Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1870-07-28
THE CRISIS.
Tor the Herald and Tribune-l

Z THE CRISIS.
FOR tle Herald and Tribune.I
MEssRs. EDIToFs: Following up the
objections that present themselves to my
hind in our National Bank System" l
bme to that provision of the law which
bquires the Banks to keep in their vaults
certain per cent Of their circulation. as
j reser;e fund. This provision requires
he withdrawal from circulation Of {, sum
pprolimating $167.000.0 And as the
banks have the power to Withdraw this
Sm pf United States notes from circuia-
ton, and they only furnish S3O0,O0O,O00
circulation of National Bank Notes, it fol-
hws hat the actual circulation furnished
us people by the Banks Is the S3OO,OOO.-
Go national currency issued, less the
SG7DO0. 900 withdrawn or Sl33. coo, 600,
isthe net gain to the people in circulation
By tbs law. 1t is the interest of the
&nls to drive from circulation all other
khdsof money, that the people may be
cograled to use the national currency.
Theytake advantage of this provision Of
the lw to draw from circulation the United
State notes the only money the people
hayefee of interest. On the Erst Mon
dav January, 1868. this reserve fund
amouted to the sum Of Sl5j. 79G.JS9, and
consisted in proportion Of money Of the
following denomination, to wit: United
StatenotcS S97.Ij3.47 specie SII.749,-
IA; compound interest notes, &c Sj3.-
$3.50 An examination of these fg-
ures aggests the following inquiry. Why
do thtBanks hold in their vaults the sum
Of S9.i53,41S United States notes which
yieldd them no interest instead of the in
terestoearing notes and bonds? If they
wouldeonvert this sum into compound IN
terest lotes and other public securities it
wouldyield them as interest the sum of
S5,44 pos annually. and supposIng that
they lid this sum Of United States notes
all thdime in their vaults. and have done
50 foy he six. years the system has been
estal She'd, they have apparently lest by
the ccration the sum of S33. .2S3.24'.
and the mean time they have deprived
the rople Of circulation to the amount OF
S93.j3.47S United States notes. Why
the anks should do this Is the question
preslted. The answer Is found in the
foIlOing statement Of facts as they exist.
Bv lrhdrawing from circulation the S92,-
453 IS United States notes or grcenbackS
whio the people have without cost and
whia they prefer on this account. it Will
plac them under the necessity Of looking
to te National Banks for a circulating
meum. This circulation they can have
froI the banks by paying from 10 to 20
per.eut interest annually. Thus 1t Will
he zen that while the Banks would only
reeve from the government the sum of
Sj.4129S annually as interest on the
intest bearing notes of the government,
the withdraw from the people United
Staes notes to the amount of S92. .153.47S,
anQlorces the people to take their notes
in hu at a high rate of interest. and by
thiImeans they get from the people, from
S9LOO.OOO to Slj.000,O00 annually in
steN of the $j.547.2OS, and instead of
lostg this sum as above indicated by
keting United States notes in their vaults
tho make from S4,O00,O00 to Sl0,O0O.-
OOl off of the people over what they would
getfrom the government by holding her
intrest bearing notes. Thus the Banks
haze the power to create a demand for
mnev among the people and at the same
tine they alone can give a supply. This
thN do at enormous rates OF interest. BY
tbs means they are accommodating massive
fotunes while the great body Of the PeO-
pB are becoming every day poorer and
les able to pay the taxes levied on them
bdthe government to pay the bond holder
hs annual interest. There is yet another
OBJECTION which to my mind is worthy of
serious consideration. 1t Is that this is a
monopoly of a most dangerous character.
Not only does it jeopardize the financial
Interest of the people but the very exist
elce of our republican form of govern
ment. That monopolies are dangerous to
tie liberties Of people | need not stop
here to convince any man, his better judg-
rnent teaches him this, and experience has
demonstrated the truth of the proposition.
We have seen in the past, nation after
nation rise and fall by reason Of internal
dissensions and wherever this has occurred
it can be almost without an exceptional
case traced to this cause. MonOpOlles are
of such a nature that they grow up among
a reople almost imperceptibly. and gener-
ally when the people awake to the danger
menacing them. and would resist these en-
crOachments they find that they have
power that bids defiance to all their efforts
to dethrone them, and the alternative left
the people is to either tamely submit or
resort to the sword. The first course Sc
cures their complete degradation and the
second in nine cases out of ten results IN
the dismemberment and destruction of the
government and the establishment of petty
dynasties in lieu of tho grand whole that
once existed. That money possesses a
power peculiarly its own none will deny
and hence the creation of monopolies based
on money is of a most dangerous character.
This monopoly had hardly become organ
lied before it began its crusade against
the only money the people then had as cir
culation-the United States notes. And
in its efforts to drive from circulation this
money, that the people might be brought
to state of total dependence on it for a
medium of exchange-the first step in Its
aggressive policy-it found in our then
Finance Ministera strong ally, and through
the Influence of Mr.. Johnson's Administra-
ton the whole policy of the government at
once changed and contraction was declared
to be necessary by our chief finance officer
The contraction theory promulgated by