Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1867-01-16


all other matters couRccted with the eiito'
rial department should be addressed; EDi
roRs oFTHE APFEAL, Memphis.
We cannot. ~ a rule. undertake. 70 return "Iti
cles not found suitable for publication.
THE NATIONAL BANKING
The Washington Iatoiigcncer throws
out some important suggestions on thi'
subject which are worthy the cousidera
tioD ofaIl thoughtful readers There j
a growing disposition on the part of Tn
house to regulate or essentially modify
the national banking system. The pro
ieet which was introduced by Mr.. >. }
RANDALL, Of Pennsylvania, on Monday
aeeords with the opinions heretofore eN'
messed on the part Of the house by
vote wanting but three Of q majority j
seems pfobable, therefore, that the prep
osifiou of Mr. RANDALL Is 70 h
seriously entertained by the bank
ing and currency COMMITTEES, an'
nv the house. Mr.. RANDALL's bill
p-ovides that the secretary Of the treas
ury ksue, fer the purposes set foTth-th'
creation OF a sinking fund Of eighteeI
millions a year toward the payment o
the national debt aud for cancelling tbs
issues Of the national bsnks-a sum no.
exceeding three hundred millions Of dos
lars Of treasury notes, not bearing inter
.st which shall be lawful money and
legal tender for the payment 81 debts
and that these notes, the amount o.
which issue in any u year shall mol
exceed one hundred millions. shall De
only in exchange for notes issued
nv national banks and for the
purchase Of certain portions Of the
national debt. The nationsl hank notes
So purchased sTe TO be cancelled, aud the
United States bonds deposited for the Sc
cu-;fr OF such issues shall be transferred
II the commissioner OF The sinking fund.
10 lie established by that ae,, 10 be kept
tin maturity, collecting the interest upon
them, and rrinYesting ali moneys 80 re-
eeived ia the purchase OF other evidences
OF national debt.
Eighteen millions q year would thus
he saved by the Treasury when the act
shall be ] q full OPERATION, and this amount
would form a sinking fund that will
slone extinguish the national debt quite
a. fast as, in tie opinion Of many, IL
ought 10 be e~xtinguished, with due re-
gard to the necessity FOR The reduction OF
taxation.
This scheme las, for mauths PAST, had
advocates in the press. The objections
made 10 It were that it might force some
OF the banks to wind uP, 10 the prejudice
OF their debtors, and that the govern
ment would be deprived Of the valuable
services which these banks nave rem
dered, as is made to appear in the report
OF Mr.. HUIBURD, comptroller Of the
currency, by transferring funds fer the
government free from expense, and in
acting as government repositories. But
the government a pay, as it formerly
did, for the transfer OF srccie ia hulk
and a. for the rest, it can Use the ordi-
nsry facilities Of exchange as private
individuals do.
In regard to the banks a. government
depositories, there Is evil lurking in the
system, aud the sooner the government
returns 20 the old s%ubtreasIry plan, which
won its way into public favor in opposi-
ton to party prejudice, the better.
The national hanks would, under the
bill now offered, be enabled to use their
capital in banking. They would have,
besides, government deposits, though
not, it j. h0ped, at the former amounts,
and besides. The entire private deposits
OF business communities and capitalists
that cannot, in the present state Of our
political and financial affairs, find any
employment for their money. The
banks have hundreds 81 millions Of dol
lars in gTeenbacks, with which they do
an immense business by promoting and
sustaining the Spectators, mOnopoiists,
stOck-joibeTs, snd gold operators There
will be little legitimate use Cor the flood
u money until a very decided change
shall have taken place ia the aspect Of
public affairs. The banks would have
the exclusive benefit Of the use Of
his money for some time to come.
The public Journals have from time to
lime thrown out important views pa this
aud have indicated the prcpTi-
of some modification OF the banking
as soon as the condition OF the
will permit il. An abrupt abo-
ition Of the system would neither be
nor polite but, according 20
Mr.. RANDALL's plan, it may be gradu-
lily and safely modified.
The following remarks upon the bank
ng system as it Is, from the Chicago
iTatcs, are not cut OF place here, to-wit:
These national hanks have a circuls-
ion Of some Su0, 600, OuO, to obtsin which
hey have deposited a trifle over that
mount in government bonds with the
Of the United States. Upon
lese bonds they receive Interest in gold,
{ the rate Of six per cent. per aBnum,
While they have the use OF this immense
REGULATION, equal 10 the par value Of
neir bonds, for nothing. This c~iIcula-
ION they lend 10 the People, ami are
lAAAAA NLEA " aA4 ~ NAAaAEE tNA 81 40 AANE ]
ate Of ten per cent. per aHuum, and this
* per cent. in gold, equal to nine
cent. IN carrency, swells the
ltal interest which they receive to nine
zen Ger eenU. iseT aBnum upon their
qminal capital. But their bouds
-arcely cost them more than fifty cents T.
n the dollar, IN actual bona EdC money, :
nd hence their nominal capital is about :
twice As much Is their actual capital, .
instead Of nineteen per cent, they !
staally receive thirty-eight per cent. !.
sheir real paid IN capital. This is :
bonds and circulation alone, and I
Jes not include the immense sums .
hich they realize from the buying and "
ding OF exchange, the immense profits =
from the use Of the heavy gov :
ament balances, which are left with y
iem from time to time, neither the !,
Ormou income derived from the use Z
their individual deposits, etc. !,
Now, when the government returns to !,
IL banks, in the shape OF notes Of issue, .
/ the money they have invested ia the
mos deposited, why should the govern
ent allow them also the interest upon "a
ese bonds2 II is an absolute and IN !.
served gTatuity, paid out Of the federal I
.asury 10 associations which have per- 4
rfne ! DO service, and promise To per- =
M no service, in return for il. Now, !.
e interest upon this $500, coo ia n
nds amounts 10 SIS. 600 per annum I,
gold, or - CO. 90 every six months, >
The interest is payable semi-aRHu3lly. !.
me millions in gold every six months =
3 good deal for the people TO throw a
ray, with their enormous public !,
BIT snd the grievOUs taxation NJ
heb Is pressing Ike a mountain D
lead upon their shoulders, especially ~
il brings them not one single ad- y
ntage or benefit ia return. We are !;
are that while millions Hre being =;
like water. nine million serm- 4 -
SO small that our taN-Tidden people n.
freely think Il worth their While 10 i
X after i. But this il not simply nine l.
iion, II is nine million every six
'nths, Is long as thispeTuiciou system
III ave an existence. And beside "A "a
link of nine million every sly q,
Minis, without cessation or intermis- at
n, all The other 8cls 81 wa-tc.ui ex- ~
vagance and nlisa,nFnpriation Of the -,
pies money during The War are pr
sTied INTO iHsigniiicsHce Il isa leak m
ough which the wealth Of Il universe az
yht disappear. 81