The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-17

Loss estimated by the Treasury Department s
on the depreciation of bank notes received
prior to 1881 IS, 500, 900
Loss appearing ON the books Of the treasury
by banks repositories prior to 1881,
about 80 INTERPRETATIONS ------e 800, 900
Loss estimated by using banks deposito-
RIGS since the year 1S3T---- I0O,0
Loss estimated on bank notes taken and not Hes@
redeemed prior to 1881 --------------- 80, 900
Loss estimated on bank notes taken and not asH
4 redeemed since 1s37-.--------.-------- 40, 900
Aggregate .------------ 6,G20, 900
COMPUTED interest on the aggregate---- S,872, 900
Total principal and interest ----- Is, 4s2, 600
y This table does not cover the losses growing out
of loans made by the banks to the government in
1874 during the war, when it received only eighty
eight cents in bills deprecated from seven to twelve
per cent on the dollar which, with interest subse-
quently paid in specie its equivalent. The Com
mttee of Ways and Means of the House, on the
18th of April 1880 estimated these losses including
those referred TO by Mr.. Woodbury. prior to 1917,
at 1914 900 0O0 If we add the losses between 1917
and ls4l, it will largely increase this amount
After sustaining these and some other losses by
the paper system, the government now receives and
pays out the currency of the constitution, upon
which it neither makes nor loses, but which does
Justice to ALL while it avoids the fluctuations and
losses which are incident to the use Of paper. The
evils which afict the people occasoned by their
consenting through their representatives to the use
of currency manufactured by corporations, who
profit most largely by its great abundance. They
remedy it, through their legislatures, by requiring
their Legislative agents to adopt measures to term-
nate at the earliest practicable period the present
unconstitutional system. We do not advise dealing
death blow to all existing establishments at once,
but gradually to retrace erng steps, and to get
upon solid constitutional ground within reasonable
time. Those banks which have announced themselves
dead to their Obligations their creditors and pub
lic may well receive their funeral honors instead Of
having the breath Of life breathed into them to enable
them to again violate the sacred obligations of the
constitution by flooding the country with currency
not legal tender to pay debts, and having no GER
tain and permanent value. Laws authorizing the for
nation of currency manufacturing associations should
be swept from the statute-book to prevent their flu
ture establishment Constitutions that authorize the
granting of charters with such powers should be
speedily amended by prohibitory provisions. Every
proper step should be taken to get back, within
reasonable time, upon solid constitutional ground,
and end the paper system. If constitutions per-
nit bills there should be none issued less than from
fifty to hundred dollars. Banks of money for dis
count and deposite are not liable to the objections
have urged against those of circulation. Their in
terest would lead them to lend all their capital to OBJ
tain interest upon it. and hence the supply would be,
not only in money and safe, but always uniform,
while there could be no panic among bill-holdcrs
producing run upon the banks, and consequently
no loss by failure to redeem. The public could
not suffer from luctuatng or irredeemable cur
rency 1t may be said that such a bank would
not increase the currency for the accomnloda-
ton of borrowers. This is true. But it would
place within the reach of all the real currency
which actually exists and all beyond that is ic-
titious and injurious, as well as unlawful. No one
has right to demand the creation of such a cur
rency that he may loan it at a profit or borrow
with the hope of making one. 1t is said that large
masses of gold and silver inconvenient to carry
and keep. This complaint cannot be truly made by
one in q thousand, while the remaining nine hun
bred and ninetynine would be most happy to have
coin enough to feel the inconvenience Affections
of this kind never produced much suffering compared
with that resulting from deprecated bills and q huc
tuating currency, They do not equal that Of esti
mating and bearing the losses on deprecated paper
1t has been suggested that such bank could not
make enough 10 secure profits beyond simple inter
est Well, what of it, That is enough, and all the
laws contemplate. But this suggestion is not true.
They can do all the legitimate business of banking
They can discount, buy and sell bills of exchange,
collect and invest moneys, &C., &C., so to make
very considerable additions beyond legal interest
But if they do not expect the business may be profit
able they need not go into it. No one compel
them to do so. They can receive depostes and lend
them if depostors are willing to give them the
of their money But this is unsafe for both parties
and deposors had better pay for the safekeepinE of
their money than to have it loaned out at ALL Banks
known to be sound find many opportunities to in
crease their earnings in honest and safe manner
But whether profitable or not is question for
those engaging in them, and has nothing to do
with the great question Of the currency. Persons
unwilling to hazard the enterprise of a stock bank
composed wholly of money may resort to, the
Amsterdam precedent, with adaptations suited to
our country, and enjoy all the safety and conye-
nence Of that system, where simple honesty renders
everything secure and without that quality in bank