New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-11-26

nearly seOOOoOOO annually for the benefits they
sunnosed TO confer upon the community in this
davis TprRryK-ls most extraordinary, and. if cor
root pnfolds DANCER which it is well to understand
ask Of You space to reply.
The issue is inst this: The National Banks of the
country own seas 100000 United States Bonds, upon
which they receive and the tpublc pay, interest.
They then deposit those bonds, and are allowed to
Issue thereon $500 100000 Of b-whch bills they again
loan and receive interest for-whch makes double in
teres for our investment We who object to this special
immunity to limited number OF corporations, which are
accommodating sinking fund for political purposes most
dangerous to the interests Ofthe country contend;
FIRST That these National Bank bills are not as good as
Government reenbacks for the reasons that they are
not as well secred they cannot be used for the same
purposes; they not legal tenders.
Second: The Government having already given to them
n contingent Endorsement, can consistently issue legal
tender grconbacks TO the same amount IN exchange FOR
thcnaud thus save nearly SOOOoO0 interest per year
and AT the same time give us better and uniform
rency This simply replaces one kind Of currency for
another and Is not imitation
Your reply TO the above propositions is substantially
this:
First. That banks are an indispensable necessity.
Second That unless banks issue their paper, and
are responsible for the redemption OF the currency they
pay out, they cannot exist.
Third: That without these local issues and local re-
dcmptons there would be distributing agencies for
money; that greenbacks would sink to onethrd their
present value"
Fourth: That "to make this exchange would immedi-
atey precptato disastrous collapse in our financial and
business interests"
believe have above correctly stated the entire propo-
sitlons in the editorial referred to.
II distributed banks of issue Indispensable ne
cessy how is it that private banking houses which do
not issue bills, thrive, exist. and make money IN
every city and almost every village in the United states
do not refer to bankers located in stock centers, but
mere money lOaners everywhere. found could hire
greenbacks outside of National Banks even in Denver
salt Lake City and Nevada How is it the Bank OF Com
merce IN New.YOrk with 100000 capitalthe largest
bank in Amerca-has always paid large dividends with
out issuing bills Whose bills do this class of banks and
these private bankers oani Whose circulation do Saw
mgs Banks loanl When used TO borrow gold' who
made 1t l-the bankl Whose issues does Mr. AStor oan
Surely he never manufactured a bill or a note. No
banks and individuals the issues of Governments OF
other individuals, Of other banks-anythng which the
people Will receive and they get There will be no
want OF banks Institutions whatever we choose TO
call Them to make oaning greenbacks business to the
full requirements of the public.
Again: II Is thus maintained that igreenbacks have
less exbity are more dstrused less understood,
have less real value than individual issues-whch the
law expressly SAYS can only be used for limited pur-
poses-whch the Government itself refuses 10 take,
which had only very uncertain Government indorse-
ment an Endorsement which, with low Treasury and
bonds So the Government could not make good Read
the conditions printed upon the kinds Of bills and
tie difference II the assertion you make is correct the
reasons therefor ought to be pointed out. The public
ought to be informed if greenbacks time TO be
discredited.
believe in greenbacks believe that II the National
Bank issues were Cancelled in the heretofore pro
posed the greatest impedimeut to return to specie
basis would be removed; that bonds would mme-
datey appreciate, and the premium gold decline in
proportion
The inadequate security furnished by the National
Bank Act TO the currency which is issued by majority
of these banks, is element OF weakness which, until
remeded IN some way, will continue finances In
deFaDgod condition. Should bonds fall in price to
50 cents, all the per cent bank blls-about three
fouths Of the entire amountwould be az per cent
discount This would Immediately produce fear, stagna
ton countermandng Of imports falling of in customs
receipts depletion Of the Treasury boarding Of legal
tenders, a general panic hazardng the ability of the
Government to pay its interest.
Before the official news could be acted upon by the
Treasury Department further and rapid decline would
take place. the people be saddled with deprecated
currency and general paralysis and population stretch
their whitening blight the land. These facts are
just what fnancers understand and which today
our bonds which draw per cent gold interest to sell in
London FOR while EngshIconso which draw but per
cent interest sell for 9il
That our bonds will nuctuate sufficient 20 produce this
state Of affairs Only possible but reasonable and
probable It is only what is daily occurring In Wall
st. exactly what has occurred to all private Gov
eminent issued In by any nation. English
consOls draw less interest hence held by stronger
owners; yet there has been but consecutive
period their issue in 1851 in which the
variation in price has not been small 6 per cent
IN every other period Of ten years they have uctuatod
from per cent per cent respectively. In Deem
ber 1906 published circular fully discussing both these
points viz the insecurity Of these bills and the benefits
Of transferring them into legal tender greenbacks TO
which refer the public. do not now desire to see
political war opened against these banks; but do desire
10 have the radical errors upon which they exist
corrected before they involve the nation IN financial ruin
am respectfully, DEMAs BARNES.
Washington, Nov. %, 1867.