National Republican., 1875-08-03
SHERMAN ON THE FINANCES

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Without ssy pisn Of rsisSption. On tSs proniss
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the industFieS q the people, For one, fellow.
s,iIss' ssSule want Sss 'pssSn nsuss.n,ss
tponsible 70 our country and TO mankind for the
ns zee
and not turn over TO our adversaries this last re-
naming duty Of our great conflict France, our
noble sSampls 81 returning specie Payments,
amer her unsuccessful war with Germany, and
amer suffering greater err 'aSr,css than We DID, and
prosperous than ever before IN her long history.
These shadowy fears, which know in the minds
Of business men sometimes cloud the pathway of
Republican policy.
NATIONAL BANKS.
The next resolution Of the Democratic plat
form to which wish to call your attention Is the
ninth:
"Ninth. That the policy already initiated by
the Republican party Of abollshing legal tenders
and giving national banks the power to furnish all
ready dangerous monopoly, and the enormous bur-
dens now expressing the people, without any COM
pensatipg advantags, and Chat we oppose 20 this
and legal tenders Be Issued IN their place"
The substance Of this resolution Is that the ma
tional banks shall be promptly destroyed, aud
that the Rreenback circulation shall be increased
to $40 000, ,000 Before examining this startling
lss =, rs dRO,s S sems Of ne erTo.s I Of
that the Republican party proposes to abolish the
legal tenders to give to the national banks the
Of the future, upon which parties have mot yet
taken their position, and upon which no doubt diff
ferences Of opinion will arise. The Republican
January, 1879, both legal tenders and national
bank notes shall be redeemable In gold when de-
manded. To this extent and no further have they
taken q position. For one am free to say that
while our public debt exists, 1 am for maintain
ing in circulation United States notes to the full
amount that can be maintained at par in gold, and
no more. And am convinced that such notes
payable on demand In coin, at the option Of the
Government in fixed bond, would keep In circu-
1te ST
in the world why the Government ought not to
pay interest on debt 1t is not prepared to pay in
%Sebsf Sey afe or are OC tendsT Ta
guard against the sudden effects Of q panic,
would leave them legal tender. But these are
" entertained. But upon this question the Re-
publican party has taken no position, nor ought
It to do SO until after resumption.
the power Of Congress. We can repeal the law
Of their creation. Would IL be wise to do so3
They are denounced as monopoly: This is now
law for national bank circulation was reached
they were in one sense q monopoly; but since the
act Of last winter banking H as free as black.
then the making Of lawyers or doctors or preach
ers. Any set Of men may start bank in any part
OF tne United states on the terms conditions and
two thousand banks have been authorized, scat
tered all over the United States. They have
3. Or 81
large part Of the active capital upon which the
manufacturing, commercial and mining indus
agents for the deposit and exchange OF money,
not only IN the United States but with foreign
nations. Their business reaches among and inter-
States. They are private corporations; the Gov
ernment has nothing to do with them except to
make them pay taxes and obey the laws. These
under oath, subjecting them TO frequent exarnins-
tions at unexpected times, and maintaining over
them the strictest surveillance. The only privi-
lege these banks enjoy that the humblest citizen
does not is that by giving ample security In United
States bonds they may issue o certain proportion
Of circulating nstes: They pay the expense Of
demand with United States notes; keep money
in the Treasury of the United States for that
to sssm %sen his ali
hand; we tsT them ali: the states tax thsm s and nd
taxes % are now These are s the natiSnsf
banks. They were organised BY the RepubIican
party To supersede to take the place of the State
tSority; obeyins no law; giving IN some % States s
no security; Issuing bills easily counterfeted and
Of limited circulation. Under the national bank
the notes are secured beyond the possibility 81
less; the bank may break, but the note Is good.
They pass without question anywhere In the
years, years. but stiil the law can Be- repealed. % Busi.
ness In some branches Is languid. Debts are hard
to pay and hard to collect. Everybody is trying
more crop. And now o set Of men, lf-appointed,
calling themselves q Democratic conventions
State convention, remember, not q national con-
this system Of national banks, interviewer with
the business Of the people Of the United States,
shall be promptly torn up; that this vast indebt.
promptly paid, and that all the bonds Of the
United States now held by these banks shall be
forced on the market, and that the United States
shall then issue legal-tender notes to the addi-
tional amount Of s350, 900 900. Such is the fnan-
cial programme Of the Ohio Democrats to give
relief to the business interests Of the country Is
there any business man who hears me who does
not know that such q measure, II adopted, would
utterly destroy the industry Of the countryP
MORE eREESBAcKs UNCONSTITUTIONAL.
Let US examine this proposition little further.
The hrst difficulty to be encountered is that the
millions would be plain and paipabIe violation
Of the public faith. In 1854 the United States
solemnly engaged that the volume Of flegs'-.ender
1red millions, and this pledge has been several
times repeated, and Is the sacred barrier which
alone has maintained the purchasing power Of the
Again, the validity Of the legsl.tender act was
sustained BY the Supreme Court on the ground
that II was the exercise Of the war.making powers
and yet this ground It was sustained
but by bare majority Of that court. Who be-
lieyes for 9 moment that the validity Of legal.
when issued in time Of profound peace In viola
ton Of the public faith and as part Of public
policy to maintain in perpetuity an irredeemsble
Again, for what purpose would the United
States issue their notes7 Would it be TO purchase
The bonds Of the United States now held as secu-
rity for bank notes2 Those bonds are the property
of the banks and could only be purchased like
other bonds In the open market at large pre-
MUM. The premium would rapidly advance as
he irredeemable notes were issued. How long
would this process continue before these platform.
makers would assert the right to pay the bonds
n greenbacks, and thus again violate the public
aith pledged by the act Of March, 1859, to
strengthen the public credit? Or would they loan
he greenbscks TO the people IS the bank notes
sre now loaned, and thus convert the Government
INTO bank not only of loan but Of discount? II is
die TO follow the evil consequences and dangerous
fleets Of the Democratic policy announced In
hess resolutions. Their end would be utter bank
'uptcy and ruin.
But what good do they hope fort They would
ave the interest on the notes now isIued BY the
'anks. They want the Government to have the
Profits Of issuing notes for circulation. In gain
ng this they would violste the public faith, they
would lose all the taxes now received from the |
lational banks and utterly destroy all ideas OF
ixed values. The profit Of this circulation even
y the banks is greatly exaggerated, 50 much so |
hat now more circulating notes are being retired
y banks than are issued to them. This privilege
now open to all, and yet It is not taken. II the
government assumes the sole and exclusive priv
lege Of Issuing these notes, It cannot engage In
he business by which alone the privilege can be /
made profitable, and the business public would /
ose the benefit Of discounts and loans.
Rut the real m0tfve lies hnek n all this Thaaa /