Savannah morning news. [volume] (Savannah) 1868-1887, 1882-05-20
1.s ya,,onsl Bahk Charter Bill.

The bill recently before the House 70
provide for the extension Of the charters
of the various national banks which ex-
pire during the coming year, was passed
bv the House yesterday, but not
without many wholesome amend
ments materially curtailing the
dangerous powers heretofore enjoyed
by those corporations. The chief
Of these was an amendment which had
been offered by Mr. Randall, Of PennsYl-
vania, requiring the banks to give ninety
days notice before Withdrawing their
circulation.
The necessity for some such restriction
a. this was imperative. and the only OBJ
lection which the Republicans raised
thereto st all was that it had been intro
duced and advocated by the Democrats
So frivolous an objection, however.
could not be allowed to defeat whst was
conceded to be a wise provision under
any circumstances, but especially when
in this case 9 recommendation that the
power of the banks be cuTtailed had al
ready emanated from no less an authOri-
ty than the Secretary of the Treasury In
the recent report Of that official he called
attention to the fact that under the exist
irg law any national bank can at any
time, upon a deposit of legal tender
notes or coin with ina Tr2acurer of the
United States, withdraw the bonds held
as security therefor and leave the
Treasury to redeem an equal amount
of its notes, and says; This privilege
/ was given 10 the banks evidently for the
purpose Of securing a proper elasticity
Of the currency, and in view of the
rapid payment Of the public debt it would
seem that this privilege is necessary for
the purpose of facilitating the redemp-
ton Of bonds held by the banks. But
/ should many Of the banks, through ap
pFehension Of adverse legislation or from
any other cause. desire to retire their
circulation, the deposit OF such an amount
of money with the Treasurer might
cause a serious and sudden contraction
of the currency and grave embarrass-
ments in business. That the apprehen-
sion OF such action is not grOundless is
shown by what took place on the passage
Of the three per cent. refunding Dill Oy
Congress at its last session. If it is
thought advisable Congress can enact
that national hanks be prohibited from
retiring their currency except on . pre-
I viOus notice of intention 50 to do, the
length of that notice to be fixed by law. F"
As Secretary FOlger says, this restric-
ton was regarded b. hin as absolutely
necessary to be adopted beeause of
the action Of the banks when
the 3 per cent funding bill
was passed by the last Congress, and
when those institutions took concert Of
! action, agreed . withdraw their circula
I ton by wholesale, and tngs phosphate
q disastrous financial panic upon the
| country, unless the said funding bill was
/ either amended TO suit their wishes OF
vetoed. Their threat, it will be remem
bered, had the desired effect upon Mr..
| HAYES, who vetoed the bill, and thus the
| banks proved themselves to be power
| in the land superior to either Congress or
| the Chief Executive of the Republic. This
| power, IS Secretary Folger suggests, was
fraught with q constant menace to the
country, and it was one whieh al parties
agreed should not be continued. In taking
/ their stand upon the 3 per cent. bill, the
banks evidently allowed their greed for
gain to outrun their discretion, and by
opening the eyes of the people to the
dangerous powers vested in them, led TO
the present feeling against them and the
consequent determination TO curtail their
privileges.
Several other restrictions Of more or
less importance were offered, and
embodied in the bill before it was
passed, and of each one Of them
the country will doubtless approve. The
advantage of the present banking sys
tenn over that of the old State banks
when all sorts Of opportunities were
given wild cat institutions to fleece the
credulOus, and when, no matter how
sound bank might be, its notes were
either not taken at all, or, if taken, only
at a discount, in other States than that
IN which it was situated-is conceded.
The restrictions which experience has
shown to be necessary, and which have
been placed in the present bill extending
the expiring charters Of the banks, will
vastly strengthen and improve the sys-
TEN and cause it to work more satisfac-
torily, in every respect, hereafter.