The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-09-03

igency as is contemplated by the Con
stitution or decision OF the Supreme
Court exists TO justify such an issue.
THE INEVITABLE KPPEcrs OF TaURMAS's
POLICY.
IL would at once drive out of exist
ence the whole system Of national
banks, which have been the means
alone by which State banks have been
prevented from issuing circu atinp
notes. The only franchise the national
banks receive from the Governmen,
which indnces them 10 maintain their
corporate existence is the right, under
limits fixed by law. TO issue circulating
notes. Take this from them and they
would at once CO ase. without exception
To be national banks, and would be
organized again, as before the war, in
TO State banks. with such powers az
any State may give them. The newt
able effect OF this policy would be TO
revive again the system Of State banks,
without any common organization,
without any curiosity for their notes,
upon such terms as any State might
prescribe, and thus all the evils OF
State bank money, which the people
experienced before the war, will recur
again. Nearly a generation has passed
since the incongruous system OF paper
money existed before the war was
swept away by the National Bank act
IL is safe to say that the injury done to
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
counterfeiting, was annually greater
than the interest OF the entire national
bank circulation of the United States.
BANKING CORPORATIONS THE WEAKEST
MEMBERS OF COMMUNITY.
It is easy to oppose banking corpor-
atoms. Instead of having political
power they are the weakest members
OF n community, say what Won will of
them. Their substitute for State banks
was one of the wisest and most bene-
fetal acts OF the General Government
since the commencement OF the war.
Personally, have but little interest in
or feeling for national banks. But for
the benefits derived from them, /
would not care what bee lme of them.
Their continued existence ought to de-
pend on their ability, without cost or
trouble TO the United States, to main
their circulating notes at par with
United States notes or coins. III they
fail TO do this they ought to be abol-
ished. II they do il they onght to be
continued. They are useful financial
agents scattered through the United
States in exchanging the products OF
industry aud in localizing capital
They paid last year to the Government
OF the United States 81, ,076, ,0S7 in tax
es, aud for State and local taxes, go
701, ,732, or a total Of sic, III, ,Sl9, or
nearly four millions more than Judge
Thurman estimates we will save TO the
people by issuing greenbacks instead
of bank notes. Those taxes would be
lost 10 the United States and 20 the
States II the national banks were abol-
ished. Their notes are secured beyond
preadventure, they are protected from
cOunterfeiting far more successful than
any former system. aud, 10 their credit
be IL said, not not one dollar has been
lost on any bank note ever issued.
Wherever you go you may carry them
in safety, without examination as to
where or when they were issued. They
are good everywhere in the United
States.
THURMAN OBJECTION To NATIONAL BANKS
CONSIDERED.
Senator Thurman has stated some
objections to the national banks, TO
which / will briefly reply. He says
"In the first place n national bank
currency means the indefinite perpetu-
As national bank exists only for 20
years from the date of it's organization,
aud is liable at any time by act of Con-
gress 10 be abolished, this does not
mean a very potent reason. / am sorry
To say that the prospect OF paying our
debt so soon as the life of "a national
bank is not very hattering, nor are they
likely TO deter IN payment. As for the
influence of these institutions so much
feared by Mr.. Thurman, II is not an OBJ
ject OF alarm, attempted, it could be
overthrow by single wave Of popu-
lar opinion.
His second objection TO the national
banking system Is THAT 1t tends to
combine, concenterate aud intensity
the money power.
This again is an illusive fear. There
is no power IN this country that is so
weak iu political management as what
is called the money power. IL never
has been nor can il be concentrated so
as TO effect political questions. The
tendency of our institutions make 1t
easy TO combine at once political opin
ion and political power against it.
Nc TEN BANK PRESIDENTS AGREE.
Party organization is indefinitely
more powerful for combination than
the money power. My own experience
in Office enables me TO say that il you
convene ten bank presidents you will
have 10 different opinions, while party
organization brings even Judge Thur
man and uen. Ewing on the same plat
form.
Secretary Sherman denied that the
legislation of Congress during the sway
of the Republican party has favored
the money interest. It's legislation has
governed by the love Of national unity,
national honor and national existence,
while the theory and policy of the par
ty opposed to il had been to belittle
the power OF the Government, to sub
ordinate it to the power Of the State, to
preserve slavery and to leave industry
without protection and support.
He showed that the national banks
enjoy no monopoly. and that il the
Government were to issue greenbacks
in place Of the outstanding national
bank notes. it would depreciate the val
ne Of the notes, would widen the gap
between the notes and coin, would re-
vive again the distinction between the
bondholder and the noteholder-gold
for the bondholder and deprecated pa
per money for the people. He con-
tinued:
WHAT JUDGE THURMAN PROPOSES.
He proposes 10 issue more notes
without any provision for their pay
ment, when our revenues are ample TO
meet our expenditures in a time Of pro-
/ found peace, when there is no motive
of patriotism or duty, or safety 10 i'm
pei such a course, and this mere 90
save the interest OF per cent. on
1922, ,O00, 900. But this very act il
adopted, would prevent our selling q
thousand million OF per cent. bonds
with which TO pay an equal amount oI
8 per cent. bonds. aud this work an an.
nual loss to the Government Of S20..
000. 900, or g. .000, 900 a year more than