The Portland daily press., 1876-02-11
TERMS $500 PER ANNUM, IN ADVANCE.

their own bills and take from the government its re-
source in that direction. To restrict and limit their
circulation, and to make the banks as helpful as
possible in the great work of sustaining the govern
ment finances, the national bank act was passed.
This act required in effect, that every bank should
loan its entire capital stock to the governments or
III other words, to invest it in government bonds,
anu then on depositng these bonds with the Treas
urer OF the United States the bank might receive
not exceeding ninety per cent. of their amount in
circulating notes. the government holding the bonds
or the protection of the bil-hoder in case the bank
should fall. And that, in brief, is precisely what
national Dank Is to-day. do not say the system
perfect. do not feel called upon to rush to its adj
vocacy or its defense. do not doubt that as we 20
forward we may find many points in which the sys-
tenn can be improved. But this am bold to main
tain that contrasted with any other system of bank
ing this country has had, it is immeasurably
superior; and whoever asks. as some Democrats
do for its abolition with a view Of getting back
any system OF state banks, is blind leader; and
very deep ditch of disorder and disaster awaits the
followers if the people should ever be so blinded as
to take that fatal ste
1t is greatly to be deplored, Mr.. Chairman, that
many candid men have conceived the notion that it
would be saving to the people if all banks could be
nished by the government issuing legal-tenders. 1
do not stop here to argue that this would be in vio
latiou of the governments pledge not to issue
than four hundred millions of its own notes. mere
ly remark that that pledge is binding in honor until
legal-tenders redeemabe in coin presentation,
and when that point is reached there will be de-
sire, there will certainly be necessity for the
government issuing additional notes.
The great and to my mind unanswerable objection
to this scheme is that it places the currency wholly
in the power and under the direction of Congress,
Now, Congress always has been and always will be
governed by partisan majority, representing one
of the political parties of the country; and the
proposition therefore reduces itself to hs-that the
circulating medium, instead Of having fixed de-
terminate character, shall be shifted, and changed,
and manipulated according to the supposed needs OF
'the party" Iprofess, Mr.. Chairman, to have some
knowledge of the American Congress; ils general
character, its personnel, its scope its limit its pow
er. think on the whole, that it is far more pat
riotic, intelligent, and upright body of than it
generally gets credit for in the eonntry but at the
same time can possibly conceive of no assemblage
of respectable gentlemen in the Uuited States more
utterly untitled to determine from time to time the
amount of circulation required by "the wants Of
trade" But, indeed no body of men could be in
trusted with that power. Even if it were possible
to trust their discretion, their integrity would be
constantly under suspicion. If they performed
their duties with the purity Of an angel Of light,
they could not successfully repe those charges which
always follow where the temptation to do wrong is
powerful and the way easy. Experience would very
soon demonstrate that more corrupt corrupting
device, wilder visionary project, ever en-
tered the brain of the schemer or the empiric.
If the people of the United States were fully awake
and aroused to their interests and could things
they are, instead of increasing the power of Con-
gress over the currency they would by the shortest
practicable process divorce the two. completely and
forever. And this can only be done finally, effectu
ally irreversibly, by the resumption of specie pay
ment. Why, Mr.. Chairman, it is hardly an exagger-
alton to say that, ever since the government was
compelled to resort to rredeemabe currency during
the war, the assembling of Congress and its contin-
uance in session have been the most disturbing ele
ments in the business of the country 1t is literally
true that manean tell what day may bring forth
One large interest looks hopefully to contraction and
the lowering of the gold premium; another is ru-
ned unless there is such a movement toward ex-
pansion as will send gold up. Each side Of course,
endeavors to influence and convince Congress. Both
sides naturally have their sympathizing advocates
this floor, and hence the substantial business in
terests of the country are kept in feverish,
doubtful speculative state Mems minds are turned
from honest industry 10 schemes of financial gam
bling, the public morals suffer- old fashioned integ
ry is forgotten and solid, enduring prosperity, with
honest gains and quiet contentment is rendered i'm
possible. We have suffered thus far in perhaps as
light degree as could be expected under the cir
cumstances; but once adopt the insane idea that all
currency shall be issued directly by the government
and that Congress shall be judge of the amdsnt
dom anIo hu fho suan nff and hav
this country adrift rudderless, sea of troubles,
shoreless and soundless.
1t is singular circumstance, Mr.. Chairman-one
of those odd happenings sometimes brought about
by political mutations-that those who urge this
scheme upon the government are democrats, every
one of whom would doubtless claim to be true dis
ciple of Andrew jackson. And yet all the evils of
which jackson warned the country in his famous
controversy with the United States bank are thou
sand fold nagniied and a thousand fold aggravated
in this plan of making the treasury department it
self the bank with Congress for the governing board
of directors. 1 commend to gentlemen of Demo-
cratic antecedents careful perusal Of Jacksons
great message of July 10, 1882, and wish them to
frankly tell this House how they think Jack
son would have regarded the establishment of a
great national paper money machine, TO be located
for all time in the treasury department. the bills of
Wucu elldu nave pIO NlSlOu lOr
and the amount of those bills to be determined by
majority vote in party caucus.
And then, after Jackson's veto message shall have
been diligently perused and inwardly digested by
the Democratic advocates of irredeemable paper
money, will ask them if the present national bank
system does not fully meet all Of Jacksons objec-
tons, and if it is not, indeed, nearly the differ
ence of time and circumstances will permit, such
system of banking as jackson indirectly commended
and as he professed himself ready to submit plan
for if Congress should desire it? Disclaming, as
have done any special championship Of the national
banks, but merely referring to facts of record,
would be glad further to ask if the present SYSTEM in
its entire freedom from monopoly, being equally
open to ALL if in the absolute protection it affords to
that innocent third party, the billholder, (no
having lost dollar by the bills of national banks
during the thirteen years the system has been in
operation, whereas in the preceding thirteen years
the losses to the people by bills of state banks ex-
ceeded fifty millions of dolars) if in that universal
credit attached to its bills saving the people all
losses from exchange or discount wherever payment
is to be made within the United States if in its pro-
lection of the rights of depostos if in its strength
and solvency in time of financial disaster; if in its
subecon to taxation, both by the General and State
Governments, until it confessedy pays heavier tax
|
to measure by the unvaryhg law of supply and de-
mand the precise amount of circulation required by
the wants of trade, ,"-I would be glad, repeat to
ask any Democratic opponent of the system if it does
not in each and all these features fill the ideal
quirement of a bank foreshadowed by Jackson
and if it does not indeed far transcend any ideal
jackson had, in its freedom for all to engage in it,
in its absolute security to the public, and in its
singular adaptation to act as regulator of the
rency, preventing undue expansion and undue con-
traction with equal and unfailing certainty. and
adjusting itself at to the specie standard when
ever the Government shall place its notes at par
with coin?
1t is urged by the opponents of the banking sys-
tenn that the three hundred and twenty millions of
bank circulation can be supplied by egatenders and
the interest on that amount of bonds stopped! How?
Does any gentleman suppose that the bonds owned
by the banks, and deposit in the Treasury, will
be exchanged for legaltenders of new and inflated
issue? Those bonds are payable, principal and
interest, in gold; and with the present amount Of
legal-tender notes, they worth in the market
from S1.16 to S1.25. What will they be worth in
paper mouey when you double the amount of legal
tenders and postpone the day of specie resumption
far beyond the vision of prophet or seer? And this