The New York herald., 1870-06-02
NATIONAL BANK JOBS IN CONGRESS,

No8hoOspE " toO nhOEt8 IvUW WolU8 uAuoO ~
Get Them Through the House-Enroutery
Of National Bank Omcors ON the Floor OF
Congress.
WASHINGTON, May 81, 1870.
TwoblIs have passed the Senate this session that
contain provisions for increasing tho subsidy Of the
national banks. Both have been exposed by the
HERALD and apparently killed, but they are now
being rcsuscitated by the revvifying EFFORTS OF the
old Treasury ring managers. There Is SO much
money in them that the parties Interested WIN not
permit them to be sneived by single exposure.
When public indignation Is excited to q certain
point by exposure OF their enormities they quietly
walt for 1t TO subside AND then make another move
NATIONAL BANK JOB NO. !.
Early in February last there was slipped through
the Senate san act to provide national currency Of
coin notes and TO equalize the distribution Of crcu-
lating notes." The title OF the bill gives idea Of
Its purpose. II should have been designated "an
act to give the national banks 50O00 900 more mo-
ney at the expense Of the taxpayers" The bill
covers seven printed pages, but the whole was epito
mized in the HERALD of February 10.
FAIR PROMISES.
After this showing the job was smothered In the
Committee on Banking and Currency and O report
put In circulation that 1t would not be brought to
light until dvested Of its Objectionable features. II
the promise so promptly put In circulation had been
kept in good faith there surely would have been
nothing Of the bill left but Its title. No One how
ever expected good laith from the National Bank
Commit &c, and 10 one need be surprised that the
job has been cooked up and reported to the House @
ties and for other purposes-just $50 900 o00 worse
than when 1t came from the senate.
ITS PRESENT SHAPE
The first sixteen lines OF the bill now being
manipulated through the House are word for word
precisely the same % as T. came from the SENATE ex
and ''nnetyu substituted making the national bank
additional subsidy sos 50000OO instead Of S45 900.
about s2l ooO 900 and adds fully 81, 600 per an
mum, In gold, to the taxpayers' burden. There are
several Glls Incorporated In the last ten sectons
anehe e@ ta Il ss @ss fhs ~ Il
payment and funds portion of our national debt at
however, to give the national banks 500 900 more
money. The question Is, shall the bill pass?
NATIONAL BANK JOB NO. q
The second scheme for increasing the national
bank subsidy is found in the Senate Funding bill
that passed that body on the llth day Of March and
Is now pending In the House Ways and Means com-
mitee. II provides in effect that the United States
shall borrow from certain national banks $685. 70O 772
In currency and that the United States shall pay
the sum OF $l7,67l,s5s In gold, beng at the
rate OF tre less than afty per cent gold interest,"
annually, for currency loan, or considerably over
fifty per cent II the interest Is paid also In currency.
wish 10 be exact IN this matter, and will, there
fore, resate the scheme, 80 that There can be no
tion Of the Funding bill provides that the national
banks may have given them, in addition to the
$500 COO 900 already received the sum of $751; 22l
that being the sum OF national greenback currency
outstanding according to Mr.. Secretary Boutwell's
last monthly debt statement The terms Of this mu-
niicent gift are as f0liOws:-
The banks pay into the United States
Treasury to secure circulation, cur
rency. 1857 007 221
Ten per cent additional. 35,700, 772
Total currency payment sSa2, ,7o7. 99s
The banks receive from the Treasury for
clrculQtlOu Ill cjrrcuCV. $357 107 C01
Balance remaining in Treasury. $50, 700, 772
Now as the banks are to pay into the Treasury for
bonds to secure circulation the sum OF 1892 7O7 093
In currency and receive in return for circulation the
sum OF 1857 007,2 221 in currency, the amount remain-
Ing, $35.7U0,772, is the sum really loaned to the
United States, and for which the national banks are
to receive United States bonds to the amount OF
1892 7O7, $685. that are to draw s17G7I s59 in gold
interest annually from the taxpayers Treasury.
THE WITNESS STAND.
These national bank swlndes are absolutely as
founding, almost beyond belief. l wish to be very
careful not to misrepresent the matter and to prove
the truth Of my statements bring number OF dis.
thorough-going lawyers In the Union. In his cele
brated national bank speech General B. +. Butler
gave the following graphic account OF the system-
Let state the way national bank got itself into exist.
snee in IN New England. A company OF got together
tie I at
Hn They into The he Office q the o the
him ss
g Of hs hs S s Of they nS
y e The nSw 1Gss the
n national nal, bank bills moro from the banks than
IL for waic IN ,d fact Rsd KID
pa ras
Ou; wa. only and for the use Of that the
f sISs ses sss
@ h w a rs e 20 the
only using round Tor the purpose Of ustra
The speeches Of Congressman William s. Holman,
TnaddeuS Stevens, S. L. Cary William ID. Kelley,
Demas Barnes and others contain similar illuslra
lions of the national bank system and Its workings
The bank mentioned by General Butler illustrate
the system has six per cent gold bonds for basis.
The banks provided for In the bills now pending in
Congress viii have four and o half per cent gold
bonds for basis This accounts for q small dlne-
renee In the profits OF the two classes.
UNITED STATES DESIGNATED DEPOSITORY NATIONAL
BANKS.
In the above nave correctly described the opera
tions OF the system as affects the national banks
There are, however, few OF those eleemoSynary in.
stlCutons that are still further favored. allude to
the United States designated depository national
banks.
Hon. John A. Peters, director OF national bank
at Bangor Me- undertook, by bit OF special plead.
Ing In the debate on the floor Of tae House OF Repre-.
senatves las Saturday, to show that the depository
banks were having hard time He said:-
AS director Of national bank situated in the city of Ban
alton very that OF country banks
generally whsh are depostoes know is very doubtful
arhnes advanas banks know I that he banks
mated as pubic depostos know that the bank with
which have been associated aud other banks have
little OF these funds because they
be ready pay without notice farthng belong
Ing to the government.
THEORY VS.. PRACTICE.
The alleged uncertainty of these deposits, repre-.
sented by Mr.. Director Peters, exists theory only.
There has been steady United States deposit In the
designated depository national banks Of not less
than S15 100000 on an average during every minute
OF the last four years. In May 1867 the amount
$2 S66,9oS Same month OF present year S1l 202 647
Take the present deposit and examine both sides Of
the transaction and see how it works. The desig-
mated national banks have now deposited in the
United States Treasury, to secure government de.
posits sl6, 26s, 500 IN gold bearing bonds, upon
which they receive $975810 per annum, in gold, for
interest. The United States has now deposited In
the designated national banks $11, ,202, ,647, upon
which 1t receives no interest.
Dettuct the lesser from the greater and you find
that In this deposit account there is balance u
$6,060S53 in currency, In favor of the designated
national banks and that they receive $975slO inter-
est Annually, in gold. from the taxpayers Treasury
Stripped OF all financial suDterfuge this United
States deposit account stands in round numbers,
fOllows-The designated national banks deposit
with the United states Treasurer S5,OOo,0OO In cur
rency, and receive In return about 900 900 in gold
oil tOft tnta