Savannah morning news. [volume] (Savannah) 1868-1887, 1882-08-19

This is a subject which has occupied a
considerable part of the time and atten-
ton of the American Bankers Associa-
ton, recently in session at Saratoga, and
it is matter in which the entire country
is largely interested. At present, the
recognized currency of the country is ma
tional bank notes, which are based, as is
well known, upon the securities of the
government But the time is rapidly
drawing on when the public debt will be
all paid of, and there will be no more
government bonds for the banks to de-
post as security for circulation. The
Association has given great deal of con-
sideratiOn to this subject, 50 as, if posi-
BILE, to suggest means by which the
banks would be able 10 continue in ex-
.istence after the debt is paid.
1t has been proposed that when the
public debt shall have been reduced to
$500, DOC. 900 no further payment shall
be made on it, and securities to this
amount shall be made permanent, so that
the national banking system may be kept
up. This idea, however, is hardly worth
considering. The people of the country
will never be satisfied to be taxed in
definitely to meet the interest on that
amount of Indebtedness just so that the
banks may live. The policy of getting
rid of the debt has been steadily pursued
for many years, and the taxpayers will
not agree to a change of such policy.
The sentiment of the country is evidently
in favor of continuing payment until
the last bond is cancelled.
There is no doubt, however, that the
people will be very glad to see the ma.
tional banking system preserved if it can
be done without involving this perpetu-
alton of the public debt. National bank
notes form a very convenient currency
vastly superior to the old State bank
system, when not only were wild cat
banks enabled to flourish ad k5ituns, but
the notes of even responsible banks
would rarely pass outside the States in
which such banks were located without
discount This was great annoyance
which has been completely obviated by
the present system, and, as stated, if the
banks can devise any practical scheme
for their perpetuation, without saddling
upon the country a permanent debt, it
would be very acceptable to the people
1t is believed, however, that this cannot
be done without some very harsh condi-
tiOns, such as the Scotch provision re
curing the unlimited liability of share
holders for the notes of their bank, and
allowing the note holders to have first
lien on the assets of the bank. Nothing
less than this can be relied on to keen
bank currency at par at all times, and
place redemption beyond all question.
Should the national banks agree to
this, and at the same time consent to
deposit in the Treasury gold and silver
certificates or coin sufficient to guaran-
tee their sOlveney, the system may be
perpetuated. If they will not agree to
this, or similar conditions, then they
must go out of existence, and the place
of the notes now in circulation will
probably be filed by issues of
government notes. This has already
been advocated by many men of
ability and financial experience as a less
burdensome system of currency than
bank notes, while equally as safe. 1t
may be, therefore, that in time national
bank notes will disappear and in lieu
thereof additional greenbacks, coin GER
tiicates, or some other simple and sound
form of currency will be placed in circu-
lation.