The Democratic advocate., 1872-01-27
Public Attairs,
OUR NATIONAL BANKS.
A Talk to wOrkingmen.

a Ialk TO oWorklngmen.
The question whether the producing classes,
who constitute the great mass Of voters. have
any conception of the extent Of their slavery
to the monied power, or OF the grinding, We
might say crushing, effect Of their seryitude.
They seem to appreheud that something Is he
matter they feel that they are sinking under
burden they cannot shake of an overwAel,
ming, oppressive, simplifying inaasnee, like the
sensation called nightmare, rests upon him
debt, the dread spectre, Is seen wherever they
tuinj tax collectors, bailiits aad sheriffs are
ever hauuting them. They know that from
some cause their property is dwindliag away,
bat how, or where il Is going seems inexpliea-
Bile. Nearly every one understands that
through internal revenue taxation and the tar
III on importations of foreign goods a certain
proportion Of their earnings are legally appro-
priated toward the payment Os the national
debt, but the proportion of voters is small who
consider how much they arc taxed for what is
called the protection Of home industry or that
other so-cslled "natiosal blessing" the nation
al banking system. In these columns We have
frequently called affection 70 the system Of
public robbery misnamed the protective poli-
ey Of government, whereby consumers Of ell
kinds Of manufactured goods are made to pay
tribute on every purchase 20 cur home manu-.
facturing monopolsts to the extent Of the
amount Of duty laid for the purpose of exclu-
ding foreign goods from our markets, q tax
which, 1t has been computed, amounts to a
thousand millions Of dollars a year in the
enhanced value Of various kinds Of manufae.
lures aud merchandise growing out OF the sys-
TEN Of protection. It is therefore only neces-
sary to point to this great wrong as a subject
requiring the earnest consideration of voters.
The bank monopoly, however, has NOT receiv.
ed so much attention, aad ia regard to it We
purpose deTotiDg some space, and we cannot
better do this than by making some extracts
from lengthy and able article on the subjee,
By writer in the February number of Serb
Hsr'' AOntliy. The writer, speaking Of the
banks as a monopoly, says:
There can be no doubt that the National
Banks-at least in the Northeastern states.
where the principal portion Of the banking
capital OF the country lies, and where the ap-
poftioned amount Of bank circulation va,
long since issued-eonstitute 4 true mouopoly
II would be idle to say that they do not consti.
tute monopoly because OF their number
because the business ef banking is not confined
TO oDe or tew. The essence Of a mouopoly
as the sord is now ssed does not consist Ia
the limitation OF the privilege Of conducting
business to small number, but ia its being
limited al all, either as to the amount Of CAPT.
tai which may be Invested in the business, or
as TO the number OF persons who NAV prose-
cute It, SO long as there are any pc rsons ia
The state who arc jebarred by law from enga.
ging In any business on the same tertus as any
ether persons, 80 long that business, whatever
Il may be in name or appearance, Is In fact
and In esseace 4 monopoly In the hands Of
thuse who are allowed 10 engage in it, And
In proportion as there is a desire to extend a
business so limited beyond the hands Of those
who may be authorized by law TO prosecute
1t, that monopoly will become odiuus aud
oppressive. Applying these principles to The
National Banking System, the eonclus ion can.
not be resisted, that II any citizen OF the Uni
ted States is debarred by national law from
prosecuting the business OF banking on the
same terms as any other person in the United
States, that business is a monopoly. Viewed
in this light, the business 0s banking under
the National Currency Act Is a monopoly In
all of the Northeastern States Of the Union.
The national circulation allotted TO those
States by law, or by the apportionment made
IN pursuance Of law, having been long since
swallowed up By Organizations earliest in the
field, the business os issuing circulating notes
Is confined to those organizations. That the
NATIONAL banking interest has grown 10 be one
OF great influence in the National Legislature,
NO one who has watched the course Of legi,la.
ton upon the subject will deny. No other in
huenee than this stands IN the way OF tho re.
peal OF the arbitrary limitation upon the bank
Circulation Of the country, for no other inter.
est could be damaged by 1t. Ifthe privilege
and benefits Of the National Currency Act
Should be thrown open to all on equal terms,
the profits Of the National Banks now estab-
lished could not fail to be reduced. Competi.
ton that healthiul element Of all Legitimate
trade, would be stimulated, and new banks
would be organized, until the number should
De so increased that the profits derivable from
banking under the national system wuuld be
assimilated In rate TO the profits Of other kin
dred enterprises. 1t is not a matter Of sur
prise that the banks already organized, know
ing this, should use every effort 10 keep new
eomers, with whom they would be obliged 10
share their profits, from the field. How great
an influence they are able to exert in this d.
reeuon may be estimated from a consideration
OF the iaet that nearly every city and thriving
village has one or more National Banks, the
stockholders aud officers OF which are usually
the most active and influential men in their
several localities. Such men as these are not
to be disregarded in political movements and
combinations, and their influence, having been
secured, must be rewarded BY devotion 10 their
interests. In this manner they are enabled 10
largely control the legislation affecting tho
banking interests. There are few members of
Congress who would ndf be guided in their votes
upon a banking measure by the expressed
wishes ot the national bankers in their dis
tricts."
1t has been ascertained that we have now in
Congress nineiy-sir members that are bank
presidents, directors or stockholders, working
directly in the interests Of the banks and
against the people. We quote again:
"The worst feature Of the present bank cir
euiaton is its irredeemability. Although
nominally redeemabe in the United states
notes by the banks which issued II, and their
redeemng agents, yet so slight n portion OF n
Is sent IN for redemption that the banks are
practically freed from the responsibility Of
redeeming their notes. When this state of
things is analyIed, it discIoses the fact thai
the whole national bank circulation of the
country is In effect, permanent loan. with
out interest, from The people TO the banks
This statement may be rendered clearer by an
illustration. A national bank Is organi4ed
with capital Of one hundred thousand dol
lars, which is invested 10 United States bonds
and deposited with the Treasury Department
at washington as security for circulation. In
return for this deposit there Is delivered 10 The
bank ninety thousand dollars in circulating
notes, which are Immediately put in eircuis.
lion BY II, in diseounting pa per, making loans.
and in other profitable ways. If these notes
remain in circulation for an indefinite time,
there can betno question that for that time
they are quite as useful and profitable TO ,he
bank as ii they were United States notes, or
any other circulating representative Of value.
II the reader should be so fortunate as to be
the owner OF one hundred thousand dollars in
United States bonds, he would not be able
provided that he Is not national banker--to