The Cadiz sentinel. [volume] (Cadiz, Ohio) 1864-1911, 1866-07-04
THE NATIONAL BANK SYSTEM
DenunciatiOn of ID at the Repub--
IiCan Convention.
The EVIL Effects of the System
of Salmon T.. Chase.

The following is an extract from the
speech of Judge Dickson at the Republican
| Convention:
We come now to the National bank notes.
| They are not favorite with any body. Ali
seek to get rid of them, and none so much
as the National banks themselves. Their
retirement would not, therefore, grieve the
public indeed, nobody except those who
issue them.
They are not loan without interest to
the Government or the people. But while
they are OF no advantage to the Government
ger to the public credit las will be seen here
AFTER they are the most costly currency to
the public, the greatest hurthen of the
kind that the country ever bore. The Ma
tional banks desposit with the treasury
$500, 900, 600 gold-bearing five-twenty bonds
Upon these bonds these banks receive year
ly az interest from the Governmen of SIS,
100000 in gold, equal, with gold at pre-
MUM of fifty cents. to $24, 100000 in cur
rency. But upon this desposit being made
the banks receive $270 100000 of bank
notes. These the banks lend out at six per
cent. receiving an aggregate interest OF
sic, 200, 900, which, added to the $24, 600
600 interest on the bonds, makes the annual
interest receiveds by these banks, on loan
of$300 600 900, $40. 200, 600, or more than
fourteen per cent. per annum. This large
sum are the people yearly paying to these
bankers, that the country may be cursed
with the redundant currency-with the
National bank-nntes. Nor does the evil
stop here.
These National banks are depositaries of
the public money. They put no interest on
their desrosits. Let US see how this oper-
ates, While the Government is despositing
its money in these banks, it is at the same
time, through its collectors, borrowing
money from the public paying now on the
same four per cent, interest. The amount
of this loan on the first of the month, ac-
cording to Mr.. McColloch, was 1924, 900, ,000
600 IN round numbers.
Now, these favored banks getting Gov
ernmeDt money for nothing. turn round
walk up to the Collectors flee and lend
this same money to the Government, and
get therefor four per cent, so that with
many banks this amounts to another four
per cent. per annum upon their capital,
making near twenty per cent. per annum,
all comm out Of the pockets of the people.
Is il remarkable that these banks have
,hecn able TO declare fabulous dividends?
But is it not remarkable that the people
haze quietly submitted to these things?
Nor does the evil step here; the Govern
ment is the guarantor of the National bank
notes. TIE secuiry of the Government is
the deposit of the bonds, margin of ten
per cent. being reserved in favor of the
Government. r
1t isevldent in only one or two or three of
these banks fail that the Government willbe
sale enough. But suppose a crisis in fnan-
cial affairs occurs, that instead of one or
two OF these banks falling, dozens of them
come topping down, how is the Govern
nlent to ral.e tie money to redeem the
notes of the falling banks? Only by selling
the bonds. But what effect will this have
upon the value of the bonds in the market?
Certainly to depreciatc therl. Perhaps at
the very time this occurs the Government
will be in the market negotiating bonds to
enable it to fulfill its obligations in relation
to some OF the loans soon TO mature.
tits not manifest that such concurrent
condition of things, 50 likely to happen,
would have disastrous effect upon the pub
lie credit? Let no QUE indulge the belief
that these banks will be So carried on as
never to fail. Such is not the history of
banks. They are born TO fail as men are to
die. See that rotten concern that recently
collapsed in Washington, under the very eye
Of the Government.
The public good requires contraction of
the currency. Can any man doubt where
we ougl to begin? Let the National bank
notes be retired. This will constitute no
breach of faith. By the law of their crea-
ton, Congress may at any time abolish
them.
Who doubts, if Congress were to do this
tomorrow. that gold would fall to twenty
cents premium? By this one act we would
sweep away three .sevenths of our currency.
But let us Ia Ike care that a greater evil does
not rise in their place. We must allow no
State banks with power to issue money. |
have some times doubted whether these Ma
tional bank ever did any good; but they did
some service when they killed off the State
banks. While we must have paper cur
rency, the best We can have is the green
back.