Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1877-10-25

strange that such thing ever could
have been founded on cur legal ten
der act which is the oalyact adduced
in favor of it. That act provides for.
the issue of United States notes
greenbacks and for the redemption
OF funding of the same! Now redemp-
ton means payment in coin nothing
else SO The supreme court has decid
edit is no longer question of dis
pute. The decisions Of the court are
ta,0, But the 9TH section of the act
provides for fund of coin, and says
it shall be applied. first, TO the pay
nent of the interest of the public debt,
and, second, to the payment at the rate
OF one per centum per annnm Of she
entire public debt Thus, if bonds are
part Of the entire debt-and who de
mics 1.-THE law makes them payable
in coin, by providing a fund of coin
and in express language saying that
coin shall be used as a sinking fund
to pay the entire public debt. Each
bond and note is a promise to pay
''dollars. The statutes had long ago
defined what a dollar was to be-viz-
certain weight and fneness of gold
or silver--coined. And the supreme
court, passing upon the legal meaning
Of the word on the face of the very OBJ
legations authorized by the Legal
Tender Act" has decided that gold
or silver dollars were intended, for no
other dollars had at that time been re-
cognized by the government, and that
the government, having previously is
sued notes and bonds many times, and
redeemed them in coin, established a
precedent, which, unless an exception
was expressed IN terms. bound it to
pay all obligations in coin.
As we shall have occasion fre1ue Mt
ly to notice various points in this
speech we shall for the present allude
to but one more question which has
been made leading one by those who
profess a desire to see the country
smothered up in irredec mablc paper
money. 1t has become quite popular
to dccry the national banking system.
We shall not attempt to say new wheSh
err such a move would be beneficial or
the contrary. But here are some
facts worth considering. It is well
known to every intelligent business
man that the commercial and manufac-
turing interests are largely dependent
upon the national banks. Mr.. Mich
oil asserted bnt the plain truth when
he said that there was but one manu-
factory in the city of Racine, "a city
that contains large number of the
most important manufacturing firms
in the state. that is able to run on
its own capital alone, aud be indcpend-
ent Of the banks.
Hundreds Of men are engaged in
making wagons, flaming mills. thresh-
ers and other machinery, and with one
exception. in the city alluded to, every
firm depends. for money with which
to supply work for those men, upon
the national banks. This is true in
every manufacturing city in the coun-
try. Surprising now, while business
! is progressing and being built IN on the
strength of collatterals deposited in
the banks, that congress should sud
denly enact a law abolishing the ma
tional banking system, and demand OF
the banks that they Immediately, OF
within short time, surrender their
circulation and have it cancelled
what is the certain result? The banks
will be obliged to demand of their
debtors, those who have borrowed
money on notes and mortgages that
those obligations be met. The source
from which business has been drawing
its capital, is Immediately removed
=, Borrowers will be forced to realize on
their notes and draw their money out
Of their business, Manufacturing will
necessarially 60 to the wall, or be re-
duced to unimportant Dimensions. That
would, in brief, be the actual result in
the cases cited. Again, national banks
are created under charters to run TWEEN
ty years. Would not a suspension OF
the system be breach of faith on the
part of the government? We will
quote Mr.. Nichol once more and close
the article
1t is charged that the banks get,
double interest-from the government
on their bonds deposited to secure cir
culation, and from the people to whom
they loan the circulating notes They
do get at, but they don't get 1t to keep
/ at. Bonds as bonds are exempt from
taxation. But when subscribed as ma
tional bank stock, that stock is taxed :;
out of this double interest the banks
have to pay taxes, rent, insurance,
salaries, stand losses, suits for collec-
ton and numerous other incidental
expenses, so that, when these are tax
en- out of even the double interest, the
national banks. by the use of bonds
and circulation. cant make E nnr cont