Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-02-11
propositions are so inseparably connected that |
no d;scyIss them fooefher


origin belongs to the late Salmon T. Chase, then
Secretary of the Treasury. And it may not be
improbable Just here to recall to the House the
circumstances which at the time made the National
Banks a. necessity to the Government. At the
outbi eak Of the war there were considerably over
a thousand State banks of various degre of re-
sponsbty, or in esponsibility, scattered throu gh
out the country. Their charters demanded the
redemption of their bills in specie, and under the
pressure Of this requirement their aggregate cir
culation was kept within decent limits-but the
amount of it in most instances left to the dis
cretion of the Directors, and not q few OF these
banks issued ten dollars Of bills for one of spt Gle
in their vaults. With the passage of the Legal
Tender Act, however, followed by an enormous
issue of Government notes, the State banks would
no longer he required 10 redeem in specie, and
would therefore at once flood the country with
their 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
Government finances, the National Bank Act was
passed.
Ibis act required, in effect, that every bank
should loan its entire capital stock TO the Govern
ment; or IN other words, to invest it 10 Govern
ment bonds, and then on depositiDy these bonds
with the Treasurer Of the United States, the bank
might receive not exceeding ninety per cent. of
their amount in circulating notes, the Government
holding the bonds for the protection of the bill
holder in case1he bank should tail. And that, in
brief, is precisely what National Bank is to-day.
l do not say the system is perfect. l do not feel
called upon TO rush to its advocacy or its defense.
do not doubt that as we 60 forward we may fed
many points in which the system can be improv ed.
But this / am bold to maintaiu, that contrasted
with any other system Of banking this country has
ever had, it is immeasurably superior, AMI who
ever asks, some Democrats now do, for its
abolition, with the view of getting back any sys-
TEN OF State banks, is blind leader, AMI very
deep ditch of disorder and disaster awaits the fol-
lowers, if the people should ever be so blinded
to take that fatal step.
1t is greatly to be deplorcd, Mr.. Chairman, that
many candid men have conceived the notion that
it would be great saving to the people if all
banks could be dispensed with and the circulating
medium be furnished by the Government issuing
legal tenders. l do not stop here TO argue that
this would be in violation Of the Governments
pledge not to issue more than four hundred mil
lions of its own notes. / merely remark that that
pledge is binding in honor until legal tenders
deemable IN coin on presentation and when that
point Is reached there will be no desire, as there
will certainly be no necessity, for the Government
issuing additional notes.
The great and TO my mind unsnswcrable
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
partizan majority, representing one of the po-
Etcal parties of the country; and the prop
osition therefore reduces Itself to this-that the
circulating medium, instead of having fixed, de-
terminate character, 81 all be shifted and changed
and manipulated according to the supposed needs
of "the party" profess, Mr.. Chairman. TO have
some knowledge Of the American Congress- its
general character, its Peysonne its scope, ITS limit,
its power. l think, on the whole, that it is far
more patriotic, intelligent and upright body OF
men than Il generally gets credit for IN the conn
try; but at the same time, can possibly conceive
OF no assemblage of respectable gentlemen il the
United States more utterly unified to determine
from time to time. the amount of circulation re-
quired by 'the vans Of trade" But indeed, no
bedy Of men could be entrusted with that power.
Even if II were possible to trust their discretion,
their integrity would be constantly under susp-
con. If they discharged their duties with tie
purity OF an angel Of light, they could not success
fully repel those charges which always follow
where the temptation to do wrong is powerful and
the way easy. Experience would very soon dem
onstrate that more corrupt or corrupting de-
vice, wilder OR more visionary project ever
entered the brain of the schemer or the tmpirc.
If the people OF the United States were fully
awake and aroused to their interests, and could
see things as they are, instead Of increasing the
power Of Congress over the currency, they would
by the shortest practicable process divorce the
completely and forevor And this can only be
done finally, etiectualy, irreversibly, by the Ie-
sumption Of specie payment. Why Mr.. Chair
man, it is hardly an eXaggcration TO say that ever
since the Government was compelled to resort TO
irredeemable currency, during the war, the assem-
bling of Congress and its continuance in session
have been the most disturbing elements IN The busi-
ness Of the country. 1t is literally true that no
can tell what day may bring forth. One large in
terest looks hopefully TO contraction and the lower
ing Of the gold premium; another Is ruined unless
.here is such a movement towards expansion as
will send gold up; each side, of course, endeavors
to influe nee and convince Congress, both sides
naturally have their sympathizing advocates on
This floor, and hence the substantial business in
terests of the country are kept in cversh, doubt
full, speculative state; mems minds are turned
from honest industry to schemes of financial
gambling, the public morals suffer, old fashioned
Integrity is forgotten, and solid, enduring pros
perity, with honest gains and quiet contentment,
is rendered impossible. We have suffered Thus
far in perhaps as light degree could be ex-
pected under the cicumstancss--but once adopt
the insane idea that all curl cncy shall be issued
directly by the Government, aud that Congress
shall be the judge Of the amount demanded ty
the "wants OF trade ard you have th, country
adiift, rudderless, sea OF troubles, short less
and soundless.
1t is a singular circnms tanco, Mr.. Chairman, one
Of those odd happenings sometimes brought about
by political mutations, that those who urge this
scheme upon the Government are DemocIats-
every one of whom would doubtless claim 10 be q
true disciple of Andiew jackson. And yet all the
evils of which jackson warned the country in his
famous controversy with the United States bank,
are thousand-fo mag gnitied and Il thousand-tod
aggravated in this plan Of making the Treasury
Der itself the bank, with Congress for the
tlemen of democratic antecedents a CAREFUL peru
sal of Jackson's great message of July 10, 1882,
and wish them to frankly tell this House how
they think Jackson would have regarded the estab-
lishment of great National paper money ma
chine, TO be located for all time in the Treasury
Department, the bill Of which shall have no pro-
vision for their redemption, and the amount OF
those bills to be deter mined by majority vote in
party caucus.
And then after Jacksons veto message shall
have been diligently perused and inwardly digest
ed by the democratic advocates of lrredeemable
paper money, Will ask them if the present Ma
tional Bank system does not fully meet all of
Jackson's objections, and if it Is not indeed as
nearly as the difference Of time and circumstances
will permit, such system of banking as Jackson
indirectly commended, and as he professed him
self ready to submit plan for if Congress should
desire it. Disclsiminy, as have done, any special
championship of the national banks, but merely re-
ferrng to facts of record would be glad further to
ask if the present system in its entire freedom from
monopoly, beng equally open to all if iu the alb
solute protection it affords TO that innocent third
party, the bill-holder-no man ever having lost
dollar by the bills Of National Banks durng the
thirteen years the system has been in operations
whereas in the preceding thirteen years the losses
to the people by bills of Stale banks exceeded fifty
millions of dollars if in that universal credit at
tached to its bills, saving the people all losses from
exchange or discount wherever payment is to be