The star. (Cincinnati [Ohio]) 1874-1875, 1875-03-17
THE S.6S PARTY.

Aho OsVO COuV0ItAuic uVuu uclu OUu-
vention of its friends in Cleveland the
other day. 1t was national convention
and numbered about sixty delegates
from twelve States. One would suppose
that If the thing had any vitality it
would have rallied greater number in
view of the sad backsliding of ambitious
Congressman on the subject during the
past year. The claim has been that 1t
was highly in favor with the people. If
so, the people should have attended
to it.
The platform adopted at Cleveland as
the basis of 8.65 party begins with the
scheme, swells out in the middle with it,
and closes with 1t. Between the center
and each end is thrown in land plank
and an equalized bounty plank. The
great idea OF the new party is to be the
1856 bond.
Well, what OF it? 1t will simply make
the Government bank of deposit and
loans, but not of discount. Every one
who may have $50 or more can get 3.65
bond by depositing it with the Govern
ment subject to call on demand. The
bond is a certificate of deposit. The
Government is expected to take up some
OF the outstanding per cent. bonds with
these deposits. 1t is evident that, like
all other bankers, a sufficient portion Of
the deposits must be kept on hand to
meet the current demand for the CONVEX
sion of these $3.50 bonds into legal ten
der notes.
At least half of the total OF deposits
must be kept on hand, or the Government
bank will be liable to break. This would
amount to a saving of 2.35 ON the per
cents taken up; or, counting the differ
ence between gold and currency inter-
est, the saving would be, say 8 per cent.
On the other hand the Government would
pay S.65 on the deposits kept on hand,
showing o net loss to the Government OF
more than half of one per cent, besides
all the expense Of doing the business,
which would be one-half OF one per cent.
more.
The claim is that this loss is nothing,
because the. people will have plenty of
money at lower interest. Not SO; it will
stiffen up the rate of interest. 1t will
force private bankers to pay more than
3.65-at least As per cent. on deposits in
order to get them. They must, therefore,
raise the rate of accommodation to their
borrowers above what it is now or has
been: This is the way the theory of low
er interest will work.
Then the scheme will diminish the
amount Of private lending and throw a
greater number OF borrowers upon the
mercy of banks of discount, which will
exact at least one per cent. month
compounded every sixty days.
Thus the Government is to be made
banker without the privilege of making
the bankers profit by discounting notes
at 10 to 10 per cent. and drawing the in
terest, 6 or 10 per cent, which the notes
call for. This is to involve the Govern
ment in greater financial complexity,
the people in heavier taxation, and, at
the same time, increase the oppression
of usury.
Why can not the few who are quick on
this scheme give it little sober common
sense?. We notice that the leaders of
the Cleyeland Convention were the same
persons who made the scheme. hobby in
the Labor National Union as early as
1867 and broke up the Union in trying to
organize party.
We think that If the Government shall
issue all the paper currency that can be
floated on gold basis it Will have as
much banking to do as will be practical
BILE. Thus much it ought to do. Wind
up the National Banking system and
give the people greenbacks only; and on
the greenbacks give gold on demand 80
soon as practicable.
When we alluded to the Cleveland
Convention some time since it was not
known by whom it had been called or for
what purpose.