The Portland daily press., 1880-07-17
The Nation al Banks. y

Mr. Hobart w. Richardson's treatise on
paper money, written with immediate ref
erence to the currency question in this
country, is recognized as one of the best
popular expositions of the subject published.
That admirable work at once won the
commendation of ripe scholars and earnest
students. Its author has followed it up
with a monograph which cannot fail to Sc
cure as high place in public esteem as
its predecessor, for it is marked by the
qualities which gave that work it's charm
conciseness and lucidity of statement, clear
and close reasoning, happiness of illustra-
ton, and emminent fairness in statement
and courtesy in tone.
The articles that go to make up the little
book first appeared in the Portland Adver-
tiser in the very heat Of the currency con-
flict, and commanded the attention alike
of friends and foes of the National Banking
system. The interest they excited led to
bringing them out, with such changes as
was thought desirable, in book form. And
so they appear as volume of the neat,
convenient and low-priced Half-Hour
Series. The volume is valuable addition
to our financial literature and deserves,
what it will doubtless secure, a wide cir
culation. The believers in the National
Banking system will be glad to lay their
hands upon so useful a weapon in the con-
troversy in which they must sooner or
later join, and its honest opponents ought
f> ba or tI,a al
sition of a financial experiment they never
weary of condemning, and at the mass of
statistical information, drawn from official
sources, with which Mr.. Richardson favors
them. There is no one subject in American
politics or economy concerning which so
much misapprehension exists as the Nation
al Banking system. To this system Mr..
Richardson has given the most careful and
intelligent study, study which leads him
to advance the propositions given below.
How satisfactorily he has demonstrated
these propositions a reading. of the book,
which we heartily recommend to all, will
show:
1. The bank act was not an empirical meas
ure, but compilation of the best results of q
series OF legislative experiments carried on by
the States for three-quarters of century
2. The law conferred some new privileges
upon the banks but so restricted their exer-
else of these, and of all privileges previously
enjoyed by them, as to excite their almost
unanimous opposition
g. These restrictions, intended to protect
the community at large, have proved so whole
some that the banks, with few exceptions,
have become reconciled to them, perceiving
that their own interest, in the long-run, is
identified with the interest of the community
4. Under this law bill-holders are absolutely
secured; the losses to all other creditors have
been less than one-tenth of one per cent. of
their claims annually; and this inconsiderable
loss has been incurred by neglect or violation
OF the requirements of the statute.
o. The large profits of the banks prior to
1873 were not secured to them by the law, but
were the consequence of the general initiation
OF prices, including the price of money, or
rate of interest. Since 1873, the law remain
ing substantially unchanged, the net earnings
of the banks have declined from IL per cent.
per annum to per cent.
6. The banks have been and are of great
service in the management of the public debt
By their assistance the burden of interest has
been reduced from Sl50000,000 to S83,O0O, 900
year, and specie payments have been re-
sumed. Without their aid the treasury would
be obliged to employ other and more expens-