Knoxville journal. [volume] (Knoxville, Iowa) 1874-1986, 1875-07-29
The Oppressed Bankers.

of National banks, immediate re-
sumption of specie payment by the
Government, repeal of the war tax
on banks, and of the law requiring
2-cent stamps on checks and vouch-
ers.
Precisely these things which the
terribly oppressed bankers implore
Congress to do, Congress should not.
show the least disposition to do.
Congress has already Submitted to
entirely too much dictation by the
capitalists of the country. The
JOURNAL may not expect to thwart
the designs of these millionaires
upon the interests of the people, but
will not therefore restrain the reiter-
alton of its belief--its firm conyic-
ton that the welfare of the govern
ment and the country demand the
early repeal of the law authorizing
the establishment of Notional Banks,
or Mt least that feature of it which
grants the privilege of issuing circu-
lating notes. In other words, the
National bank currency should
be retired, aud its place should be
supplied with legal tenders. The
necessity which created these bants
has passed away. The currency of
the country should be supplied
directly by the Government,
and, so much of IL as cannot be in
coin should be in greenbacks, and
that much of the public debt should
be without interest, that the whole
people, through the Government,
might have the benefit, instead of
giving this vast advantage to the
few who do not need it.
A brief explanation: The Ma
tionaI Banks purchase United States
bonds aud deposit these in the u. $.
Treasury To secure their circulation.
Upon these bonds they draw semi
annual interest in gold. The Gov
ernment allows the banks to issue
circulating notes TO the amount Of
ninety per cent on their bonds.
These notes are loaned mt the bank
counters, as cash on 30, GO and no
days time, at ten per cent annual
Interest. But MS the iptereat Is pay
lptl.in advance and conpoundedlavery
! 80, 60 or 90 days, it is equivalent TO
more than ten per cent. Then the
banks have drawn interest on
their bonds, and also on their oWG
promises to pay, making double in
terest. They have the advantage Of
large circulating Indebtedness.
This advantage We hold should ac-
crue to the whole people, through
the Government, and not be mono
pOIized by the few who are wealthy.
Another evil growing out of this Is
that dangerous credit IL given 10 the
banks by the government, enabling
them to secure deposits on small
interest, or no interest, which
they could not otherwise secure.
Aud this credit enables corrupt or
careless men TO bankrupt huhdreds--
thousands OF trusting dcpOsitOrs.
An instance OF this We have in Iowa.
B. +, Allen possibly not with cor
rupt depign, possibly In consequence
OF misfortunes which no could not
foresce and provide against, proba.
bly, resulting from reckless specula-
tion. squandored hundreds Of thous-
ands of dollars belonging TO innocent
depOsitors.
The fact that the Democracy OF one
or two States have declared against
the National Bank system gives US
no valid reason for withholding our
convictions upon this subject.
AS to immediate resumptionof spe-
Gle payment, or even resumption at
as early date as that fixed by the
last Cougress--l87o, we may be per-
mitted to say that the talk OF 1T i5 ali
In the interest Of the monied monop-
olists, aud in our humble view oper-
ates against the welfare Of the many.
In order 10 resumption the currency
must be contracted; and contraction
can only tend TO make hard times
and increase the embarrassments OF
the debtor class, increase the weight
Of their Indebtedness, aud place
them more In the power OF their.
creditors. Besides, the gold requisite
to form basis for resumption Is not
in the country, and Is not likely 10
be within the next ten years, as we
transport more gold than our customs
and our mines produce. To make
brick without straw is possible; but
to resume specie payments without
bullion is not within the range OF
possibilities Horace Greeley never
uttered a greater absurdity than