The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-07-01


| US such law and a few large public baths for
| our floating population, and the city will then
| only require . careful quarantine-located
elsewhere than at Staten Island-and the ordi-
nary regulations Of the sewerage and the streets
| to become perfectly healthy. If the Board of
Health and the doctors would address them
selves to this subject instead of soaring people
with long documents and bogus reports about
the cholera, they would do the city greater
/ service.
The Evils OF tho National Bank system.
We have from time to time exposed the evils
Of the National Bank system, and although
there is a powerful moneyed monopoly inter-
ested in perpetuating the monstrous fraud upon
the country, We see that Congress and the
people begin to get some correct ideas upon
the subject. Notwithstanding the efforts that
are made to cheat the public as to the real
character Of this fraudulent and dangerous sys-
tenn, some Of the public men at Washington
and portion Of the press Of the coun-
try have taken bold stand against it. The
more we reflect upon the matter the more ex-
traordnary 1t seems that such system should
ever have been put into operation. In ordi-
nary times, as in times of peace, this could not
have occurred. But designing politicians and
shrewd spectators seized the opportu-
nifty, when the public mind . was alb
sorbed by the war, to foist their ruin
Gus scheme upon us. Congress was
as ignorant as schoolboys Of the great ques-
tons Of national finance and currency, and was
carried away by scheming politicians and
financial theorists. But the time has come
when this gigantic swndle must be seen in all
! its detormity.
We have shown that the people are cheated
out of some twenty-five millions OF dollars
year by giving the so-called national banks the
benefit of a circulation which the government
ought to have. Let us state the case again, for
ii will bear repeating, and ought to be i'm
pressed upon the minds of the people. The
national banks have circulation of nearly
three hundred millions, and it is contemplated
to increase this to four hundred millions. The
profits on the existing circulation are at least
twenty-five millions year. The banks are
private corporations, and of no use to the gov
dangerous nuisances; yet this immense sum,
a sum that a few years ago would have paid
all the expenses of the government, Is given
freely to these private corporations without the
least consideration. This Is an indirect tax upon
the people. But, it may be said, the country
must have currency, and somebody must
profit by it. Very well, then, let the govern
ment profit by il, and let that amount be saved
and applied to the liquidation of the national
| debt. What more natural, reasonable and
siuples Who would not rather have legal
| tenders than the national bank notes. We
know that as long as the government exists the
former will be good; but we do not know
| how far the latter would be 80 in q great fnan-
| cial crisis, when the securities Of the banks
| might be thrown upon the market like q food.
This, however, is not the main point we aim at.
Our point il this: the three hundred millions Of
national bank circulation could be withdrawn
and the same amount Of legal tenders subsii-
tuted in its place. The volume Of currency
would not be increased, while by issuing these
| three hundred millions Of legal tenders the
same amount Of interest bearing bonds could
be cancelled; that il to say, buy up the bonds
now deposited by the national banks for their
circulation, or an equal amount OF other bonds,
currency would not be increased, we
should have better currency, and we
should al the same time reduce the interest
bearing debt three hundred millions. II seems
to US that this proposition is so plain that .
child might understand H.
The danger TO our political system Of per-
petuating this enormous monopoly Of the ma
tional banks we have spoken of before and
need not repeat what we said The old United
| States Bank, about which there was such an
outcry, was not half rs dangerous. These
national banks should be regarded with suspi-
cion and apprehension, however, in another
point Of view. We refer to their power in fore
stalling and controlling the markets and bust
ness Of the country. The farmers Of the West,
the planters Of the South, and the business Of
the country everywhere are at their mercy.
No class or interest Of the community could
resist their influence or their combinations TO
monopolize. We complain of high prices, and
justly; but the cause Of these high prices is
neither the premium on gold nor the difference
between gold and the currency, but the mono
poly and influence Of the national banks They
control the markets for their own benefit The
capital which the government literally gives
them enables them 10 forestall the markets,
keep up high prices, and Cypress the
people. In whatever point Of view we look At
them they are dangerous and monstrous evils,
without any redeeming quality. Is IL not high
time, then, that the whole system should be
abolished? II these banking associations or
corporations choose to do banking business
let them do il on the circulation Of government
notes-on legal tenders-but not on currency
given to them by the government without the
least equivalent will Congress take steps 10