Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-06-22
ssIfa d.gsvsIFrom the New York aerald.1
4 he National Bank System a Ma
,;...... ffonaI Fraud. ,..,.


-,,...,., f.s tfOnaL Fraud. -,l.--,s
sSf The national banks are q gross fraud
~ upoiI the public in two ways-a double
fraud first upon the people individually,
-s.who are induced to believe they are all safe
-7sbecause they are called national and have a
diasort of connection with the government; !;
and next upon the people generally, be-
cause they hold privileges and appropriate
a large amount annually that belongs to the
lss people and the government. 2 Let. us ex-
a plain; ;seFirst, with regard TO individuals
doing business or depositiDg with the ma
-. tional banks. The mass OF the peo-
IA pie are not aware that these banks are
no safer and afford no more security
for deposits or business transactions
, tban4 any other banks or CONNER
cial and business establishments. They
81 suppose that these associations, being in
sasi vested with national character and name,
and the government undertaking to redeem
q their circulating notes, must, therefore. be
safe. But individual depositors, or indi-
-s.,uals doing lusine So with them in any way.
y are Just as liable to be cheated as they
would be by the firm of Smith, Brown &
Jones. The government is not responsl-
HE. and cannot afford relief to the victims.
a a ,Phey are not 50 safe, in fact, as the old
weli-known banking houses were, for the
reason that these had long established
credit, and carefully guarded their rep
utation, whereas, the national banking
associations are newly created, and many OF
them are composed Of or governed by mere
sea sspeculators. This has been seen by the
= failure Of the national banks at Wash
- s,ington. New Orleans and other places.
80 There the people have realized the rotten
81 ness and Insecurity of these institutions !;
/, ! hut elsewhere they have yet to learn, we
shs fear from bitter experience. In plain
words, the whole system is fraud. The
Goyernments BY giving the - banks SIs nation
them, is really playing confidence game
ri. and cheating the public. Even their cir
cnlation could not be redeemed by the
So Government in great crisis or general
g sriiasf,.up, notwithstanding the assurances
of Mr. Comptroller Spinner or Mr.. Secre-
(, tary McCulloeh to the contrary. -
q sTs Rtif the national baL X system Is fraud
Ia mon the people generally--upon the
country, because it takes over twenty mill
: lions year inprotits on acirculatien which
rrfvate companies ought not to have. The
/. Z. currency is the money of the country, and
should not be issued by the Government
. for the benefit of private corporations.
:. The profits of this circulation belong to
the people and the Government yet they
vare given away to the !. .inalviaaat stock-
holders and managers of the national banks.
such boon is not conceded even to the
bank of England. notwithstanding all its
zvaltiable services to the State, The British
Government takes two-thirds of the
p,ofts Of its circulation not represent
j "a byI specie in its vaults. In no other
country has the Governments recklessly
Q given away such q vast privilege without
any consideration. Nowhere has the mass
of the people been so odefrauded for the bene-
q fit of favored few. It is the greatest ano-
,maly in a republican country. We are
! surprised that such an act as that creating
the national banking associations ever
= passed or is permitted to remain in force.
~ There Is no parallel to such stupidity and
.eeTtrayaaanceo onthe part of a Government.
The people are bowed down with the
weight OF debt and taxation, both Federal
Government Is declining TO such u de-
! crreeql that we are threatened with
an increase of debt: yet we
+. throw away over twenty millions
"a Year. Such stupidity and recklessnecs
would be hardly credible If we did not see