New-York tribune., 1879-01-16

to be entirely iusoyent This cGnstan, possei rs
| that meeis your approval further Legislation Is
needed. But the light Of experience, deeIl tho
SecnTtnS and maintaining soundness in resources OF
banks and lawful administration OF their anairs.
WHAT ARE LAWFUL INvEsTMENIs1
In rcccut wears some Of the state banks have assumed
that they had the right to make any Investment w
money which the discretion Of the directors or officers
approycd In some cases this power was claimed to
exist because there is positive prohibition in law OF
such Investments that is. bank may lawfully 90 any
act that expressly forbidden by statute III otnef
cases the power claimed TO be granted III
some general provisions OF the Revised statutes
concerning moneyed corporations am not able 10 ma
authority for such investments in any grant OF powers
TO banking associations In 1862 chaptcr 62) the righ
to take and become the owner Of stocks OF inc Stae
OF New.York and OF the United States was gwen 10
banks. banking associations. and Individual panKers
The clear implication OF this act is that no
stocks can be taken and owned by such instltu-
tons except specific authority he conferred by statute
And the only statute which defines the powers Gf the
banks tins respect limits the power TO the Two khus
Of bonds named submitted the question Oh the p'"tr
of banking associations make Investments In stocks to
he ATTORNEY neral ana MS opinion that the law of
1862 contains the only grant o. such power Is III mar
moiy with the decision which nave ctied. .
The cruSadr that IS made against the National b%anks %
calculated do nothing but harm, whatever opinions
those who In II NAV have, or however sincere
they may be IN their views Bat expect to see sncn
aggressive ideas prevail ana 10 see attacks more or
less formidable made upon the banks un therr shall
he moro freedom IN banking thah iheIe Is al h h.ne
present He II asserted that banking Is EoW lIee'
It Is. but OILY in limited sense ANY men may or
ganlzc National bank II they nave lhe cItii 90 ny
men NAV organize a STATE bank. II they have the capital
But the who organize the National bank obtain Ger
Tin rits auJ mi ,lIcgcs whcn the Federal Govern
mcut bv staintc rohibs to the State bank. SO Tar the
National bank MONOPOLY and 1t rs regarded as "a
much greater monopoly than is for this reason II
does not stand upon ITS merits and It's own bottom IL
guarded by buwarks winch the National Government
las set about it, because oLcc the Nfuoha Aui''hStI"
ZION felt HAT II had some need OF the pdlhs'
BANKING AND CIRCULATION SHOULD BE TREE.
The National bank franchise j. a monopoly, as com
pared Aat Of The state banks, on account OF the
prohbitlve tax imposed upon the Issue OF crcuial0n
by the state banks. The Government feels no real
necessity which compes coercive measures to sus
tam and extend the National bank II Is claimed
that the National bank circulation has great ad
vaniaEcs for the pcOpe concede the force OF th''
hat is just the reason why the National banks can
be put upon their merits, and should hOt lee Longer
protected <nd guarded by the grant Of special iY Gt'
which are denied state banks The National currency
is sale and Crculates freely throughout the coun-
try any state bank currenc shou como into com,
petition win Il, such state bank circulation WI
nave 10 possess 'he PltliIIc> W -, ' - "
abhty.nr caLh0t meet lhe Natona 'ui'.,5 i -
fuIy il Is demonstrate to tht people iha TIE Nj
toIal currency i>ctuay better Ior teUa" oi hc people
state the National banks ot srcE state VIII h more
sccur" tbn they ever nave been, or now or ever WI
h., until suci demonstration j. n@- &C. i'uA thdi the
NItou3l banks may look Tor assault until the itctHt
rIic banking. If tue States thcu incorporate Sta'e
banks. and they ISSUE an inferior rCrr cu,rrIcy; hr
t,cc and tie fact, ANT II viii not be III tne
power o. any man or me" III , ,hc ,'Mc s'Mc
az t. appeal successfully 10 hl' ,lo o1s IDEAS o. PEE
ind .res aeaust the National uIuh,n: system or asinst
loyGvcr, Wrlr ia" present conditions exist ~ respect
T. blna, ana banking 70 keep HH r "e' 'ilou a-iNt
pI- ard tie BUSINESS Of tsc country fr tie inter
If both aic most promoted 10y sIabtl III financial
corporate bank rc under auv proper au1 wcl-rc@r-
laIei ,ysc,n Ike tuat o Ncv-Yor6 Of tie National
t.tt l, turIulGd,G Wit c.r, H. limitation, and sac
augrG.. which are intended 80 r"'dcr tlt hanSs safe
and 10 uloi,cr TIE prcpc dgji0,t loss through them.
i> ,ulu, cuu rn-1tiuH ioT fIc ic>tr Ions and safe
Gard, JtIon u E"tr~ DrcH permitted 30 ihpn.
Iu m. N4ona. Administration has ar0Irrtrily robbed
In, ~ta., .Gts of his t,mrcu,ilnS b.nrht for the
rr-llnu- laws md rccuia." to winch ttoN are sub
i,,r, E<.c.r.,.lcu.... ur.vli. banks nav, LARGELY
uudp1,d Inc .0yaniage neIthcI o, The people nor
Ti. ,orparito banks ought 10 have the compr sotion
of cI. ul ltou or tcccrunE IN TSircyl,S W'i'h are
uro'e.r placed on mem TIE N%uop%i H"yrinmt1t
provoke, Hostility 10 the National bhkng sNsich ny
dculH 10 no states tie rgnt 10 organize banks WITH
circulation. cav aud 10 tt history OF cop0rltc bank
lac agitation alnu. Ma. oual banks VIII continue
While LAWS rcmgla as th'y are thmh II Is inevitable
Irnnycd : aIc nankS lnpv then notes, as they
dd ;or eighty wears, without question III rcS@ri 10 tnelr
l.-II rult to Gr Then tie NdGpH" bank currency
would into competition WIN the stat b0nk not's
! The ueoIc WOul., IL the uscls oi currency, lind out
'Aiyh enc hesi served tnch "bIcH on ".'' thc Ia
Itpr-. uaVe OF the value tbdt u purDo!tc 10 stand
/ for. The best currency W0nid run "ui TIE 0lher
where thcfc VAS ifte con reullOn' Eorhoi3le bdlh-
/ liz would, II ih's way, -. ahso'u't,N Het,
Of or-Il tion ouch banking would be as nearly safe
can hc mad, :or tAe orS%alza on OF tIe Naional
O~jc tank. 40 uhl the same conditions 10 orlcr
e. iY.. T,c circulation of al 60 poIljc bnas Won he
s.cGr" and .ciuahc, sn the people would have no
'' ",'i H. n n irs :,r tT1 t"in,5
u IT, cxccyi t:tc uf legitimate and normal business.
IN. ban H. tuI-ut IHJut uUuu JeItd notes. they wUu
i w. tG ,ld ;.nl ,lHt.i tie u,u VINO use currency al
4 90 Fttl l q