New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-10-24
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MI Cooke evidently thinks that in addition TO the
national debt being blessing, compound taxes are
also desirable. This summary Of the advantage to
the Government Of the present system is much
stronger argument in favor of the Government as
suming the profits Of circulation than has heretofore
been published. Tuenty Millions Of the above taxes
are burdens upon the people which they may rightly
insist shall be abated The advantages of banks to
the people are that they make capital available to
the public by lending first their money. and
next the idle money Of their depositors. How are
the people helped by banks beng forced TO add 10
the cost of their business $0000OO Of national taxes,
TO be taken from borrowers OF money! Banks (char-
tered banksl, like BARRIERS shops, are part of
the machinery of commerce. but they are not an alb
soute necessity They mainly clearing houses for
traders and traders in turn upon the balances of de-
postors They are of no more Importance than pri-
vate bankers Mr. Cooke in the following sentence
plainly states the real relation of banks to the
people: "Nine-tenths of the people are directly In
terested only in the security of the circulating notes
of the banks for these are in every mans pocket
and thew cannot be affected in value by anything the
banks NAV do-the Government being pledged to
their redemption" Starting from this point, it is
plain that if the Government supplies sSOOOOOOO OF
currency instead of the banks and redeemsit In gold
the people will have currency OF greater value
than National notes, ana Will save $io,VVVVVV VI "
forest at the same time releasing for the uses OF com
merce the capital of banks locked up in Govern
ment stocks Saving $ls, 900 900 by supplying circu-
laton. 10000 900 of National Bank taxes could be
removed to the relief of traders BY this process the
people. not tho banks-Inark tbs dIference-would
save as interest on the National debt tsOOOO
In Bank taxes. NOVo'Oo
Total saving in taxes. .t1SoOo'ooO
This would leave the banks and the people where
they properly belong. 1t wouli give the people
currency of gold and silver, AID q paper currency
issued by the Government redoemable by the latter
in gold and silver. II would leave the banks the
lenders Of their capital and suc1 deposits as the peo
nile would Leave with them without security, except
their CAPITAL and theiE honor Isung circulation,
they would have no responsibility for its redemption.
Banks and currency thus constituted would become
legitimate aids TO commerce, and have less power to
stimulate dangerous speculation than Is possessed by
the present system The point made by Mr.. Cooke,
that the National banks sustained the National
debt. and supplied the money for the Rebellion,
ia a popular error The money for the Rebellion was
got by printing legal tenders bearing notes.
and 1905 and using them by millions per day in buy
ing everything the people produced When this cur
rency became superabundant, the Government took
it on deposit in part at per cent and got another
portion Of it in exchange for its funded debt upon
which IL paid gold interest. The Government. at the
commencement of war, tried TO use the banks to
raise its money, and failed its necessities were DO