The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-01-29


business enables him to treat it in a national
roint of view. This is mistake. Neither such
men, nor the lawyers and politicians who have
attempted TO solve the problem, have succeeded.
Their views generally are too contracted, or
they indulge in theories that have no practical
value. The consequence is that, with boundless
resources in the country to promptly meet our
Liabilities, or to discharge them, and return to
specie payments, we are floundering about in
a sea of uncertainty and may end in universal
wreck.
The original cause of our financial troubles
was Mr. Chase. Being Secretary OF the treasury
when the Government required large sums OF
money to carry on the war, and not understand
ing the subject OF finance, he flooded the country
with paper money and laid the foundaton OF the
national bank system. THIS lawyer secretary OF
the Treasury was followed by a politician from
Maine, who knew US little as his predecessor.
Then came the present secretary, a respectable
banker, who understood Wall street operations
bank discounts, and bank clrculatlon, put seems
national finance He adopts thelod theory of the
bullionists enunciat'ng 1t, however, with many
qualifying expressions, and his practice, from
necessity, is contrary to his theory.
As to Congress, judging from what we have
seen of the capacity of that body, there appears
to be lamentabe lack of ability to treat this
or any other great question IN, statesmanlike
manner. We have little hope that our represen-
tatves or officials, apart from the President,
will take a broad common sense view OF the
matter unless pressed to do SO by the people.
The Importance of the question cannot be over
estimated, either in its immediate or remote
bearings; and it Is necessary that the press
should take it up with earnestness and that
the people should urge such measures as the
country requires.
One of the first things to be done is to take
steps to break up the present system OF national
banks. The principle on which they are founded
is radically wrong. The credit Of the Govern
ment is beng used to the extent of four or five
hundred millions for private benefit, or to enrich
private companies, and neither the Government
nor the people receiving any profit whatever
These banks are allowed to DO business on
Government securities. Their ISSUES are based
on these securities, the Government furnishing
them with currency, or notes Tor circulation,
nearly to the full amount deposited The de-
posted securities however, are active or produc.
tive capital az well as the notes issued upon them
Thus the national banks draw six or seven per
cent. from the Government as interest on the
securities deposited, and make as much, or more
than that, on the notes for circulation given to
them by the Government. In other words, the
banks are making at least from twelve to fifteen
per cent on their capital by the favor of the
Government, without reckoning the profits OF
their business in other respects. Now, who pays
this? From whom is tn s profit drawn? The
people The circulation OF these banks will
reach, when distributed all over the country in
required proportions, hVe hundred millions.
From this the bankers will draw at least a clear
Independent of other profits arising from the
banking bushes. Never were capitalists so ia
vored by Government before. 1t is impossible
that such an enormous tax upon the industry OF
the country can continue without the most serious
consequences; for alter ALL this sixty orseventy-
five millions annually has to be drawn from the
industry of the country. But this will not be
the only, or perhaps the least evil This ma
tional bank system will build up an oligarchy,
moneyed power, far more formidable than
that of the old national bank which Jackson
strangled. 1t Will keep our finances inflated and
dsarranged, and in the end will bring upon us
both financial aud political trouble. The people
oueht to become enlightened as to its dangerous
| character, and Congress ought to begin to apply
| a remedy either by taxing those banks out of
| existence, the old banks have been, or by
| some other equally efiicacious measure.
Instead OF withdrawing the legal tenders to
| make way Tor the circulation OF these enormous
private companies, the Government should have
| the benefit of its own circulation. Congress
! has power under the Constitution to coin money,
and If it had power to issue legal tenders, or to
| issue notes to the national banks, it has power
| to make and establish fixed currency of its
| own. bureau could be established at the seat
of government or in this metropolis, with eXclu.
sve control over the subject of national finances.
| 1t should have power, under proper provisions
| Of law, to contract or expand operations accord
| ing to the rates of exchange abroad and the
| balances of trade. 1t could be made to operate
| something like the manner in which the Bank OF
| England operates, only in more extended and
| powerful way. Our legal tenders land under
this system we suppose there would be no other
| national curI ency) would soon be like the Bank
| OF England notes-at par with gold everywhere
| This country. then, from its vast resources and
| geographical position, might become, at no dis
| tant day, the money centre of the world Al
| all events, something must be done soon tC
correct and establish our moneyed system upor
| a sound basis, or we shall be in danger of both
4 financial and political troubles