The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1873-09-05
NATIONAL BANKS.

clearly that the great rush for
material development that has OBJ
tanned OF late years, has not resulted
wholly In gain to the country; that
along with It has come an aggrega-
ton Of corporate wealth and power
that has to some extent perverted
the functions of government and
very seriously abridged the priv
ileges, well being and liberty OF the
citizen. There was much that was ex-
excusable in the spirit with which the
various enterprises tending to the
growth Of the country were under
taken. And he.ambition and enthu-
siasm of the extremes OF progI ess-
ivism and conservatism we're alike
excited by them. But now thSt the
country has gotten over its fever,
and come to q point from whence
deliberate survey o. results may be
had, IL Is readily seen that the con-
dition Of the mass Of the people has
been little bettered, and that money
rather than merit fills the avenues
OF profitable employment and II not
absolutely controlling, still warps
the government to some extent from
its primal purpose.
Some OF the moDopolies grew up
In the shadow OF the rebellion
notably that OF the Pacific railroads
"a grand enterprise, but one which
II was possible to pay too dearly
for; q possibility fully realized.
Others, like the national bank sys-
tenn, were outgrowths Of the heces-
stiles OF the government during
that eventful period of its existence.
The general financial disturbance
resulting from the attempted seces-
sion OF the Southern States caused
q collapse all along the line, of the
multitude of currency issuing banks
that under . loose system of bank
ing had sprung up In almost every
hamlet of the West, thereby causing
great individual loss, and practical
Iy Diminishing the value Of circu-
ssiipg money near one half. The
financial question WAS the one the
government was first called TO solve
I'm the outset Of the war. The abil-
ity 10 equip armies aud neets aud
pay the soldiers was tho first step
towards putting down the rebellion.
Witho 1t such ability secession was
an accomplished fact. The govern
ment credit at the outset was At the
lowest ebb both at home aud abroad.
IL was obliged TO pay the most eX-
brilliant rates for money. and in
fact could get none but small
amounts at any price. Credit at
home WA q necessary prerequisite
10 credit abroad. AS a means TO
this end the government issued first
its compound interest notes and af-
forwards what were then and still
are known As "greenbacks." Mr..
Chase then devised the system of
national banks, which substantially
remains at the present time as at
first instituted. The first effect OF
this system was that 1t provided .
good currency and OF equal value
in all parts OF the country. The
second and chief result was the
placing at home, directly and indi-
reetly, Of about four hundred mil
lions Of dollars Of the bonds of the
government. This was q material
point in the way of establishing
the homo credit OF the govern
ment; and taken all together,
the merits of the system were so
conspicuous at that particular time
that It soon enjoyed Q marked de.
gree of popularity.
But we are no longer living ain
war time" The credit of the gov
ernment is good and growing better
without the aid of the national
banks. The glamour is gone. The
lights are put out. The dance Is at
an end, and the people are putting
up" to pay the bills. Nonsense is
ct an end. Loyalty" 10 played out.
The question to be settled Is. Does
It pay?
The first consideration in examin-
ing this question 10 that the nation
al bank system IL q monopoly in ali
its essential features. The govern
ment sets its seal to the orgAniza-
ton Of one bank and refuses It to
another. It IL all at the will Of an
irresponsible ofhcer, who UNDER
takes to say that this man shall be
built up, and practically, at the sK-
pense OF his neighbor. If the sys-
tenn were free to all who chose to
invest their money In It, this objec-
ton would be removed.
The next and chief confederation
is that the government, at fits own
expense, prints and delivers bills to
these banks to an amount equal TO
ninety per cent OF the par value of
the bonds left with 1t as security,
and yet pays the banks interest on
these eeyy bonds. Thus, on ninety
per cent. OF the capital they invest
in bonds, the national banks get
such rate Of interest as they can
lend It for to their customers and
the interest on the full par value OF
their bonds besides. True, the gov
eminent taxes the banks one per
cent. per Annum en- their circulation
and half that amount on their cur
rent deposits: but this does not
help the matter. In the 6rst place |
It does not remove the inequality,
and secondly the government should |
not tax the debtor class for the ben |
eft Of any other, as It does practical
ly in this case. The banks charge the |
tax to their customers, the debtor |
class, and pay the money into the
treasury for the benefit, chiefly, Of
the non-debtor class, whom It re-
lieves to that extent from federal |
taxation. In other words IL makes
the rich better OF aud the poor
poorer.
Tho system IL wrong in principle
and will have TO give way. 1t is
not the worst Of the eYilS now un-
der discussion, but IL Is one Of them,
and there will be no peace until
there is an end Of II.
"But what will you put In its
placer" The answer Is very simple.
Let the government withdraw the
national bank bills, deliver their
bo2ds back to the banks and Issue