The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1866-02-07
Oar Financial COndilon-IlOW to Relnfu u
Specie Payments.


The difficulties which appear to surround
The question OF national finance will prove
more imaginary than real when we apply
little common sense 10 their solution. The
CREATES. trouble is that the subjec: has be-
come mystifed and compIica'ed by the
thousand nostrums of would be FINANCIAL
doctors. II s an inviting theme, aid ev-
cry liule banker or accountant takes it up
and thinks his Limited experience in local
business enables him 10 treat il in a national
point 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
100 contracted, or they indulge in theories
that have no practical value. The conse-
quence is that, with boundless resources in
the country TO promptly meet our Liabilities,
or to discharge them, and 10 return 10 specie
payments, we are houndering about in a
sea OF uncertainty, and may end in a uni
versal wreck.
Tie original canse Of our financial troubles
was Mr.. Chase. Being Secretary SS cs ne ne
Treasury when The government required
large sums OF money 10 carry on The war,
and not understanding the subject of finance
be flooded the country with paper money
and laid lhs foundation oil the national bank
system This lawyer. Secretary of the
Treasury was followed by politician from
Maine, who knew as little as his predeces-
sor. Then came The presen, Secretary,
respectable banker, who understood Wall
street operations, bank discounts and bank
circulation, bui seems 10 have gol beyond
his depth in The mazes of national finance
He adopts The old theory of The bulionists,
enunciating it, however, with many quail
flying expressions, and hrs practice, from
necessity, is contrary 10 his theory. As TO
Congress, judging from what we have seen
OF The capacity of that body, there appears
this or any other grearquesIion in a states
manlike manner. We have iillte hope that
our representatives. 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 oVereslimated either
in its immediate or remote bearings; and
il is necessary that the press should take il
up with earnesiness and that The people
should urge such measures as the country
requires.
OGe Of the first things 10 be done is TO
take Steps 10 break up the present system of
national banks. The principle on which
they are founded is radically wrong. The
credit of the government is being used 10
The extent of lour or five hundred millions
for private benefit, or to enrich private com
paniss, and neither the government nor rhe
pc ople receiving any profit whaleVer.--
These banks are allowed 10 do business on
goyesnn nent securities. Their issues are
based on these securities, the government
furnishing them with currency, or notes for
circulation, nearly 10 The full amount depos-
iled The deposited securities, however,
are active or productive capita! as well as
the noIes issued upon them. Thus the ma
tional banks draw six or seven per cent
curiIies deposited. and make as much, or
more than that, on the notes for circulation
given TO them by the government. la other
words, The banks are making al least from
twelve 10 fifteen per cent on their capital by
the favor of The governm emf, without reck-
oning the profits of their business in other
respects. Now, who pays this! From
whom is this profit drawn? The people.
The circulation OF these banks will reach,
when distributed all over The country in re-
qgired proportions, FIVE hundred millions
From this the bankers will draw at least a
clear yearly income Of sixty 10 seventy FIVE
millions independent of other profits aris-
ing from The banking business. Never were
capitalists so favored by d government be.
fore, 1t is impossible that such an eHor-
can continue without The most serious con-
sequences for, after all, this sixty or sew
eniy-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 national bank system will build
up an oligsrchy, a moneyed power, far
more formidable than that of the old ma
lienal bank which Jackson sirangled. Il
will keep our finances inflated and disar-
ranged, and in the end will bring upon Us
both financial and political trouble. The
people ought to become enlightened as 10
its dangerous character, aud Congress ough,
at once TO begin 10 apply remedy either
by taxing those banks out of existence, as
the old banks have been, or by some other
equally efficacious measure.
Instead of Withdrawing the legal tenders
10 make way for the circulation OF these
enormous private companies the govern
ment should have the benefit of its own
circulation. Congress has powe. under the
Constitution TO coin money, and if it had
power TO issue legal tender, or 10 issue notes