The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1870-05-03
Daily ARGUS.
THE NATIONAL BANKING SYSTEM FROM
LOYAL STANDPOINT.

The United States Treasurer, who has
occupied the position for many years, and |
is supposed to have some knowledge Of
finances and the financial policy of the !
Government, does not entertain a very ex
ulted idea of the unsel6shness and benevo-
lence of the National banks. Otherwise he
looks upon them as monopolies, as grAsping,
avsricious and soulless corporations, with
very slight claims upon the sympathy of the
people. General Spinner entertains the
opinion, and no doubt the National bar kers
thihk that be is very short sighted and I'M
just in doing so, that the banks have made
large amount of money by their extraordi
nary privileges, and hence no injustice is to
be done those institutions in the provisions
of the proposed funding bill which affects
Misunderstanding TO the figures and illus
trations of General Spinner, if there is any
class of the public creditors that afford
to substitute four per cent bonds for those
they now hold bearing six per cent. inter
est, it is the National Banks. Here are
out in this position, and We copy from inc
special dispatches to the Cincinnati com
mercidi
Gs,a-sI Simmer United States Treasurer,
has written a letter to Mr, Swayne, OF the
Merchants National Bank, Newton, n. d
in which he argues that the banks have
made immense profits upon their invest
meuts IN bonds, to be deposited as security
he rka
tina, great injustice is about to be done
tine banks, General Spinner says THE
people will, however, be apt to take your
own state ueut of the case, and after doing
little cyphering, Will say to you that their
view Of the case is, that your bank bought
these bonds at about ll3 In currency, at q
time when gold stood at pol, which would
be about equal 10 $50 III gold that you
have since then received back again on the
nominal amount, for interest, thirty per
cent IN gold that you have bought these
stocks with your own circulating notes. on
which you have not paid one cent OF interest,
and that you can now sell these bonds above
par, in gold and that, should you so sell
them, you will receive and have received on
the $50, 900 Of United States stocks so pur-
chased, held and sold by you, S4j,50u IL
gold, for which you paid, FIVE years ago, IN
then gold prices, but SIS ,525, thereby max
ing q clear profit, less duties and taxes, on
this single little investment, of over
81 900.
The national bankers are the last persons
who should stand in the way of the Govern
ment reducing the interest upon the public
debt and thus tightening taxation. They
shoald be willing in this way to do a littls
towards compromising for the privileges they
have received from the government ane
which they still possess. But no. Instead
of being the first to step forward and ofe
TO aid the government in It's efforts TO lessel
the public burdens, the national banks hav
brought al the intiaence to bear they coult
to defeat any reduction of interest on th'
bonds held by them or any dlminution O
the extraordinary privileges that have beer
conferred upon them. General Spinner |,
right in declaring that the banks have nj
claim for any exemption of the burdens
that Congress proposes to levy upon the
bondholders. The banks are of no more
public utility, and they perform no more
functions for the business interests Of the
community. or for the welfare Of the people
generally, than the private banks.-The only
difference then Is that one has the privilege
of issuing circulating notes and the other
bas not, and that privilege is for the profit
of the banks and not the public. And VT
fail to see what benefit Il is to the govern
ment 10 give the bauk e bonus of twenty
millions or more in gold for furnishing
paper currency, and based too upon th'
currency Of the government, when the gov
erament itself could supply this currency TO
the cost of paper and printing. The Ne
tional Banks have made enormous profit
out Of their privileges, hence they shall .
the first to come forward and prefer the
aid to the government in it's attempts
lessen the public burdens, which is tt
avowed purpose Of the funding bill; but tn
they do not do and instead of exhibitin
this l5arality and public spirit, they mas
every effort to defeat any measure tn
proposes to lessen the burdens of the Pc
pie.
TIE Richmond catastrophe rises to