New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-01
OUR NATIONAL BANKING SYSTEM.


| Some Of the opponents of the presen
financial policy of the government hav'
made the astonishing discovery that inan
cial crisises and panics may occur under
any banking system, and that it makes
but little difference whether the STANDARD
is an irredeemable paper currency OF
specie: in either case suspension and
bankruptcy might occur. We are not 60
ing to dispute the conclusions Of these
wiseacres in this respect. They seem tc
have just realized what the world has
never disputed. Our object is to defend
our present admirable national banking
system. and correct the false impressions
in regard 10 it that are put forth by the
enemies Of the present national admins
tration. The special object of the gov.
eminent il establishing the present ma
tional banking system was to give the
people currency based upon the wealth
Of the country. that would be uniformly
good in every State Of the Union: cur.
rency that neither individual nor sectional
misfortune. proiigacy and extravaganza
could impair. Before this was done. the
people had suffered grea, inconvenience
and loss through the various systems of
national and State banking that had pre-
vailed in the country at different times
since the foundation Of the government
They We're at all times more or less
at the mercy of brokers. shayers and
money changers that swarmed throughout
the country. and wher money crisis
came and the leading banks were forced
to suspend, the crash was not confined to
the suspension Of payments to the iepos.
TORS, as it is now. but the millions upon
millions OF bank notes that We're in circu-
latlon among the people and il the hands
Of the working classes became valueless.
In that case the poor man who had Just
before received his week wages. OF the
farmer who had just disposed of his load
OF produce. We're the losers as we'll as the
rich depositors who had placed their
money in bank. III this way the schemes
OF spectators that ended frequently in
financial troubles to banking institutions
taking too much of the risl. that neceSsa.
rily accompanies this kind Of business,
was made to fall disastrousiy upon all
branches Of the industrial classes Of the
country. and the distress became general.
The present national banking system etfec-
tually averts this by securing and protect
ing the currency agains: the urwise man
agement o: banks or the losses of those
who enter upon wild speculations to sud.
ienly enrich Them selves and fail. The |
recent panic in New York. the result of |
speculation. caused the banks to suspend !
payment to their depositors: but it caused |
40 depreciation Of the national curren.
'y-the money that was in the hands of |
ne people and used to keep the indus.
rial machinery and commerce OF the
'ountry in motion. Some three hundred |
md fifty millions. of this money is in cir.
ulation among the people, and no man
Who holds any portion OF i: has los,
loIiar by the present money crisis. and
10 one i, alarmed at having it on hand.
ne only alarm expressed comes from .
en5e Of its scarcity. Everybody. and
the banks. are troubled with
bis kind o. a ''scare' just nov.
This confidence IL our currency a. this
inc is the best evidence that can be pro.
uced Of the perfect success OF on, pres
Mt nationa! banking system. I: las an
wered the purposes Of the government: in
arrying it through the mos: expensive
nd devastating civ;. war. and a. the
.me time afforded the people better
medium than ever before Of
red. Another proof Of its souudness
nd efficiency can b, cited. And that is.
lat in the face Of the combined effort, IL.
eprecIate our nationa! currency. it is
approx;mating TO the value of
ID. The effect OF the late panic was
eneticiai in this respect. for while the I,
ash in monetary affairs was 60
g on and many We're succumbin:
) the storm. the government was firm ,
Id its currency advanced in value. Let
e people remember these things. and
hen they are told that the present ma a
onai banking system serves them no
'od purpose. because the banks can still
spend and some people may still. be- :
me bankrup:s. they can recollec: that
e suspension o: the banks now does not :
stroy the value Of the circulating me- :;
I'M. This is sec;rel by the government
icy can also remember that under the =
esent national banking system it is i'm :,
ssibis 70. those whose conduc. makes ;,
okrup.s of them to bankrupt the na- 6
II. =