New-York tribune., 1875-09-27


Trustworthy security for tho circulating notes
In their local character and the alb
sence Of uniformity in their oxchangeable
yaluc. The National banks, with the exception of
comparatvely few ones, are the old State banks
simply reorgsnzed with the same stockholders and
under the same managers, but with circulation of
uniform value throughout the length aud breadth of
the landa circulation which is so we'll secured that
if the United States notes out of the way there
would no, be 4 single dollar in paper money in circu-
/latlon in the United States not protected by more
than the equivalent of dollar in coin deposited in
the Government Treasury. Deposits in banks are
made for the convenience of depositors who usually
receive a consideration for them. These the Gov
ornment docs not undertake to protect except far
as the requirements of the law and fire.
Guent examinations may protect them; but it
has undertaken to provide, and it has
provided by the National banking system,
that all bank notes in circulation shall be secured to
the holders beyond reasonable, if not possible con-
tingency. / claim share in the credit OF the
paternity of the National banking system. The
only lobbying that was ever guilty of-and of that
j am heartily ashamed-was in opposition TO it.
was then at the head of the Bank of the State of ln-
diana. large and profitable institution, under the
management of tried aud able men, which knew
to be sound to the core, and which foresaw must
20 into liquidation surrcudcr its privilege OF Issu-
ing two dollars for one Oh its capital, if the new
banking system went into operation. The only
credit claim in regard 10 the present system is for
tho organization of the Bureau, which l think my
successors have had to complain of, and
for my earnest efforts TO give TO the new system
fair trial. Ii grew into favor with me day by day,
and have nov hesitation in saying that for the
United States, it is not only vastly superior to the
sysem which it superseded, but that it is the best
,a1 ttyo1x l,o Iax-isQ cd
TIE NATIONAL BANKS A BENEFrT.
Tho Nofional banking $ stem was not the off >pring
of thc state banks When ! went to Washington at
the rouest of NJ Chase in the Spring of S63 TO or
O,niye the Bureau it had not a single friend among
the banks. The managers OF sound and weli-con-
dueted banks were opposed TO it, because by bIng-
Ing their banks into il they feared the profits OF
tbeir Shareholders would he diminished and because
they dreaded tie constant annoyance to which they
feared they would be subjected from intermeddhng
politicians and journalists. The managers OF the
banks Of a different character were opposed To H.
because il required absolute security to he deposited
with the Treasurer for tie redemption Of the ciTcu-
latinc notes The State banks, in fact, came into
the system BY compulsion; hut there are now ap-
prehcnd very few intelligent and upright bankers
who do not admit the wisdom of the act and
the excellence OF the system. Fortunate Tor TIE
country was il that the Government did not
undertake TO collect its revenues or pay its soldiers IN
the notes of suspended state banks, the most III
solvent Of which would have maintained the largest
circulation Mr.. Chase net only secured by the
National Currency act for the whole people sound
md uniform circulation, but he thus prevented a
catastrophe which might have been fatal to the
Union. and which certainly would have been caam-
itous to the country. The National banking system
was one Of the cOmpensa6ns for the war, and II It's
distinguished author had rendered no other service
10 bis country he would, by having devised it, have
been entitled TO the lasting gratitude OF his coun-
trymen. II is this system, so beneficial 10 the Whoe
country, and so indispensable to the newer portion
OF it, that some politicians are endeayorng TO over
throw with the intention of supplying the place of
the bank notes. which to lie retired, by further
issue of legal-tcndcr notes, which further issue
would postpone indefinitely return to specie CEN
tra!zo the entire money power of the nation in the
Federal Government and inconcciyably aggravate
the evils which now ailiict us.
GrrFTBACKs AS THE SOLE CURRENCY.
Our banking system is thoroughly interviewer
with all our pecunary interests. Ii could not be
overthrown without the most disastrous conse-
ouenccs. It's destruction would not only put stop
to bank discounts but would neccssitate tho cell
lection Of millions upon millions of debts due to the
hanks. Uwould create a financial revolution which
tho country is in no condition to bear. l know 1t
may lie contcndcd that the opposition to banks
means only opposition TO them as banks OF Issue
that to deprive them of the privilege of ssning notes
by 10 means involves the necessity OF their ccaslng
to continue in existence rs banks OF deposit and
discount. 1t may be true that II The
banks were compelled to call in their
circulation some of them would 90 on with the
business of receiving deposits and dscounting bllls
but appTehend that large majority would go INTO
Humiliation. If they did not, what would The people
gain by the change. Are the legaltendcr notes any
safer than bank notes which are secured by United
States bonds with 10 per cent margin, and by the
capital OF the banks and the personal liability Cl
their siockholdcrsi Would the banks, rs banks OF
deposit and discount. be more liberal in their deal
ings with their customers or IN their rates OIL
INTEREST," Would they be any less liable to the
charge Of being monopolists and extortioneIs
than they now are 7 What the West es-
pecjally needs is local circulation. Would
il have this local circulation if greenbacks
became substitute for bank notes / predict, II
tLe experiment is ever tried that before a year
passes there will be in all the Western and Southern
States an outcry against the gTccnback system, and
demand for the restoration of the system which Is
now 80 vehemently denounced. The financial HIS
tory Of the United States shows that the people OF
the United States viii have banks and banks o'
is,ue If the National banking system, which
aG,,rds n circulation of uniform value and unques
tionable security is TO I've discontinued, another sys
tclp must be devised to take its place. What shall
il be9 Has any substitute for it been proposed
Would il not be wise and prudent for us to present
better system, 10 improve the one We nave uh'i
better one is proposedf
The present System is, as l have remarked mani
festy superior TO the one il superseded 1t affords th'
people the uniform and safe circulation which theJ
Il ;a -, so n