The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-01-27


ourities. Their issues are based on these Sc
curities, the government furnishing them with
currency, or notes for circulation, nearly to
the full amount deposited. The deposited
securities however, are active or productive
capital as well a. the notes issued upon Thorn.
Thus the national banks draw six or seven per
cent from tho government az 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 reckon
ing the profits Of their business in other re-
spects Now, who pays thisi From whom is
this profit drawn? The people. Tho circula-
| ton ofthese banks will reach, when distributed
oil over tho country in required proportions,
| Eve hundred millions From this the bankers
viii draw at least clear yearly income Of sixty
to seventy-nve millions Independent Of other
profits arising from the banking business.
Never were capitalists 30 favored by govern
ment before. 1t is impossible that such an
enormous tax upon the industry Of the
country can continue without the most
serious consequences; for, after all, this
sixty or seventy-Ays millions annually has
to be drawn from the industry Of the coun-
try. But this will not be the only, or perhaps
the least, evil. This national bank system will
build up an oligarchy, moneyed power, far
more formidable than that Of tho old national
bank which Jackson strangled. II will keep
our finances inflated and disarranged, and in
the end will bring upon US both financial and
political trouble. The people ought to be-
como enlightened as to its dangerous char
acter, and Congress ought at once to begin to
apply remedy either by taxing those banks
out Of existence, as the old banks have been, or
by some other equally efacacious measure.
Instead Of Withdrawing the legal tenders to
make way for the circulation of these enor-
nous private companies the government should
have the benefit of its own circulation. Con-
gress has power under the constitution to
coin money, and If 1t had power to issue legal
tenders, or to issue notes to the national banks,
1t has power to make and establish fixed cur
rency Of its own. A bureau could be estab-
lished at the seat of government, or in this
subject Of national finances 1t should have
power, under proper provisions of law, to con-
tract or expand operations according to the
rate Of exchange abroad and the balances Of
trade. 1t cOuld be made to operate something
like the manner in which tho Bank Of England
operates, only In more extended and power
full way. Ouriegai tsnders (and under this sys-
e>,n o.,xsnnso kho~a -n,,aA ~ okh>.
tiensl curroncy) would soon be .like the Bank Of
England nosss--ss par with gold evsrywAsrs.
This country. then, ffomits vast resources and
geographical position, might become, Il no
distant day, ne money oentre of the world.
At all events, something must be done soon TO
correct and establish our moneyed system upon
sound basis or we shall be In danger Of both
financial and political troubles.
Ths Anticipates RevuIsioa In England-
Downfall 81 the Drttish unpire Fore.
sAaAeaved. -"--'--~--'e &c.
The tone of the EnslisA press insls.stes con-
siderable alarm on the subject Of an anticipated
financial rsvulsion In England, and the 7ymss
and other leading journals arc assuming that
the danger Of collapse will come fror tho
large credit exports 10 the United States, and
the pauOlty Of returns In specie and equivalent
merchandise. But there is Q difference Of
opinion In England upon this point Many
commercial men, In communication addressed
to the newspapers, assert that the rsmittances
nom this country are very prompt, and that
the heavy receipts OF cotton ere Q fair set Cd
against the British exporh
There II q good deal moro In the threaten
ing aspect which financial affairs In England
have assumed than can be inferred from the
large exports to America. The wealth of Eng
land has its mainstay In the coal and iron de-
posts Of that country, and the opinion has
gained ground there for some time that the
supply In these minerals was getting rapidly
exhausted. Investigations have been made by
the BIOLOGISTS, and the result Is the conviction
on tho part Of good many that the coal and
iron cannot last moro than fifty or sixty years
longer; some give their productive capacity .
limit Of hundred years. When the coal and
Iron give out 1t Is pretty evident that the
British empire win give out too, and probably
the lons-headsd portion Of the commercial
people Of England foresee the short lease Of its
existence, and hence we may account for the
evident disposition 10 invest English capital In
this country. They know that while the
mineral products Of Great Britain will only
last for hundred years ut most, the mineral
wealth Of this country will last for Afty thou
sand years; and they are In fact preparing
for contingency which, according to gcolosl-
cal surveys, must occur within csntsry, and
capitalists are, therefore, looking that distance
Of time ahead. The labor, capital and manu-
fsctures Of England will be transferred to the
United States before many years. Already,
indeed, the initiative steps have boon taken In