New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1878-10-30
NATIONAL BANKS OBJECTED TO.
Written for the Review by o. P. cHAnsrl1s.

!ioC W damaging 70 the system. Thus
it is claimed ~ that the system is a
monopoly. This objection is raised nv
the demagogue who expects with s. to
deceive the common people into 4 false
notion concerning the nature Of the
system. Now any FIVE persons, in any
part OF the country who wish to. NAV
organize themselves into an associa.
tion Of a National Bank by observing
certain conditions which are NOT hard
TO meet;but this is contrary to mono.
poly. A monopoly is the reverse of
this. There is not the slightest basis
for this objection. But if itwere trne
we would by no means admit it to he
the fault of the system, but a nerver.
sion of it. We cannot, however. ad.
NIT even this: for there is nothing in
the objection anyway. A National
Bank cannot exist but twenty years
and may be abolished at any time by
act of Congress. Such monopoly IS
rather precari0us. IT this system is =
monopoly then it harmonizes we'll with
the spirit of our free institutions: and
is a very commendable monopoly.
Some object to the National Bank sys.
tenn ~ because they think they discern
IN it the opportunity to build IN a large
money power which men would not he
slow to use for political effect: and
might make of it a dangerous instru-
ment. 1t the system was a mononOly
this might be feared; but it is the
farthest from that. It is in the hands
OF the people. The people have the
direct oversight of it, and manage it
through their Congressional represen.
tatlves; and men of both political par.
ties, and of northern and southern bro.
clivities are equally interested in it.
Besides, the money power is not east
ly managed, politically, in this country
we think the objection is farfetched.
Some others object to the National
Bank system because ~ it robs the
people for the benefit of a monopolv.
But there is no monopoly about it: and
possibly there may be no robbery.
When bank is started the share.
holders give security. Now instead of
giving security by mortgage on prop.
erty, or personal security, the bonds
OF the Government are taken, the yery
best security, by the shareholders who
buy them Of the Government and de.
posit them with it as security for the
noteholders
These bonds or no longer the Govern
ments; and it pays interest on them
just as it does on those held by anv
other of its citizens, or by parties in
Europe. 1t is better for the whole
country that the bonds of the Govern
ment be held by its citizens; and that
the interest be paid to them. The
Government is the trustee OF the note.
holder. OF course if for any cause a
bank retires the shareholders have
their bonds; and this is right since
they purchased them. Now who is
robbed! The people? Wherein? The
people are not robbed; but are secured
against robbery by the banks. Is the
Government? No; but on the other
hand it is enriched. The amount of
taxes paid last year to the National and
State governments was over $l8,7OO..
900; and not one cent of this would
have been paid were it not for these
banks. All this is an actual help to
the workingmen of the land. Nor are
the banks getting rich so very fast.
For the past ten years their profits have
not averaged six per cent. per annum.
But suppose their profits were twice
this whose business would it be? How
would this be an objection to the sys.
tenn? There is too much of the.dop-in.
the-manger about this objection.
But after all the system is opposed
because az it stands in the way of
making the Government itself q bank
er. The Government must make
money, must distribute it the States.
and the States to the people so as ,.1o
enable any man to pay 1Ole7e he buus
and to keep out of debt This is q
mighty big job for the Government to
undertake. The people govern in this
land; but are not wise or good enough
to be trusted with this matter. Who
will say how much man shall buy?
Who decide when he has enough? This
is a plan for an unlimited issue of pa.
per, and it is a premium upon extray-
agance and incidence. What sane
man will vote to abolish the National
Banking act that the way may be open
for such an idiotic scheme as this? In
our review Of these financial questions
we find no reason for the laboring
man, or for the man Of means, to vote
against resumption, or the present sys-
tenn for disbursing the currency.
CAIRO. RenviIIa Co. lAcf QR 1e1e