Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1869-02-24
LOCKING UP GREEHBACKs.

Houses of Congress and has every reasona-
BILE prospect of receiving the signature of
the President:
BE at enacted, DC. That no National
banking association shall hereafter offer
or receive, United States notes, or Ma
tional Bank notes, as security, or as col
lateral security for any loan of money;
or Tor consideration, shall agree to with
hold the same from use; or shall offer or
receive the custody or promise of custody,
of such notes as security, or consideration
Tor the loan of money; and any National
Bank offending against the provisions of
| this act shall be deemed guilty Of misde
meanor; and upon conviction in any Uni
ted States court, having jurisdiction, shall
be punished by fine not exceeding
81 600, and by a further sum equal to
one third of the money loaned F.; and the
President and Cashier of said bank which
shall make such loans, shall be liable for
| further sum equal to one fourth of the
money so loaned. The prosecution and
conviction shall be under the act Of June
30, 1854" sa.f....
This measure is aimed at a practice
| which has grown up in Wall street du
ring the past few months The sharpers
OF that locality, not satisfied with
corners" on bonds, stocks, gold and grain
have turned their attention, from time to
time, to CORNERS" on the currency, with
the most injurious effects upon commerce
and trade. But without collision on the
| part of the National banks, these schemes
could never succeed. Parties engaged in
locking up greenbacks for the purpose of
creating stringency in the money market,
have been accustomed to negotiate large
loans to the banks, and leave as collateral
security package of currency; the avails
OF this loan is then applied to a continue
ton OF the borrowing dodge, and so on,
until it cannot be carried further. By
the time the combination hasyexhausted
Its efforts, it may be that ten or twenty
million dollars are in the hands of the
banks as special deposits to secure loans.
A scarcity of currency is Immediately de-
veloped. Merchants suddenly find them,
selves unable to obtain reasonable and
needed discounts on commercial paper at
the bank counters, and are forced upon
the streets to make up the deficit The
rate OF interest advances at once abnor-
mally. Business is depressed, but the
sharpers who have worked the corner
having been aware from the first what was
coming, reap rich harvest out of the
complications, and distresses Of the hour,
while the community at large is heavily
the sufferer. A few large capitalists.
with the aid of a few INSCRIPTIONS brokers,
can thus, at almost any time, combine to
fleece the people. The practice has be-
come a first class nuisance, and the inter
position by Congress to put stop to 1t is
one of The most laudable steps taken du-
ring its present session. Chicago Repub.
I WHAT THE STUPREME COURT DEcI-
D. Gold COnhacts-The New York
papers publish the recent opinion of the
United States Supreme Court in full.
it clearly affirms the validity of gold con-
tracts Mr.. Justice Miller dissents from
the decision altog ether, and Mr.. Justice
Davis dissents from the reasoning. SO far
as it goes to show that contracts for coin
made since the legal-tender act was passed
are valid. But these gentlemen stand
alone, and the court, by majority quite
sufficient to establish the law beyond ali
dispute, announces in it's own words, that
express contracts for the payment OF
coin dollars can only be satisfied by the
payment Of coin dollars, and are not debts
which may be satisfied by the tender OF
United States notes. a.f ...,.ss#s
The follt wing is an extract from the
opinion of the court:
The currency acts themselves pro vid !,
for payment in coin. Duties on imports
must be paid in coin, and interest on the
public debt, and the absence of other ex.
press provisions, must be paid in coin
and it hereby requires argument to prove
that this positive requirement cannot be
fulfilled if contracts between individuals
to pay coin dollars can be satiifed by offers
to pay their nominal equivalent in note
dollars. The merchant who is to paw
duties IN coin must contract for the coin
which he requires. The bank which re.
celVes the coin On deposit contracts to re.
pay the coin on demand. The messenger
who is sent to the bank or the Custom
house contracts to pay or deliver the coin
according to his Instructions These are
all contracts, express or implied, to pay
coin. Is it not plain that duties cannot
be paid on coin if these contracts cannot
Y be endorsed 2" So go
These contracts have hitherto beensup-
posed to be sustained only by honor and
conscience; they are now declared to be
valid in law, and will be enforced by the
courts.-State Journal.
Gambling dens are outlawed--se are
counterfelters retreats. Legislation is
against them-not to reform the gamble
or tie counterfeiters--but to stop then
criminal business and protect society
| Upon the same principle we have the
right to shut up rumshops and punish
their keepers. Wssconsi,e Chief
:, GREAT CHANCE FOR A CAPITALIST
| The Water-Power at this place has been
made at an expense of over $50 600
and completed except what will be of
mere triHing expense. The WATERFOWL
er and adjoining lands are now clear of
| al laua1 f}ico tn !