The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-02-26

menl III relaulOn 10 tnlS important sub
ject, and when one Of their schemes has
exploded, they have always been ready
with another, and each succeeding one
has proved still more unjust and oppres-
slVe to honest industry and legitimate
enterprise than its antecedent-more re-
hned In its modes Of imposition and
monopoly.
THE PRESENT so-CALLED NATIONAL BANKING
SYSTEM.
! | say so called" because the instim.
TONS organized under this system are
for private gain and not for the public
benefit, and are founded on the same
principles as the systems which preceded
it, but with great multiplied powers and
facilities for controlling the money and
| business interests Of the nation, and tax-
ing and expressing the industrial classes
by means OF eXtortionate rates of inter.
est. The present occasion does not af-
ford the opportunity, nor is it. in nv
judgment, necessary, to 90 into an ex-
| tended review Of the law, as doubtless
most or those interested ina reform ofthe
currency and finances are familiar with
its provisions. shall, therefore, confne
myself to the presentation of some of its
more important features, which will
serve to indicate its general character
and show that it is framed in the interest
of the stockholders, and not of the gov.
eminent or people at large.
The law clothes the Secretary of the
Treasury of the United States with I'M
precedented and dangerous powers.
His control over the currency is we'll
nigh absolute, without check or restraint
from any other department of the Gov
eminent. 1t is only through the Sccre-
tary OF the Treasury that those who are
compelled to accept the promises of the
bank in exchange for their property and
the products Of their labor, and transact
their business through them, can obtain
any knowledge Of the sOlvency of the diff
ferent institutions; for the Secretary. or
the Comptroller Of the Currency, acting
under him, has the sole power of choos.
ing the time and appointing the agents
to examine the associations. It's surely
neither wise nor safe to place such
important trusts in the keeping of
any individual; for however virtuous
and wise he may be, the duties of
the office are too vast and onerous for
any man to properly discharge. And if
the place should happen to be filed by a
mercenary or corrupt officer, or if his
appointees should be such, (and there
are some Of this character to be found in
all political organizations their oppor-
tunities for favoring pet institutions and
enriching themselves and friends at the
public expense are well nigh unlim-
tied
The law at first conferred on the as
sOciatiOnS organized under this system
general banking powers to the extent
of $3OO,OOO.OOO, which was afterward in
creased to $354,OOO,OOO, and authorizes
the Secretary of the Treasury to issue
to the banks circulating notes to the ex-
tent of 30 per cent. of the par value of
the bonds deposited to secure the re-
demptiOn thereof. In this way they
draw double interest on their capt.
tall first on the bonds deposited with
the Government, and second on the cul'5s
rency they receive and loan to the peO-
pie; and in lieu of all taxes on their cir
culation, and on the bonds deposited to
secure the redemption therefore the
banks are required to pay but ne-half Of
one per cent semi annually on the aver
age amount of their circulation Outstand-
ing. As all State banks and private bank
ers and brokers pay the same license and
20. Int, lannlitS bn
banks, this tax on the circulation is all
the revenue the Government derives
from this source that it would not re-
ceive if the currency consisted entirely
of legal-tenders. And as the currency
issued through the banks derives all
its credit and security from the Govern
ment Endorsement, and is in no respect
better than the legaltenders every dol
lar of the interest paid to the banks on
the bonds deposited to secure the re-
demption of their circulation is, with the
exception of the tax or duty OF per cent.
per annum, Just so much OF subsidy
paid to the banks, for which the Gov
eminent receives no equivalent whatev-
err. The argument of the advocates <.
the system, in and out OF official pc. suD
ton, that the national and State COVE Ha n, :,
ments derive a large revenue from IL y
banks that they would not otherwise
receive, is wholly fictitious for, if the
bonds were paid off and taken up, the
capital would have to be invested in
business, where it would, of course, be
come subject to taxation. L feel safe in
saving that no species of property or
capital pays so small an amount OF taxes,