Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1870-06-16

ASuCJ SOSo SNel NhSASt Np PNi
without question, and no matter
what bank issued it. An associa-
ton in New England for the detec-
ton and conviction of counterfeit
ers of the notes of New England
banks only paid for sentencing,
during the last ten years previous
to the winding up Of State circu
lation, over six hundred persons,
and the same association has con
tinued, for the last sic gears, to Of
fer the same rewards for the sen
tence of counterfeiters or utterers
of national bank currency, and on
ly one reward has been paid
Therefore, we claim that if any
banking systym is to remain, the
present one is the best that ever
existed, and should be protected
and perfected by congress,
We now ask, gentlemen, that
you will STRIKE OUT of this bill sec
ton seven, or so amend it, by re-
duction of taxation, and a restric-
ton Of its mandatory provisions to
the funding of any United States
bonds, as they mature.
We claim the banks shall stand
on the same ground with indi-
viduals, so far as it relates to the
control or paying off or eXchang-
ing bonds not get matured and
we claim that any attempt to cOerce
the banks to give up or exchange
bonds before their maturity, would
be Jreahing faiM on tho part of
the Government, an act which i'll
cannot afford TO do, as an exam
pie to the world.
| know it is said that banks can
take out their long bonds, and do
"what they please with them. y
Very true; they can; but it is an
act that virtually compels the banks
to sell their long bonds, because
there is large majority Of banks,
owning long bonds, that have their
whole capital, or a large proportion
of it, invested in them, and if they
are obliged to purchase new bond,
must sell all they have.
The Treasurer holds the follow
ing classes of bonds to secure cir
culation, TO tUit;
5-2os of 1se2-slx per cents ,..,.," 81. .3o7 $50
DO 1856 ......... 3S G]l $50
8lal2sO 400
1ssis-six per cent, .,......,,,.,,,., W,l9l 99V
10.40s-live per cent, nt,.,,.,.........' O3,geJjO
Old bonds five per cent t..,..,..,,.,.,. IL, I26 000
Currency-siX per cent.....,,..,.., lToloOOO
TOtal, '',''''.''''' '''''' '''t'''' S'i%'o'hoOo
You will see by this official state
ment that only little more than
Oae.Mtrd of the whole amount of
bonds held for circulation is of
the class that tho Government has
the right to fund or disturb. We
claim that the banks did and had
the right to believe, that in the pur
chase of the long bonds they OBJ
tanned the same vested rights as in
dividuals, and the foregoing state
mcnts would seem to prove that
fact, as they did purchase nearly
two-Mrds Of the whole amougt in
the long bon2s-thus proving, what
is always fact with capital, that
it prefers a certainty Of contracts
to an uncertainty.
/ have denied the right to dis
turb any bonds ,mmatHred. | will
not deny the poaoer of Congress to
pass any act it may deem advisable.
But after what has been done by
the national banks throughout the
country, answering every call and
aiding the Government in good
.fatM, and finally purchasing and
paying large premiums for these
very long bonds, for the purpose Of
n permanent investment, ask you,
is it good .Jatth, is it morally right
is it not in fact repudiation-to
treat the banks, as owners of a por-
ton or the public debt, any differ
emily from individual owners ?
Who are the banks, Mr. Chair
manp Are they here merely cor
porations sole? No sir; we are
here representing those institutions
as trustees; but the owners of the
banks arc not only individuals, but
savings banks, executors, admins
traitors and trustees of the estates
of widows and orphans, n list of
persons that will number two hun
dred thousand. These are the peo-
pie that own bank stocks, and these
are the people to bo affected by IN
justlg forcing these permanent in
yestments on to the market to the
extent of two hundred and ten mil
lion dollars, in q given time, They
have purchased these stocks, at
high premiums, on account Of the
supposed certain and undisturbed
value of these long bonds, paying
six per cent, and this bill prOpo-
ses to so force their sale on to the
market as to take away from the
shareholder the premium that he
paid on his stock, but is likely to
bring the bonds down to par, and
thus oblige the stock holders to
lose still more, growing out Of the
sale OF the bonds, and many of
them cost large premiums.
What is the result Of this COM
pulsory measureY Is the Govern.
ment going to save any interest by
it? No. If it were, then an OBJ
jcct would appear. But such an
act simply compels the banks to
cell their long bonds, purchased
Of the Government in good faith,