Vermont farmer. [volume] (Newport, Orleans County, Vt.) 1870-1877, 1875-02-05
National Banks.

The banker laughs at hard times, under
our present laws. He has invested his capi-
tai in sound securities which draw interest
regularly, aud which are exempt from taxa
ton. Thus his capital is safely invested at
profitable rate, and no tax imposed. Next
he has secured a quantity Of national bank
notes, depositing his bonds as security, but
unlike other people who borrow on collatcr-
al security, not having any interest to pay
on this loan from the government, for such
the national bank bills virtually are to the
bank. These bills which cost him nothing,
as we have seen, he lends to those in need of
money, drawing interest on them. Thus his
capital draws interest twice, while he pays
taxes once, interest once coming out of the
government, which means out of the people,
and once out of the borrower. We believe
the liabilities of the government should be
discharged in full, bonds payable in gold
paid in gold or its equivalent, interest pay
able in gold paid in gold also. But we do
not believe the government ought to give the
holders of these especially advantageous
bonds the additional privilege of setting up
banks, depositing the bonds as security, and
still drawing interest on the bonds If bonds
are used as security for the circulation of a
bank, it is no more than fair that while such
bonds are so deposited they should cease to
draw interest out of the hard-earnings of
those who pay the taxes.
Read this, from the st. Adams MeSSeR-
ger, paper which shows the courage to
speak out the truth without fear Of poten-
tates or rings:
But worse than this folly is the blunder On
it is not n crime) of calling in the green
backs and supplying their place by national
bank notes. What can possibly be gained
by this? As II mixed currency the two have
generally been of equal value; in no in
stance has the bank note been worth less;
in fact if only one is to be the future curren-
cy, (and there ought to he only One) there is
every reason why it should be the greenbnck
and not the bank note. 1t is more uniform,
it IS less easily counterfeted, and the people
have more confidence in the government
than they have in any bank. But this is not
all it is vastly cheaper for the government
tn issue its own currency without interest
than it is to PRINT it for all the banks and al
low them the great privilege of issuing it.
People mt large may not be able to compre-
bend all the intricacies of finance, but when
banks can get eight, nine and ten per cent
for the use of money which costs them moth
ing and the industries of the country cannot
finn in nt civ nd nYn az
that thousands OF laboreTs are thrown out OF
work, there is presented a fitct which the
dullest can comprehend and which the slow
est and steadest will be quick to avenge and
correct. And the fault is not partizan. Re
publicans and democrats are alike RESPONSE
BILE for it. They both own bank stock, both
love money and are both swayed by the
archimedean lever that moves tho world.
The hope of relief is not in changes of nd
ministration. but it is in such thorough
awakening of public sentiment rs TO compel
congressman to better understand and more
fearlessly perform their duty.
The Messenger also prints long article
from Washington paper of the oath Of
last May, from which we make the following
extracts:
Allowing the national banks TO issue any
currency is an unnIitigated evil, and is the
real obstacle to sound. wise and wholesome
legislation, and they ought to be Invested of
that power us speedilyas It can be done with
out disturbing values. The circulation en-
joyed by the banks is valuable privilege,
and to protect II they will overlook every
consideration of public good. The evils Of
such special lavors do not end with the
banks, for TO secure and perpetuate favorable
legislation for themselves they must not OPP
pose legislation for the benefit of other in
terests; so, legislation becomes u matter of
special favor to various interests, and not for
the general good. Therefore, the sooner Con-
gress is relieved of this insdious and bane-
lul influence the better.
Now, the banks have n valuable privilege
to maintain and protect, every one of them
receiving AN annual bonus from government
of more than four per cent on their entire
capital over and above all national taxa
ton, Tor furnishing circulating medium for
the country, which Is printed and renewed ut
the expense of government, and which is no
better than greenbacks and amounting in
the aggregate to an annual not bonus to the
stockholders of the National banks of over
fifteen million dollars. At the same time,
government is obliged TO maintain n more
complicated and expensive system than
would BIO required if the government issued
the entire currency of the nation. Sensible
and honest men out of Congress ask why this
is done, when the nation so much needs the
fifteen million dollars annually to pay cur
rent expenses.
Some of the oranges have done a good