Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-10-09
DUB NATIONAL BANKING sYS.
the Evsl and the Esesnedy-sugges
tsona OF our representative, Her

4
the Eysl and the Remedy sugges-
tsOns OF orr representative, Hen.
w. Q. WhItthorne.
| To the Union and American:
TIE subject OF our National currency and,
the present system of banking, In connie
| ton with our financial troubles, must ne
cessarilg occupE more OF public attention
| for sometime TO come than any other CUES
ton. Its Importance is daily felt in every
condition of life as well as IN every branch
OF business. The lsboting thousands now
being brown out of employment, no less
than the hitherto favored capitalists, feel
| the sad effects of cur present defective bank
! ing system, which has resulted in the pre-
sent financial crisis; system which, if not
modified and improved, must ultimately re-
sui In disasters still greater.
I5bssrEe In this connection, by your
morning dispatches, that the Directors of
| the Cincinnati Board of Trade, sound think
| ing and practical men, have adopted resolR-
lions favoring the modification Of the Ma
tional banking Law SO as to allow sssocia-
tons having $50, 600 OF government bonds
the right to deposit The same and receive
national bank notes; under the restriction of
rendering the bill holder as secure as under
the present system"
This, respectfully suggest, is but q tenn
porRry exped'ent and does not reach the
great evil of our present banking system.
It would contribute to an increase Of the
present volume of currency, and thereby
ease us over present difficulties, but would
| furnish 20 security against future difficult
ties, which viii be constantly threatened go
long as We rely upon a currency other than
illegal tender" and upon q system of
banking based upon the floating capital Of
community furnished by deposits, with
out any adequate security 20 the depositors.
In other words, 3 system Of banking based
upon public confidence and subject to every
panic. By such system, the labor and
real wealth of the country is constantly ex-
posed, and only rings, Spectators and
gamblers can hope to profit. Itt
Bui have no thought of arguing this
question. 1t has brought 10 mind, howey-
er, very able speech made upon the SUBJ
| ject by one of our own representatives., Hon.
| w. G. Whitthorne, in the Congress of
the United States, as early as April, 1872, in
which he seemed TO forecast the calamities
that awaited us, and suggested what ap-
peared to him the most prac icable remedy,
under the circumstances. The views of that
gentleman were embodied for the action of
Congress in series of resolutions, which
were referred to the Committee on Banking
and Currency, where we suppose they still
sleep. Gen. Whitthcrne sought to impress
them upon Congress by q speech which you
| viii find reported in the Congressional
Globe, and which have re-read with special
interest, and know Of no matter that would
be of more interest to the public at this
time. l propose, however, simply to invite
your attention to the following extracts,
which viii give some general idea of the
dangers apprehended, and the plan suggeted
by the honorable speaker Gen. Whit
thorne said:
The subjects of inquiry that propose
are
First, substitution Of legal tender notes,
or greenbacks, as generally termed, for
national bank notes;
Second, that in securing the amount Of
greenbacks required for this purpose
whether an amount OF the bonds of the
United States, known as five-twenties, may
not be called in and paid;
Third, that in order to preserve q specie
basis for our credit money, and at the same
time provide currency solid and safe for
the people of the country, fractional curren-
cy any small notes should be greatly retired;
Fourth, that banking should be free to all
persons, but that those who bank upon the
capital of others should be required to giUe
at least partial security for Its return, and
some protection had against usurious and
extortionate charges; and
Fifth, that the custom dues should in
part, at least, be payable in legal tender
notes.
The fact is that credit money is now our
national life, and the duty to preserve that
national life demands that we should en-
deavOr to solve the mysteries connected
with 1t. During the present session we have
had evidence that the laboring men of the
country are requiring stour hands such leg
islation as viii relieve them from the oner-
Gus burdens OF mismanaged government
and the heavy exactions Of favored capital.
In my judgment, sir, the complaints of the
laboring and producing classes are just, and
their protest against partial and exclusive
legislation, al of which is In the interest Of
capital ami at their expense, is founded
upon truth, and deserves to be met, not
with commissions of inquiry aud the pro-
crastination of red tape, but with direct re-
sponsive action upon our part.
Down to the recent action of The Supreme
Court of the United States in the case of
Knox VS.. Lee and Parker VS.. Davis, we had
but one legal and constitutional currency,
gold and silver, q currency recognized by
all trades and all countries. In my judg-
ment, it would have been in harmony with
the meaning of the trainers of the Consti-
tuition, IS well as in harmony with the in
terests of trade now and hereafter, If the
opinion of that court had maintained the
accepted views of the country prior to the
passage Of the legal-tender act; but since
that opinion, we have, 10 addition to gold
and silver, psper currency, known as
legal+ender notes, as constitutional cur
rency. By the common usages of trade,
with the sanction OF the supreme power,
we have an additional currency in the ma
tiorsl bank notes, not legal tender in
payment of debts, and sanctioned only upon
the pretended ground Of convenience:
'Nearly one-half of the national currency
is not legal, but tolerated currency,
sanctioned by law for convenience. Does
not the legal tender note possess higher
value 10 the holder? Viii it not pay bis
debts? Is it not guarded better by law?
surely it cannot be sIgured that it is for the
"Again, the existence Of the national
bank note makes two classes in your cur
rency, tends to destroy uniformity, and
thro3gh frauds and defslcations of officers,
agents, ETC., and failures Of the banks, tends
TO destroy the stability of your currency.
And this eUdnt of uniformity and stability
is at the expense Of the labor of the cour-
try.
This leads me to the consideration of the
second proposition. The amount of nation
al bank notes 10 circulation on the 30th day
of September, 1871, was 1925, 952, 030 20.
Now, if this amount is retired it will re-
quire the issue Of like amount of green
backs or legal-teDder notes, and is to that
extent apparently an inc ease of the nation
al dsbt; that is, inasnuch as it is not pro-
posed to diminish the quantity of currency
But il, in making this issue, with 1t q like
amount of the five-twenty bonds are paid i
and retired, there will be no actual increase
OF the national debt, but rather decrease,
Stree interest on that amount would cease
! upon payment. Without disguise, this
proposition involves the question whether
the tive-twenty bonds may be lawfully paid
| in legal-tender notes. 1t is the history of