Year: 1867

The superiority OF the NaLloDal over
| the State Bank system has been quite
| fully discussed in my answers to previous
questions. and I can only recapitulate
here. The State system involves this
grave error, that it gives thirty-six mu-
tually Independent powers control over q
vital uublic interest which is indivisible
and strictly national in its character. If
the CURRENCY Of one State never Circu-
lated in another, but were always con-
fired within its own State limits, then Il
state system might be the proper one /;
but these State Bank notes lin the event
Of the ere-establishm ant Of the State Bank
system, whether good or bad, would be-
come a ngrt Of the nations currency, and
the people Of all the States would be
equally Interested to have them well Sc
cured, which would be entirely impFac-


ticable. A subject which thus interests
aIl the people or the country equally, and
which in its workings pays no attention
TO State lines, should surely be under
national CONTROL il order that there may
be unity of purpose and in order that sll
the people may share in determining
through their central governments the
character Of the currency they must use.


Under the State system there is no
check upon undue expansion or cOntIac-
tiOn, and thus degree Of uncertainty is
constantly given to the financial future.
Under the national plan the volume Of
the currency is determined by Congress,
and is only increased or diminished as
the needs OF the people and the business
of the country require. Thus stability
and comparative certainty are secured
and public confidence maintained. Un-
der the State system the currency ques-
rRF 10 ion tn
ruption before thirty-six different legisls-
tive bodies; under the national system
the cOrruptirg power Of the banks, if
they have any at all, Is confined to
single national legislature, and as the
present law is framed, ard with the gaze
Of a nation concentrated upon Congress,
corruption regarding the currency is
next 20 impossible even there. Under
the State system the currency is unlike
in appearance, unequal in value and so
insecure as to bring constant and heavy
loss upon bill holders, who are emphsti-
cslly the people; under the national sys-
tenn the currency is uniform in appear
auce, has the same value in all parts of
the lands, and is so perfectly secured
that bill holders do not and cannot lose
anything.


As to the superiority of tho present
system over the United States Bank,
little need be said, as few, if any, advo.
cate a return 10 the latter. But the Ma
tiOnal system possesses all the advan-
tsges, with few, il any, OF the objection
able features, Of the old United States
Bank. Indeed, the National system is q
golden mean between the State system
and the United States Bank, combining
the eXcelIences Of both. 1t combines the
unity Of action and general control, and
the uniformity Of curreney-which were
the best features Of the United States
Bank-with the diffusion Of issue and
freedom IN local management which
characterize the State system. COnsid-
eTing the present extent Of our country,
aud the present and prospective magni-
tuds Of its business interests, l regard
the establishment and maintenance Of q
United States Bank as next te a financial
impOssibility. Besides, it is not the
province OF any government to be the
banker Of the people. The people can
DO their own banking best; but govern
ment should so far interfere as to system
atize, control and regulate the banking
institutions Of the country, and to secure
10 all the people 8 safe and uniform
currency. This is all that our govern
msnt does through the National Banking
Act, and 81 that it proposes to do.


The National Banks are totally non-
political in their organization and ten
denotes. My observation has been that
men Of all political parties are found
among bank officers, directors aud stock
holders in about the same proportion as
they are found in any branch of enter
prise or Industry. This one fact renders
Il simply impossible for any political or
party movement 10 be organized in,
through or by the National Banks.


VI.-WHY SHOULD THE MATT ONAL BANK


ING SYSTEM BE PERPETUATED


NV answer to this question may be
inferred from all that goes before but
further reasons will suggest themselves
to ali who are witnesses Of the beneficial
results Of sound and well regulated
system Of banking. No country can be
prosperous, and keep up with the march
of civilization which has not such sys-
TEN.


In conclusion, would earnestly urge
on all parties and persons the adoption Of
the idea that the peTpetuation of the
National banking system should not be