Evening journal., 1915-04-09
New News Of Yesterday
The Authors OF the Ma
tionaI Banking System
By Holland.

once asked John sherman at the
time when he had returned to the
Senate after his service as Secretary
OF the Treasury in President Hayes
Cabinet. who was the real author of
the law which authorized the issuing
Of greenbacks with the legal-tender
quality in them which forced them
into circulation and also of the ma
tional currency act which is common
ly known as The act establishing the
national banking system Of the
United States, in Lincoln's admins
tration.
mo one man was the author of this
legislation. although Mr. Spauldng,
who represented one OF the Buffalo
districts in Congress, is called the
father of the national banking law"
Mr.. sherman replied
Tho Senator seemed to think that :
should be content with a statement
that no one man was the author of
these laws. AT the time Congress was
sitting in extraordinary session, hav-
ing been summoned by President
Cleveland, in the summer of 1898, for
the purpose Of repeating the sO-callod
Sherman silver law. ! happened to say
10 the late Frederick d. Tappan. who
AZ that time was president of the Ma
tional Bank of New York and also
chairman of the Clearing House AssO-
citation, that / had heard that Senator
Sherman sometimes said that his
name was not properly associated
with that law.
That's exactly what happened with
Mr.. Spaulding. of Buffalo," Mr. Tap
pan replied. "You know. of course.
that he has been called the father of
our national banking act and of our
logal-tondor or groonback law But
he was not nor was any one man the
author nf these laws. why Orlando
3, Potter, who aftcrward represented
district of New York in Congress.
went to Washington with woll
worked out plan for. national bank
ing system which in many respects
was similar to the plan which was
afterward accepted. MI Spauding,
also, had very valuable ideas respect
ing the organization OF the national
banking system but Salmon p. Chase.
who was then Secretary of the Treas
ury. had also worked out n plan of
this kind. The fact was that the en-
ergency which existed at the time in
fluenced a number OF able men to
study the situation and then TO sug-
gest plans or systems by which the
emergency could be relieved
"What Mr. Spaulding did was pre-
cisely what John Sherman lid in
connection with both of these laws
which bear his name. Spaulding was
requested by Secretary Chase to pre-
pare a measure bearing out the plans
which the secretary had formulated.
He did this, being abundantly quail
fed to do 1t. and that was the reason
why he was called the father of the
national banking system. He wrote
the bill which was afterward enacted
as law by Congress-
by the way. ] have been told that
President Lincoln became very fond
Of Mr.. Spaulding and called him fire.
quently In consultation. Lincoln CON
fessed that he himself had no head
for finance and that he was compell-
ed to rely upon others who did under
stand the subject. He was persuaded
that no man ever understood the sub
ject better than did Mr.. Spaulding
and he seriously contemplated calling
Mr.. Spaulding to his Cabinet as the
successor of Chase. who had resigned
as Secretary of the Treasury. Lincoln
was an old-fashioned politician in
some respects and he was persuaded
that II was not politically advisable
10 have several men from the same
State in his cabinet, and as Seward. a
New York man was Secretary of State
4. IA
TO appoint Senator Fessondon. of
Maine as Chase's successor
Copyright. 1915. by MIR. u. J. Ed
wards. All rights reservcd)