The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-12
The National Banks and the Currency Qucs-
.tioa ii Congress.


We perceive movement has commenced in
Congress on the highly important question Of
abOlishing the nationil bank currency ana
substituting in IFS place legal lenders. We
have repeatedly urgcd such raeasJrc upon
Congress, for several reasons. First that The
government was literally irving away 10 pr-
vate corporations valuable privilege worth
over twenty millions year, for which neither
1t nor the public received any CONDENSATION or
advantage. Second, that bv w.td.aw;ng ue
national bank circulation aud spbssitu inc leesl
tenders in its place thc goyernmea. vouida.v
over twenty millions year. For instnncc. Nv
the issue of three hundred millions ~ mofc Of
! legal tenders, whatever amount may be finally
fixed upon, the Treasury could buy up via
that or retire the SANE amount of ntcrsss bear
ing bonds-that is the bonds aow deposited III
the national banks rs security ior their circi-
lation, from which they draw twenty millions
or more annually in the way Of interest in ad-
dition to the profits Of heir circulation. Thia
would not increase the currency and would
only substitute one kind Of paper money for
another. Why should tue people be taxed to
make such an enormous gratui'y to COM
panies of capitalists? Why shoa,d not
this amount be saved to the Treasury
and applied as q sinking fund to pay
the national debt? Third, because the legal
acceptable to the public than that Of the
national banks. Although in ordinary times
the bonds deposited with the Secretary Of the
Treasury by the banks as security for iheir cir
.culation may be sufficient TO redeem their
notes, the time might coms in great CONNER
ciai or war crisis, when these bonds would be
90 deprecated that they would not realiz,
enough to redeem the notes. The loss would
then fall upon the government and public,
whereas for legal tenders the government is
always responsible aud would lose nothing by
them in q crisis. Fourth, we are opposed to
the national bank system because IL is dam
gerous monopoly, controlling Ill tie labor and
products of labor, The markets and commercial
affairs Of the country, placing, in fact, all the
industrial interests OF the country in the hands
Of grasping capitalists. II is, too, q dangerous
political machine, which in short time would
control the dcstinies of the republic. Every
way the national bank system is a monstrous
evil.
The Congressional action referred to was
the resolutions submitted in the House Of Rep
resentatives by Mr.. Ross, democrat, OF Illinois,
and Mr.. Harding, republican, of Illinois, both
pretty much in the same terms, to the effect
that Tia. Committee on Banking and Currency
he instrr cted IN ipuuirc into tho exppdicncy of
Withdrawing the rational bank currency and
winding up the national banks and furnishing
the country with greenbacks, or currency Of a
similar character, in place of the national bank
currency The resolution OF Mr.. Harding was
stronger and more explicit than that Of Mr..
Ross, and was to instruct the committee to re-
port bill. On the motion OF Mr.. Washburne,
OF Illinois, who appears to be very active in
the interest of the national bank monopoly,
the resolutions were laid on the table But the
vote shows clearly that the views we have ad-
vanced are making way rapidly in Congress.
Against the motion OF Mr.. Ross the vote stood
81 to So and against Mr. Harding's "a 70 GO.
This IL great progress in thn right direction
since the last session, and we are not without
hope of seeing majority in Congress before
the close Of the present session In favor Of such
a radics! change in our currency and banking
system Us will place the whole on sound and
healthy basis. The national bank interest Is
powerful in Congress, but we think II will be
unable to resist the progress Of enlightened
views on this subject