, 1874-07-01


tho words receivable and payable havo different
mornings In commercial tranBactlona, and that |
thoy cannot bs made to stand Tor tho samo |
thing. Nor Is 1t noooHBary to do so now. II a
givoB ha noto to D for $1,000 and agrooa to
take tho amount In potatoss "valuo rocolved,"
1t docs not follow that whon the noso comos duo
ho eau pay It in rotatooH.
Again, 1t seoms to DO regarded by Nlr. s. aa Of
somo consequence and OF aome boarlng on tho
caso thai tho Secretary Of tho Treasury was
to tirne, As tho public e1igonclos might require
Very wcll; that haa boon done; but how doca It
affect the repayment Of the bonds
ltr. 8. Says that tho Logal-Tonder net has boon
sustained by tho Supreme Court, and that undor
It's decision railroad and other corporations havo
settled thor obligations incurred on a gold
basis beforo 1850 by tho payment of
grconbackH. That is quite truo. and
still has no bearing on tho question
whether tho Government can lawfully discharge
Nh interest. boaring-dobt by iasuing TO it's credit
or pon.intoreBt bearing debt. II the groon~
buck is ono form of Government indebtedness
aud It appears to be- from tho inscription placod
upon it, viz, "Tlo United Btates Promise to
Pay"--tlon to tonlcr greenbaoks for tho bonds
ia not to pay them, but to postpone tho timo Of
payment, mud to atop the intercat meanwhile
This II done without tho creditors consent, Is
what we call reputation.
Wo do not propose to chase tho National Dank
question up hill md down dale again. Mr..
Shnokloford propounds one intorrogatory, how
over, that wo will entleavor to anBwor. He wauts
to know how National Banks in Now York City
can declare 50 per cont annual divi-
dends II their banking privileges arc
not profitable. Wo answor that tho
privilege Of issuing bauk-notes is not ono of the
Of 80 por cent, or any other per cent, Hinco tho
most profitable banks in that city have no clrou-
lation ut all, aud those which layo Issued o!rou-
1ation have ouly Issued such amounts as they
were practically compelled to by the National
Banking law. There are aomo banks in Now
York City which have boon in existence continu-
ousy since tho Revolutionary War, aud one or
| two Of them date buck to O period anterior to
| tho Revolution. In this lapao Of time they
have accumulated inrgo Hurplus-two or
threo times their original capital-wlthout hav-
ing issued any stock to represent this surplus
We believe that tho Chemical National Bank
has accumulated Hurplus eight or ten
times ns 1alee as itB original capital
That 1t should be ablo to pay divi
dends Of SO per cent per annusn. OF moro
on ita apparent stock, is nothing strange. Il
would have dono &C all tho samo II tho Natioua
Banking law had never boon passed.. In poin
Of fact, tho Chemical National Bank has no dir
oulaton. It was required by law to invoat ono
third Of ita capital In United States bonds. I
did 80, but neyer issued tho notes to which /
WAS entitled. Tho President OF the Importers
and Tradors' Bank testified before committe.
Of Congress last winter that ii tho law requirln,
one-tlird Of ita capital to bo invested In bond
should be repealed, his institution would forth
with retire it's circulation. That lar has no,
beon repoaled, and We presume tue Import
ers' and Traders Bank is now in. til
process OF retiring its circulation, as aome Of til
Chicago bankH aro. And We venture to p1edic
that years will elapse before ae much new circu
latlon will be called for as will be voluntarily re
signod undor the operation Of the law reoentl
passed By Congress.