because it will not alter the case :;
and the secretary has not, and does not pro-
pose to exercise that power. Otherwise,
we have stated, briefly of course, the law
regulating the issue of national bank bills,
and we submit that they are absurd on
their face, and present II powerful argu-
ment for free banking.