The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-28

i
! system was monstrous monopoly which ought
to be abolished we meant that it was SO with
the privileges given to tire banks by the gov
eminent and with the support they received
from the government There Is no objection
to the existence of these banks simply as pri-
| vate business firms, unconnected with the gov
eminent, just as our old banks were, and as oil
private business ought to DO. Most Of them
are very respectable establishments and q
great convenience to the country. We like
the uniformity and national organization Of
them under an act Of Congress. But to giving
them the privilege and profits Of national
currency, based upon the credit OF the gover1-
ment, without any consideration or payment
| in return, we arc utterly opposed. This privi-
| lege, which is in the possession of a few indi-
| viduals comparatively, is worth vast sum of
money-twenty million dollars year, at
| least for we must recollect that the banks
draw interest on the bond deposited as security
for their circulation, and at the same time they
are getting profit of seven to nine per cent
| on that circulation. We do not overstate tie
amount, perhaps when we say that the banks
make fourteen to fifteen per cent year in this
! way on their capital, without reckoning the
profits of their ordinary banking business in
! other respects.
| Now, we propose tina. the people and the
government shall take the profits OF national
currency instead of few capitalists What
more natural and proper than this! The won
| der is that the Secretary of the Treasury and
| Congress have not seen before now the force o.
! this simple proposition. How is it to be done?
! Nothing more easy: by Withdrawing the ma
| tional bank currency and giving us in place OF
| il legal tenders. The legal tenders cost the
government nothing. 1t can print three hun
| bred millions of them, and with that amount
buy up and cancel the three hundred millions
| of interes!-bearing bonds which the banks have
| deposited. Thus, instead of the banks drawing
| the Interest twenty millions year-the
| government and the country would save 1t.
THAI is the difference. And is not q legal
| ten cr currency as good as that Of the national
banks? We think it is better and safer, and
| believe the people would rather have it. IF
| these banks or more banks choose to carry on
| q lanking business they could do so on loyal
| tenders. We should have tho advantage Of q
uniform currency, based upon the credit Of the
! government solely. The amount Of paper In
| circulation would not be increased; the change
| would be only from one Kind to anothcr-f from
an inferior to superior currency. Let Con-
| gress, then, go to work and withdraw the
| national bank circulation. and thus all banks
would be compelled to uso legal tenders
The Comptroller Of tho Currency and other
advocates Of the national bank system pretend
to argue that it would be dangerous for tho gov
ernment to issue all the currency for the country
on its own credit, and that 1t might be tempted
under certain circumstances 70 circulate q
much larger amount than would be needed or
safe This is simply absurd. The government
has the same power 70 do this through the
banks. As the guardian Of the public inter-
csts it is no more likely to create or issue
G.rger amount Of currency than is NODDED than
TO confscate our property. Congress is all
powerful over the subject, and would make,
doubtless, proper laws for regulating the
amount of circulation. The govcrnment--and
by that VIC mean both Congress and the sd-
ministration-can be trusted in this matter.
Private associations of capitalists, like those of
the national banks have naturally tendency
to monopolize, to look only to their own inter
es.s, and to make oil they can out Of The pub
lie; but the government looks only to the wei
fare of the whole country. There is no danger
in having currency issued solely by and
the credit Of the government.
The next step after making q uniform lega!
tender circulating medium should be to reduce
the burdens Of the national debt aud TO put ii
through process Of liquidation by paying or
all the debt as it becomes due bylegal tenders.
If there should not he enough in the Treasury
for this purpose at the time then issue as many
more as may be needed. Let the holders Of
these have the privilege Of buying with them
consolidated stock, bearing four per cent in
teresi. II money became too redundant the
surplus would fud its way to Investment in
these consols. Four per cent VIC lld be higher
rate of interest than the British consols
bear, and would be ought by those having
surplus capital and wanting safe investment
II the legal tenders in circulation should not
be thus cor yerted that would be evidence that
the currency or money afloat could not be re-
dundant. The four per cent consols always
open for the conversion Of legal tenders would
be safe regulator II The circulating medium.
No injustice would be done to the public crc1i-
,ors, because they would be paid in the same
money they loaned or contracted with the
government. for. The national debt would soon
be greatly redlcsd and could be liqudatcd in
less than twenty years. The whole community
would be benefited by great reduction in
taxation. Our financial system and commerce
would be cmancipated in great measure from
the influence of foreign capitalists apd money
traders. We should commence new and
grand career OF independence in monetary