Delaware Republican. (Wilmington, Del.) 1843-1874, 1874-05-11
The Bonded Debt--NatiOn
al Banks.

(We find the following In the Cincinnati
Gazette, whose confessed authorship entities II
10 our special regard. 1t is also quite worthy OF
attention for Its own sake. We commend It
10 the reader.)
II will not be denied that Congress, according
to the bank act, has the right TO call in all ths
circulation of the national banks say Gas 1t soon
will beg four hundred millions. 1 am In favor
Of this, and in favor also Of issuing four
hundred millions of greenbacks to take the lr
place.
How could the greenbbscks get out? They
could not be shoyeled inio the sireei. 1 .'.-
BUY soou,, w, 900 of United States bonds
with them, for this is about what they would
buy. All this being done, the quantity of pa
per money would not be increased, and the
quality would certainly not be worse.
Then let the interest on the said bonds, SCI =
00e, 900 per year, which would not have TO be
paid then, as II is now to the national banks,
be used annually to pay of other bonds, and
those bonds be added every year TO the $780,
000, 900, and the interest on the whole accumu-
ation be set apart to swell the principal by pur-
chase or payment.
| Do you ask how this would work? ! will
tell you. In twenty-eight years 1t would re.
| deem 81 ,780, 100000 of bonds-just about the
whole amount now outstanding-I am not par
ticular about fractions. In ten years 1925 900,
900 would be redeemed In twenty years
81, 100000, in twenty-eiglt years S1,760,.
| 100000.
The process would be a gradual growth to.
ward the extipguishment OF our whole bonded
debt, and from the very start would strengthen
the credit Of the government, and bring thu
greenbacks nearer and nearer TO gold. What Q
happy state Of things II, at the end OF the TWEEN
ty-eght years, we should moi find bond out to
pay the interest on, either to national or for
", n countries or any body else The fact thai
lao Iotr nur fpfn
dollars) is held by foreign countries, and which
is the chief reason why specie payments can
not be resumed now, would, after the lapse o
FIVE or ten years, be dvested of all is danger
Gus aspects, and rcnder resumption easy and
safe. At any time during this progress Of nay
ing our debt, who would be silly enough Il
compare, as some of the papers are now doing
our green backs 10 French assignats?
My proposed plan would take the place of ou
so-called sinking fund system, II you will paI
don me for calling Il a system, the excesse
and Irregularities of which have kept our finap
css In a constant broil ever since the close {
, the war.
1t 10 natural only that the national bank
should prove adverse to my programme. Wei
should like to see their arguments, for l Pre-
fess to be reasonable, and am always open :
conviction. Certainly the fact Of having fc
many years enjoyed special privileges and rlcl
emouments from the Government does Nc
establish clam for continuance, iii 1t b
lawful to put an end to it, as 1t coufessadly Is,
especially as they are subjected to no more Ia,
ss than IL their capital were employed in oths
forms of banking or other business enterprises
9 My plan iuterferes only with their circulation
Z nothing else.
admit the banks are useful institutions
They will be equally so without their circuls
tion, If proparly managed, and be profitable TO-
. Some of the largest banking houses in th
world issue no circulation-the Rothschild
Barring 4 Brothers. Brown & Brothers, and q
the State institutions. A few even Of the ns
tonal banks have not availed themselves
right to circulation, being satisfied with the
profits otherwise. Among these are the Gu
. Bank and Chemical, Of New York-the sIoc
Of one selling at 200, and the other 800. Tn
proves that banking can be made prontab
enough without unjust emoluments froIn Il
Government.
]. l suggest in conclusion, that II Is the boul
den duty OF our law makers TO snatch lit
7, time from the daily wranges In Congress au
, devote 1t to the correction of this great publ
= Injustice. The question Is whether In tweDt
eight yeals 10 come,a subsidy of 81 ,76O, 900 90
|, shall be given to 5000 banks, who have as IA
- | chance as any OF us to make their capits
profitable without It, orwhelher II shall go
" the relief of the people by discharging with
l. our large public debt.
" Twenty eight years are not a long time
the life Of nation 1t will Soon come around.
=. Is twenty-eight years since Texas was annex
" and the war with Mexico, aud nearly half Il
term has already passed since the rebellion
gan. These events look almost fresh. TIVE
ty-eight years the events Of to-day will be !
fore minds In the same lignt. Shall that d
find US the slaves tf our present oppressi
debt, OF free from itp II Is for us now to 90
Pho Bono PuBIICo.