New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-06-24
TILE RANH Bill.

As if passed the House, the Bank Charters
| hill was decidedly Objectionable. 1t has now
| passed the Senate in very much better shape.
TIE TRIBUNE's criticisms of the House bill
| have been almost wholly sustained by the
more deliberate and careful action OF the
| Upper House, changes having been made al
most unanimously to cbviate each OF the OBJ
iections raised AS was said when the bill
nossed the Uouse there was reason to believe
that many members who voted for 1t would
have refused to do so had they not believed
that the Senate would make important modi-
6cations in the bill. Their confidence and
that of this journal have been justified. The
hill in its present form will be altogether
more helpful than harmful. and although tvs
best mode of avoiding mschieyOus consequent
ces has not in all cases been chosen, the Sen
ate has fully recognized the reality OF the
dangers suggested, and manifested sincere
desire TO avoid them.
II was objected that the banking system
would be seriously endangered by placing the
| hanks in some States at the mercy of local
courts Probably it would have been better II
| the Senate had omitted tins part of the bill
entirely, especially as there is much room to
doubt whether it will not be found VOID for
unconsttutionality The jurisdiction OF United
| States courts extends, under the Constitution,
to all cases arising under the laws OF the
| United States and it is questionable whether
the courts will not place within the meaning
of that provision every suit brought against
or by corporation having an existence only
| bv virtue of laws Of the United States But
the Senate has endeavOred to avoid, for
practical purposes, the evils to be apprehended,
| by adding a prOviso that no attachment, in
| junction or execution shall be issued against
| any National bank or its property before final
| Judgment has been rendered. In cases where
there is a right of appeal, and reason to ex-
crcise it, the banks will doubtless go TO United
States courts before submitting to final judy
ment, The constitutionality of the new pro-
vision, if it becomes law, is, nevertheless,
| likely to be tested.
1t was most earnestly objected that the pro-
vision requiring long notice OF any retire
| ment of circulation was unjust ana I'M
| reasonable; that the banks could not pos
sibly anticipate those changes III activity
of business which make large circulation
profitable or Improbable; that they would
therefore be compelled to fOregO all the advan-
tage of a wise and ready adaptation of the
| circulation 10 the needs of the business COM
munity, and that this change alone would con-
stitute a virtual revolution in the system. The
| Senate has taken cut entirely the provision
recurring notice of surrender of circulation.
In place thereof it has provided that the
amount retired shall not exceed 100000 in
any month, and that banks surrenderng circu-
latiOn cannot obtain any increase of circua-
ton within six months thereafter. These pro-
Al. l. 4
to protect against an imaginary danger, but
they can do no serious harm. If the banks
were really capable of a conspiracy to contract
circulation for improper ends, they could do so
to the amount of $50, 1000, 900 or more under
existing laws which no one has proposed to
change The fact that it has never been at
tempted is the best possible evidence that there
is no real danger Of such an attempt
Ii was objected that the House bill would
cause dangerous contraction by permitting
the small banks to surrender circulation too
freely. This, provision also, has been altogether
changed i'll the Senate so that banks of
100000 capital or less cannot have a crcu-
lation amounting to less than one-tllird of that
capital. Thus the Senate, though with man
| fest reluctance TO do anything apparently IA
! vorable TO the banks, has underworld To avoid
all the dangers to which the House bill ex-
posed che country The speculative bankers
about Wall Street who thought 1t cgrcgIous
folly to point out mistakes in the action of the
House because criticism did not then happen
10 suit their operations. will find small comfort
in the nearly unanimous action of the Senate
| on these points.
The new section which authorizes an issue
OF three per cent bonds in exchange for three
and "A half per cents with the proylso tina t
| the new thrces shall not be called until after
all three and a half per cents shall have been
either exchanged or called has practical merit
! in so far as it may enable some banks TO defer
the surrender of the securities now held for CIR
culation. Evidently, though, III proportion as
these gain Ill delay by accepting three per cents,