The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-04-23
HON. WILLIAM D. KELLEY,

ne people do not regard greenback
and the notes OF national banks with equa
favor, but. have a well grounded preferenc,
for the former. They know that the ulti
mate redemption Of the bank notes is secured
by deposits Of government securities anc
the maintenance Of reserve of greenbacks
and as the substance is more solid than its
shadow they prefer that which secures tC
that which requires to be secured. Severa
national banks have failed, and though the
ultimate redemption Of the notes was secured
there was no provision for their immediate
redemption, and the laboring people who
held them had to sell them at great los.
to Ingeany," or other bankers, who could
afford to hold them till the government was
ready to redeem them. Having sustained
no such losses BY greenbaCks they naturally
prefer them.
HON. b. y. BUTLER,
in spec ls5elivered in the House of Rep
resenratfv& November 27, 1867, said -
Let me state the way a national bank got
itself into existence in New England during
the war, when gold was 200 and Eve
twenties were at par, in currency, or nearly
that. A company of men got together
$3OO,O in national bank bills and went
to the Register of the Treasury with gold
at 200 and bought United States Eve
twenty bonds at par. They stepped into
the Office of the Comptroller of the Currency
and asked to be established as a national
bank, and received from him 1910 900 in
currency without interest, upon pledging
these bonds Of the United States they had
just bought with their 100000 Of the
same kind Of money. Now let us balance
the books, and how does the account stand?
Why, the United States government re-
ceives $4,000 in national bank bills more
from the banks than it gave them in bills !;
in other words it borrowed Of the bank
$50, 900 in currency, for which, in fact, it
paid $4,000 year in gold interest, equal
to S36. 600 in currency, for the use Of this
$50, 900. Let ne repeat that the difference
between what the United States received
and paid out was only $50, 900, and for the
use of that the government pays on the
bonds deposited by the company, bought
with the same kind Of money, $18, 900 q
year interest in gold, equal to 5000 in
currency.
But things did not stop there. The
gentlemen we're shrewd 6nanciers; their
bank was a good one /; they went to the
Secretary Of the Treasury and said, "LeI
our bank be made a public depository y
v So that when we come finally to
balance the books the government is paying
$l56,O0O year for the loan Of $50, 900
And this is the system which is to be fast
ened forever on the country as a means Of
circulating medium.
This, only using round numbers for the
purpose of illustration, is an actual and not
feigncd occurrence.
HON. WILLIAM HOLMAN,
in a speech delivered in the House on
March s, 1858, said -
And, sir, while three months ago there
was reason to indulge the hope that the
common demand Of the people would speed.
lily result in the removal of that feature Of
financial policy, to-day the power Of thi:
national bank system is clearly seen. ]
believe that this Congress will go on, moi
simply through its present session, but the
next, and this measure of oppression, this
great financial and political power, will re-
main unshorn Of its strength. Under this
system an organization with mere handful
Of capitalists, obtain the benefit Of over
$500, 900, 900 Of money, the interest on
this vast sum, and the benefit of the politi-
cal power which il commands. Yet the
condition Of the country and the public
affairs was such that, without any embarras-
ment, and in perfect harmony with our
financial system, the people might have had
the benefit of this enormous amount of
circulation in the form Of legal tender notes.
One of the clements of the profits of this
banking system is the interest on $780,
600, 900 Of. currency furnished to the banks
by the government, which, at six per cent
only, secures them the annual sum Of
$18,OO0,000 year as a bonus from the
government In Indiana these
banks are totally exempt from municipal
taxes. Taking the country throughout, the
taxation borne by the national banks is
nothing compared with the benefits Of the
capital which they'll enjoy. They pay the
pitiful sum Of one per cent per annum as a
tax on their $3,0OO,OO0 Of circulation, and
nothing en- their $4,000, 900 of bonds and
they loan out to the laboring men and
smaller capitalists of the country, at twelve
and fifteen per cent per annum, the money
furnished them by the government, on which
they pay but one per cent. This is but a
specimen of the unconscionable profits
realized under the system since its first
organization.
Perhaps these gentlemen may not thank
me for bringing up their anti-bank record
at this time. 1t is one that they ought to
be proud Of rather than ashamed. The
national bank system is one Of absolute in
fanny. 1t cannot be abolished one day too
soon.