The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-12-12
NATIONAL BANKS.

The ANT1-MONOpOEIsr is ALWAYS
entirely willing to print in it's col
umns both sides of questions of pub.
TIC interest. 1t may be interesting
to our readers to have at hand the
best argument for the national banks.
which we find embodied in the re-
port of Hon. John Sherman, secretary
OF the treasury:
1nls System OF banks. though OF
recent growth and adopted as an ex.
pertinent amid the necessities dev ell.
oped by the civil war, has, under
wise management, become the most
Important business agency in the
country. Though still under trial
ana subject at all times to the discre.
tlon OF congress to discontinue and
limit It's existence and operations it
may be fairly claimed, as already es
tabllshed by experiment, that the
system possesses certain advantages
over any other heretofore existing in
this country, and possibly only with
national system.
Flrst-The security of the bill
holder from loss through failure OF
the bank.
Second-The rapidity and certainty
OF the detection and prevention OF
counterfeiting, from the fact that the
notes are engraved, printed and re.
deemed at the treasury department..
Ihlrd-The frequent and careful
examination of banks, and the publ.
cation Of the detailed statements OF
OF their condition.
Fourth-Uniformity and free circu.
latlon Of the notes throughout the
United States, without respect to the
place Of their issue.
Flfth-The admirable provisions by
which failing banks are put in liquida-
ton, and their assets cheaply and
promptly applied to the payment of
creditors.
These and other advantages, derived
to the public from national system
OF banks over state system, seem to
be fully demonstrated, and, though
lrksome and apparently hard to the
banks, are benefit and security to
the stockholders and 4 safe guard to
the public.
The only franchise conferred by
this system. that cannot be enjoyed
by private bankers under state laws,
is the power to issue circulating notes.
This, it is conceded, is a franchise
conferred by the government, but is
not IN The nature of a monopoly. 1t
may be exercised by any FIVE persons
who have the means, and will comply
with the law
Whether the power to issue circula-
ting notes should be granted to pri-
vate corporations or be exercised only
by the government, is purely ques-
ton ofpublic policy and public inter
est. In behalf OF a circulation issued
by the government, it is claimed that
interest is saved to the public on the
full amount of the notes issued. To
this it is replied that the issue of such
| notes necessarily involves their re-
demption in coin, and this can be Sc.
cured only by coin reserves and the
ordinary machinery of banks. If the
banks issue notes they expect to de-
rive profit from the loan, but this
profit is diminished by the burden of
redemption, by the large taxes i'm.
posed upon the franchise, and by the
risk always incident to the issue of
the circulating notes. These are con.
siderations which will. no doubt, en-.
ter into the question of the permanen.
cy OF the national bank system; but as
the banks Of this system are each or
ganized under the law for twenty
years, and none of them expire until
June. 1888. it is respectfully submit
ted that it is good policy to continue
the experiment until that date, when
the public mind will be better prepar-
ed to consider the questions involved.