The Conservative. (M'connelsville, Ohio) 1866-1871, 1867-06-27
tFrOm the New York Hsrald.l
The National Bank system n
National Fraud.

Why a eA RNAN bSkeN9O wiz q
national and have a sort Of connection
with the government; and next upon
the people generally, because they hold
privileges and ropriate q large
amount annually that belongs TO the
people and the government. Let us
explain: First, with regard to indi-
viduals dong business or depositing
with the national banks. The mass Of
the people are not aware that these
banks are no safer and afford no more
security for deposits or business
transactions than any other banks or
commercial and business establish
ments- They suppose that these as
sociatioDs, beng invested with a ma
tional character and name, and the
government undertaking to redeem
their circulating notes, must, therefore,
be safe. But individual depositors, or
individuals doing business with thom
in any way,are just as liable to be
cheated as they would be by the firm
Of Smith, Brown & Jones. The gov.
erment is not responsible, and cannot
afford relief to the victims. They are
not so safe, in fact, as the old we'll
known banking houses were, for the
reason that these had n long established
credit, and carefully guarded their rep
utation, whreas, the national bank
ing associations are newly created,
and many of them are composed of or
governed by mere spectators. This
has been seen by tho failure of the
national banks at Washington, New
Orleans and other places There the
people have realized the ~rOttenness
and insecurity Of these institutions;
but elsewhere they have yet to learn,
we fear, from bitter experience. In
plain words, the whole system is n
fraud. The Government, by giving
the banks a national name and char
acter, and by fostering them, is really
playing q confidence game and cheat
ing the public. Even their ~circula-
ton could not be redeemed by the
Government in a great crisis OF general
smash-up, Notwithstanding the assur-
anccs Of Mr. Comptroller Spinner or
Mr.. Secretary McCulloch 10 tho con-
trary.
But the national bank system il n
fravd upon the people gcnerally-up-
on the country, because it takes over
twenty millions u year in profits on a
circulation which private companies
ought not to have. The currency is
the money ofthc country, and should
not be issued by the Government for
the benefit Of private corporations
The profits Of circulation belong tc
the people and the Government; YET
they are gwen away to tho individual
stockholders and managers Of tho ma
tional banks. Such a boon is not con-
coded even to the bank of England
Notwithstanding all its valuable ser
vices to the State. The British
Government takes two.thirds of the
profits Of its circulation not reprcsen
ed by spcie in its vaults. In no Other
country has the Government reckless
ly gwen away such u vast privilcg,
without any consideration. Nowhere
has the mass OF the people been 30 dc
frauded for the benefit ola favored
few. 1t is tho greatest anomaly in
republican country. We are sur
prised that such, an act as that Great
ing the national banking ASSOCIATION.
ever passed or is permitted to remain
in force. There is no parallel to sucl
stupidity and extravaganza on tn
part Off Government. The peopl
are bowed down with the weight 0
debt and taxation, both Federal an,
State, and the revenue OF the Genera
Government is declining to such
degree that we are threatened swift
an increase Of debt: yet wo thro'
away over twenty millions a year
Such stupidity and recklessness woulI
be hardly credible if we did not SO
1t. And how simple the remedy
, Just withdraw the national bank cur
rency,..issue legal tenders in its plac
and with these by up and cancel thre
, hundred millions Of interests bearln
! bonds. Thus we should have q bC
ter, safer and sounder currency, witt
out increasing the volume of it
truly national currency-and shoul
save twenty millions a year by the o.
Grafton. Are we not right, then, i
saying thatthe national bank systeI
is q fraud upon the courtry2
! Still, these are not the only evil
great as they are, connected with ii
system. The facilities for cheating Il
S public are nee that we may expect
t general collapse before long, and I'm
n versal bankruptcy and ruin as Il
consequence. The failures we have I
: ferred to and notice from ume to tim
U as we'll as the condition of tho ban
generally, Indicate what IS comm
They are, the, great maclstrom viii,
a draws in and absorbs the profits
industry. Their dividends and su
pluses are hardly less than a hundr,
g millions a year. The dividends
rs some ofthem run up to from TWEEN
five to sixty per cent. THIS, howev
dnna not ~atrnnnIhnn Or mnka lhl