Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1870-11-29


quency does not cause uneasiness.
In other words, our banking system
IS perfect in principle the only OBJ
lection is, that banking facilities are
not equally distributed throughout
the several States. In reference to
tho double interest which the Nation
al banks receive, and which the old
State banks received when they were
in existence, we. say that the Gov
ernment at all events must pay the
interest due on its bonda to some
body. Why not as we'll pay it to
the National banks In reference
to what the banks receive from their
customers for the loan of their cur.
rency; this is a matter entirely be.
tween the customer and the banks,
who, if he is responsible will not get
money of the banks, unless its use
compensates him for the interest or
discount he may be required 10 pay.
1t 10 favorite idea with superficial
thinkers, that the Government should
abolish National banks, redeem their
bills, and supply their place with
greenbacks, thus saving to the PEG.
pie the interest and discounts thew
pay to the banks for the loan of their
currency. Suppose this was done,
the Government will not do what
the National banks do. 1t will not
receive deposits, buy and sell bills OF
exchange, lend money and discount
or buy promissory notes. Who will
do this, in case Of the abolition OF
the National banks? Nobody but q
class of reckless spectators and
swindlers desires the restoration OF
State banks. 1t is very certain a
class OF irresponsible corporations
and individuals would spring up, to
whom from necessity, the CONNER.
clal world must entrust the custody,
receipt and disbursement Of all mon
ey employed in settling the balances
Of trade. The orders, checks. bills
of exchange and drafts of such cor.
porations would be valueless, except
in the community where the individu.
al corporators were known to be men
OF honor and credit. Adept scoun.
drels would engage 10 the busincs
OF banking, and when their confiding
neighbors had deposited their money
with them, they would pocket the
funds and abscond This is the oldest
OF the old exploded schemes Of bank.
ing, and opens SO wide field foI
successful villainy that it would
swallow up oil other modes of legal
lied robbery and fraud. The losses
entailed upon the community by the
failure and fraud of such institutions
would soon far exceed what we now
pay to National banks for the use
Of their currency. Nor could we 10.
quire Of these institutions as secu.
rlty to the community, TO invest
their capital in the purchase of Ma.
tional securities, and deposite them
to secure their creditors. If we
| should do this, we must allow
them TO issue bills to near the
amount of the pledged securities, or
they would have no capital where
with to do business. No corporation
or individual could or would engage
in the business Of banking'if compel
led to invest its funds in the purchase
of Government bonds, to be held in
trust for its creditors, unless it is al
lowed to issue paper currency, in
lieu of the capital pledged to its cred
itors.
So without National banks, it il
clear that State banks or corpora.
tons wholly irresponsible must take
charge and have the handling of all
the money employed in commerce
1t is for the people of the United
States to choose which system is the
better. We think that National
banks ought TO exist in every city
or town of 1000 inhabitants, where
a banking corporation h as the ability
to purchase and pledge to its bill
holders and creditors $l50,000 Of
Government bonds and the with.
drawal of greeLbacks to the amount
OF their currency would prevent an
imitation of paper money.
The WORLD ON THE THIRD PARTY
MoyE.-The New York World, sneak.