New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-02-06

this purpose and provided further that the provisions
Of this section shall not apply to bonds called Tor re-
demption by the Secretary OF the Treasury
Whatever worth this section has it certainly
forms no necessary or natural part OF any IT,
finding measure and ought, IN justice 10 ltS
autbor. 70 be considered on its own merits. III
il intended to prevent a conspiracy OF the
banks to make money tight by surrenderlnS a
large amount of circulation, and, III the
nrocess. locking up large amount OF
money. II NAV he thought an objection to such
legislation that it implies an accusation
against the National banks which Is I'M
lust and without foundation. 1t is, there
fore, an unwaTanted concession to the preIu-
dces supposed to have been ronsed 10y the
SANDERS of Democratic demagogucs. because
some National banks were not Wiling 10 he
robbed by the Carlisle bill of last year, ana
therefore made haste to get back TIER DOnds
before that measure could take effect, some
ignorant and some malicious persons repre-
sentcd that the banks had conspired to con-
tract the currency. Democratic demagogueS
have made the most of this charge, and were,
nevertheless, beaten sOundly last fall. Gov
cInor Hawley is too intelligent to share the
prejudice to which they appeal, and too brave 10
bend before an unjust and false accusation.
But his amendment would seem unnecessary,
unless for the purpose of mCetingan apprehen-
sion which is unfounded and unreasonable.
National banks are controlled by many dill
fcrent individuals If some of the directors in
q bank are in such financial position that con-
traction would benefit them. others are
in such position that they demand ex-
pansion. In the nature of things, this
will always be the case, because the
banks are conducted 10y business men,
most of whom have larger interests IN Their
p,ivate business than in the bank. 1t is I'M
possible that the private interests OF mcr-
chants, transp0rters, investors and other
capitalists should at any time concur Ill max
ING artificial contraction OF the currency deSlr
able to them, and therefore the fear OF any
combination of banks to that end is unreason
able. If Government so leglslates at any time
as to render a surrender of circulation profit
able. many banks will undoubtedly surrender
circulation and their power to protect
their own interests in that way, and
under those circumstances, is one o. which
they ought not to be deprived. 1t is neither
Just nor is it for the public interest to leave
from any measure of confscation that may be
enacted.
So far as Mr. Hawley'S amendment would be
effective in that direction therefore, We be-
ieve il mwise. The public interest will be
best served if banking capital is made as far as
possible free to go into or retire from the
business, provided there are strict and suf-
cient legal requirements to protect n0tcholdcrS,
other creditors and shareholders. The
system that we have is the best ard safest
ever devised, but amendments in the direction
of greater safety may he devised, and are al
ways in order. But changes that are caicu
lated TO drive capital ont OF the business, or
to prevent such expansion of the system as
may ut any time be required by the growth of
population or business in any section, are rad
cally unwise.
Senator IIawley's amendment has been con-
sidered good one for its purpose, because ii
is comparatively wcll-guarded and conservative
in other words, it would not entirely prevent
any reasonable surrender of circulation. This
merit il certainly has. Banking capital would
be less free than it is now to adapt itself 10
changing needs and conditions, but still would
have some measure of freedom. Measures in
the nature of Coniscaton might be enacted
hereafter, but the banks would still have some
power of escape by winding up business imme-
diately, as National banks. under the provis-
ions of sections 500, opp and 5,224,
Revised Statutes. Nor would Mr.. Iawley's
amendment really prevent the success OF
conspiracy to make money tight, if without it
such a conspiracy were possible. For, if
possible anywhere, such a conspiracy would
be located in Ncw-YOrk, where a retirement
of $40, 1000, 900 of currency within week
would often cause violent changes. But the
banks have power. under Mr.. IIawleys amend
ment, to retire $4,000, 900 on the last day oil
one month, and $4,000, 900 more on the first
day of the next month. The mere notice of
such contraction thirty days hence would
cause nearly rs much disturbance as the act
itself. Nobody imagines that any such thing
will ever be done. But that is because no.
body really believes that National banks will
conspire to contract the currency.
RAILROADS Us. RIVERS.