The Ottawa free trader., 1876-01-08
LEGAL TRNnFR

Our worthy granger friend, John 8. Arm
strong, Esq, of Mission, in this county. has
some shrewd ideas OF his own about banking
and currency which, though we cannot fully
indorse them, may have tendency to set one
into the right way of thinking. We find the
following from his pen IN the Sheridan Mems
Letter:
WHEREAS, The National Bank Notes ont.
standing July l, 1875, were $351, 500 OOS and
the amount of United States bonds deposited
with the United States Treasurer TO secure
the bank notes in circulation was $3S7.O55'.
908; the interest on bonds at @ per cent. x23
223, ,354 ;thd interest on bank notes at 10 per
cent, $35, 1S6,0O0, and wastage by losses of
bank notes at 5 per cent. per annum, $17..
598, ,450; thereby making the total interest
paid by the people to the national banks for
the use of their currency, $76,003, ,004, (beinp
$11.S2 per vote for the votes cast for Presi,
dent in 1922
And whereas. the population of Illinois in
1870 was 2.5S9,891, or about onesixteenth of
the entire population of the whole Union;
and, as upon an equal division among 3S
states Of $40, ,003, ,704, would give over $4,000,
900 to each state, the proportion OF Illinois
would be $4,S26,O ,O29; and, as the amount Of
taxes assessed for all state purposes, as shown
by the report of the Board OF Equalization
for the year 1878, is 1885, which shows
thai we pay to national banks for using their
money, 1865, 10 more than we pay for run.
ming the legislature, interest and principal ON
the state debt, and for building state house,
and running the penltentiary, Normal, agri
cultural and common schools, including all
other charitable institutions of the state.
And that is not the worst of it, Congress
has passed law authorizing the withdrawal
Of legal tender notes and the issue of an equal
amount Of national bank notes. thereby dOub-
ling the amount TO the enormous sum Of
$152,O07 ,4OS, which would have to be pro-
duced by the labor Of the country annually.
And whereas, the repeal Of that part of the
law making legal tender notes interchange
able for 5-20's 6 per cent. government bearing
interest; had it not been repealed in 1869,
there would havebeen One Thousand Millions
OF Dollars more of the national debt paid;
and, as bonds are worth more than gold, so
greenbacks would bring a small premium,
owing to their convenience for carrying over
gold.
Legal tender was inaugurated by the repub-
llcan Tarty as war measure, to enable the
government to procure means to carry on the
war, while many good and honest citizens
doubted It's praclicabiity, and feared that it
would share the same fate that the Contlnen~
tai money did century ago. Now why
should not the rank and file of the republican
party 60 to the front to support the legal ten
der currency, as they did twelve years ago,
aud thereby save this amount to the govern
ment and the people by retiring the national
bank currency, and substituting legal tender
notes, which should be interchangeable foc
government bonds bearing 365 interest at
the option of the holder thereby saving to
the hard-working, over.taxed, wealth produc-
ing people $7G,003,7O4 in interest now annu-
ally paid to the national banks; ana as the
first issue Of legal tender notes of $50000,00O
were worth their face IN gold before the ma
tlonal banks came into existence, and as gov
ernmept bonds are and have been worth
premium Of from 2 to Is per cent. above gold
1t therefore behooves us, citizens and legal
voters Of the state of Illinois and of the Uni
ted States, to use our best endeavors and by
all honorable means strive to secure the fnan-
cial reform above indicated and to this end
form ourselves into legal tender clubs for the
purpose of cooperation and the dissemina
ton of information. JOHN s. ARMSTRONG.