Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1868-08-29
How BaaI<ers Argue and How
They Act-They Demand Gold,
Va

They Act-Ihey Demand 6Oids
Vet Pay I'm 6lreenbacixs. -.r
An association of men OF capital, who,
when gold was worth three hundred to
one hundred in greenbacks, wishing to start
q aNational Bank, clubbed together and with
q traction over $3.50 in gold purchased
one hundred thousand dollars in green
backs. With thiss paying one dollar in
greenbacks for every dollar in bonds, they
purchased one hundred thousand dollars
in government bonds. These they depos-
tied with the Treasurer at Washington.
drawing, as interest thereon, seven thou
sand three hundred dollars per annum in
greenbacks, or six thousand dollars in gold,
as the letter OF the bond called for. saa
On the 100000 in bonds thus deposited
as security, the Government gave this as
sociation ninety thousand dollars in Ma
tional Bank notes, which could be loaned
at the usual bank interest. These notes
read thus:
'sThc First National Bank of Cleveland
will pay the bearer, ON demand, five dol
lars" .svss- r..-ss
The First National Bank of Cleveland
gold, although they were bought in green
backs. And why SO? Because other bank
ers say that, although the law does not say
that they are to be paid in gold, yet in the
absence of that assertion in the law, the
Government is bound to pay in coin, which
would increase their value over 81 per
cent, the banks receiving for bonds which
cost them but one-thifd their face ($33, ,333)
the enormous sum of one hundred and
thirty-one thousand dollars in legal tender
notes, to say nothing of the many thousand
dollars In National Bank notes which the
Government gave them without interest to
circulate as money. 9di
Let us test the honesty of these bankers
who thus claim gold for the bonds which
they bought with greenbacks.
1.-The First National Bank of Cleveland"
I'VE use this bank as an illustration, be-
cause we have one of its paper promises
before us-gives pledge that it "will pay
the bearer, on demand, five dollars" will
it pay in gold !? Not at all. If the holder
asks the cashier for gold, he will be told
that gold is selling at 81 A in greenbacks
for each gold dollar. What will he pay
in? He will redeem his " five dollar
promises to pay on demand" by giving the
holder five dollar greenback, in lieu of
his National Bank note for the same
amount. The National Banks pay all their
promises to pay in greenbacks, and in
nothing else. They do this because green
backs are legal tender for all debts, and
the National Bank note for five dollars, due
by the Bank to the bearer,is no exception to
the rule that all debts are payable in legal
tenders.
No national bank in Ohio, or any where
else, ever redeemed one dollar of its prom
ises to pay in gold, and yet every national
bank In Ohio and in every other State are
demanding that the debt due them, by the
United States, be paid in coin, because coin
is worth one-third more than paper. A.
The argument these bankers use, to get
their bonds paid in gold, can be used against
them, and with greater force in making
them redeem their promises to pay in gold
and silver. With them it is .sheads win,
and tails you lose' operation, forcing the
Government to pay them in coin worth 81
per cent. more than legal tender notes,
while they pocket the difference, and pay
the people in currency worth but sixty
nine cents on the dollar. y a s.e,uclaf1
These bankers are cute chaps. but
while their argument is but to increase
their wealth by adding to the burdens of
the taxpayers, we hardly think it will
pay. e@ ~ @