The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-02-16

The first is MIR. RandalIs bill. which pro
poses TO cancel International bank circulation
and issue legal-tender notes in place of IL. J
This would impart uniformity 70 our ourrenov
and save the Government about twenty mil
lions of dollars annually. The only objection
to it is that il would take this twenty millions
from the national banks, which consequently
oppose the proposition, with every prospect of
success. The other measure is to fund the
coInpound-interest notes falling due during tbe
coming year into certificates Of Indebtedness.
bearing three or four per cent. interest, paya.
bic on demand in legal tenders, which NAV be
held by the national banks as a reserve fund
for the redemption of their notes and deposits
This plan was proposed and is now urged by
the national banking interest, and, If passed
will infict additional burdens on the tax
payers and give additional profits to the
banks
The national banks are required by law to
retain in their possession an amount of legal
currency equal to at least twenty five per cent.
of the total amount of their circulation The
intention of the law evidently was to require
the banks to keep this reserve on hand in
plain legal tenders; yet the banks have up to
the present time, been permitted to make use
of compOund-interest notes and clearing
house certificates for this purpose, and thus
draw interest on the reserve as well as on their
circulation. The payment by the Government
of the compOund-interest notes thus held
plain legal tenders, upon which they would
make no interest. Hence the plan to issue
certificates bearing interest, eXchangable into
greenbacks on demand, and available for clear
ing-house purposes Viewed in this light this
proposition reveals the most barefaced attempt
yet made to increase the revenues Of the banks
at the expense of the public.
The amount of these notes notes falling due
this year is estimated at 500, ,0000 If legal
tenders are issued in payment of them the
Government will make the interest, and the
reserve of the banks will consist of what the
| law intended it should, and what common
| sense demands. If, on the other hand the
| four per cent. certificate system be adopted
| the banks will as heretofore be adding to their
already inordinate profits four millions of dol
| lars in the shape of interest on these certif-
Gates. The objection that issuing legal tenders
| will expand the currency is shown to be futile
| from the fact that the compound-interest notes,
! although not in circulation, yet stand as cur
| rency by being held in reserve by the banks.
| As q matter of course, upon their cancellation
an equal amount of legal tenders will have to
l be retained by the banks, so that no initiation
\ can ensue. Moreover, by the terms of the
\ proposed act, the certificates are exchangeable
1 into currency ON demand; so that, if the ne
! cessity should arise or the convenience of the
| banks should require it, the Government
| would be obliged to pay greenbacks for them.
The only question is whether the people or
| the banks shall have the benefit of the
| interest.
1t is matter of twenty-four millions of dol
| lars per annum to the taxpayers, yet the
national bank influence at Washington is so
strong that both of these questions will proba-
bly, be decided in favor of the banks and
against the people. If these institutions are
already powerful enough to control the legisla-
ton of the country on all questions affecting
their interests, what may we not expect when
they shall have had an opportunity to organize
themselves for an aggressive warfare upon the
rights of the people We protest against the
continuance of this system as being needlessly
extravagant, and as tending to build up a
gigantic financial and political oligarchy which
will ere long assume to control the politics of
the country; and we sincerely trust that Con-
gress will not permit itself to be made party
to such fragrant piece of inju stice and extra
vagance as these banks are now endeavoring
to fOist upon the country.