The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1867-12-27
National Banks sc.

y
recently delivered a speech in the
House of representatives of which
the following are extracts. The
first is complete answer to class
Of argum ents base d upon the style
Of advertisements put out by Gov
eminent agents engaged in the sale
Of bonds.
The next class of arguments that
the gentleman from Maine puts for
ward on this question is the propo-
sails in the advertisements of those
he terms the authorized agents of
the United States, WHO disposed of
the loan. Allow me here to say
that for contracting National debt,
l know no other authorized agent of
the nation bat the Congress OF the
United States; | know no broker.
whether he is in the Treasury Office
or out OF it, that has right to fix
tho terms of tho National debt for
the United States. No man is au-
thorizcd to pay a dollar of the mon .
cy appropriated BY the Congress Of
the United States, and, therefore,
can not contract dollars debt un
less authorized directly by an act Ct
the Congress Of the United States.
Iacree that Mr.. Jay Cooke advcr-
tiscd, after some sort, when cndeav-
oring to sell it, that the principal ct
this loan was payable in coin; but in
the same newspaper you 6nd anoth-
or Of his advertisements, intended
also to sell the loan. that "a Ma
tional debt is a National
blessing" Are We bound by
contract to that? II, as the gentle
man claims, We are bound by adver-
tiscmcnts in tho one case, We are
bound as we'll in the other; and
does my friend insist that Mr.. Jay
Cooke has bound the country to the
proposition that National debt is
a National blessing to anybody cx-
cept bankers? With that amend.
ment I might agree to the DEF clara
ton. When l called the attention
of the country to this some little
time ago, Mr.. Jay Cooke, for whom
have very high respect, wrote me
that ! was mistaken; that what he
did advertise was a National debt
rightly maagcd was a National
blessing. I am at issue with him
upon that. insist thata National
debt managed anyhow, Ly anybody
the Angel Gabrisl or Jay Cooke
or any other boly-sis not Nation
al blessing. Laughter N !, man
ascment of National debt Can
make it National blessing And
yet, if We arc bound by broker $
advertisements, VIC are bound to the
doctrine that it is a National bless
sng which wo must enjoy and be-
Hueath t. our posterity forever!
Following this is an argu ncnt
that is statement Of the manner
in which money is made by banks
and is couchod in the following Ian
guage:
What is the next proposition
why, it Is said We must not inter
fere with the National banks be.
.causc they periodically helped Us
during the war. Upon that l take
issue with each and every advocate
Of the banks. On the contrary, they
helped themselves, not US. 1t is
said they loaned money to the Gov.
crnmcat. How did they d. it? Let
-, state the way National bank
got itself into existence in New Eng
land during the war, when gold was
two hundred, and Eve .twcnties were
at par, in currency, or nearly that.
4 company Of men got together $500,
600 in National bank bills. and
went to the Register of the Trcasu-
~ With gold at 200, and bought
United States fye-twcuty lonls a,
par. They stepped INTO the Office Of
the Controller Of the Currency and
asked to be csta blishc ! as National
bank. and received from him $270,
600 in currency, without interest,
upon pledging these bonds Of the
United States they had just bought
with their $500, 900 Of the same
kind Of money. Now. let us bal
ancc the books, and how does the
account stand! Why, the u. s.
Government receives $50, 900 in
Natl ,nal bank bills more from the
banks than it gave them in bills; in
other words, it borrowed of the bank
$50, 900 in currency. for which, il
fact, it paid SIS, 900 a year in GOLD
interest, equal to $50. 900 IN cur.
rcncy, for the use Of this $50, 900
Let me repeat. The difference be
tween what the United states receiy.
ed and paid out was only 30, 900 ane
fer the use Of that the Goyernmen,
pay on the bonds deposited by tn,
company, bought with the sam,
kim. Of money, SIS, 900 year inter.
est in gold, equal to $36, 900 in cur
rcacy.
But the thing did not stop there
The gentlemen were shrcwl finan
cicrs; their bank was a good one:
they went to the Secretary Of til,