The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-07-16
Greenbacks or National-Bank Bills:

As YOUR paper is non-partisan it is the Ia
yorite medium OF the people OF this State TO.
give publicity to their views, and the very
accommo dating spirit OF its proprletors en-
ables any one to obtain hearing; therefore,
venture to ask space for this article, TO eN-
press my views on the currency question.
The subject, it seems, will demand some
action on the part OF Congress at It's next
session and it is with the hope that this and
similar articles may attract the attention OF
orr representatives during recess, and cause
them to give the subject earnest attention,
SO that they may be prepared to act under
standipoly when the time comes to vote on
the question.
The whole power of the national banks is
being used to strengthen-their hold on the
Government and to promote schemes purely
selfish and preiudicial to the interests OF the
neople. That the national banks are an I'M
lust burden on the people can easily be
shown. That they can be gotten rid OF
without disturbing the banking facilities OF
the masses is.aS easily demonstrate. 1t IS
only necessary to state that the 4O,0O0,o0U OF
people are taxed to pay the interest on the
bonds which give currency to the national"
bank bills, making them, in fact, green.
bdcES, for the benefit OF the two hundred
thousand shareholders of natiODaI-bank
tx.
currcncv, for which the whole people
are taxed, to shew chat the system
imposes an unjust burden on the people.
This fact is so plain-so evident to the most
casual observer-that the natonalbank
party do not pretend 10 discuss it, but seek
TO divert attention by asking, :" How are the
national banks to be gotten rid OPP and
by arguments attempting to show that the
General Government cannot issue the neces-
sary amount OF currency without violating
its pledge given in 1864 that the volume Of
United States notes should never exceed
800, 000, 000;. and that ii the Government
did issue its Treasury notes so that the vol
ume would be equal to the volume OF all the
paper issues now current, it could not keep
them in circulation, because the receipts or
the Government are greater than the eX-
peuseS, Such arguments do not speak very
well for the cause OF the national-bauk
party or for the intelligence OF its spokes-
men,. g.. ... !'--.ss .'r..,
In the first place, the national-bank notes
are really Government issues, the same as
observation-disclosures is 10 real diFerence-the
difference is only apparent, not real. The
endorsement OF the Government alone gives
currency to the bank notes. Thus it Is
seen that the spirit OF the pledge has been
violated by the endorsement Of the national
hank notes, aud that the entire paper issue
of nearly $500, 900 is really United States
notes. Now, does anybody hesitate to say
that that amount Of paper money is kept in
circulation entirely on Government credit !?
No; think that there is no fool so dull as
to fail to see that plain fact. Then why
should we, the people, be taxed at the rate
of five per cent. on more than $40G,000,O00
OF our own money for the benefit OF two hun
dred thousand favored individuals Is it
reasonable? Is it Just? You ask for the
remedy! 1t is plain aud readily available.
There is no need to repeal the national-bank
charters, but only to treat them as the State
banks were treated when it became neces-
sary to replace their issues by nationa-bank
|-bills-that is, to tax the circulation to the
extent necessary to render it Improbable to
continue the issue. The feat has been per-
formed, the feat can be repeated, OF chang
| ing the character and changing the source
Of issue without disturbing the facilities for
banking. BY taxing the State-bank issues
out OF existence and offering the people the
delusion OF national bank bills in the place
OF United States TreasuryInotes, the people
were deceived and robbed OF all the money
that has ever been paid as interest on the
bonds deposited to secure the nationally
circulation--oyer S300,000,000. That is 4
very nice plum for the two hundred thou
sand holders Of national-bank stock, aud
oughtto be enough to satisfy them. Ifthis in
iquitous thing is put an end to by taxing
the national-bank issues to an amount equal
to the interest paid them on bonds held to
secure circulation they will quickly redeem
their notes by the sale of their bonds. The
bonds thus thrown on the market can. be
purchased by the Government with United
States notes., greenbacks, and cancelled,
thus. substituting greenbacks for nationals
bank notes and replacing S400,000,000 Of
interest-bearing debt with an equal amount
not bearing interest. This will not drive
the banks cut Of existence any more than
the tax on State institutions drove them out
OF existence; and it is known that the State
institutions to-day hold, and have all the
time held, more OF the peoples money than
the national banks. We do not need banks
of issue, as has been clearly shown by the
national-bank system. but only banks Of de-
post and discount. The General Govern
ment is to-day, and has been since the
establishment Of national banks, the only
source OF issue. The national banks will
not yield if they can hold on. But see
how harmless is their bark. How they
threatened, and begged, and howled about
the silver bill. What did it amount to?
II you stop to consider the profit these
| fellows are reaping you will cease to wonder
at the energy which they display in defence
OF their ingenious mode of robbing the
people. Let us see the difference between
The tax imposed on national banks and State
on their capital national and State banks
are taxed alike on deposits) by the General
| Government: A national bank OF 500, 1000
capital holds bonds to secure circulation to
| the full amount of its. capital; therefore
| there is no tax on its capital 1t holds $780,
0O) OF Government notes with its own name
printed thereon, and calls them its notes.
| On these 500, 900 it pays to the Government
tax OF one per cent, or $500, while it gets
| from the, Government, as interest on its
bonds to secure circulation, $4,000 in gold,
| or saw $1,000 In currency. So the Govern
| ment really paws bonus Of 81, $50 on every
| 900, 900 OF nationaLbank capital for the
! privilege Of having the name OF the bank
| on its Treasury notes. But let. us see what
amount OF money the national bank has in
vested in these bonds, md allow good rate
OF interest on 1t, SO as to put these national
bank fellows in the best light In which
they can appear. The difference between
the bonds and the circulation is $40, 900.
Add to this the five per cent. on circulation
on deposit with the Treasurer for redemp-
tion purposes-say $4,600--and you have
i s14,b00 as the amount invested In each
i Sl00, coo. OF bonds held by the national banks
TO secure circulation. Now, allow them ten
4 per cent. interest on this sum, and deduct
b that from tho bonus over all tax on capital
i which they receive, and ron find that they
Il get asnet bonus sof %, 76o-2 ITO per cent
Oh thear, rotal capital, or ls 30 per cent.