Year: 1867

banks have voluntarily gone into Iq-
uidation-their aggregate capital being
So, ,36O, 600.


Regarding the failure of National
Banks a word is sufficient. Some Ma
tional Banks have failed and others viii
do so in the future, for the simple rea-
son that in any business and with any
system it is impossible to gaurd at all
times against the cup1dity and dIshones-
" of agents. If 8 dishonest bank officer
chooses to a'bscond with the funds of
his bank, it is difficult to see what rem
edy there could be under any system.
But under the National system the Sc
curity against accidents Of every kind
is as nearly perfect as practicable, and
is q vast i'm proVement over the old plan.
For under the present system the bill
holders are completely and always Sc
cured against accident, while depOsltors
have far greaber security than under
any former system. Nine-tenths of the
people are directly interested only in
the security Of the circulating notes Of
the Banks for these are in every mans
pocket, and they cannot be affected in
value by anything the Banks can do
the Government being pledged to their
redemption. 1t is also instructive to
note the very small number of failures
since the change from the old system to
the ueW-only nine out of nearly sew
enteen hundred having failed in four
years.


v Superiority Of the Natotnal Bank


ing Syseens.


The superiority Of the National over
the State Bank system has been quite
fully discussed in my answers to pre-
vious questions, and can only recapit-
ulate here. The State system involves
this grave error that it gives thirtY-six
mutually independent powers control
over a vital public interest which is in
divisible and strictly National in its
character. If the currency Of one State
never circulated in another, but were
always confined within its own State
limits, then a State system might be the
proper one but these State Bank notes
lin the event of the establishment Of
the State Bank system,) whether good
or bad, would become a part of the Ma
don's currency, and the people Of al
the States would be equally interested
would be entirely impraeticable. A
subject which thus interests all the
people of the country equally, and
which in its workings pays no attention
to STATE lines, should surely be under
National control in order that there
may be unity Of purpose, and in order
that all the people may share in de-
termining through their central Gov
ernnent the character of the currency
they must use


Under the State system there is no
check upon undue expansion or con-
traction, and thus degree of uncer-
tainty is constantly gwen to the fnan-
cial future. Under the National plan
the volume Ofthe currency is determin-
ed by Congress, and is only Increased
or diminished as the needs of the peo-
pie and the business Of the country re-
fssFa
certainty are secured, and public conf
denee maintained. Under the State
system the currency question places q
constant temptation to corruption before
thirt-siX differenG legislative bodies
under the National system the corrupt
ting power of the Banks if they have
any at all, is confined to a single Ma
tionRl Legislature, and as the present
law is framed, and with the gaze of the
nation concentrated upon Congress, cor
ruptiOn regarding the currency is next
to impossible even there. Under the
State system the currency is unlike in
appearance unequal in value and SO in
secure as to bring constant and heavy
loss upon bilI-holders, who are em-
phatically the people; under the Ma
tional system the currency is uniform
in appearance, has the same value in
all parts of the land, and is so perfectly
secured that the biIl-hoders do not and
cannot lose anything.


As to the superiority of the present
system over the United STATES BuEflz5
little need be said, as few, il any, adyo-
cate q return to the latter. But the
National system possesses all the
advantages, with few, If any, Of the
Objectionable features, Of the old Uni
ted States Bank. Indeed, the National
system is a golden mean between the
State system and the United State Bank
combining the eXcellencss of both. Tt
combines the unity of action and gen
eral control, and the uniformity Of cur
rency-Whicb were the best features Of
the United States Bank-with the diffu-
sion Of issue and freedom in local man
Rgement which characterize the system.
Considering the present extent Of our
country, and the present and prOspec-
tive magnitude Of its business interests
I regard the ssta Dlishment and main
taiuance of a United States Bank as
next to a financial impOssibility. Be
sides, it is not the province of any gov
ernmsnt to be the banker Of the people.
The people can do their own banking
best but government should so far in
terfare as to EYgtemt2s, control and reg
ulate the banking institutions OF the
country, and secure to all the people
safe and uniform currency. This is all
that our Government does through the
National Banking Act, and all that it
proposes to do.


The National Banks are totally non
political in organization and tendencies.
NY observation has been that men Of
ali political parties are found among
bank officers, directors and BtockhOld-
ers, in about the same proportion as
they are found in any branch Of enter
prise or industry. This one fact renders
it simply impossible for any political or
party movement to be organized in
through or by the National Banks.


W. Why shouId the National Bank


6ng System be PeTpetHated2 ?


NV answer TO this question may be
inferred from all that goes before but
further reasons will suggest themselves
to all who are witnesses of the benef-
cial results Of a sound and we'll regula-
ted system of banking. No country can
be prosperous, and keep up with the
march Of civilization, which has not
such system.


In conclusion, would earnestly urge
on all parties and persons the adoption
of the idea that the perpetuatiOn Of the
National Banking system should not be
be regarded as party question, but a
subject in which all alike are deeply
interested. IF any better system Of
finance can be originated, Democrats
and Republicans are alike interested in
its su 3sbitution; but it is my firm con-
vicfion that, after a few contemplated
amendments shall have been made to
tine present banking law, the National
syst en- viii be as nearly perfect as ii is
possible to render any system Of bank
ing,


If the reasons have given above
shall in any way conduce to the with
drawal of the subject from the arena Of
party strife, help to strengthen the con-
fidence ofthe friends of the system, and
to gain over to it the good viii of the
masses who are 80 deeply interested in
its perpeJuation, I shall feel gratified at
this opportunity Of expressing my
views.


JAY COOKE.