The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1873-10-18
THE BANKS AND ORANGES.
ToNIcA, ILL.,, Sept. IL, 1873.
I To the Editor OF the Chica0O Tribune

AONiCA, Ah.i ocpt. 10, Iot"-
To the Editor Of the Chicago Tribune:
SIR. In your issue of the Goth Of Au.
gust You say that Nearly all the Oranges
are resolving to abolish the National Banks
These institutions are denounced as mo,
nopolists and extortionists, which they
certainly are not, except ''to the extent
that they have the exclusive right to issue
notes to circulate as money"
As this action on the part of the Oranges
seems to be a surprise to you and some
others, ! ask the privilege Of giving to
the public, through the medium of the
columns Of your independent journal some
of the reasons why the Oranges and 9th
ers Of the producing and distributing class
es, look upon the National Banks as mo-
nopolists and extortiOnists, and demand
their adjustment.
When what is known as the Farmers
Reformatory Movement was first started,
railroad, warehouse and tariff mOnopolies
were viewed as the main cause OF the
wrongs complained Of But more thor
ough investigation has shown that, back
of all these, and more potent for evil than
these and all other like monopolies, is our
vicious monetary system, Of which the
National Banks are the source. Among
the reasons that have led to this conclu-
sion are the following:
We have had in circulation for eleven
years $500, 900, 900 Of legal tenders and
fractional currency, which have cost the
people nothing in the shape of interest.
supervision, or subsequent legislation since
the passage Of the law authorizing their
IS
had been issued through the banks, under
the present system, the account between
these institutions and the producing and
distributing classes OF taxpayers, would
be as follows:
The premium on coin has, during this
time, averaged as much as % per cent per
annun. which would make the 6 per cent
coin interest on the Government bonds
deposited by the banks to secure the re-
demption of their circulating notes equal
to 74 per cent in currency. If from this
be deducted the | per cent duty or tax
paid by the banks on their circulation
(Which, as | understand, is all the tax the
banks pay for the privilege of issuing the
currency, and in lieu of the interest they
receive on the bonds deposited with the
Government), it will leave, as the loss to
the taxpayers, 81 per cent per annum.
This rate # interest, compounded semi
annually for eleven years on the S4OO, OOO,-
900, would amount to S408, 900, 900.
Ii to this be added the gain that
would have accrued to the tax payers from
the loss Of currency by fire and other
casualties, with the cost of subsequent
legislation and supervision of the banks, for
which think of per cent per annum
very moderate estimate, 1t would swell
the amount to 1923, 0O0. 900.
This, therefore, is the amount the peo-
pie save by the use Of legal-tenders, in
stead Of the bank currency.
Again, if in the first instance, We had
issued $3.50, 900, 600 additional legal ten
ders, instead of the bank currency, it
would have saved to the tax payers S375,-
900, OOO III the eleven years
In other words, if, instead Of issuing
S40O, 900, 900 Of legal tenders and $3.50
600, 900 Of bank currency, We had issued
the whole $3.50, 900, 900 through the banks.
the national debt would be S42S, 900 900
more than it now is; while, if the whole
$3.50, 900, 900 had been issued in legal ten
ders, the debt would he 1915, 900, 900 less
than it is at the end of that time
1t would thus be seen that the difference
in favor of the legal tenders over the bank
currency would have been 1903. 600, 900 in
the eleven years.
BY the use of an exclusive bank curren-
cy, the tax payers would have lost this
amount without having received in return
any equivalent whatever; for there is not
a candid man i'll the nation, who is not III
terested in banking, money-broking or
other speculating monopoly, that will rot
admit that legal tenders are in all respects
better fitted for the performance Of all the
functions Of a circulating medium, and
more acceptable t. the great majority Of
those who produce and distribute the
wealth, than the currency issued through
the banks.
Besides we can conceive Of no reason
why we should have two kinds of currency,
both depending for their security and
credit ON the Government Endorsement.
and the one redeemable in the other be-
fore it viii legally discharge a debt, which
is one of the main uses Of money; or why
the currency should be doled out through
a system of banking corp jrdtiols, thereby
giving them complete monopoly of the
whole circulating medium of the nation.
with power to depress and despoil the pro
ducing and distributing classes at pleasure,
and this, too, at an enormous cost to the
x-payers, rather than to be issued
directly to the people without any red
tape circumlocutlon
Again: the Government incurs a great
responsibility in becoming the custodian
Of the bonds deposited by the banks
Thefts, peculations, defalcations, and ir-
regularities are quite too frequent and
general among bank officers and Govern
ment officials to safely conclude that there
is no danger in this quarter; while, If the
currency were all issued in legal tenders,
each person would become the custodian
Of his own means, and the Government
would incur no responsibility or be sub
jected to no loss in this respect
Bat a still greater objection to the bank
ing system, as well as to protective tariffs
and all other special class legislation. is,
that members Of Congress, and others
connected with making and administering
the laws, frequently have direct person
al pecuniary interest in this class Of legis-
latiOn, adverse to general public good.
There are good reasons for believing that
a large number of the most influential
members in both Houses of Congress are
stockholders and officers Of National
Banks, and otherwise interested in these
schemes of special class legislation, where
by the few are enriched at the expense Of
the many; and that to members so inter
ested is committed most if not all the leg
islation relating to the currency and 6nan-
ces OF the Government.
Now, under these circumstances, We be-
lieve it would be the extreme Of folly to
hope for the adoption of monetary sys-
TEN adapted to the general business inter
ests of the country, or for fair and
impartial administration of the financial
branch of the public service.
This, SO far as it goes, is, as it seems to
us, fair statement Of the case, and as it