Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1863-04-11

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tFrom the Wall Street Review for February.]
The New Banking Bill; Its Influence and
1a.y "a 5 Importance. . r.sr.l
| II is often said that great reforms as we'll
as great enterprises are possible only in times
of great popular excitement, when the old rou-
tinfs are broken through by the force Of dom.
insting events. One of the most difficult of
all reforms is to change the customs and usa-
ges of people. 1t required the great revolu-
ton Of France, which uprooted all traditions
snd systems. to reform social evils Of long
standing in that great country. The bald.
spirits Of that epoch, amid falling thrones, up
rooted privileges, and uprisings of the pso-
pie, struck boldly at all abuses and projected
reforms on the grandest scale. Weights,
measures and money, all felt their generating
influence, and the present age is enjoying the
benefits of it. For a unit Of measure the di.
ametcr of the earth was called in requisition.
Fer unit Of weight water at given temper
ature was required and for money renewed
coinage on scientific principles came into use.
After the lapse Of 60 years, tine reforms then
begun have hardly been completed, SO slow
me people to change their habits. In the
s,me period. viz, in the last 60 years. the peo.
lle of the United States have labored under
IN evil more gigantic and disastrous than any
of those which afflicted old France. 1t has
constantly increased in magnitude without an
effort being made to check much less to re-
, form it. 1t is certainly libel on the intelIi.
gence of people possessed in M eminent de-
gree of every element of wealth, famous for
inventive genius, renowned for energy of &C.
tion and unequaled as traders, that they have
during long aud prosperous career submit
led without a struggle to the Inconvenience,
tho loss and the vexa,ion which have attended
the use Of corporate promises as money. The
public have become so habituated to the evils
thence arising, that they seem to regard them
us matter Of course like the storms of win
Ter. The time has come, however, to effect a
great and radical reform under the lead of the
present head of the Treasury, by means Of the
currency bill now before Congress.
Let us examine the matter for memcnt.
The origina; colonies, in the poverty which
the first settlement Of the country and the op-
preston of the mother country entailcd upon
them, were compelled to use paper money to
n greater or less extent. The "bills of cred.
it" they issued entaled upon them drrst dis
tress But when the war of Independence
took place. there was no resource but a further
emission Of paper on gigantic scale. These
were means disastrous as war itself in their
consequences. Tho bitter experience of the
evils entaied taught the trainers of tho new
government to guard carefully against re-
currence of such circumstances. Hence each
State was forbidden to issue bills of credit"
or make anything but gold and silver le-
gal tender" while upon the Federal Govern
ment was bestowed the exclusive power to
" coin money and regulate the value thereof"
The Government only having the power to
coin money, and the States being prohibited
from the use OF paper, sound currency seemed
10 be assured. At the same time. however,
there were called into existence three State
handsome each in New York, Boston and
Philadelphia. These by the respective States
were endowed with the power of issuing notes.
pnvable on demand in coin, to b. circulated
as money. From that small beginning has
grown up an interest which preys upon tho
vitas of the community, sapping it's strength,
and which. like the devouring tape-wor,n.
seems impossible to be dislo.lged. The States
were precludcd from issuing paper money
themselves in order to preserve the public in-
trrest. but they have wrought more extend.
e,l distress by undertaking to delegate that
power which they did not themselves possess.
The three banks with their issues of $50O,OOO,
have grown to be 500 banks with $200,00O,-
600 Of issues, which represent money bor-
rowcd of the public not only without interest,"
but for which tho people have to lay r6undly.
These 1900 banks are directed by 5000
cashiers and presidents. who make profits for
their stockholders by the issue Of the paper.
the best Of which is worth 094 cents on the
dollar, and some Of that secured is worth 40
cents on the dollar. Between these prices
the whole mass of two hundred millions OF
currency Auctuatrs, grinding at every turn
sonnet hing from the wagcs of the worker and
the earnings of the dealer. tn swell the profits
Of the bonk protector and the broker. If tue
whole two hundred millions circulated only at
tho rate Of the hest secured descriptions. the
tax would BE- 100000 per annum upon the
people but the paper is redeemed six times
in tho year. which would run the tax up to
$3,0OO.OOO per annum for the best descrip-
ton. As W. have said, however, he discount
ranges z. !, IL, g. 3. s. 20, aud so on up to GO
per cent. dscount-m' king tho annual tax
upon the people not short Of Sl0.0OO0O0 per
annum for tho circulation of the good paper"
This is the plumber that the regular officers Of
legal institutions exact from the people.
In the progress Of this great interest every
fcw years financial revulsions have swept
over the country. running individuals and
causing banks to fail by scores. leaving in the
hands Of the people millions Of paper never to
be redeemed, while operators have repeated
the frauds in new shapes. While suffering
under fhasa 1isasters many Of thu Statea haya