The Highland weekly news. [volume] (Hillsborough [Hillsboro], Highland County, Ohio) 1853-1886, 1867-09-05


Senator Sherman spoke at Canton
on the Goth, and took occasion to ex-
pose the doubIe-deaIing of the Demo
cratic leaders on the subject of finance.
He charged, however, that they dared
not take issue on the matter. He
spoke as follows:
! National credit Is our only reliance
in times Of war or peril. Debts can
not be enforced against a nation by
courts of law, and rest only upon hon
or and faith. We cannot afford to
tarnish these. All that may be done
consistently with these, to Tighten our
burdens, will be done by the Union
party; but the malignant whisperings
of COpperheads, who talk about debt
and taxes, are intended only to pre-
pare you fC- repudiatiOn. Now, there
is a good deal said about our national
banking system. As this is a creation
of Congress, the right to change or
modify it is expressly reserved Their
right to issue paper money rests only
upon the consent Of Congress, and
may be withdrawn at any time. Let
us see how this system stands.
To secure the privilege of issuing
notes the banks must deposit with the
Treasurer of the United States govern
ment bonds exceeding by ten per cent.
the amount of their circulation, thus
furnishing a stable market for our
bonds. They must redeem their notes
at their counters and at centres of re-
demptiOn, thus furnishing a converti-
BILE currency. They must keep on
hand in United States money or green
backs about twenty-five per cent. of
their circulation as deposits. They
must pay heavy taxes to the United
States, amounting, last year, to S8,-
069, 1913, and to the States, amounting
to over six millions more. All their
interests are interIaced with the credit
of the national government. They
absorbed and took the place of the
state banking system, which was ut
terly destructive to the national credit
during war, which furnished a curren-
cy without security, and which the
United States could neither receive or
pay out. They are convenient agen-
cies in collecting the revenue and pro-
noting exchanges among our people.
If these reasons are not sufficient to
sustain the system, then it will fall,
and swarms of state banks will spring
up again. By adopting this system
we absorbed or draw out of existence
state banks whose aggregate circula-
ton was $3.50, 100000, which paid US
no taxes, rendered US no facilities, and
preserved no financial credit. We
made a basis which yields us now
$3,00O,000 in taxes, holds S400, ,000,-
600 of our bonds and near $200,000,-
900 of our notes without interest. 1t
is often asked, why not issue $780,
100000 greenbacks and retain the
bank notes ? Won't we save interest
by this? We certainly can do so, but
we lose the market for a large amount
Of our bonds. We must then provide
for the 5000, 100000 of our legal ten
ders now securely retained from cir
culation in the vaults of the banks,
and we kill the goose that yields us
100000 in taxes.
"My conviction is that the national
banking system works well and should
not be tampered with, except to Sc
curea fairer opportunity among the
States to strengthen the security en-
joined by circulation, and in time to
make a national centre of redemption
or clearing house. 1 never was much
of a bank man, but while such agen-
cies are demanded, as they are in all
new countries when capital is scarce,
I believe the present system is far bet
ter than we have ever had, and far
better than for the United States gov
ernment to assume directly the bank
ing operations Of the people"