Knoxville Whig and chronicle. [volume] (Knoxville, Tenn.) 1875-1882, 1875-12-08
A PLEA FOR NATIONAL BANKS
The National Hawking System vs.. The
Old state Ranking system.
~ Ae Editors of Ne CNronicle


been written and spoken by dema-
gogues of the Democratic persuasion in
regard to the National Banks, which
having been first authorized by Re-
publican Congress, are supposed to be
necessarily Republican institutions,
and to be denounced accordingly,
without reference to their usefulness
or convenience. Very little notice has
been taken of this Democratic babble
by Republican speakers and writers,
probably because Republicans have
faith in the intelligence and common
sense of the American people; but a
few words on that subject may not be
amiss.
No one contends now that Banks
are not necessity of the age the only
question is, how and with what powers
they shall be organized, and in what
manner those who deal with them
and take their currency shall be secur-
ed. Two systems have prevailed in
this country: the first, that of Banks
organized under laws of the different
States, and issuing circulation secured,
or not secured, as the laws of each
State might provide. We all remem-
ber this good old time. There were
hundreds of Banks, existing under the
laws of every State of the Union. Each
Bank issued its own notes, obtained
such credit for them as it might, and
circulated them as far rs possible
Each Bank had its own designs and
devices upon its bills; some well eX-
ecuted and some lily executed. Some
bills were current and would readily
pass in large districts of country and
| in several States, while others could
not be used out of their own State oil
neighborhood; and a man undertake
ing q Tourney to a distant State mus
needs first consult broker and dispose
of the miscellaneous contents of his
pocket book at such rate of discount
as might be required. Issues of all
banks were counterfeited, and no mar
without q counterfeit detector before
him could, out of the immense mass o
bills,of heterogeneous devices, tell the
counterfeit from the genuine, or the
solvent from the worthless; and every
business man subscribed for, and re-
ligiously consulted his bank note de-
tector--poor men in the country, wht
had no detector got along as they could
and pocketed their losses with sucl
resignation as they might summon
Does any man, Democrat or Repub
lican, wish to go back to those good oil
times
But the Democratic orator scowls
fearfully at the National Bank, as b,
charges that it is fleeing the Ameri
can people and making enormous
profits from its circulation and it
bonds. Does not this soulless ant
bloated bondholder corporation de
posit with the Treasurer of the Unit
ed States the bonds of the Unite'
States ito secure its circulation an,
does it not receive from the Govern
ment almost an equal amount of bill
} for circulation, which it loans and in
vests, all the time receiving from th
Government large interest on thes
same unholy deposits of bonds, thereb.
} making a double profit on its capital
J And the Democratic voice become
} hoarse, and the Democratic pen drip
blood, as they ask the horrible ques
! ton.
, Well, as a matter of fact, the figure
show that no such extraordinar.
profits are made in the business of ou
National Banks. But as the Govern
ment compels the citizens to buy thes
bonds, and to deposit them with tn
; Treasurer before he shall be permitte'
to engage in the business of banking
it is hard to see why it should not pa.
him the interest upon them, particular
ly as it is morally certain that no on
would engage in the business upoI
other terms,
But such talk is all for effect. Th
system of securing the bank circula
ton adopted by the United States, j
essentially the same, which was adopt
ed by the State of Tennessee in tn
Free Banking Law of 1852, and whicl
was adopted generally-perhaps uni
versally-in other States where banl
circulation was secured at all. By tn
act of Tennessee, of 1852, any banl
organized under it might legally trans
fer to the Comptroller of the State, tn
bonds of the State or of the Unite'
States, or of incorporated companie
indorsed by the State, and nigh
thereupon receive from the Comptrol
ler an equal amount of notes for circu
lation. The interest on the bonds de
posted, except the amount retainet
for taxation, belonged to the banl
making the deposit, as is now the cas-
with National Banks. But no on
! complained that the State Of Tennes
see was by this system nourishing
breed of bloated bondholders to eat on
the vitals of the State. Some mode c
securing bank circulation must b
adopted, and of all possible modes, tina
adopted by this State and by Congress
is probably the most convenient an
efficient. Demagogues must hav
somewhat to crate and gesticulat
about, and perhaps they can do this a
harmlessly about National Banks as o.
any other subject. Whether it woul
be practicable or advisable that a.
: banks of issue should be done ava,
with, and the entire currenc
of the country be furnishe
directly by the General Government
. thereby throwing all these bonds upo
the market and forcing the collectio
: of all moneys due these banks, is
different question. But no man i
his senses desires to go back to th
5 horrible chaos of system of Stat
banks and the effort to create a preju
dice against the National Banks, {
: against the Republican party on thei
: account, is the veriest bosh extant.