Savannah morning news. [volume] (Savannah) 1868-1887, 1882-05-08
National Rank Charters.


apart tomorrow, the 9th inst, for the
consideration of the Grape bill, to renew
the charters of the national banks
which was decided by large number OF
Democratic votes-is conclusive proof
of the falsity of the charges heretofore
made against the Democratic members
of Co, gress that they were in favor of
the summary and total extinction OF the
national banking system. No such
idea has ever been entertained at any
time. The Democrats have, it is true,
opposed hurried action in this important
matter and have heretofore refused to
give precedence to the bill in question
over other important business, but the
cause of their opposition was manifest.
1t was evidently the desire of the friends
of the banks that this bill should be
rushed through without any amend
ments whatever, so that the corporations
might continue to enjoy, without any
restraint, all the powers and privileges
which they have possessed in the past.
This the Democrats objected to. They
regarded these powers as too great, and
menacing the public welfare, and they
desired the bill to be carefully discussed
with the view of correcting certain Ma
grant evils connected with the national
banking system.
The first of these evils is the power
now vested in the banks to contract
their circulation at pleasure, and so pre-
cipitate panic upon the country when
ever they may desire from any motive to
do so. The danger of this power was
fully exemplified during the Hayes adj
ministration, when the banks threatened
to throw the business of the country
into chaos by suddenly Withdrawing
their outstanding notes, unless Mr..
Hayes interposed his veto to certain leg
islation by Congr ess, of which they did
not approve. This deliberate coercion
of the Executive and Legislative
departments of the government by
the banks caused the people to realize,
as they had never done before
the danger of the power possessed by
these corporations. and it was that this
power might be curtailed which has in
duced the Democratic members of the
House TO oppose speedy action on the
Crapo bill. AS soon as it was under
stood, however, that Mr.. Randall, of
Pennsylvania, would be permitted to offer
two amendments-One to prevent the
banks from suddenly contracting the
currency at will, and the other to regu-
late the Over-certifcation OF checks, OF
which practice there has been much COM
plant in New York, all opposition was
withdrawn.
The truth is that, as we have stated,
there has never been any organized OPP
position on the part of the Democrats
to the continuance of the national banks
under such restrictions as were clearly
necessary for the public good, but even
if there had been, such opposition would
be useless at present. Under existing
statutes, the national banks can recharter
themselves either before their present
charters expire or on the expiration OF
those charters, without any positive legls-
lation, a privilege several have already
availed themselves of. On Saturday,
Goth ult., the charter of the First Ma
tional Bank of Portsmouth, n. H., ex-
PRED, and the bank went into liquida-
ton. On the Monday m0r1ing follow
| ing it resumed business st the same
place, without affecting its relations to
its customers, and perhaps without the
knowledge of half of that community.
Similarly the First National Bank of
Chicago went into liquidation, only to
resume business again after the lapse of
a few days. On the Oath ultimo the
Second National Bank of Cincinnati,
whose charter does not expire till May
25, reorganized and renewed It's charter
in time for business next morning. 1t
is not probable, therefore, that any
national bank doing profitable bust
ness will care to cease operations on the
expiration of its charter. Aud no shock
to the financial interests of the COM
munity is therefore 10 be apprehended-
even in case the Grape bill fails to pass
from the fact that the charters of six
teen banks expire in June, twenty-four
in July and three hundred and ninety-six
before next March.
According to the Baltimore San, but
one hitch to the smooth working OF the
present statute is conceivable. 1t is held
by some persons, in opposition to the
opinion Of Comptroller Knox, that not
merely a two-thirds but q unanimous
vote of the stockholders of national
bank is necessary to its reorganization.
One vote cast against it, it is held, will
prevent their making any disposition of
their assets without the intervention OF
trustee. Granting that this point is
we'll taken, it is not probable that the
| one vote will be often cast. The Grape
bill will probably pass without
any unnecessary delay, and with the
wise restrictions proposed thrown around
the banks, the national banking system
will in future be safer and more salts
factory than ever.