Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1878-08-30

banks and would be organized again. as before the
war, into State banks with such powers any State
might give them. The inevitable effect Of this poll
/ ey would be TO revive again the system OF State
I banks without any common organization, without
State might prescribe and thus all the evils of State
4 bank money, which the people experienced before
the war, will reeur again. Nearly generation has
passed since the fncongruous system OF paper money
which existed before the was swept away by the
national banking act Ii is safe say that the in
Jury done 70 the people of the United States by the
failure of these banks, by the uncertain value OF
their paper money, by its limited local circulation
and by successful eounterfeiting, was annually
greater than the interest Of the entire national bank
/ circulation of the United States.
BANKING CORPORATIONS THE WEAKEST MEMBERS OF A
/ COMMUNITY.
It is easy TO oppose banking corporations Instead
! of having political power, they are the weakest
members Gi ~ Say s T5 h wss on If
the wisest and most beneficial acts OF the general
| government since the commencement OF the war.
national banks But for the dement's derived nom
! them, would not care what became OF lnenl
Their continued existence ought to depend, upon
their ability. without cost trouble TO the United
States, to maintain their circulating notes al par
with United States notes coin If they fail in this
/ they ought to be continued. They are
! useful financial agents scattered throughout the
United States in exchanging the products OF indus
try and in lOcazing capital. They paid last year TO
the government of the United States S,076,067 in
taxes, and for State ana local taxes 50. or
Judge Thurman estimates we will save to the people
/ by issuing greenbacks instead of the bank notes.
These taxes would all be lost to the United States
| ished. Their notes are secured beyond peradVen-
ture they protected from eounterfeitng far more
successfully than any former system, and TO their
credit be itsaid not one dollar has been lost any
national bank note ever issued. Wherever you go
| you may carry them with safety without examlna-
| ton as to where when they were issued. They
/ are good eTerywhere in the United States.
| THURMAN's OBJECTION TO NATIONAL BANKS CON-
| sIDERED.
| Senator Thurman has stated some objections to
the national banks, to which win briefly reply He
I'm the first place national bank currency means
| the indefinite perpetuation of the public debt"
As a national bank exists only for twenty years
/ from the date of its organization and is liable at
any time by act of Congress 70 be abolished, this
| does not seem very potent reason. l am sorry TO
the life of national bank is not very hatterng nor
| are they likely to deter its payment As for the
influence of these institutions much feaTed by Ar
Thurman il is not object OF ALARM for 1t not
be combined; if that attempted, it could be
| oYerthrown by a single wave of popular opinion
! His second objection to the national banking sys
tenn is that it tends to combine, concentrate, and
/ intensity the money power"
This again is an lusiTe fear. There is power in
this country that is weak in political management
/ as what is called the money power. 1t never has
been nor can it be concentrated so to affect pOli
| ical question: The tendency Of our institutions
makes 1t easy TO combine at once political opinion
and political power against it.
NorEN BANK PRESIDENTS AGREE.
Party organization is infinitely more powerful for
combination than the money power. My own ex-
perience in Office enables me to say that you con-
vene ten bank Presidents you viii have ten differ
ent opinions. while party organization brings even
| Judge Thurman and Gen. Ewing on the same plat
| form.
Morris it true, asstated by Judge Thurman, that
the legislation of Congress favored the money inter
est during the period OF the sway of the Republican
party for this legislation guided by the love of
national unity and national honor, and national ex
| istence It tended TO make our nation strong at
home and respected abroad, and in no single ques-
ton has it favored what is called the money interest
THE VITAL ISSUES BETWEEN THE TWO GREAT PARTIES
The vital issue between tho two great parties has
been, on the part Of the Republicans, desire 70
maintain the integrity Of the Union and abolish
slavery to secure equal political and civil rights to
all men, to maintain the national honor and TO ad-
vance the industrial interests of the country. while
the theory and policy of the Democratic party has
been TO belittle the national governmen, TO subOr-
dinate 1t to the power OF the States preserve slave
~, to leave industry without protection and sup
port and TO seenonaize into petty communities the
elements OF great and powerful nation; and these
are now and viii be in future the inevitable tend
encies of these two parties.
The third objection stated by him to the national
bank circulation is that it is special privilege and
takes many millions out OF the pockets of the peo-
BANKS ENJOY no sPEuAB PRIVILEGES
This again is untrue in point of fact and illogical
in argument The national bang circulation is not
special privilege but is open to every association
any part of the United States To
call it q special privilege is absurd. The
same privilege might be granted 70 every individual
citizen of the United States, but experience shows
that corporation is more wisely administered when
it is composed of number OF persons. not less than
five than when it is controlled by single person,
and corporate authority is essential to preserve its
existence in case of the death of partner. But for
this the special privilege might be granted to every
citizen who could give the requisite security for
the redemption of the notes issued by him.
As to putting money into the pockets Of the share
holders, this again is absurd. The government pays
nothing and contributes nothing to a bank The
shareholders buy the bonds OF the government ana
deposit them with the government for the security
Of the noteholders. If the bank retires the bonds
belong the shareholders and not to the government
Nor can the government pay these bonds in any
other way than il could pay the bonds the hands
of individuals. The government would pay the
same interest on these bonds, whether held by the
bank, or by any citizens, or in Europe.
THE REASON WHY BONDS ARE DEMANDED
as security is because they are the best security
But for this mortgage security or personal Sc
curity might be taken, but as the government Sc
curity is the highes and best this is demanded not
for the benefit of the government but for the note
holder for whom the government is a mere trustee.
When the government pays TO the bank interest on
bonds held by 1t as security, 1t only pays what is
justly due. and what It would nave to pay at all
events to anybody holding the bonds until they are
redeemed.
How it takes many millions annually out OF the
pockets Of the people is hard to conceive. No one
borrows the notes OF the bank unless is for his in
terest to do The ability of the bank to lend is
convenience LQe borrower as well as the lender.
The government can not engage in the business of
loaning money. 1t would be sorry time for the
people other than political strikers if the govern
ment loaned money; This Is a purely private, per
sonal employment that should be as free as blaclr
smithing The right to issue notes is free to all on
the same terms and when so guarded as to prevent
loss to the noteholder is the best possible Of
increasing the amount of circulating notes.
IF GREENBACKs WERE SUBSTITUTED FOR NATIONAL
BANK NOTES
He says that the government ought to issue these
notes. The answer is that If the government issues
them it must undertake to maintain them at par
with cotn or else the people must suffer from the
redemption by the banks is already SO great before
specie payments have actually come, that this so
called special privilege is getting to be a special
burden, and more banks are surrendering their cir
culattOn than are taking circulation II is special
privilege that more seek to avoid than TO acQu uire.
Judge Thurman computes how much the United
States would save il il issued SS22 100000 more
Of greenbacks and redeemed that amount OF bonds.
do not stop to examine this computation. but 1
only wonder why he STOPPED at SS22 100000. Why
not the entire interest of the public debt by
issuing greenbacks for the whole of it? Why not re-
pudiate It at once? That would according 10 his
computation, the entire interest OF the public
debt or S9 0O0 with other loss than the loss
of national honor.
TIMELY QUESTIONS THAT THURMAN SHOULD ANSWER.
What assurance has he that sS22 600 viii satisfy
the more advanced lights of repudation2 How will
he pay out the SS 900 000Y viii he claim the right
to pay the bonds at par with themG Does he deny
the moral ana legal obligation by which trey u
be paid in coin2 Does he propose to repudiRte the
EN N1H Ha. ~ -