Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-10-25
WHOLE NO. 1901.

the answer is they would lose the
taxes then, and the taxes. and other
public advantages of the banks fully
offset the interest now paid on the
bonds. But who is oppressed by the
National Banking system? Not the
! Government, for it pays no more in
terest on the bonds than it agreed to
pay if they were held by others than
bankers. IL issued the bonds for its
own benefit not for that of the banks.
1t wanted money, and offered its Sc
curities to people who would lend to
it at a fixed rate of interest. But
banks were necessity, and if bank
ers loaned the Government all their
capital, how would their business be
carried on and the business wants of
the community met? The Govern.
eminent, however, SAID to them: 1t
you will loan your capital. you may
use the bonds given for that capital
as the basis of circulation, and so
continue your business, meet the
wants of trade and at the same time,
assist the Government to save itself
from the peril that threatens it. Thus
the National Bank scheme, in the cri-
sis of the war, gave the Government
directly almost the total bank capital
of the country, without depriving the
people of currency, or destroying the
business of the banks. The contract
between the Government and the
banks was made solely for the benefit
Of the former. The banks would
have preferred continuing the old
State system, but the Government
laid such tax on the circulation OF
State banks that they were compelled
to reorganize as National banks or
cease issuing notes. Had the Gov
eminent not needed capital to carry
on the war, no such contract would
have been made. 1t would be dis
honorable to violate it now. So, too,
when people borrow of bankers, they
do it for their own benefit, paying
such interest as they agree to. They
deem the loan worth the interest or
they would not borrow. No wrong
is done either the Government or the
people by the Bank Act, neither do
the bankers make an exorbtant
profit, as we have shown.
IMMEDIATE EFFECT OF DESTROYING
| THE BANKS.
| The destruction of the banks would
for some time at least, completely
paralyze the industries of the country.
The traffic in grain, live stock, etc., is
directly dependent on National Banks
for working capital, the banks either
loaning to those engaged in these oc-
equations, or else cashing their bills
of ladIng, notes, etc., and carrying"
them till they mature, which the men
themselves would often be unable to
do. Now were the Bank Act repeal.
ed, and the banks compelled to settle
promptly with the Government they
would be forced TO cease extending
such assistance and to collect all dues,
This would not only paralyze bust
ness. it wnnld bring to forced sale the
property of thousands OF poor mon
now mortgaged to secure small loans
to help them in their business, and
thus make harvest for the class that
is in position to profit by mortgage
and tax sales. Then, unless we can
compel Government creditors to ac-
cept a new issue of greenbacks for
their bonds-to accept a non-interest
bearing promise to pay at no definite
time for an interest bearing promise
to pay at a definite time-when we
had DESTROYED the Banks we should
have destroyed nearly one-Lalf our
currency.
WHAT COULD THE PEOPLE GAIN BY IT !!
But would the people reap any adj
vantage from all this If we destroy
the bank currency and pay the bonds,
which secure that currency in green
backs, violating the nations plighted
faith, the new gTeenbacks will be
placed in the hands of exactly the
same men who now own the bonds,
viz: the bankers, and the people
could get them in no other way than
they do now, by borrowing or buy
ING of those men, nor is there reason
to believe they could borrow them at
a lower rate of interest then at pres
ent The greenbacks would certain
ly be no better than our present cur
reucy, and, if they were rot far worse,
they would prove an exception to
any new issue of irredeemable paper
that has ever been put forth by any
country in any age of the world. 1t
would be an exception to all past
human experience. if such paper did
not depreciate and bring upon all Of
us the demoralizing evils of violent
lly fuctuating currency. And if we
went further, still violating the oft
repeated and solemn pledges of the
Government and its official agents,
and paid not only the bonds held by
the banks but all bonds in green
backs, it would require an issue of
over a 1000 millions Our public
credit, instead of being equal to that
of any other country, would sink be-
low that of Turkey or Honduras, and
we should be justly regarded as a
nation of swindIers and regulators.
And even when we had plunged into
this bottomless gulf of dishonor, we
should still leave all the greenbacks
thus issued in the hands of the men
who are bondholders nowI Not a
greenback would go direct to any
other class, and the people wanting
greenbacks wnuld still be compelled
to 90 to the men who owned them, to
borrow or to buy them just as they
borrow or buy currency now. Nor
would the Government be any nearer
out OF debt; it would still owe the
amount OF the greenbacks, which are
as much debt as the bonds are. But
we are told the greenbacks bear no
interest, and the Government would
save the interest on its debt. Would
this be honest? The Government
contracted to pay the interest can
it ARBITRARILY substitute another con-
tract and give a new note ,OithoM in
terest and totthovt date for one with
interest and with date? The iudg-
| r,ant NJ mankind lonO aon put ;fs