Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-08-16

| In leby.
In 1870. OBSERVATION-DISCLOSURES. Il 656, 81
IN is.l...-... .................--....... I5,5O9.97
In lS72. ACKNOWLEDGEMENTS. Is oil 6S
IN ie73. ......... Is sol 80
IN leIi- ACKNOWLEDGEMENTS. l6 SIC 40
-, Il 1000
The banks at the same time were requir
ed to deposit with the Government, bond.
OF various kinds, as collateral to secure thu
redemption of the bank currency issued
upon which the Government has paid t,
the banks, as to other holders of its bonds
the interest thereon. These bonds hay,
ranged from four to six per cent interest
Averaging five per cent on S340, 900 900
the maximum amount oil currency issued
to all the National banks. This will max,
the averaged amount paid the Nation2
banks by the Government for the aboyt
ten years about seventeen millions of dol
lars annually-a sum about equal to the
amounts paid out for taxes BY the banks
The difference between the currency ir
which the taxes were paid and the gold
in which the interest was paid, was, during
the war, and for some time after, a source OF
profit; but at the present time it barely
pays the commissions on sales of the gold
without profit. Thus, it will be seen thai
the National banks are making no money
out of the privileges they derive from the
Government, so far as the interest paid on
the bonds as collateral is concerned As
fast as the bonds mature, the Government
requires that those bearing lower rate Of
interest shall be substituted, namely, those
bearing 4 and a per cent interest, and still
the heavy tax on capital and deposits is con
tinued.
In view Of these facts, this Greenback
party ask Congress to require the banks to
surrender their circulation-take hack their
bonds, or have the Government pay them
and take in lien thereof Government green,
backs. This would he equivalent to a repeal
of the law, and a great loss to the people and
Government, for the following reasons
which must be apparent to every one
First-The National banks could thel.
only do business on their deposits, which
would not pay the current expenses of nine
tenths of the National banks in the country.
and they would necessarily close.
Secondly-ThOse banks in closing would
at once stop diseounting, and begin 10 collect
III their assets, and general panic and
widespread disaster and financial distress
would inevitably follow.
Third y-The Government would lose the
services OF these banks as redeeming agencies
in the sale of their securities and redeemng
the greenbacks at pr, which they are now
required to do without compensation, where
by the Government is now enabled TO keep
out S346 900 900 Of greenblcks without
paying interest and without being "hawk-
ed about the streets.
Fourthly-The people would lose from
$l5 ,000, 900 to sis 900 900 of taxes annual
lY now collected from these banks and
about SiO0, 900 900 of bonds held by these
banks woald still he held by the btnks, or
individuals, upon which the Government
would be compelled to pay interest until
they are due
But, say the ''Greenblckers, the Govern
ment must issue grcenbacks with which to
pay up all these bonds. What an abIurdity
As well might YOU dam Niagara with paper
dam That would be simply asking the peo-
pie Of this country to take the notes of this
Government for its entire Indebtedness and
hold them for all time without any interest.
1t would be asking the brokers and moneyed-
men of the country rot To discount or
"shaye" any of tho paper of the Government,
but be magnanimouS and carry it withont
interest As well might an individual ask
his creditors to take his individual notes for
their Indebtedness, on time without interest.
This matter of floating eurreney-which
means simply getting the use of money with
out paying interests attended with great
deal of labor and expense. as every person
who has ever had to dn with the old State
banks well knows. 1t is always coming in
for payment. Ii now takes our two thou
sand National banks. scattered all over the
country, with the various suh-treasurers to
aid them, to float $3lG,00O,OO of green
backs for the Government. without interest,
and at the same time keep ont an equal
amount of National bank bills. on which the
Government gets the ''lion share vi profits,
besides deriving all the profits on the ost
bills, estimated at about two millions of dol
lars annually. This will compensate the
Government very handsomely for all ex-
pcnses of printing them and sustaining the
Currency Department.
The main object OF the establishment OF
the National banks by Secretary Chase was
to aid the Government in floating several
hundred millions Of g-eentaeks, without in
terest, AMI to protect the Government credit
from the attacks Of its enemies and the on
saught of Wall street brokers', and others.
" ho then, and now, were, and are, ready to
buy the Government greenbacks us low rs
possible. Do these Greenbackers expect
to change human nature? Do they expect
to make something out of nothing? Do they
hope To have banks and banking facilities
without ailording them the only inducements
upon which they can for n moment exist,
the issuance OF currency, fifteen per
cent of which is required to be held in their
vaults. and five per cent held by the Goyern-
ment itself to redeem mutilated bills? Thus
the Government, by the and of the National
banks. is floating, to-day, SGoS 597 30, be-
sides gold and silver, as against 500 ,lO2,-
~, in 1860, which furnishes complete
refutation of the cry ol the Greenbackers
that the depression of business and labor is
due to the contraction of the currency.
The practical effect of the plan of these
would be the abolition OF banks
and the establishment of one grand Govern
ment bank, similar to the old United States
Bank, 10 obnoxious to the Democrats of
Jackson's time, and 80 effectively killed un-
Ter his administration, as monopoly. From 4
that day forward the Democratic party has
claimed that gold and silver were the only |
awful currency of the country. According
y, as late as 1862, when the Nations life |