The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1875-11-10
SENATOR KEY. INTERVIEWED.
HIS views IN REG1RD TO Fl
NANCES AND THE NATIONAL
BANKS

y
decidedly favor of repeating the
resumption act" and against con-
traction, the Senator held forth in
regard to National Banks as follows:
CorrespoAdent--Plea give me youI'
view In fun as to the present system Of
national banks and banking and what
effect their abolition, would have upon
the country ~
Senator Key-Before our bonds are
paid and we resume specie basis we
must bank upon our Indebtedness, that
Is, upon our bonds or treasury notes and
we cannot destroy our present system
until better one is devised ] have no
partially for national banks and have
no interest in them. l have desired to
see some safe aud easy way by which
we could dispense with them. IL we
destroy them now il seems to me it will
aggravate the commercial distress which
is upon us They would force the. col
lection of their debts, decline all loans
and accommodations and draw i'm their
currency, and at the same hoard in their
vaults all the legal tender notes possible
for the redemption of the bank notes
producing an Immediate contraction of
our currency. The closing out of two
or three Thousand banks, it seems to me
would shock our finances fearfully.
If / had the making of bank system /
should not make the one we have, but
| do not see how thecountFy could stand
its destruction. The collections which
would be forced thereby and the con-
traction of the currency which would
ensue, would bring upon lis most fear
full panic.
COrrespendent--Wh is our remedy
by which We can extricate. ourselves
from these difficulties? 4 AZ e.
Senator Key see no good way out
of these difficulties but by the payment
of our bonds, #It-may be, and do not
say how this might be done, that we
might devise the means to pay out bonds
and this would give currency stop in
terest and dissolve our national banks.
The trouble is tOrTaiSe the means to pay
them. This would be a slow process,
and therefore very gradual. / am not
welded to any particular theory of
finance. No man can hope to have his
plans carried out in all respects. One
serious drawback to us of the South
arising from our banking system is that
our banks from a largo part of their
currency, oF-fts equivalent is sent to
our great commercial centerS, and leaves
us without adequate currency. With
the system fixed npon us as it is, it seems
to me that we might be greatly benefited
by repeating the tax of ten per cent on
the issues of banks authorized by the
State, and let such of the States as need
them adopt a secure system of local
banks predicated upon our national or
other good securities. Let the issues of
these bank be redeemable in greenbacks
and national bank notes.
We regret to see the Senator place
himself thus directly athwart the
platform Of his party in Tennessee.
That platform certainly expresses
the conviction and desire of the De-
mocracy Of the State, when it says
" We ftUOr the abolition Of the present
Odious National Banking system" 1t /
expresses the estimation in which
that system is held, when it charac- /
terizes it as "Odiolts" And the more
thoroughly the people come to I'M
derstand the system, the more odiOus
it becomes. The masses are coming
to understand that they are paying
to these banks from 16 to "a per
cent. per annum for almost the en-.
tire volume Of circulating medium.
They pay in taxes a gold interest of
six per cent. on the capital stock of
the National Banks, and from o TO
IS per cent, compounded four times
a year, for the entire volume of Ma.
tional Bank notes in circulation.
This is q rate Of interest that will
enrich the lender with certainty and
rapidity, and will as certainly and as
rapidly impoyerish the borrowing
class. ia
But such is the present National
Banking system, and the law Great
ing and sustaining it, that commerce
and trade, and all the industries are
not only compelled to pay to the
banks this enormous rate of interest,
but are compelled to look to them as
the only source of supply. States
are prohibited from relieving the me-
cessities of the people by adopting
any system of State Banks, and cap
italists would be willing to establish
Banks of issue, and lend at lower
rates Of interest, as in days of yore.
meet the 10 per cent. tax clause in
the National Banking act at the very
Threshold and are deferred from
taking any step in this direction. A
more oppressive system could hard
ly be devised. The people feel and
know this, and hence it Is "odiouS'
to them, and they demand its de-
This, the Senator thinks, cannot
be done until the $ bonded debt" is
first paid off. If we correctly under
stand his meaning, he thiHks it will
be easier 10 devise means to pay
something. over two thousand mil
lions Of debts, than to abolish the
National Banking system that the
former may be accomplished with
less Inconvenience than the latter.
If this is his meaning, and his views
should be those of the National Leg +,
islature, then for generations to
come our people are to be hewers Of +
wood and drawers of water for the
National Bank aristocracy for peo-
pie paying such an enormous inter-
est will be long, weary years in pay