The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1884-08-21

eoosilullonnIiiyof Tho grocnlnot lcgls
lniinn ~ iTHi
M i'foslianl and Uaullem.n oflur Coo,ru.
tiuuf
Questions NJ pfori pnhlir Interest onn
not hu tuu freely discussed, although
those who participate in The discussion
may sHy nothing new, " w. THIS con.
zldurutinn that Induces me- Ia sOnl you
this communication,
Tho oNrUllouCu uf the National hank
Ing system hHs been proved hy a trial ui
mare than twenty Nrlrs, II has done
all that its wHruUst advocates expected,
II has given Ia the country what II
never Ind before aud greatly needed, a
bank note circulation perfectly secured
aud current throughout tho Union, II
has done more, II has shown that there
can he a great National Banking sys
ten without the centralized power at u
National Bank, and free from partisan
politics. II has not, i IL true, in all
cases, protected dcpOsitors from losses,
This has never been done and never can
be, under any system of banking; but II
Is safe To say that the losses of deposit
tors by the failure of Ma
lional enormously rs dcp0sitors
have been Increased within the last
twenty yGars-havc been much less than
they were under the system or II might
be called SYSTEM that preceded IL.
That II mas not been more effective Ia
this direction Is attributable To the fact,
that while in the management of the
banks party politics have been ignored,
The Comptroller has, In some instances,
been forced 10 yield his better Judgment
IN the appointment OF examiners Ia the
pressure of politicians, who have had
friends to be served or supporters 10 be-
rewarded. To ho u compet Mt examiner
ui banks, especially of the large bank.
IN our commercial cities, mnn should
have qualifications which very few men
possess. lie should have a thorough
knowledge of bookkeeping, combined
with u strong will and pt ricct integrity.
lie should he hard worker,
and so keen and thorough Ia
his Investigations rs 10 render impoSi-
ton dillicult, ii not impossible. II,
should bc able, rs some men are, Ia tell
10y the bearing of the officers OF u bank,
and even its very atmosphere, whether
ii is faithfully or uniuithfully managed,
before he examines IL. Having had, in
years long passed, good deal Of eNpc-
rcncc IN the examination Of banks, !
know how difficult, of performance the
duties Of u bank examiner are, and what
his qualifications should bc. To select
examiners of the right kind, no one is So
competent ms the Comptroller ought Ia
he, and no one has so deep an interest,
as far rs reputation IL concerned, IL
himself, in the manner in which their
duties are performed. II Is 10y him that
examiners are appointed. They are his
agents, and he IL To some extent rcSpOn-
siblo for their incOmpctency or neglect.
lie should therefore be perfectly indie
pendent of all outside Influences in
making appointments. This, L nppre-
bend, has not always been the case, and
,l...
the fact that the examination of the
National banks have not been, in all i'll
stances, rs intelligent and searching rs
| they ought to have been. Still, as have
! said. the National banking system has
done all and more than its advocates ca
pected. BY supcrseding the State banks,
upon which, without IL, the Government
would have been compelled to rely in
the late civil war for Il bank note cur
rpncy, ii did much to save the Govern
| meul from bankruptcy, and il has for
nearly quarter of IL century furnished
the country with bank notes on which
| no loss has been ever can he, Sus-
| tanned. | did not, however, commence
writing this letter for the purpose of
culogizing the National banking syS-
| tenn, but of speaking very briefly of the
dangers which threaten its pcrpctuity.
| Its great value, nay, its very existence
I
| issued by the banks which are or
/ guniZcd under il. This security con-
| sists OF Government bonds, which are
deposited with the Treasurer in Wash
! ington. Nothing else will answer the
purpose. Bank notes should always be
! redGemablu in coin, but they would
never bc issued if they were to he pro-
t""tCG by an equal amount of coin IN the
| vaults of the banks. They must, to ~
large extent, he based upon credit, and
there can be no credit reliable enough
for the basis of a National paper cur
rency, except the National credit. Moth
ing, therefore, but the bonds of the Gov
eminent can perfectly secure a
National bank note circulation. OF
! these bonds, the National banks
are being rapidly. deprived. and will
| be soon deprived altogether, unless the
public revenues are largely reduced.
! The public sentiment seems IL demand
an eXtinguiShment of the public debt as
! soon us the condition of the Treasury
will permit il; but so highly is the Ma
| tiolal Banking system approved by the
business men of the country; 50 essen
| tial has its maintenance become to our
National prosperity; so entwined is ii
with both public and private interests,
that the sentiment in favor of the eN-
tinguishment of the debt would doubt
less be satisfied with reduction of it to
such an amount rs would be ncCdtul to
secure bank note circulation, were il
not for the recent decision OF the s'u
prcme Court on the legal-tcndCr qnes-
zion, which throws dark cloud over
the financial outlook. II is not
for me to critici::c that dcris.
ion. The justices Of that
court are among my personal
friends. have the highest respect for
their characters and legal acquirmcntf
This much, however, cannot iOrbear to
say: 1t is IL decision which rails to COM
mend the approval of the hest legal
minds of the country. 1t clothes Con-
gross with imperial power-the power
which the trainers of the Constitution
manifcstly intended to withhold. 1t al
nounces II new doctrine. that Congress,
instead of being limited to the exercise
of enumerated powers, may do anything
and everything which the Constitution
does not absolutely prohibit. Indeed IL
by its authority to coin and borrow
money, Congress can authorize the issue
of Government notes as money, II Is dlt-
ficult to see what power does not consti-
tutonally belong to it. Discus
no avail. 1t is now the law, that
Congress, in. the exercise OF its own dis
erection, may authorize the issue of legal
tender notes at all times and to any
amount. Such il the decision of the
court. from whose decision there is no
appeal, and it is not to be disguised that
it puts the National banking system in
imminent jeopardy. Nothing can save
it if the redemption of Government
bonds goes on, and this can only be pre-
vented by a reduction Of the Govern
ment income to the amount required to
cover it's ordinary expenses, OF when
reduction there are no present lndlca-