The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-04-21
SPIRIT OF TIE PRESS
EDITORIAL, OPINIONS OF THE LEADING JOURNALS
UPON CURRENT ToP1cs-ooMPILED EVERY
DAY ron THE EVENING TELEGRAPH.


from the N. Y. World
On Friday last the question on the issue OF
new notes in place of the present dnaplaisteo,
greasy, nauseous currency OF the national
banks came up again in the House on,
motion TO concur ia the amendment to the
National Currency act previously adopted
by the Senate Mr.. Holman, of Indiana,
promptly renewed the amendment which he
offered few days since to the same measure
when introduced by the House Committee
on Bankine--to wit, that the banks should
be required to bear the expense of printing
the new notes-and he was ably supported by
Mr. Farnsworth, of Illinois, who stated
that the reissue would cost 81 600, 900, which
the national bank ring were trying to saddle
on the Treasury. Mr.. Potter, of New York,
pointed out the large profits of the banks,
and argued that there was no reason why they
should not bear the expense. Mr.. Kerr, of
Indiana, always foremost in every good work,
exposed the magnitude of the present bank
monopoly, which, he said, ''has no parallel in
the world either ins financial power or in the
munifcence of its revenues. 1t overtops
every other interest in the country, controll-
ing the legislation of Congress, and con-
trolling every other power that could limit its
monopoly.
The Republicans brought forward the old,
stale argument that the banks are already
heavily taxed-General Garfield, who seems
TO lose his usual good sense when the banks
are under discussion, even forgetting himself
so far as TO quote from the bank returns the
fact that the banks had in 1869 paid over
eighteen millions in taxes, or four and one
third per cent. on their entire capital. This
treacherous statement, utterly unworthy of a
man of Gar6eld's character, was only half
parried by Mr.. Kerr's apt quotation from the
same returns, to the effect that after paying
these taxes and rich dividends besides, the
banks had nevertheless accumulated a sur
plus Of over one hundred and thirty millions
Of dollars, or nearly thirty per cent. on their
entire capital. Telling as this rejoinder was
in exposing the merits Of the plea it does not
refute the virtual misstatement conveyed by
Mr.. Garfeld's figures. The true answer to il
is that three-ffths of this sum paid in taxes by
the banks is levied on their deposits, and has
nothing whatever to do with their currency
privileges, but is levied in the same way upon
all private bankers and chartered State banks,
who have no currency privileges of any kind.
1t is time that honest men should cease using
arguments that are virtually mere tricks. The
payment of this tax on deposits does not
entitle the national banks to any more con-
sideration than is accorded to every private
banker, or to every other citizen who pays
the taxes levied upon his business It has no
more to do with the banks, as issuers of
currency, than the tax paid by bank presi
dent on his private income. The argument
would be precisely as strong if Messrs. Nor
rell, kGriswold, and other Bessemer paten-
taxes as o justification of the infamous tax
of two or three millions of dollars which the
steel-rail tariff enables them to levy uSon all
the railroads in the country. If the currency
privilege, which constitutes the great mono
poly of the national banks, were removed TO-
morrow the banks would still have to pay the
bulk of these taxes on their ordinary business
as bankers.
The advocates of the banks have repeatedly
argued that the Treasury would not receive
these taxes from the banks, if their currency
privileges were withdrawn, for many of them
would 90 out of business, because without
the profits of their circulation they could not
live. The answer to that is that tie tax
would not be wanted at all if the currency
privilege were withdrawn from the banks,
for it would save the country twenty mil
rs O subsidy to the banks, which is
the most wicked, inexcusable waste, and
q sheer robbery of the people. Further
more, If any banks really cannot exist
without the profits on their currency,
it is high time that they should cease to
exist, for more preposterous idea than this,
that the whole country should be taxed
twenty millions per annum to support half Q
dozen banks in one-hOrse country towns who
have not legitimate business enough to sup
port themselves, surely never was heard of.
And it is utterly false that any large number
of banks would cease to be profitable. On
the contrary, many honestly y-managed con-
cerns which became converted into national
banks under the pressure of the war times,
are utterly disguised with the corruption, and
the fraud, and the dishonest monopoly en-
gendered by the system, refuse to avail
themselves of their currency privileges, and
would be only too glad to see the whole
system swept away. Again, when under the
old act the privilege to issue currency
Cimited TO three hundred millions of dollars)
was exhausted, national banks con.
tinued to be organized without currency
privileges; and there is to-day scarcely a town
Of five thousand inhabitants in the United
States where there are not one, two, or three
private bankers besides, doing business right
alongside of national banks, doing the same
business that the national banks are doing,
receiving deposits, making collections, dis
counting notes. paying taxes to the Govern
ment and making money, too, though without
dollar of the subsidy Of twenty millions
which is now wrung from the people for the
benefit Of the national banks There is nc
foundation for the pretense that the Treasury
would not receive the same amount in taxes
on the deposits of the banks (Which eonsE
tute the bulk Of the whole tax)if a few ma
tional banks went out of existence; for there
would not be one dollar less to deposit, OK
cept perhaps the extra profit realized from
the subsidy, if there never had bsen singl,
one Of them heard of. The only differenc,
would be that the deposits would be made il
the hands of private bankers, who woul(
have less costly buildings, would employ
fewer fancy cashiers devote less time to poll
l.. 4