The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-02-19
4 PROSPECT FON FHl3E BANK
INC


4 PROSPECT FON FREE 3ASfk-
ING.
II is reported, from Washington, tha,
marked change has taken place in congress
.ional minds upon the financial question
since the first Monday Of December Az
is not yet by any means, harmony. The
same complex questions remain unconsid.
cred or considered only in part Mutitu-
oinons propositions are as yet undisposed
Of Every day brings a new theory, which
must, at least, he read and debated. But
with ali this chaos, there is Il gradual, but
steady, meeting &C congressional opinion
in favor of free banking system. Some
time in the dim past Of the present session
the Senate finance committee reported =
bill with the avowed object of cqualznr
the currency which mcaneth, taking
twenty-five millions of dollars of the ma
.ional bank circulation from New England
and New York and giving it TO the west
and south. As we explained, Il few days
since. we do not belicye that the circula.
iion Of currency can be equaiized by legis-
laton. Ifthcre is but limited amount OF
currency which can he circulated, it vii
naturally seek the place where it is til,
most nccded--that is the place where Dor
rowers can afford to, and will pay The
highest per cent for its use. This fact eX
plains tho complacency of the Boston
banks on the possible withdrawal Of p0r
ton of their circulation, and redstribu
ton thereof in other parts of the country
Under such an Equalization, Boston auL
New York will never suffer. They have {
way, all their own, Of docking up" theii
customers funds, SO that they always will
have money enough for their own use, i
they will only suffer it to be used. Asd,
from this, moreover with q limited
amount of currency, it will be clrculate
and used where it is most needed, where i
will pay the best, where it will ''do tho
most good in financial sense, no matter
where it is issued, whether from a national
bank in Rutland, Boston, New York
Omaha or Yankton. The cqualiziur
proposition has, how ever, as Senator Shcr
man explained, ''been loaded down witt
:" other questions, SO that its originate
would not know it. This was about the
situation of the question of financial re.
lief" in the Senate. Monday.
That day, upon the expiration Of tho
morning hour" the bill to equaliZc tn,
currency was taken up, whereupon Senatol
Cameron moycd to strike out ali after the
enacting cause # the bill, and insert as a
substitute provision that part Of the ma
tlonal currency act Of June 3, 1854, and
parts of several acts amcndltOry thereof
and any other acts which limit or restric,
the amount Of notes for circulation, be re-
pealed, ana that all associations organized
for banking shall be free to establish ma
tiOnal banks with circulation subject te
the limitation as to circulation, which i
hereby repealed. The effect Of this, il
adopted, would be to inauguratc free
banking system in place of the prescntrc
stricted one. OF course this proposition vii
have to run the gauntlet Of debate, and tn,
Senate have been INDUCING therein for I'll,
past three days. As we said, ut the outset
we have reason to believe that this, or o
similar measure, will be adopted. We ca
see no objection thereto. With the amount
Of grecnbacks remaining as at present
aud they surely ought not to be increase
the tendency would be 90 increase, athe!
Than lessen their value. All the present
limitations and restrictions are to he re.
tanned, except as to the amount OF circula-
zion, and with the reserve required to bt
constantly kept on hand, a corresponding
amount of treasury notes. or greeubacks,
must be Withdrawn from circulation upon
the organization of every new national
bank. The price of government bonds
must, also, be increased, and larger pro.
portion thereof kept in the country, rs
bank bills can only be issued thereon. We
80 not believe that it will tend to undue
initiation. Men will not invest their money
in national bonds, receive only some eighty
per cent OF their value in circulating notes,
and, then compelled to keep large per.
ccntage thcleJf IDLE, as reserve, unless
the business of the country, or that parii-
cular portion thereof requires additional
banking facilities. 1t is certainly true that
the flee banking system of New York did
not produce initiation, and we do not see
why a national system should. 1t is true,
that banks were specie paying then and
are not now. But will not the withdrawal
of additional amounts of treasury notes
from circulation, and government bonds
from the market, aid in a return to specie
payments on the part of the government
We may be wild. but we firmly believe so.
If so, it will hasten that return, for the
moment the nation commences to redeem
In specie, that moment the banks will be
compelled to take the same course