Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-06-21

prosperity through q currency Dased
upon an actual gold and silver basis,
redeemable at par, was not suited to
the progressive ideas Of those who
could discern more rapid wealth thro'
a system of fraud as practiced by
banking institutions of that period.
Coin could only be manufactured as
the metal was obtained; but paper
money could be printed in sums to
meet the wants af all.
In the midst of these reckless iinan-
cial theories there were few good
men who foresaw inevitable ruin from
again flooding the country with
a cheap substitute for money, and did
all in their power to thwart a return
to the previous irresponsible banking
system. Governor Snyder, of Penn
| sylvania, in 1918 vetoed twenty five
bank charters, but in 1914 forty were
passed over his veto
Banks now multiplied on every
hand, and the chief occupation Of
those in the Middle States was spec.
ulating in Government stock. This
was a huge swlndle, carried to the
fullest extent, and laid the foundation
for another collapse. Had the result
fallen upon these banks, or the Gov
eminent, it would have been right
eous retribution;but they escaped with
Golfers full, while the honest, hard
working people the mechanic, farm
| Grand tradesman-Weret the principal
| sufferers.
New Orleans banks refused to re-
deem in April, 1914; those of Phila-
delphia in August of the same year,
The Southern States went with the
rest, but Ohio and Kentucky paid
specie till early in 1915, and the only
bank then in Tennessee continued to
redeem its circulation until August,
1915.
Directly upon this, tho country
staggering under a worthless cur
rency, banks increased more rapidly
than ever before, and this, too, while
the notes of the new banks required
elaborate quotations. Brokers had a
rich harvest in negotiating them.
Niles Register, from 1914 to 1920,
is full of bitter denunciation against
the system of shaving practiced
upon the people. Many incidents and
illustrations might be introduced,
showing the baneful influence upon
the best interests of the country grow
ing out Of this inability to redeem.
In this condition of the currency,
October II, 1914, Dallas, then Secre-
tary of the Treasury, proposed ma
tional non-specie-paying bank. Cal
houn proposed bank on Treasury
notes, which should not suspend
specie payment. Dallas scheme
passed the Senate, but was lost in the
House. Then plan for bank that
should be prohibited from suspending
passed both Houses, and was vetoed
by the President January 30, 1915.
Dallas scheme again passed the Sem
ate February II, 1851, but as before
was defeated in the House.
Calhoun, at the next session, rein
reduced the bank proposition, and
assisted by Dallas, charter was
passed April 10, Isle. This bank
was to have $35, 100000 capital, 81
100000 to DO subscribed by the Gov
eminent in five per cent stock; $685.
100000 by the public. OF this, ST.
100000 was to be specie, SCI, 900, 900
six per cent United States stock, and
to issue no notes below SIS. This bank
| Calhoun and Dallas boastingly as
serted "was established to correct the
currency, and be financial proyi
dence to the country"
See how well they kept the promise.
Three brief years Of existence, and
upon the superstition the affairs of the
bank were not properly conducted,
Congress appointed committee to
investigate January 16, 1919; this
committee made its report, fully sus-
tanning the charges. Thereupon the
President and managers resigned and
Langdon Cheves took charge of the
bank. He found the institution in
solvent, and the liabilities not less
than s3,0O0,0O0.
This was the keynote of another
general suspension-another strain
upon the country's honor, and it came
with vengeance. Twenty thousand
persons in Philadelphia alone were
thrown ont of employment. New
York, Baltimore, and Pittsburgh
great manufacturing centers-were
in the same condition. The entire
industrial interests of the nation were
paralyzed - hopelessly Frustrated
through this course of cheap substi-
tute for money.
Niles, under date of May II, 1928,
in his Register, abiding to this period,
says: "Tbe banks were gambling
hells." lie further tells us that there
were three grades of paper, Scaled
money" afoat at that time. The first
was notes of incorporated companies
that still retained some pretcnse to
solyency the second was notes of
banks which had no local habitation,
save in name, the bills being printed
in some obscure counting-room,
known only to the initiated, and in
variably circulated at distance, so
that by the time they reached home
for redemption the bank had ceased
to exist, or could not be found; the
third consisted Of counterfe;ts, and
of these there was bountiful stock.
The total amount of the three
species in circulation cannot even be
Appropriated, but the number of
banks was not far from three hundred
and ninety-seveH.
Notwithstanding these salutary les
sons, which should have taught the
people better than again venturing
upon the sea Of an uncertain circulat-
ing medium, in 1924 all the banks ex-
banded. Pennsylvania re.chartered
its banks of 1914; a better tariff was
obtained, duties rose, and feeling OF
security gave to business renewed
life.
| In the spring Of 1926 ffty-two bank
charters were petitioned for in New
Vorl- oIonn Alahar,a ard T,opuaucaa