The National tribune., 1907-12-26
THE PROPOSED NATIONAL BANK.

Bankers are divided in opinion as to
Controller Ridgely's project for a CEN
trail National bank to act as a sort of
syroscope or balance wheel for the
country's finances. 1t will be remem-
bered that this is the old proposition
which President Jackson fought so saw
agely and upon which he built I'D much
of his political reputation. Jackson ap-
pealed successfully to the prejudices of
the people against the money power,
and claimed that a central bank would
be the sure destruction of their liberties
in having a clique of bankers put in
thoro control of the country.
1t was then believed and now known
that this clamor against the National
Bank was demagogic in the extreme
but the question arises whether. after
all, it is the best way to give us an elias
Tic currency. 1t is a plan similar to
that in operation in Great Britain,
France and Germany and seems to
work very well in those countries. The
proposition is to have the Government
strongly represented in the Central
!
Board OF Directors chosen from the
most eminent bankers and business men
| in the country. 1t is in effect the New
York Clearing House made National
concern. bank of this kind was first
started under the Confederation by Rob
ert Morris and tho chartered for IN
years, lasted only six, its charter being
repealed as soon as the Jeffersonian Re
puSlicans gained control of Congress.
The next bank was chartered in 1871.
under the auspices of Alexander Hamii-
ton. 1t had capital of 1000, 900. of
which $2,O000O0 was subscribed bv the
United States. It's 20 years of life end
ed during Madisons Administration, and
Congress refused by the casting vote of
Vice President Clinton to renew the
charter
The next effort was the Bank of the
United States chartered in 1916 under
President Monroe, with the leading spir
1t George NJ. Dallas, afterward Vice
President of the United States This
bank had s35,00O.0O0 capital, of which
four-fifths consisted OF United States
bonds. The Government had the an
pointment of five of the 25 directors
and the bank was the custodian of the
public funds. It had branches in all the
leading cities, and performed it's func-
uons well, but Jackson in his spoils
hunt tried to give positions in il TO his
lretainers, which the President, the noted
Nicholas Biddle, absolutely refused to
allow. and hence Jackson's war upon II
There are five or six plans prominent
ly under consideration for such a bank
The American bankers plan proposes
an emergency currency based on each
banks surplus and bond-secured circu-
lation. This emergency currency will be
progressively taxed. The first INSTALL
ment TO be issued viii be subject to a
tax of two and one-half per cent per
annum. and the next, which must not
be more than 12 Y per cent of its capi-
tai, subject to a tax of five per cent. and
so on.
The New York Chamber of Commerce
provides that the Central Bank shah
have capital of not less than $4,000
600, and that it must carry large re-
serve of gold, act as custodian of the
Government metallic reserves, and do
much of the work now done by the
lSub-Treasuries and redemption agencies,
the management to be exclusively in the
hands of the Government
The New York Chamber of Com
merce has another plan providing for