ege that one man or set of men can enjoy which
is denied to another man or set of men. Under the law as it now
stands banking is substantially free in the southern and some of
the western states; but banking is not free in the great commercial
states, in the older states, where wealth has accumulated for ages.
This may be a mere sentimental point, but it is well enough to meet
it; and by the operation of this bill banking is made free, so that
there will be no difficulty hereafter for any corporation organized
as a national bank either to increase its circulation or for banks,
to be organized under the provisions of existing law, to issue
circulating notes to any extent within the limits and upon the
terms and provisions of the banking law. This section, therefore,
by making banking free, provides for an enlargement of the currency
in case the business of the community demands it, and in case any
bank in the United States may think it advisable or profitable to
issue circulating medium in the form of bank notes, under the
conditions and limitations of the banking law. Coupled with that
is a provision, an undertaking, on the part of the United States,
that as banks are organized or as circulating notes are issued,
either by old or new banks, the government of the United States
undertakes to retire eighty per cent. of that amount of United
States notes. In other words, it proposes to redeem the United
States notes to the extent of eighty per cent. of the amount of bank
notes that may be issued; and here is the first controversial
question that arises on this bill and the first that is settled.

"It may be asked if we provide for the issue of circulating notes
to banks, why not provide for the retirement of an equal amount of
United States notes. The answer is that under the provisions of
the banking act, by the law as it now stands, a bank cannot be
organized and maintained in existence unless the reserve which is
in that bank, or required for that bank in the ordinary course of
business, either on its deposits or circulation, is at least equal
to twenty per cent. of the amount of its circulating notes, so that
it was believed, according to the judgment of the best business
men of the country, and I may say with the comptroller of the
currency, that the retirement of eighty per cent. of the amount of
bank notes is fully equivalent to keeping the amount of circulating
medium in actual circulation on the same footing,