The Tiffin weekly tribune. (Tiffin, Ohio) 1859-1868, 1867-10-31


notes, the Government will pay en-.
Und dis margin Of ten per cent. must
always be kept goot, If the bonds
goes down 10 the market, den te
banks must deposit more nit ts Treas
ury to keep ts bonds always wort ten
per cent. more a. te circulation
Veil, dat makes to Nash'nal bank
notes just 20 goot as greenbscks und
ten per cent. moro--only they ish not
legal tender. Den, Mr.. Vier. | finds
on tc Nosh'nal Bank notes tc great
seal Of te Government, and the name,
of Mr. SPINNER aud Mr.. Coldy y-,e
same vich is sigued to te gresubacls >;
and desc gentlemen say on all te bank
lotcs that desc notes will pc received
py the Uoitod State, in payment Of
.aU daes, except gold customs, and
yill pc payod out py To Government
in payment OF all debts; except gold
interest. Veil dat makes 'sm 80 goot
rs greeubacks hoice Den, Mr.. Vier,
| looks on desc Nash h'ual Bank notes
in mine boekot, uud | sees your
name uud To name Of Mr.. Kerr, te
President Of tis psuk, uud | knows
you both ish goot, honest men, und
| knows your names on de note,
makes te pauk liable for te payment
just as mooch as ifts Government vas
not held Cor 'om."
"Vell, | finds all dis truo Mr.. Yier
and something more. | finds dat every
stockholder in dis pank is liable for
de notes and debts Of de bank to de
amount of der stock. Und den be.
gins to open mine eyes, for ish IA
stock holder myself, and | finds my
farm is mortgaged to pay de bills Of
dis pank. Den | knows most de
other stockholders of dis pank, and
dey ish goot solid men. nit property
so you see, Mr.. Nier, dat before my
Nash nal pank notes can proko, dc
government bouds, NIT ten per cent.
margin, must git wort noting at
all; und pc a scoundrcl too; de brop.
erty OF de pauk must all pc lost, und
de property Of all desc stockholders
must pc used up.
"Dat, MIR. Vior, is Wy l calls tie
Nash nal pank notes dc pesht.
Mr.. Wier, experienced banker as
he was, had received from the shrewd
old farmer new views of the National
Banking system, and fuller apprc. .
citation of the protection which this
system throws around the people as
the holders of the national currency.
In word, the National Bauk notes
are to all intonts and purposes a Joint
obligation, acting as first lien upon
the Treasury Department, upon all
the assets of the banks as corpora.
tions, and upon the private fortunes
of the bank ckholders to the
amount of their stock. Do the Amer
lean people realize that in this curren.
cy they have the most secure circu-
lating medium ever devised, or likely
TO be devised ? s
But suppose that National Bank,
from any use, suspend business aud
20 out Of existence, what becomes of
its circulating notes? They continue
TO pass at par as before, wholly unaf
fected by the suspension or destruc.
ton of the bank whose name they
bear; for the United States bonds
pledged for their retention still re-
maiu deposited in the National Treas.
ury, and will so remain until the scat
tered notes are gathered up and re.
deemed at par by the Treasury De.
partment,
In this connection | may as we'll
refer to the remark of Mr.. Treasurer
Spinner that "the notes of broken
National Bank are better than those
of solvent one" In one important
regard this saying is true, and it be.
comes true in this way:
The volume of National Bank cur
rency is limited by law to three hun
ired millions, aud that amount is
already issued, hence now banks or
ganizing under the National system,
as well as many old ones, are dspriv-
ed of their share Of circulation until
Congress shall extend the limit.
When, therefore, a National Bank,
having a circulation; surrenders its
chartea and goes out of existence. or
is closed up by the Government for
any cause, any National Bank not
having its share of circulation, by
getting special permission from the
Treasury Department, and by gather
ing up the scattered notes of the de-
funct institution, and presenting
them at the United States Treasury
for cancellation, can have the amount
of circulation thus cancelled, trans.
ferred to itself In this gathering
up Of notes, parties sometimes offer
premium of from two to five per cent.
for them, thus making them for the
time being worth more than the notes
of an existing solvent bank.
III. SUBSTITUTION OF GREENBAcKs FOR
NATIONAL BANK NOTES.
Your third question touches a
part Of the subject which most inter-
ests the people at the present time,
and which is most discussed and least
understood, by a certain class Of
politicians. My answer is this:
l. Even if it were true that the
Government is paying eighteen mil
lion annually into tho Golfers of the
National Banks, which could as well
be saved to the people by substitu-
ton of greenback currency, yet it
would be far better to pay this sum
than to have the greenback or treas
ury-nOte system permanently fasten
ed upon the country. regard the
issue, by the Government, of legal
tender notes to be used as a circulp.
ting medium, as an anomaly in finance.
II was purely a war measure, jnstid-
able because necessary to the life Of
the nation aud, like other war meas
ures, should end with the return of
prosperous peace. 1t is not desirable
that the greenbaoks be suddenly or
Immediately withdrawn, but they
aho,ld ha o,rnd,rallv and enrat., %