Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-08-08
THE NATIONAL BANK SYSTEM.

SWING, bu6 WOEK OF tno coAAA1AIloo Ahy dS
we'll be abandoned.
& THE NATIONAL BANK SYSTEM.
The Louisiana Democrats have followed
the lead of the Democrats of the North in
their demand for the abolition of national
banks and the substitution in place of their
circulation of an equal amount of green
backs. The demand is not confined to the
Democratic party alone, but many Republic
cans unite with them in asking this reform
in our financial system, and the National
Greenback party is a unit in favor of the
policy. It will thus be seen that the sup
porters of the national bank system ale but
few in number compared with its opponents.
But though few, they are powerful, and not
withdrawing the war that has been Waged
against them for years past. they have sue
ceeded in maintaining the banks and pro-
curing for them privileges of extraordinary
value.
The nationa! bank system is pernicious
one, grossly unjust to the people at large who
bear the chief burdens of the government.
Under pretense of securing the holders Of
notes of banks from loss, the banks are
allowed to draw double rate of interest on
their circulation. They take the interest on
the bonds deposited as security for their cir
culation, issue their notes as loans and draw
another large percentage of interest, and pay
nothing for the printing of their notes, to
say nothing Of the profit that accrues from
the loss and destruction of their currency
Thus they receive what in the aggre-
gate amounts to nearly, if not
quite, three legitimate rates, which
has been computed at from Is to %
per cent, OF interest. In return for these
great and valuable privileges, they pay SIM
ply tax upon the value Of their property
much less in proportion than other invest
ments are forced to pay. The country is
not enriched in the slightest degree by their
existence, but is instead compelled to pay a
heavy tax for the privilege Of using an infe-
rior currency.
| One great argument in favor of national
banks is that they afford stable and uni
form currency which the country had not
had previous to their establishment. But
would currency issued by the government
direct be any the less stable or uniform? In
fact, are not the greenbacks better currency
in every respect than national bank notes?
The greenback is valuable as currency be
cause the government pledges it's faith fol
| it's redemption, and in no view OF the case
does the national bank currency possess al
| advantage over it. The greenback is less
| liable to be successfully counterfeited, is
convenient, and has the full confidence of
the people. We can see no reason why the
government should not reap the profits nov
taken by banks of issue. 1t would assume
no additional expense by issuing greenback
in lieu Of national bank notes, nor would i
assume any additional risk, but it would de
| rive no small profit from the natural wea
and tear end destruction of notes.
1t is to be feared that, although more thai
three-fourths of the people of the who'll
country are warmly in favor of the
abolition OF national banks, they vii
fail of effecting the desired reform
Almost every prominent officer of the gov
eminent and member of Congress is inter
ested in some national bank, and draws
considerable profit from his investment. I
is not to be expected that they will vot
away their own revenue unless compelled t.
do so. The people must devise some mean
to enforce compliance with their wishes
AT present we know of none but the nomi
nation and election to the Senate and Hcus
of Representatives of men who are not in
terested in maintaining the national ban
system, and also shall be solemnly pledge
to vote for its abolition. The voters mus
be sincere and consistent. 1t will not
for them to demand the repeal of the OF
noxious law and forthwith proceed to elect
stakeholder in national bank to represen
them in Congress. Only by this means cal
the country be relieved from the cost Q
maintaining an expensive and wholly ind,
! fensible bank system. Vote the way 20
! talk, gentlemen, and it will not be long b.
fore you will be able to regulate matters sa
isfactorily.