New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-12-26

| aging the public finances 20 convert Wv -,
| into - scheme Of indiscrminate lcndine' INV o'
Of the United States Loan Commissioner III '0"''
would result Ike that II permanently giving ''c
money away. s,
The Government. Therefore, if 1t iehds' mus
| lcnd only 10 a responsible agency for sechfiN :
| sake not TO an impccunious horde for char'N
sake Such an agency would ut all times ne Wv
| Bank of the United States which Morris ana HIM
| ilton projected and which Jackson fought an" W.
toed.
II. during our War of the Revolution when o"' I
troops under Washington were suffering Ior 'oo''
| shelter and clothn2, it was thoneh' po"'"i'
| act in Robert Morris 20 divert colsi"ci""i'
/ portion of Tire money loaned or gwen ny ~.
! French and DItch Governments Tor 'heir ''"''
TO the PURPOSE Of establishing National oahH'
how is il that since so n National bank, ms
been unworthy the consideration of National IMAM
ciers? Was Andrew jackson deeply Vcrscd IN
finance that when Ic failed 10 perceive the merit
in a National bank the last woId on that subject
! had been spoken? Lincoln took profound a.
tcrcst in a National bank and as early as Is'o
made probably the r.ost elaborate argument he
ever made in It's favor.
ONE BANK FOR GOVERNMENT DEPOSITS
The Government should have the privilege,
which all business men and corporations ENJOY
! of depositng its funds in Il solvent DahK' "heic
il can nj least find security for them and perhaps
| draw n low rate of interest upon them. In 50
doing the Government would only take the same
course which is pursued by the 4,000ooO OF dc-
positors in savingG banks. This should pe u''
! onl, form in which the Government itself should
| lend money! for while Government would Ut
easily competent to know the solvcncy OF one
| bank. il would not he competent TO pass upon
the solvcncy Of all banks. So long as The one
| b1nk in which il kept its deposits were solvent
the Government would lie only benefited, and
could lie in nc way injured. by enjoying TIE
ordinary banking privileges which are enjoyed
by private persons and corporations
An American National Bank OF $40 10000 81
capital apart from deposits, would not he as large
a fiscal agent relatively 20 go 600. 600 of people
ms the first United States Bank founded hr II nm
lton. with So, 900, 600 capital, for Il nation Of
! 0oO 600 or as the renewed bank of ISL? for
| one of 10000 600 of people But as a nnclr'
of monetary power and a centre OF financial crelit
! such q bank would assume a position OF relative
/ influence compared with that Of our modern greet
corporations and individual capitalists. when
would compare very favoraby with either the
! first or second United States Banks. 1t would hc
a Sufficiently large aggregation OF credit 20 attract
coin of both metals in AT least great a degree
: rs The Rank Of England, tie Ranl Of France or
! the Imperlal Bank Of Germany. 1t would not DE
/ unnatural that it should attract thee or four
/ times the amount of It's capital as deposits, when
/ certain Ncw-Yorll banks attract upward of twenty
/ times their capital rs deposits. il would he Tie
central agency in which all the banks Oh the
country would deposit. Into it all the notes OF
/ country banks would flow, in current Whlrh
would immediately dcplctc this central agency
/ if il should or could treat them ~ coin. Hence
il would return these bills 10 their isSucrS for
] eli. tlx lac
an inscparablc incident of paper money. with
out such redemption. circulation Of any paper
money issue will always continue To initiate prices
Of commodities when il is not needed IN actual
! circulation II viii also create String"no!cS and
panics when by reason of this condition of IN
! hatcd prices its total volume becomes inadequate
10 do the business Of the country, as any inieNI'f
and fixed volume OF paper Currency soon WILL no
matter how large the volume may be.
NEW USE FOR COL AND SILVER.
Gold and silver coin would thus he supplied
with a utility in connection with our paper money
| which now they do not serve. They now stand III no
| relation 10 paper currency except that 81
heavier, bulkier, more incon cnient substitutes.
| 4 generation Of business men has grown Ip 10
| whom the whole phenomenon Of the daily TcdeInp-
ton Of per in coin Las become unfamiliar hey
actually imaaEe that finance has outSroEn 1t.
They think the stagnant cOcNlStcnce OF com ana
! PAPER in the same country. just good financial
/ condition as the continual active circulation oil
tlc two between the money centres and the
farmers through the redemption Of the paper bill
in coin. They WONDER they stand at Tie
counter of the Balil Of England. why tie notes
of that bank come pouring in for redemption III
coin at the hands OF those who want gold. and
why it hourly forwards 10 the country banks their
notes to obtain gold, and why the nctc Is not
preferred To the coin there, as IN America.
The prircplc involved is set forth i'll Mr. Oil
bar,'s testimony before the Select Committee OF
the House Of Commons. By whom he was examiner
in lsll on the relative feasibility oil having all
tie banknotc currency issued by one bank. as
compared with dividing its issue between the Bank
Of ENGLAND and the country banks, then IN tie
existing proportion Of Glj,0oO,0 900 10 the former
and g. 900 900 to the latter Our present policy
is the same in elect as if oil our currency were
issued by one bank When out it stays out
indefinitely from the bank which issues it, lie
said {" Gilbart on Banking" p il!.:
1t is evident that during some part Of The year
! there is not employment for the entire amount OF
money that j. required IN another season oil The year
aud if you had one bank OF is'ue as You COMO mp
contract the circulation. YOU would have surplus or
culaton which wOuh have the ehect OF lowering ths
- s"e world reduce the means the country bank
ers to afford asSi.tan"c To their Customer ana hence
great distress, especially III inc ds'Iouit"'" u'
! ! triCts. -. .
, | O-What would be the effect which you think ii
would pr0ducc upon country bankers
D Al think the banks In the first place having v
T. nay OF their notes IL would reduce Their iuudo IRON
| vGlch they now give accommodation 10 thclr Gus
TONERS and in order t. find funds TO pay on the'
u0tes they would have recall loans. ana l." rcduc
| di.cnuut. i'm such a degree 10 cause consldclaD
distress throughout the country, ana more c'p'IaIN
Z | va -, ,,.e,tr,-,I districts. At present they
Han ' @a,' to advamce money at ov inerc
: when issued in their notes. because OF me prom
J. upon those notes. When Wa IN Ireland dscounU,
| III he
Of England here. and for the same reason because
" esucd nv own notes. but II the country bankers m
IN living The money from distance Il. g. buy the Damn
notes OF other banks in open market as all our Amer
irap bankers have TO do D. and lend II 70 hcr Gus
t,uors they must get greater interest from thrl
. customers than they could get by employing u !
u nndon or elsewhere hence they must make clthc
c in the form interest in the form OF COMMISSION
n heavier charges than they made before
,e A PROBLEM FOR Az EXPERT.