Year: 1863

| From the New York Journal Of Commerce.
still Unanswered.


The main question connected with the pro-
posed change in the system of banking in this
country are still unanswered by those who are
| urging it. When the measure was at first intro
duced we discussed it, somewhat at length, upon
its merits, but our objections met only evasive
replies When we asked If it were wise to break
down the existing sound banks for the sake of
building upon their ruins a series of new insttu
tions organized in different manner, and subject
| to other controll we were told that no such sub
stitution was intended. The Administration
papers denied the truth of our assertion, when we
charged that the Government intended that the
new pets should supersede all existing organiza-
tions, and sneered at all arguments intended to
show the antagonism foreshadowed by the action
of the Treasury Department. The charges and
assertions thus denied are now officially estab-
lished. Hon. Hugh McCulloch, appointed by
Secretary Chase as the official head of the new
system, under the title of "ComptFoller of the
Currency" has, in frank, manly document,
much to his credit, openly avowed the intention
of the Government to establish the new system
entirely At the expense of the old. The two kinds
OF banks are not only not TO share equally i'm the
| favor of Il e department, but the old banks are
told distinctly that they must wind up their affairs
and go out of existence


1t is true that the prominent Republican papers
|


let those friends and stockholders of the old
banks who read only their columns, know what
is in store for them. They attempt to drown all
discussion of the unpleasant theme by camor
about Opposition to the government and al
lude to the proposed change, when driven to
mention it, only in those unmeaning generalites
/ intended to divert attention from the questions
at issue. Once in while. however, the dissati.-
faction with the new measure crops out in a place
| ul oh of ala
cannot be safely used to cover it, In such cases,
it would be amusing, if the subject were not too
serious 10 the desperate shifts resorted to for
the purpose 0t avoiding the main issue, by papers
which dare not be'indepeDdent and treat the sub
| ject upon its merits. The New York Times af
fords good illustration of this style. That
paper has not dared to print the Comptroller's
programme, or, so far as We have seen, to call
public attention to its leading points, Its only
reply to our argument is in abusive epithets.
| Blu: circular address TO the banks has been is
sued and copied inIo the Merchants Magazine
| This address is short, pthy and full of antagon-
! ism between the systems as announced at Wash
ington. The author is hot "coppperhead"
He cannot be called "a malignant He doesn't
| edit IAN anti government journal" The Times
states that he is the president of large aud nflu
entail Wall street bank and the editor admits bis
"loyalty." Certainly then. here is argument
which that paper may condescend TO answer, and,
| if possible, to refute Does it do so? Mol Ii
intmates that the .'law, logic, and good taste"
of the document are questionable, but it does not
| venture to question" them after all There is
one thing which it dares do, however, and that it
does. 1t assails the Magazine for publishing the
circular, and affixes ga scandal upon the reputa-
ton" of that journal for venturing to publish
carefully written document upon the most inter-
esting financial question of the dayl


We respectfully submit that all this is very
small business. The real questions must be met,
end neither sneers nor abuse will serve in the
place of argument. Is il wise for the General
Government to inaugurate and enforce a system
of banking designed and intended to drive all ex-
isting banks in all the States into liquidation,
blOtting even their very names out of existencef
This is the question which is startling sober and
thoughtful men in all the Middle and Eastern
States, ard which will yet ring through the ma
ton 1t has voice which must be heard, be-
cause it is not theoretical proposition, but a
question of momentous practical issues. 1t has
no necessary connection with the progress of the
war except at n single point, and that is more a
question of expediency than of principle. If it
were wise to make such change as here pro
| posed. there would still remain the question
whether financial transfer of this magnitude
I could be managed judiciously in the face OF our
present troublesf But this inquiry need not be
touched, for the fundamental issue has still be
settled.


1t may be said that Congress has ordained the
new measure, and therefore il is late to ques-
ton its wisdom But this is not wholly true.
Congress never designed such a sweeping change
in the currency is now proposed by the Treas
ury department. 1t was supposed by many that
the two kinds of banks would go on lovingly to


gether, without mutual interference. If the policy
now officially announced ut Washington had been
stated at the outset, the measure could not have
been carried.


This policy il is both the right and the in
terest of the public to discuss. The old banks
have doubtless many misdeeds to answer for,
but Mr. Chase is the last person in the world
who should turn to be their aceuser. In spite
of their faults, they are bound in affection and
Interest to the entire business community Any
change in their management, or any general
interruption of their ordinary business. would
shake financial credit aud confidence throug gbout
the States What effect then will result from
a blow at their very existeDces What far
reaching tides will surge through the land when
thev are winding up, before their capital is dis
trbuted and absorbed by the institutions which
shall succeed themf ssf.
The question regarding the wisdom of Ma
tional Banking Establishment, with its Federal
control of the peoples capital, its far-reaching
political influence its liability to corruption.
fraud and loss of the public revenues, are too
important 10 be treated in paragraph, and may
be reserved for further discussion. In the mean
time, the inquiry which is brought so prominently
before the public by the circular referred to-
be heard and answered. The Times may think
it strange that banker who has stood zealously
by the Administration for years, should at last
turn to question its course. when the existence
OF the institution over which he presides is
openly threatened; but the only mystery we can
see in this connection is that he has faced the
danger so long in silence. There are many
others throughout the country who will be
| grieyed at the attitude of opposition which they
must assume, or consent to surrender their own
rights and betray the interests committed to
their trust.


vice President HamIfn,s ssPicture.'


Vice President Hamlin, in his late speech at the
Cooper Institute, said:


"we have a class of men among US in Maine


who very much want the Constitution as it is and
the Union as it was. Have you got them heref
Il Voices, 'Yes.' | am very sorry indeed that
/ l.x-c - T& =.