The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-12
The National Banks aud the Gnrrcnoy tlucs.
z stiou IN Congress.

The National Banks and the Currency llucs-
e. .tieu in Congress-.
We perceive movement has commenced in
Congress on the highly importan; question Of
abolishing the natonal bank currency and
substituting in IFS place legal lenders. We
have repeatedly urged such a raeasare upon
Congress, for several reasons First, that The
government was literally giving away to pri-
vate corporations a valuable privilege worth
over twenty millions year, for which neither
II nor the public received any COMPENSATION or
advantage. Second, that by w'tl.d,uw wing On
national bank circulation aud subst;u ing lagsl
tenders in its place thc govcrnmen. would ava
over twenty millions year. For instcncc biz
the issue of three hundred millions OF more Of
legal tenders, whatever rmonnt may be finally
fixed upon, the Treasury could buy up with
that or retire the same amour. OF .nter4ss bear
ing b0nds-that is, the bonds aow deposited lly
the national bank1 rs security Tor their circ,-
! lation, from which they draw twenty millions
or more annually in the way of interest in nd
dition to the profits OF heir circulation. Thiq
would not increase the currency and would
only substitute one kind of paper money for
another Why should the people be taxed to
make such an enormous gratui'y to COM
panies of capitalists? Why should not
this amount be saved to the Treasury
and applied as sinking fund to pay
I the national debit Third, because the legal
tender currency is better, safer and more
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 their cir
-culstioR may be sufficient to redeem their
notes, the time might come, in great CONNER
cial 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 arc opposed to
the national bank systcm because IL Is dam
gerous monopoly, controlling all Tire 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, dangerous
political machine which in short time would
control the destinies Of the republic. Every
way the national bank system is q 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 tn Committee on Banking and Currency
be instructed TO inquire into the expediency Of
Withdrawing the pational 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 a 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 adj
yanced are making way rapidly in Congress.
Against the motion OF Mr. Ross the vote stood
SO TO so, and against Mr.. Harding's "a 10 CO.
This II great progress in tn 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 radical change in our currency and banking
system rs will place the whole on sound and
healthy basis. The national bank interest Is
powerful in Congress, but we think 1t will be
unable to resist the progress OF enlightened
views on this subject