The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-08-11

Gor jackson and down with the banks'' was once o
potent ,ai a cry Every argument used against
Senfold force against the present system. The
power OF Congress to create bank or
corporation and locate it in State
win never he admitted by the people; nor will Con-
gress be permitted to hold the banking interests
under its control to be used for the purposes Of any
party nor will the banking interests Of the country
be permitted TO Congress for Its protection and
pront. There is no legitimate connection between
the banking business OF the country and national
legislation; and II there were there is no compcnsa-
ton to the people for the privileges and mmunities
extended to banking capital under the present sys-
questionable utility The present Secretary OF the
Treasury, always banker, In his last report says
upon TINS sao,ecsao all banking systems under
objections aud IL there were in existence IN the
United states the Secretary woud hesitate To recon-
mend or endorse even the most perfect that has been
aevised.n And in relation to the present ma
aonal banking system he says:-"At some
more propitious period, when the Union shall
wise for Congress to consider whether the
national banking system may not be dispensed
wth" The total taxes paid by the banks for the
year ending January !, 1867, were $5,G576l6, OF
which only s35o,544 was tax on their capital. The
railroad companies paid TO the general government
the year s1,Gl4 AS, and the manufacturers OF
the coal oil you use paid s5,3l7s98. For the year
iS66 the BANKS trust companies and savings instit-
lions togeler paid only 55l5 including Sa1te6i
tax on their capital: while the railroad companies
paid TOBACCO s5 eig ss. 81 81 SG g
taxes tiey pay from the people and so do railroads
and ali manufacturers. The Comptroller OF the Cur
rency, the specai advocate aud defender OF the
national banking SYSTEM says truly:-"A tax on any
business Ii paid by the customer. IL is 80 with
banks.n Their taxes, therefore, are no more an
Equivalent for their Special privileges and exemp-
tiOns, and no more entitle them to a national cur
rency tnan the 600 paid by boots and shoes or
the 49, 1885, 900 paid by clothing or the 600 paid
by liquors. is entitled to currency. The banks have
q special privilege Tor special radical purpose,
which Is to concentrate ali business all power and
influence in the general government. AZ this point
allow me to refer TO the report OF the Comptroller Of
the Currency. He states that the banks have loaned
the government four hundred and ninety millions OF
dollars on which they receive interest annually in
gold OF nineteen million i've hundred Thousand dol
lars; but he says hundred and fifty millions dol
lars, never less, generally one hundred and eighty
millions dollars are required to be held by the
banks constantly in legal tender notes reserve
percentage vi their circulation and deposits, and
that this amount is "a gratuitOus loan TO the govern
ment. The banks get no interest on it, IL Is so
much OF their capital uDproductive, invested in nom
interest bearing notes OF the government" and lie
therefore thinks That IN public estimation nine mil
oDe U' e @ Pd ~ no S Se s
slcered as received by the banks, because the law
requires them to hold one hundred and fifty millions
OF legal tenders as a reserve Ii the hundred and
A1ty millions OF legal tenders held as reserve by
the banks are gratuitous loan to the government,
why are not ali legal tenders like loan, and why
should not all the paper currency be OF like charac
ter because the cheapest and the bestS But the
banks DO not, IN fact make gratuiious loan OF
hidden to use their reserve in their own
business they remit it to- New York, where
~ 10 uot ciu III reSerVe Out Is lOaneO 10 STOCK DrO
kers and spectators. Receiving interest on the
amount under the name OF deposit, they really loan
1t on call to the city banks, which in their turn
It at higher rate OF interest AS as IL Is dis
covered that under the practical workings Of any law
aectng capital there IL loss Of profits the law is at
once ingenio changed, asEwas done in regard TO
tins legal tender reserve. BY the law of March 2,
1861, two-tifths only OF the required reserve need
be kept IN legal tenders, the balance could be
be held In interestpaying securities. Now, OF what
benefit to the people Is the national banking sys
temp The money they loan to the government is Of
no higher value than the money loaned by Others
and therefore creditors oil the government they
are entitled to higher consideration. But they
furnish stable, uniform currency, it is said. Is
their currency any better, cheaper than that fur
nished by tine government itself, or any more uni
form in value? For the best of their currency they
promise to pay legal Observation-Disclosures by
them to be the worst of government securities. II
we substitute the government currency Tor the cur
rency OF the banks we save nineteen millions year
interest In gold, and have better currency Than
they can furnish,