, 1873-09-18
THE BANKS AND ORANGES.

ToA1oA, ILL.,, gcpt. IL, 1878.
70 tha Editor af The Chicago Tri6une:
s1hs In your issuo Of tho 20th Of August
son nay that Noar1y all tho drangca aro 70.
solving to abolish tho National Dauks. Thcao
institutions nro denounced as n,onopolists and
oxtortionists, which tloy cortnin1y arc not"
except Ito Tho extont that thoy have tho OK
elusive right to iss11e notea to circulate as
money"
As this action on tho part Of tho Oranges
soainB to 10 surprise to you nnd sono others,
ask the privilege Of giving to tho public,
through tho medium of tho columna Of your
Independent journal. como OF the rcasons why
the Qrauges, and othors OF tho producing and
distributing clasaos look upon tho National
Hanks rs 1nonopollBts and oxtortionists, and de-
n,ana t1oir abolshlnont.
When what is known rs tho Farmora' Reform
atory Movement waH first started, railroad, ware-
house, a1,1 tnriT nonopolles wero yiowol us the
n1nln cauBon OF tho wrongs complained Of. But
moro thorough investigation has shown that
back Of all these, md moro potent for OWL than
thuBo mud nil other like monopolies, Ia our
vicious monotnsy systom, of which tho National
Danks aro tho source. Among tho rcasona that
Lave lel to this conclusion are tho following:
We lluye had III circulation for eloyen years
siUo,U00 600 Of legal-tonders and fractional cur
roicy which havo cost the people nothing in tho
Hlarc of interest, supervision, or subsequent
Legislation since tho passago of the lar author
izing their issue. Now. if this amount Of cur
rency had boon issued through the banks, under
the present system tho account between tIeBo
institutions aud the producing and distributing
c1aBses or taxpayers would bo ns follows:
Tho premium On coin haB, during this tlme,
averaged ~ much MS 70 per cont per nnnum,
which would make tho per cont coiu Interest
tDpGTnIIiHnt IN
banks to secure tho redemption OF their circu-
lating notes equal to ~ .por cent In currency.
II from this be deducted tho per cont duty or
tax paid by tho banks OIL their circulation (Which.
as / understand, III all tho tax the banks pay for
tho privilege Of issuing tho currency, and in
lion Of tho interest thoy receiye on tho bonds
deposited with tho Guvornmont), 1t will leayo,
~ the loss to the ta1-payors, G>5 por cent por
au1lulu.
This rate Of interest," compounded scmt-an-
nually Tor elaYeu ycara on tho ea00, ,0o0, 090,
would amount to sos 900, 900. II to this be
added tito gain thai would havo accrued to tho
taxpayers from loas Of currency by tro and
other cas,,altics, with tho cost OF subsequent
legislation mud supervision Of tho banks for
which think Il oi per cont por alnum worry
nlolclato cstl1nate it would swell tie amount 10
S429, 9,U00,0D0.
Tins, therefore, is tho amount the people aave
by the uBo Of legnl-toldors instead Of tho bauk-
currency.
Again, it in tho first instance, wo had ss1od
s35U,00D,U UO0 additional 1egn}-tendorn Instead OF
tho bank currency, it would hnve saved to tho
taxpayers s375, 900 900 in the clevon years.
III othor. words. II, instead of issuing $780,
~ o. I" ;,unai +i,a "a ?so
mn .no ti'ra,;',h 41 norI" ~ 49, at;nno1 ,,,t
would be $42S. .000, 900 moro than it now is; whilo,
il tho whole $760,00U,00o had been issuoa III
t.r y !. at tta and ~ }hot Inn A'''
r. ,sa,,a ~ IL t,,na ha Ian - tIo4 IN a;earo,,o T.,
fnyor Of the legal-tonlers over the bank-cnr-
,o", "ee'N -'''" A'0t =" 'Do oAo'oa
IL Tim uso NJ mn ercl,,aivo banA-cnrronov tho
toy:no vorn wnn1d hnvo i,,st tha amount yy;thnIt
nxer. Yor thore II not cand'd man ~ thc m.
tion Win il ,,ot intnrcatcd in bannr' monav.
TrnRin1 nr ntncr aNanniatinc 1nnn1no1v ia
vii nns a1mit that iproI.tnn5ors aro in Il, re.
spects better fttod for tho performance Of ali
acccntsb1o to tho rrcat maRIority Of ttlose who
,'ro|'msa and at riiS,tn t1n wcniit, +on tl,o
r.ucv ;ss,,od shrmch TN bnnE..
1scniIes 1e va can onncoiya @ % NJ M rco,cn why vo
uhnujI lava two knis nf cnrro,,cn hotl, a. a.
nen'1ne for thoir socnritv anJ c2n,7;t t m 10
t;nvnrpmont ;n1nrsnn,nut' md tho ono rc;1ccmo.
aLlo in tic other before It viii legally diacharce
debt. which IL ono OF tho main iiaoH of money !;
nr whv +hn currnncv sl,oml1 In Ioio} mi tIrnm;,h
~ svrtom ar hnnkinr coruorations. tborohy nv
inn them n comnl"te monnnoIv NJ thn ,yholo 6 cir.
cuIatjpg medium OF tho nation. with power to
dnnrcns mud dosnoi1 Tho nro,'ucinr and distrhut-
M cjass.a mt nlrnn,,ra And thia I'm Mt ~, nnnr
n,6,a cnst tn ti'n ta ax.narnra r.thcr tho,, to In
;ssmed niroctlv tn tha 1oonla Yithnnt any rail-
tano decentralization,
hon;n the C;oycrnmont incursa crcnt rosnon.
1htv in he,nminr tho custodian of fho hnnfls llo,
1ns;ffaI hv tha hnnts T'hsfta Tecnlatinna d.
fa]c"t;on1 nni ;rre,,,lnr;ties ara mia tof
freoueut aud genoraI among bank-oticors auf
f;ovcrnma1t-ottic,na to snfs,ly cuncrdo lin,
currcncr wera iii is,,lol IN lera,,. eacl
nnr.n,, w,nlI Income tho cnat1Ilieu IT his o,yn