Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-02-08
The National Banks,

One of the most important duties of con-
gress will be to decide upon the future of
the national banking system. The time
will soon come when the charters of some of
the national banks will expire, and in the
course of very few years the number of
expiring charters will rapidly increase.
This contingency will doubtless be met by
the extension of the charters of the banks
in spite of the hostility manifested by their
enemies. But there is another matter di-
rectly affecting the existence of these insti-
buttons which must demand early attention
and careful deliberation. Within period
not far remote the government bonds, which
form the basis of the present system, will
have matured and, unless the tide of our ma
tional prosperity experiences a revulsion, the
pected that the government will permanently
maintain debt of several hundred millions
of dollars for the purpose of providing a
basis for banking. As these bonds are the
security for the circulating notes Of the
banks, and as the quality of uniformity with
perfect security in the circulating medium
is the primary one with the people at large,
tile change in this respect which the pay
ment o. the national debt will make invests
the subject with vital interest The adj
vantages of bank-note circulation that is
current in every part of the nation as COM
pared with the state bank currency which
formed the circulating medium of the coun-
try before the adoption of the national bank
act, are so obvious that return to the old
state system is too remote contingency TO be
seriously considered. Uniformity and secu-
rity in the circulation must be the product Of
control by the general government, and these
are the features in the national banking
system which must be retained in whatever
system is adopted by congress in view of
the ultimate extinction of the national debt
State bonds of undoubted security could not
be procured in amounts sufficiently large to
take the place of the government bonds
which now form the security for the ma
tional bank-note circulation, and the deposit
of other stocks and securities, even at a
very much larger ratio to circulation than
the national bank act now requires, would
hardly form satisfactory basis for the pro-
lection Of the holders of bank.notes. The
passage OF Senator Sherman's funding bill
by so large majority in the senate would
seem to indicate that it may pass the house.
The final passage Of the bill may stave off
for short time the solution of this prob
lem, but system of national banking must
nevertheless be soon perfected that shall
protect billholders from the consequences
attending the loss or impairment Of its cap
ital by bank as effectually as this pro-
lection is now given by the deposit of gov
eminent bonds. The greenbscker, with the
fact staring him in the face that S700000,-
600 of greenbacks could not be maintained
at par with gold without large increase OF
the coin reserve, would let the banks slide
and start up the government printing presses
by way of solution of this problem, and thus
subject the currency and the business OF the
country to the menace and annoyance of in
cessant tinkering on the part of congress
The country is in no danger of such de
termination of the banking question. BY
others it is suggested that the Scotch plan
of unlimited responsibility on the part Of
the stockholders for the debts OF the bank
be engrafted upon the national bank act
The discussion of the subject will be fruit
full in startling theories and projects, bu
there are in congress men sufficiently wis'
and able to bring this delicate task TO sue
cessful conclusion, and if the plan finall,
adopted shall divorce the government from
all association with banking, except to pro
tect the people from loss and imposition,
better and more stable system than evel
that which the national bank act estab
ished may ultimately be created.