Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-08-23
National Banks.
Ang. 90, 1879.

Nat1Onal Banks.
more senselcss cry than that now raised
against the national banking system of this
country, never raised in opposition to
anv institution or business interest in this or
any other land. 1t has its foundation mainly
in ignorance of the plainest principles of
finance and business, and although those en-
gagged in raising the cutlery are for the most
part found among a class entirely Ignorant of
what they pretend to understand, yet there is
combined with that class another and more
dangerous element, namely; the destruc-
tive class, which is ready to uproot and over
turn the best interests of society, from mere
wantonncss and wickedness. nor is this all
Discouraging as it may seem, many honest
and well meaning men, whose views on the
money question are generally correct and
sound, have, either from insufficient cxami-
nation. or other cause, imbibed feeling of
antagonism towards the system under which
our monied institutions now exist.
While it may be considered idle to attempt
to enlghtcn the stupidity ignorant, or to cor
rect the false assumptions of theorists and
orators bent upon efforts to deceive, a few
words in relation to the existing banking sys-
TEN may not he lostupon those who have been
unwillingly led into wrong views.
No intelligent and sane man will be willing
to deny that the demands of trade and the
convenience of transacting business affairs
between different sections of the country, re-
quirc banking facilities in some form. They
are indispensable. Either chartered and in
coporated institutions must perform the nee
essary banking business of the country, and
furnish the required facilities for business
operations. or private banking and bankers
must take their place. The business com
munity require that the banking system shall
furnish capital, ease and facility IN the
transaction of their business. What the mass
of the people are interested in having, is a
currency safe and convenient. No more per-
feet system to secure these results has ever
been devised than that now furnished by the
existing national banks. Probably, under
the present state of things, no better system,
on the whole, can be devised. Ready inter
course with remote points is secured by it,
the means of prompt collections in all sec
tions of the country are afforded, and every
facility required by the business man, is found
in the national banking system. The masses
of the people are, however, more interested
in the security Of the currency issued by the
banks than in any other feature of the sys-
TEN. In this respect, it would be difficult to
conceive how human ingenuity could produce
plan more free from danger. The people
are absolutely secured without a shadow of
doubt or peradventure, so long as the govern
ment of the country exists. 1t matters not
to the labOring man, who places in his peck
ct the amount of his daily, weekly or month
ly earnings, what national bank in all the
broad land sent out upon the people the bills
he has received. Come from what quarter
they may, far or near, they are all of equal
value. And although the morning journal
may announce the failure of some one of the
number of banks, nobody thinks of looking
over the bills in his wallet to ascertain wheth-
err he may have any of those put upon the
country by the failed bank. Let the banks
stand or fall, their stock 90 up or go down,
every bill issued by them is amply secured.
the Treasury Department of the government
having in its vaults security in the bonds of
the United States of America, belonging to
the banks, and held for the redemption of
their notes, an amount ten per cent larger
than the bank can put into circulation. Tn
der the old state bank system. the banks were
it is true, restricted By lar in the amount of
their circulation, but there was no restraint up
on the fraudulent issue of bills to any amount.
The quantity which could surrcpttiously be
put into circulation was only limited by the
capacity of engravcrs to furnish the blanks
and the willingness of the public to receive
them when ready to be issued The
notes of national banks are all fur
nished by the banking department at Wash
ington, and no over-issue is possible. A more
safe as well as convenient currency, there
fore, could not be devised. Ofequa value at
every point in the country, it may be remit
ted to the most distant section, without dan
ger of depreciation, as well as used without
discount in travelling in any quarter over
In the adjacent British Provinces, also, and
in Canada, they are used at their par value,
and am told that even in Europe it is not
difficult to make use of our national currency
at "A slight discount.
Under the old state bank system, the style
of engraving of bank notes was as various
almost as the names of the banks. This led
to an enormous system of counterfeiting, by
which the masses, unskillcd in the detection
of fraudulent currency, suffered constant
and severe losses. The bills of national
banks being all of the same design and en-
craving counterfeiting is rendered less sue
ccssful, and, is in fact, almost entirely ex-
tinct, spurious bill being rarely met with.
In addition, the government is constantly on
the alert to ferret out any attempt at coun-
terfeiting, and in most cases plans for the
issue of counterfeit notes are discovered be-
fore being fully matured.