The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1873-10-11
THE NATIONAL BANKING SYSTEM

The Peoria Transcript, one Of the leading
radical papers of the state, thus eases It's mind
on the national banking system. There is no
doubt that the system has failed to come up
! 40 the promises made for it by its projectors
and friends and that, by the recent semi-sus-
pension of these banks. nearly all of them
have forfeited their charters. The present,
! therefore, would seem to be exactly the right
time to overhaul the system:
| The national bank system of the United
States, which has been laudcd to the skies by
! interested parties, has proved miserable
financial abortion. II aimed at nothing less
than IA complete monopoly OF the business OF
| furnishing circulating medium for the Ma
ton. 1t cndeavorcd to force the greenback
out of existence, that its own issue might take
its place. Fortunately in this it failed. A
close CORPORATION, it endcavored to Contine its
operations to the tewest number possible. 1t
fought any extension of the system, and al
though it failed in this particular, it did sue.
coed in preventing the opening of national
banking business to free competition.
How does the system stand to-days Con
fcsscdly helpless, A few years ago nothing
was heard from the advocates of national
banks but the cry against imitation OF the cur
rrnGk. L mere was, uCtOlullS W illtil, All ulll-
ply sufficient amount of currency More than
that many contended there was too much,
and demanded the retirement of the green
backs. To-day the tune is changed The ma,
tional banks cannot pay currency, because it
cannot be had. They have plenty of assets,
they say, but they cannot realize on these AS
sets in "A manner to make their realization
available Nobody pretcndS to ask for specie.
All the people want is currency, but the banks
rcpiv. "Thc currency is not in existence We
would gladly give it TO you if we could, but
we can't: we haven't 1t, and what is worse,
nobody else has it," Some have gone so far
in the present extremity rs to ask the govern
ment to furnish it without law, and that, too,
after they have for years fought the PROPOSE.
ton TO make the furnishing of it by the gov
eminent legal.
All this is condemnation enough. The svs-
TEN has been tried and it has failed to meet
the financial requirements Of the country. It'll
was stingy, pinching, hard and grasping inl
the best Of times, and now it is Hat on ITS
back We are Of those, who, while we would
counsel no ignoble revenge, would insist on
keeping it there 1t should never be allowed
TO regain It's former supremacy. Congress
should at once adopt the convertible currency
system-iurniSh grccnbacks for its Outstand- |
ing bonds when the grecnbacks are wanted,
and re.eXchangc them for bonds whenever
the grcenbackS are not wanted This is the
only true solution of the present trouble The
national bank system can never be patched
up to meet the nations requirements. Conf. |
lence in the system is lost. 1t may do for
side show, an auxiliary to the government,
lut not As the main stay in the matter of cir
'ulation. The national banks might well
enough to be allowed to go on just as at pres
mt, by Il convertible currency putting it out
If their power to bottle up" our circulating
Medium.
Another advantage will accrue from the
adoption of the convertible system y green
)ack eXchangeable for bond must be equal
II value TO bond. United States bonds are
worth par in gold Make greenbacks their
'qual, and gold and silver at once reappear
md thus the necessity of the greenback and
he national bank note will in measure be
,bviated. Then we will not altogether need
,reenbacks, and will be able to get them in
plenty Now, when we do need them, we are
Unable to obtain them. The change by the
.doption of 50 simple plan as the convert
lie system would be SO great, taking us at
nee from a condition of financial distress to
me of ease and confidence that we cannot
ee how any man can for moment oppose it.
1t the present time, United States bond for
Il 900 Is, for immediate use, worth no more
han the paper 1t is printed OIL. 1t is good to
ny by for an investment; but to break it in
ieces and pay ten or twenty or fifty debts {
With it is impossible. Let us have system ,
y which we can break it. That is the con-
crtiblc system.