The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1873-09-25
NATIONAL BANKS.
The Farmer Opposition to Them

~ ~ SRAtsbtS AV oh~eC tOuA VI
III. Western Stat--, with a v.sw IL ascertain
ir2 the exact views of the fsrmers. The
situation" in Illinois vas fully dercrihed,
md nos ile T6bsse msn il in Missouri
collecting information.
He records conversation ~iih Nj. i. X.
Allen, Master o, tie Missouri State Grange.
on ,..c snjeci of National Rsnk., in the
following language:
"Sro,h.r monopoly which Mr. Aiiso
told ~. he io,snd Inc ,cIUers of Missouri
very gen-ssiiy c,sn ming o! is that u the
N.iioea, Banks They think that tie grant,
ing Of special privileges TO these institutions
or rates against the inferred OF the people in
tao ways-first, as Dsking unequal distri-
button Of currency. and secondly, BY main
ing high rates Of interest. l was Converting,
q lev DAYS ago, with Missouri farmer, Who
came to this State two or three years since.
FROM central Pennsylvania, and N he put
into more concise language than any one
ele have met, the ground Of opposition
to the National Banking SYSTEM, venture
to rei,eat substantially his words here:
81 hold" lie said, that unjust burdens
are placed upon the people whenever any
men OF class of men. by enjoying special
privileges, are enabled to realize unreason-
able profits on any service they render to the
Community, and il is on this account that
denouuce the National Banking system -
one of the most oppressive monopolies Of
tue present day. Take case that came I'M
der my own Obser ration in Central Pennsyl-
vania. Three u,en, two lawyers and one bus
mess mar, established small bank in q
viil,ge where there was none, about fifteen
years ago. One of the partners held State
Office, and through his influence At Harris
burg secured deposit Of $4,000 from the
surplus funds of the State. Another Of the
partners took charge Of the business, and
they opened :heir house without p,ying in
a dollar OF the nominal capital Of the firm.
They made arrangements with Philadelphia
and Harrisburg firms to give them aid in
case they should need il for few days, and
with that $40. 900 Of Stste money and . por.
ton of the deposits they at orce received,
they began Giscounting notes on short time.
The State deposit. though often drawn upon,
vas generally from SO. 900 to $15. 900, and
the business was 40 prosperous that in 10 Y
year,, though no dividends had been made,
the pr, ifs amounted to $50, 900, and paid
I'D stock for that amount was i-sued to the
partners, for which they never paid in q
dollar. Then Congress chartered them as .
National Bank. With their SIS, 900 CAPT.
tai. which the bank had already made out of
nothing, they purchased six per cent bonds
and deposited them in the Treasury Depart
ment. There IL six per cent ON their cap
ital which COS, them nothing, to start with.
The Register OF the Treasury returned them
S45, 900 in National! Bank bills. These they
nsed TO discount notes at rates that netted
them rot less than 10 per cent or 3 per cent
on their capital. TIA, makes II PER cent
In the neantime the town had grown rap
idly, TO other hank had been established,
and their individual deposits OF course in.
creased year hy year. The profits they
made On these and on the State money which
they sIiil held. Two or three years ago,
made nearly 10 per cent more. So here
were three men who did not add dOllaI of
capital TO thst Town. bnt nv tine enjoyment of
these special privileges of which We COM
plain, first collected from the people $780,
900 in cash, and then took annually from
the ssue people % per cent. at thai amount
for the Use OF it. That IL VIVA. call a grind
ing monopoly
TIE BANKING SYSTEM ArrACKED.
";iow would an abolition of the National
Banking systen reuiedy ,hi. % asked.
fla the first place, We would stop the in
terest on the United Stsies bonds that now
represent The cspita! o: the national banks.
You see the government; could Issue green
b.cis in the place Of tn. national hank notes,
and with these they could buy up and stop
the Interest ON 90 per cent. oil the BONDS now
Owned by the national tanks. That would
help us some. The farmers are beginning
to understand this question, and you will zee
fewer men in future Congresses who either
own national bank stock or are owned
by the national hank. We farmers
think it Just about a. indecent for men who
are getting rich ny ;he enjoyment of these
special banking privileges 30 vote on qnss.
tions affecting :hose banks IS for them to
vote themselves hack pay and pocket it. Now
what .en-e is there in having such u man M
Mr. Samuel Hooper for Chairman Of the
House Committee on Banking and Curren-
cy7 He NAV he sn honest man, but nobody
has any right TO expect him to report a
measure 10 reduce unreasonable profits OF
the National Banks"
! think there Is no doib. that the NafiOn-
Al Bsnfs Will, next To the railroads, receive
the attention ~ the sni;aionopo,ists Of the
West Very Jew OF ,be farmers compre-
bend the sy-t.m a. my friend whose CONVEX
sation have quoted does. but their public
speakers aud newspapers are tas, educating
them, no, only in this, hut il other Western
States. and hazard ro,hing in predicting
that the friends of the national banking sys-
TEN will he called upon before long TO de-
ieud il aesinsi more determined assault than
hs. eyer We, been made upon it in Congress.