New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-13
SELECTIONS FROM THE MAIL.
FOR A PERMANENT BANKING SYSTEM.
PLAN UNDEh WHICH DEPosiToHs WOULD
HAVE ABSOLUTE GUARANTY.

A PLAN UNDER WHICH DEPosIToHs WOULD
HAVE ABSOLUTE GUARANTY.
To the Editorof The Tribune
Sir: The power OF the Federal Government to
establish a bank sustalheu ny '"e supreme
Court Of the United States in the carry history or
the country. This power was hot ai'ons 'le emu
merated powers found in the Federal Constitution.
h,, ,,as decarod 70 no incidental merely and there
fore exnosed tn controversy between strict and
liberal constructions OF the Constitution Public
sentiment shrank from this Interpretation Oh the
Constitution and the bank SO es'aphSheu uisap-
peared.
Tho nresent svstom OF National banks came into
existence as n temporary device ror hoatlng the
National debt They were improvised instrumental
i,ies for r.isin, money TO carry the war; they
were not designed TO be permanent they VIII, by
their constitution cease when the function Tor
which they were created is periornieu' u'c! VIII
disappear with the extinction oil the Nauohai
debt They displaced state BANKS ny '"e iesa'
preference given TO them and will themselves be
displaced in turn by state banks at the emu OF 'her
career unless new and superior s!S,e" " pro-
vidod The constitutional power OF the country
over money Is at present chaotic Inc federai
Government has the exclusive power 10 Co'i ''oheS
and to regulate the value thereof Inv '"'' nav
mower to make gold and silver com iesai ,ehu'r'
and have power also 10 estaphsh pa''A'. rs ~"
Constitution now stands. the power 10 com money
rrorov coined q legal tender. ana TO establish
hanks is divided between the Federal Government
and the State governments. ms u'NiH'o" '''o
fragments Of power over money perihI'S ur' "'e
ments of values, and produces lack vi u"''o'"''l
=, 49, ,s IN rcsncct thereof and Of the value OF
tho currency itself This condition was reai|eu
before the war. Under the Constitution as II no"
s,o,ds tho States are not permitted either TO issue
currency or bills Of credit themselves OF 10 nave
the mower to give conclusive legaitehuef ch"'"o'e
to the currency bills issued by 'he pa'"S ivy
ate State banks by reason OF the lack Oh CoHS"'"-
tonal power in the States to insure 'he' So'''"''
and make them impregnable. are exposed IN time
80 IT % ,,ro perls First the bill holder Will
h,s,on N tho bank To redeem his Dill IN CON-
socond tho deposor will withdraw ms deposit
State banks though wisely and honestly m'''s'''
are left exposed. by lack or power III '' SUITE ~
protect them. to every wave Oh us" "'' '
syoo,s over the country Progress has been 80
great since the old state banking system serve" 'h
country and the public has become 80 accustomed
- tho supromacv Of the Federal Government over
Interstate commerce and the general business inter
ests of the whole country that II Is "''"''' "
possblc TO turn the current OF p"pi'0 '"''' ""
TO a system of banks which seems 10 De ou's'"".,
and which at best IL. In ia nature P''"'"''
this No So a new system must supersede tho GA
r, .,,, 20 this is quite simple That provision
of tho constitution Of tho United states when en-
mowers Congress to coin money ana 70 r'Eui''' Wv
yaue thereof should have added thereto inc 'o'
lowing words. land TO establish "a UNIFORM SHS''"
of banks" Congress could then snrplaht inc pres
on, Temporary and inadequate system with n UNI
form and permanent one. Through TINS ~" ~
tenn. whatever currency the government "''"'
tod coull reach IN" people The currency SO pun
ont would never be distrustcd na1fnucA a. " """'
have the advantage over state bank cuft'"'N ="
he,ne constitutional and therefor" never ''""'''
rho Government could ard should having com
.4.. AZ a
h.nks incorporated under Federal law shond nave
. co,.orn,nent director whose duty IT would h' I"
ro,ko froouent truthful reports Of mo ''nhuoh
81 his hank 70 the secretary OF the Treasury ne
Government should also guarant'" inc "'I'''
from loss though primarily holding inc ''
hoI1ers This would not he an uni"a9"'""'' "'
hutv on the part of tho Government. in"-""'h ~
:, ,I bsv. sur.ryision 81 tho banks AT All times
and knovlelgc Of the sDlvcncy ~ "a" 4i''Kh'''
ora while tho ,lepostors would not nave S''"
supervision aud knowledge
rbcrc Il. no communism IN this II does not
involvc personal liberty. %" Invasion oil VIII, ~,
,b. Government leads toward comr'uni-m' b.l u
f. "A mere business regulation hti"tu,'"s my ,,,,
disconnected and unsonnl mpii'} l,cu ~. a,iam
culcs stability ana security. ,,,,,,' g.,
tiiy of what coin composed. &C. 1i@fi'hu"n 49,, i'i
value tho stability OF links an '.i'nn ''I p,i.
intelligence and wisdom 81 we '''' t,,r t,i.r
compelled under the laws Of hn-u''s '' NV LII.
COURSE with Government ns'"l','I. ,t,.,,,r, and
10 rely upon The soundn'sS "i -u'' nv ,.,,, nj
',nnn their honest management Thr ','F"i l"' 'p.
,dr dufF ana nti'NI'f U..l'I t''
.,.,.rn II proyidcs bank exam in"ff bN WhI'h u
ark uowlc lodges the duty resting upon u 10 "'''
and arrest tn. insolvency AMI mi-m"mHE mont "l
49,, h,uks vbich create 10 'h'I'l.t ~
,n,.er ~ s,urrvision well not moro comm 'nstl'
ban to exercise n H. rhr citizen. driven 10y ,h
IL ~ husincss to rely upon Institutions creator
49,. ,bn Government. should not o." r'guic' Z,
h.ar The loss resulting from III" nnrinit'S OF sun
institutions Fewer banks suspend Ht Uh' pI''n'
time from actual Insolvency ~ dl-l"h'"} III li''l'
cement than from public fright the P'F"iun'H'
has th4 power To- control these ana sh"uiH 'A'I'''
%eithrr would there h- any serious risk I" thc
,orernunouf I'm the matter. y small E'i"iAl thN
on banking capital would indemnify the ''t'ih'
mont AGAINST any loss not made good BY inc STOCK
holders TO dapOsiiors. Il such loss sh9HId occur ~
nvcentional "a scs 80 on tn" banks WnuH ,"N'
Mace undcr this plan. The currency being hu'h"i-
god hv the Government. ana IN" dcp"Slt"fH h'nE
DnalIv guaranteed from loss by the government
Inc mi volume OF the currency oi IN" c"uhIN
would hc kept in circulation mp 10 inc dlnarlN j."
4, and IL would not be Withdrawn ana hiiI'h ""aN
ht. frightened dcpCstors. AZ is now IN" 'Hs'' III
,criols Of financial depression. when currency Is
mos, needed Existing banks could be hr"ushi
',nder The new system without shock. Internal ana
other revenue collected by the Government cou' De-
1crostcd until paid out in banks situai" In IN"
conmIni,v where so collected. thereby preventing.
in a moasure withdrawal OF large bodies or money
from circulation and also It's accumulation III one
section Of the country. .- ,,,...,,,,.,
New-York. August !, 1888.
AN ANTI-Rr'SSIAN TREATY SOCIETY.