Year: 1867

Mr. Jay Cooke has recently published let
ter on our present national banking system-a
system that should be generally studied that
it may no longer remain subject ofdlscusslon
and uncertainty. 1t is important that the poll
cy which controls our national currency should
be permanent, based on sound principles, fitted
to the expanding wants OF an increasing and
active industry, adapted to the convenience of
the people and the Government, and as free
from any undue advancement OF private inter
ests as it is possible to make it. This end can
only be gained by the diffusion OF that kind OF
information which a thorough and intelligent
discussion brings before the public. More than
once it has been said by us that the National
banking system is superior to any yet known Ill
this country, and we concede the point that
the National bank notes form better curren-
cy than that of the old United States Bank or
the recent State banks. On these points Mr..
Cookies letter is quite strong 1t is on the
substitution of greenbacks tor National Bank
notes, however, that the greatest doubt exists
in the community, and in Mr.. Cookies zeal to
make strong case, he has not treated this
part of his subject as successfully. lie says
"it is not true that the Government would an
nually save eighteen million dollars by the de-
struction Of the National bank system, and Is
suing greenbacks in the place of the National
currency" and then enumerates the several





ing, after the deduction of eighteen million, an
excess against the banks Of over ten million
dollars, thus more than c0mpensatlng the Gov
ernment for it's alleged loss of eighteen millions.
In this statement the writer would have done
himself more justice had he deducted twenty
five million-which is the currency value of
eighteen million in gold-stated in currency,
and his letter would have had more weight
with such of his readers as have any familiar
II. Al - Iot
the heavy items which are not fairly admlssl-
BILE in his catalogue of charges. The question
which he ought to have met in this connection,
is, not whether eighteen million in gold would
have been saved to the Government by the de-
struction of the National banking system, but
whether that sum would not be saved by TAX
ing from the banks the privilege Of furnishing
the circulation. This privilege withdrawn does
not involve the destruction of the system as he
has assumed, nor in our opinion does it even
| imperil it. Under the State bank system many
Of the banks in the cities did not avail them
selves Of it to any extent, and we are aware
that some of the National banks hesltated
about doing so, although it promised so large
a profit The limit OF circulation was reached
several months ago, yet the number OF banks
is multiplying without this advantage. Thi:
clearly indicates that, without it, capital en-
plOyed in banking will continue remuneratlve
This being 50, does it admit of question thai
the substitution of greenbacks for Nationa
bank notes will result in profit to the Gov
ernment to the extent of the interest on the
amount of greenbacks so substituted? 1t il
the right Of the Government to furnish the cir
culation, but whether it should do so is a very
grave question, and involves many considera
tions which we will not now discuss Our de
sire is, that if there are any defects in the Ma
tional bank system, they may be corrected, 81
as to render it satisfactory, efficient and mutu
ally beneficial to the propretors of the bank
and the public; otherwise it cannot be perma
| ment.