The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1870-09-08

I make all their enterprises profitable.
: In the divided state of opinions in
, Congress, the details of the tariff in
[ many respects were not satisfactorily
adjusted. For instance, the present
: duty on coal and salt, both prime
necessities of life, should have been
: included among the reductions.
THE INTERNAL REVENUE.
The Democratic Convention also
denOunees the internal revenue sys-
I tenn as uncomfortable in its oppressive
exactiOns,n and demands the imme-
diate repeal of the stamp and license
taxes and the taxes on sales and in
comes. These very taxes were abOl-
ished by the law of July Is, though
fOrty-seven Democrats in the House
of Representatives voted against the
repeal. Let this resolution aud their
votes go to the country together. But
they propose, in this platform, a new
mode of managing the internal reve-
nue.. They say this tax "shOuld be
. collected by State and county Offi-
cials." And this doctrine is put forth
by that party which has so long been
preaching crusade against central
iZatiOn and usurpatiOn of power by
the General Government The rights
Of Independent, sovereign States"
have been one Of the dearest dOgmas
OF the party; and now they propose
to place both State and county officers
under the command of ga Federal
officer, appointed by the President"
If this be not consolidation of power
in the hands of tho national admiE-
istratiOR, tell Tue what is. The pro-
position is too absurd to be debated.
THE NATIONAL RANKS.
The Democratic Convention also
demands the immediate abolition Of
the National Banks, and the issue Of
Treasury notes in place of the $780,
OO0, 900 of National Bank notes now
outstanding. Let US consider this
reckless proposition. Do the De-
MOera0y mean that theirs shall he no
banks in this country 3? that the
| United States shall be the only mod
ern nation In which there are no i9-
stitqtiOps Of credit, whose sOundness
is in some legal manner guaranteedtO
the peOple2 Or, will they remand us
to the Wretehed system of State banks
from which the National Currency
act so happily relieved US? Ii this be
their purpose, the scheme will findnO
/ favor among the millions of our peO-
pie who suffered untold losses under
the old system, but who have never
last dollar by the failure ofa Nation
al Bank.
So far as can be learned from its
terms, the resolution proposes no
sui stitute for the National Banks or
their circulation except direct issue
from the Treasury OF S3l0,000,O00 of
greenbacks. They viii not only with
draw the circulation, but will abolish
the banks also. This proposition
exhibits the biiHdest ignorance of the
whole subject of money and credit, as
related to business.
BY far the largest proportion of all
the exchanges in this OOuntry-the
/ purchases and sales-are effected, not
by the use of paper or metallic cur
nency, but by checks, drafts, bills of
exchange and other forms of bank
credit. In England, it has been as
oertained that fully 95 per cent, of all
her vast commercial and business
/ transactions are carried on by these
agencies, and only 5 per cent. by the
actual use of currency.
The business of the New York
Clearing House dJTing the year 1859
amounted TO more than thirty-seyen
billions, but only little more than
one billion of money was actually used
in these transactions.
The bank is the modern institution
employed by all civilized nations to
facilitate the operations of trade and
to eeOnomize the use of money. 1t
can no more be dispensed with than
the railroad or telegraph.
Suppose that this policy were adopt
| ed, and the sixteen hundred banks
which now afford facilities for credit,
deposit and discount throughout the
country were abolished, and that the
Treasury should issue greenbacks i'm
place of the bank notes cancelled, to
whom would they be issued? To the
creditors of the Government, to the
holders of bonds in the great money
centers, thus increasing the glut in
the cities and the stFingeney in the
country, and abandoning to the tender
mereies of private brokers and money
lenders all those who need credit in |
the transaction of business.
GRERNBACKs VERSUS THE BANKS.
The issue of greenbacks would ut
terly fail to meet the necessities of |
business, which requires creditas well |
as currency. There are still graver |
difficulties in the way. Under the /
late decision of the Supreme Court of
the United States not one dollar of
the new greQlbacks would be legal ]
tender for any debt existing at the
time Of their issue. Indeed the plain |
inference to be drawn from the Opin- /
ion Of the Court is that the whole is
sue would be declared uncOnstitutiOn- |
al. Treasury notes were made legal |
tender only as q measure of over |
whelming necessity to meet the de- /
mands of war. Even those Jud5es |
who dissent from the opinion of the /
Court, defend the issue of the legal 1
tender notes only as a war measure. /
And yet the Democracy propose to |
plunge the country into all the legal 4
difficulties which are sure to arise out /
Of q new issue.
The proposed issue would so depre-
ciate the value Of the greenbacks now |
out standing as greatly to derange !
business and indefinitely postpone the
return To specie payments. As the /
banks are now organized, the chief |
strain will fall upon them when re-
sumption takes place. They are re-
quired to redeem their own notes in !
greenbaeks and must therefor march /
abreast with the Government in the /
Approach Of specie values. The Dem
Ocracy propose to abolish the banks
Immediately, and leave the Govern
ment to carry the burden alone.
The matter Ofexpense il also worthy
of consideration. Some people seem
to think that the abolition Ofthe banks
would abolish or cancel the $500, ,OOO,
600 Of bonds on which they are based
or would at least cancel the interest
on the bonds. This is, of course, 4
mistake. The Stockholders Of the
banks own the bonds, and they would
still own them and draw interest on
them the same after as before the
abolition Of the hanks.
The Constitution does moi permit
the State or local authorities 10 take
the bonds as such; nor is the prinei-
palOf the bonds taxed by Congress.
But the S390, 900, 900 of bonds that con-
stitute bank capital are taxed by the
States in the form of bank stock, and
Congress taxes the banks directly i'll
many ways.
During the year 1859 the banks paid
taxes as follows
To the UnIted States .....--........-slO,O20 ,O20 So
To the several States S,O727ll
Making total tax of..............-.sI9,OS2 on, ,e93
Or four and a half per cent. on their
capital.
This nineteen millions of revenue
would be wholly lost to the nation
and to the States by the abolition Of
the banks.
But, fellow citizens, this topic is too
important t0Gbe dismissed without ex-
animation in still another direction.
II the immediate repeal Of the Ma
tiOnal Banking law would cause no
reyulsion in the business ofthe cOun-
try; if there were no constitutional
objection to an additional issue Of
800, 600, 600 of legal tender notes, and
no violation of plighted faith in it; / [
should still insist that this proposal of
the Democracy is most unwise, aud
its adoption would be extremely dan