Year: 1867

The great cause of dissatisfaction with the
national bank note currency is the arbitrary
apportionment, which deprivcs the greater
part of the South, the Middle States, and
many parts Of the West of what is clearly
their due, under the act.


1t will be remembered that those localities
which were so well situated as regards loyalty,
State laws and an appreciation of the bene-
fits OF the new law almost at once assumed
the entire amount allowed by the act-three
hundred millions-so that for the large pop
ulation Of fully one third the number of
States there could be no circulation granted,
and we witness to-day the anomaly of the
note of broken bank being at premium
of two per cent, simply because the comp
troller Of the currency will allow the banks
in the South, for instance, to add to their
quota the amount of such broken bills as
may be picked up, cancelling them as az ainst
the issuing bank. The result OF this appor-
tionment is that the banks in need cry out
for help. Bank-notes they can't get. Green
backs they may-and it is no curse to them If
the other institutions do have their vitals
taken out.


Again, these suffering banks are mostly
located where there is dearth of currency
from local causes, such as moving crops and
distance from monetary centres. Their profit
does not arise so much from circulation of
their own notes IS from general abundance
of currency which creates an active demand
for money, and stimulates their own interior
productions, causing a great call for their
sight exchange in larger Understanding
their products to depots, and thus exciting
flow somewhat unnatural, yet on the whole
essential to any interior producing country.


This antagonism between bank notes and
ereenbacks must exist until one of two
things can be brought about. Either new
apportionment must be made by which every
bank shall receive pro rata according to it's
capital, or an increased amount of circula-
tion must be authorized, which shall be de-
voted entirely to the uses Of those banks now
deprived of their proper quota. As the
banking act is national measure it pre-
supposes an equitable distribution of its fa-
vors to all parts of the nation. ~


Up to this point all can agree. But here
the views of expansionists and contraction
lists widely differ. A direct proposal to in
crease the volume Of bank notes BY another
three hundred millions would probably be
again voted down. On the other hand the
bank men would as strongly object to an in
crease OF the currency in the way of aug
menting the amount OF greenbacks. AT the
same time very respectable minority, to say
the least, would oppose any increase of. f.cither
character. believing as we think, too, that
either measure would tend to postpone the
day Of specie payments. &. ett' 'A. 4
Some sort of compromise seems inevitable,
and among all the proposed schemes we find
nothing which seems SO practical and feasi-
BILE as a plan recently set forth in the Nation
as follows: sbmqi sasalcs 1as .s


If the national bank act is amended SO as to
permit any now existing or yet to be estab-
llshed national bank to obtain from the Treas
ury corresponding amount of uniform ma
tional currency upon the deposit Of the Uni
ted States bonds, with the condition of pay
ing into the Treasury one-half Of the intere st