Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1881-03-03
THE NATIONAL BANKING SYSTEM.
Facts and Figures Worthy a Careful
Study BY All.

Chasc's Enquirer.
Secretary Chase, soon after he Ell
tered upon the discharge of the duties
of secretary of the treasury, became
enlisted in scheme to destroy the old
state banks and erect in their stead a
system Of national banks whose circu,
lation would be uniform throughout
the country. In his first report to con.
gress, in December, 1861, he recon-.
mended the passage of law to accom-
plish this end. A bill was Immediately
prepared by Hon. L. G. Spaulding
chairman of the subcommittee OF
ways and means; but it became mani.
fest that the machinery of such sys-
tenn could not be put into operation in
time to meet the demand upon the
government, and congress was obliged
to pass a law authorizing the secretary
of the treasury to issue treasury notes
(greenbacks).
The admirable manner in which the
greenback performed the use of a
medium of exchange, and its great
popularity, rendered it tolerably Ger.
tain that the people would never will.
ingly abandon it to return to the use of
the state bank currency. The money
power was quick to perceive this, and
also that in no other way than through
the instrumentality of such a scheme
rs that proposed by Secretary Chase
and his advisers could it hope to again
obtain its former control over the.cur
rency of the country. The national
banking scheme, therefore, which at
first excited some opposition on the
part of the state banks, soon came tC
he regarded by the majority of them as
of the highest Importance.
In December, 1862, Secretary Chase
in his second annual report, again urged
the passage of Il national bank law
for the purpose of establishing one
sound, uniform circulation, of equa
value throughout the country, upon the
foundation of national credit combined
with private capital. There was NJ
expectation or even pretense that Tho
system could aid the government in any
way in the war then pending.
On the ID of February, 1868, Sena
tor Sherman reported national bank
bill from the finance committee to the
senate. 1t was taken up in the senate
on the 9th, and on the 18th passed by
II vote Of % to y on the 18th it was
sent to the house, but was not referred
to the committee Of ways and means
On the 10Th it was taken up for con
sideration in the house, and was passet
on the Goth by vote of 7S to 81. II
was approved ny the president and be
came law Feb. %, 1868.
The reader will notice that this bill
passed the senate by only one majority
and the house by fourteen.
The brief time given to the consider
alton Of this important act, establish
ing II consolidation in the interest OI
,hcmoncy power, compared with whicl
The monster that Jackson slew (tht
United States bank was Il mere pigmy
AUllllNt NNNlIlt llUllNNs llt llNbDlV NNl'
absorbed in the war and the none,
power controlled congress. Hon. w
Z. Noble, one Of the few members wilt
protested against the passage of tn,
act, alluded to this fact in the Openin!
of his speech against the bill in thes,
terms:
"MR. SPEAKER: 1t is not because
expect by anything can say to chang
u single vote upon this bill that nov
claim the attention of this House; ol
the contrary, | am satisfied from TIN
great and untiring efforts that are be
ing made by the Secretary of the Treas
uIy in its favor that the passage of thi
bill is Il foregone conclusion, Hot he
cause it, or anything like it, is demand
ed by the people, but simply because i
is pet measure of the present head o
the department.
The national bank law provides, first
that any number Of persons not les
than five, may form an association f0
carrying on the business of banking
second, that any such association shal
have corporate power to have success
sion for the period of 90 years to max
contracts, to sue and be sued, etc.
third, the capital of such association
shall not be less than $4,000 in place
whose population does not exceed 81.
Thousand, not less than 100000 il
places whose population exceed 81,
thousand, and not less than $4,000
in places whose population exceed lift
thousand; fourth, the aggregat
amount of circulation is fixed at $40
100000, to be apportioned as follows
Sl500O0,000 among the several state
and territories according to represents
tive population, $l50,000,000 to be dis
trbuted by the Secretary Of the Treas
luy according to his discretion, and tn
remainder S54,000.000, to such state
and territories having less than thei
share as may make application prior t
July II, 1871; fifth, no association
authorized to commence business unit
il shall have deposited United State
bonds to the amount of $4,000 wit
the Treasurer of the United States
sixth, every such association is entitle
to receive from the comptroller of tn
currency circulating notes to til
amount of ninety per cent. of the cap
tal stock if it does not exceed S500,O0I
eighty per cent. if it exceed $500,0O
but does not exceed 100000, sever
ty-fve per cent. if it exceed 81, 100000
but does not exceed $3,000,000, an
sixty per cent. If it exceed $3,000,00C
'' No national bank currency was il
sued until about the beginning of 1856
1t will be remembered that the $50
100000 of 500 bonds were not sold III
til the latter part of 1868, consequent
matters were not yet ripe for the bullioi
lists and bankers. In 1864, however the
plans were sufficiently matured to el
able them to run gold up to an enormol
premium in what Mr.. Fessenden, WI
was then secretary Of the treasury, col
sidered very unpatriotic manne
For more than a year gold nuctuate
between $50 and $50, according to IL
success which attended the efforts I
the gold operators in controlling Il
market.
Bonds of the government we
bought during this period at as low
price as thirty-hve cents on the doll,