Los Angeles daily herald., 1875-12-15
The Currency and Changers.

lst, 1875: #.'
WHEREAS, The national bank notes out
standing July !. 1875, were SOL ,s6sooo' anu
the amounts of u. s. Bonds deposited win
the United States Treasurer TO secure The
bank notes in circulation were 1887 ,oo5 'sos ~
the interest on bonds al per cent, i,Zz5.So5
the interest on bank notes at 10 per cent. Sf',-
lS6, 800; and wastage by losses on bank n0teS
at per cent. per annum, Sl7,5a34j0, thereby
making the total interest paid by the people
to the national banks for the use OF Their cur
rency S760O3, ,70i, being SIl.a2 per vote for The
votes least for aPresident in 1872. or S2oV',0UO
average TO each State, or Sl2 each Tor every
head of a family in the Union, all OF winch
could be saved to the Government ana Inc
people by retiring national bank currency
and substituting legal tender notes when
| should be interchangeable for Government
bonds bearing 3t5 Interest at the option OF
the holder. thereby saving to the hard-work-
ing, over-taxed. wealth-producing people S16-
003, ,70i i'm interest annually paid To the nit-
tiOnal banks; therefore
Pesolred, That we hereby pray and ask the
Congress of the United States 10 reI' owe these
heavy burdens from the necks OF the people
by forthwith repeating the law creating the
national banks, and to withdraw their issues
from circulation and substitute the Govern
ment issues, usually called ''greenbacks," in
their stead
The object of publishing this is TO show the
similarity of thought among men who have
never Investigated this subject.
WE TAKE IT FOR GRANTED
That these honest, unsophisticat' d farmers
verify believe dthese preambles and resoln-
tions were as true as the Cos pei; and they are
SO firmly fixed in the correctness Of their
opinion that il you were TO point out to them
the batch ferrors which they contain. they
would say 10 you as the editors of the ErJ)ress
did when YOU corrected the errors Of Mr.
BarrOws It'll all b 'sh-a Heterogeneous mass
of stuff" ~
Let us see how much truth in proportion to
the amount Of error theie Is contained III
these resolution
THEY SET OUT
BY stating accurately the amount of bank
notes there were In circulation on the first OF
July last, also the amount of bonds placed in
the hands of the Treasurer OF the United States
as security for these notes.
BUT THE EXPRESS SAYS THIS Is FALSE
The interest Is then calculated upon the
bonds and upon the currency. The calcula-
lion so far as the figures are concerned is cor
rect, but the conclusion is erroneous. They
say the people are taxed To pay this interest
on bonds aud currency. 1t Is II fact that the
people are taxed to pay the interest on the
bonds and the interest must he paid whether
the bonds are in the hands of the Treasurer or
in the pocket Of the banker. Hut 1t is not II
fact that the people are taxed Ia pay the in
terest on the currency.
THESE BILLS ARE MONEY
in the hands of the banker, and noone pays
interest except those who borrow 1t, and II
the Grangers do not want It, they certainly
will not pay interest on it. But suppose they
do borrow it and pay interest on it, do they
imagine that If the Government We're to re-
tire this natl onal bank currency aud issue
legal tender notes In its place, they could get
the legal tender notes without paying inter
est on them? or course they would be worth
just as much as the other notes, and the same
security and same interest would have to be
paid for them.
AGAIN THESE CRANGERs .
Have added the nice little sum of seventeen
millions caused by wear and tear, loss of
notes which they call wastage. DO they think
that the legal tender notes wond never wear
out or be lost? What Is the difference between
the two? But still another error They want
currency that they can exchange for bonds
bearing 3.B5 interest. And where Is the econ
omy In this i? All their resolutions are
based upon taking the heavy burdens
do this they would retire class of
notes upon which the Government pays no
interest and issue bonds bearing 1865 interest.
This was Mr.. Barrow's idea OF economy also.
Although they set out in their preamble that
the national bank notes We're given in ex-
change for bonds bearing six per cent. inter-
est, they seem to forget the fact, and in the
next paragraph ask the Government to issue
more bonds bearing Interest with which to re-
deem these notes, and they do 1t on the prin-
ciple of economy, too.
THEY REALLY BELIEVE
That this little change would be saving to
the over-worked, tax-payiug people OF over
seventy-six millions per annum. Now these
Grangers are above the average class OF men,
They were national delegates and no doubt
the best talent belonging to the Order from
every State was selected, and with all their
wisdom il never entered their heads that
money could not be obtained from banks or
from the Government without paying inter.
est on it, nor that 1t would only Increase 1.-THE
burden upon their necks" by issuing interest
bearing bonds In lieu- OF the present bank
bills; and
THE STRANGEST THING OF ALL
Is, they did not know that legal tender notes
were as easily wasted or lost as national bank
bills. There Is no doubt bnt many OF these
Changers were wealthy and successful busi-
ness men, consequently full of that sei-com-
placency that attaches to men who have had
the luck to save u little money. They gener-
ally Halter themselves that they are the en-
bodiment of all financial wisdom, and fully
competent TO inStIu uct Congress, President
| and everybody else how TO overcome finan-
cial difficulties. Th.re is one honorable ex-
ception 10 this rule, however. A. 4. Stewart
| of New York, when ne was rendered the fl
nancial Secretaryship, said r
HE HAD NOT SENSE ENOUGH
| To run the machine. We conclude then that
| mans private success does not argue that
| he would be a success rs financial Secretary
| ofa great nation. 1t is very easy to point
| out objections and show the faults In all ma
| tional legislation, but IL is exceedingly hard
| to suggest anything better. The combined
| wisdom of nations has labored tor many
centuries to perfect a financial scheme, but
| thus far it is q failure. We have more conf
| dence in the financial ability of Americans
| than any other nationality, and we believe
that COnp reSs will vet bring us out of he fog.
| B. l.. PEEL.