The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-06

was passed by 90 yeas to 55 nays. OF the 90
yeas, 81 were Democrats and 81 Republicans.
Of the nays were Democrats and 81 Repubh-
cans. OF the 81 Republicans who Voted for
this act OF reputation, 40 were from States
south or west of Pennsylvania. OF the 55
members who voted to pay the interest we had
agreed to pay, % were from States south or
west of Pennsylvania. The vote of the Southern
and Western Republicans, therefore, was 40 for
taxing the bonds to % against it, while the
Western Democrats we're unanimous for that
course. While there is, therefore, slightly
larger majority at the West than at the East
in favor of this measure, the difference is not
large enough to be very important. Aud on
the whole, as there are far more of the bonds
owned at the East than at the West, the
figures do not necessarily imply that the West
is more uusound on this question than the
East. Great unsoundness prevails in both
sections. We do not mean to imply that all
who vote for taxing the interest on the bonds
10 per cent. would vote for taxing the princi-
pal of the bonds out of eXisence; nor, though
the dishonesty OF the two acts is the same
in kind would we declare them tbs
same in degree. The difference is as great
as between stealing S5 and stealing
500 One is petit larceny, aud the other is
grand larceny. The former brings year in
the County JAIL the latter, five years in the
State Prison. But the steps from the first
pollution of the national honor to its repeated
and per Jetual prostitution are of easy descent
and of irresistible tendency. The remedy for
these tendencies towards reputation does not
lie in rebukes of knavery, or in exhOrtation to
piety, but in the adoption Of such financial
measures as shall utilize the national bonds to
the utmost extent, and identity them with the
financial economy OF the people. Mr.. Chase
did wise thing, and enhanced immeasurably
the national credit, when he organized the Ma
tOnal Banking System. and therein provided
a business utility for $40 OO0, 600 in national
bonds. But for this home market for our
bonds, they would not now be worth fifty
cents in gold on the dollar, and they would
have been negotiable during the war at a far
lower rate than they were, thus vastly incress
ing the expense OF the war and bulk of the
debt. Congress should perfect the work which
Mr.. Chase left unfinished, by requiring larger
deposit of bonds from the National Banks now
existing, until every dollar of national cur
rency issued should be secured by bonds
worth one dollar or more in gold, and until
the excess OF deposits aud loans over the capt
tai OF these institutions should be in like mau-
ner secured by deposits OF national bonds The
National Banking System whose obligations
to the people, whether as holders of currency
or as depositors, would thus ba secured by de-
pOsits equal in gold to the amount Of these
obligations in currency, would thus ba the
most secure the world has ever seen, without
imposing any greater burden on tue banks
than is necessary far the security OF the public.
Indeed, it would be absolutely impossible fol-
either bill-hOlder or depositOr TO lose dollar,
and that no matter how soon the country
should return to specie payments. Having
thus been placed on the rock of specie values
the banking business might be madJ wholly
free by the repeal of that clause OF the natiOua
bank act which limits the amount of its cur.
rency TO the $500 0OU, 600 now existing. Banks
which had deposited with the Government 81
in gold, or its equivalent in bonds, tor every
dollar of circulation they are liable for, and
for every dollar of excess of their deposits oVeI
! their capital, will incur no liabilities, whether
to bill-holders or depostOrs, bnt what they
! can pay. Under such safeguards Congress
could as freely allow everybody to buy anC
| sell money, which is the function of banks, a
to buy and sell meat. The effect of such a re
fOIm upon our national credit may be judged
from the fact that beside basipg all our pape
currency Git the greenbacks were withdrawn
on specie or its equivalent in national bonds
it would absorb three times as many bonds a
the present system, creating an imperativ
! home market for one thousand millions il
bonds, instead of $345, ,O00 900 as now. Thu
the national debt would become the broad un
derly ing basis and foundation of all privat
debts, and the interests of all sections of tn
country and classes of the people in maintain
ing the national credit would be so obviou
that all thoughts of reputation would cease
1t would thus be converted from unproductiv
and non tax-paying to tax paying and produC
tive property, without reputation and with
out dis honor.