The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-07-20

Dill lHrgg national Dank IN one OF sstlle
largest cities OF the country declared that
E the combined taxes Of cities and States on
capital, and the Federnl tax on deposits
paid by all abanks) was running the hanks,.;;
and then added that g the danger was toHss
people, for,1s said he, the directors ana
stockholders would be the first to know the
rottenness Of the. banks, which would emu
BILE them to squeeze the lemon and Fthroao the
peal To- other depositors and creditors
Petersburg and Charlottesville know how It
is done.
q I will take opportunity TO say here. that
the banks-all ban s-are too heavily taxed
BY cities and States, and we have 70 thank
this hurtful national bank system LOT TINS.
Hear them on this point-they speak OF their
own. The cashier Of a large national bank
in large city OF the North says In Tue
early DAYS OF national banks, during the
war. when all the reserves could be kept in
limited States six-per- cent. compound notes;
when the United States bonds they held,
either for circulation upon which there was
no redemption) or Investment, paid SIX per
cent. interest 10 gold, and gold was worth
from tfftv to one hundred per cent. pre-
MUM when the banks ia New York were
quite willing TO pay four or five per cent.
interest on all balances that could mol pc
loaned to advantage; and when all deDts
were paid, then all bank assets were
pood.'' aThe national banks were pront,
able. RI should say they were.] They paiu
large dividends and accumulated surpiusses'
and it was then that a strong feellns grew
up that any legislation in favor OF banking
interests was class legislation, and un! ust:
Nor do we wonder that the people should
strive to Offset the tax levied on them for
tbe benefit of the national banks by taxing
them heavily for the support OF the local
government. It was an endeavor to correct
q great wrong done them. But the mistake
was that they included State institutions
along with the national banks-a thing 20
be regretted. The national banks SHOULD
be forced to relinquish their hold on the
throat Of the people, and all banking capltai
should be relieved OF the terrible. burden OF
taxation now imposed on it, amounting IN
some instances to six per cent on the capital
of the bank, and averaging about three
per cent. on the capital employed by
all the banks. / say that banking capltal
sbould not be taxed for the following rea-
sons-that is: Because it Is the great bust
ness co-partnership Of the community, in
which no one member can be injured with
out injury to all; because banks are the
necessary agents Of business communities,
and to properly perform their functions
must be free from embarrassing eXactlons
because banks are the direct outgroWth ana
result Of business necessities, and not
primarily for the investment OF capital:
because there are other modes OF obtaining
revenue not liable to such serious oDlec'
lions; and because money obtained by class
legislation is SubyerSIvey OF honor aud falr
dealing, and justice demands the abandon
ment OF such public measures.
But to return 10 the subject OF the cur
rency. Your next objection is stated as FOL
lows :"We will go on, however, to say
that national-bank notes are better cur
rency than greenbacks. The gTeenbacKs
might aud would. depreciate at once II Inc
Government were to get into war win q
powerful nation. But the national-Dank
notes have margin OF one ninth OF their
entire volume as safeguard against depre-
citation; and not only this, but all the sur.
plus funds and other assets OF the banks"
III this last proposition be true what be-
comes Of the claims OF the poor, deluded de-
positors y I have shown above that the
note-holders do not look to the assets OF the
bank for payment, but to the cndorsers,
the Government. But hear what the ma
tiopal banks have to say ON this subject.
The president of large national bank in a
large city says q can and will give names and
time and place OF utterance OF all the state
ments quoted in this article if any one de-
sires it) to the congressional Committee OF
WAYS and Means: "The Government is
under bond to redeem the national-5ank
circulation, and hence every taxpayer in
the community is under recognizance to re-
deem his portion" Think OF that, We tax
PAYERS !--hewers Of wood and drawers OF
water for this favored classl Does not that
speech show that the national-bank notes
are essentially Treasury notes? And II tue
Government could not pay its non-intereSt-
bearing debt, it surely could not pay its
bonded debt. They are both secured alike.
The one cannot fall without the other. The
non-interest-b bearing debt is to the bonded
debt as is the water in the spout to the water
in the pot-it Just keeps the same level,
rising and falling as the larger body rises
and falls.
You next ask, "Why does not England
use greenbacks instead OF Bank-of-England
notes. Has that greatest nation IN the
world to learn finance of the United States
of America? Who will say so? ?" Well! l
respect mama as much rs anyone should,
but don'twant to be tied to her apron
strings all of my life; and l believe you,
my friend, to be truly American, and there.
fore progressive. We have taught England
in many things; we have given to the world
the telegraph, the armor-plated ships, the
improved printing-press, and many other
things, and do not see why we cannot fur
nish some new ideas on finance. Now, it
seems to be the impression that the
Bank OF England is q national bank
and its notes the only paper issues
-, 1,a -i,,rI frbis il the
case. 1t is private corporation to which
certain exclusive privileges, such as
the transacting OF all Government business
and issuing the only legaEtender paper, are
granted for consideration paid to the Gov
eminent for the benefit of the whole people.
The Government supervises its affairs and
dictates its course in certain contingencies.
Thus you will see that it is not burden on
the people but has to pay tribute to the pco-
pie for the privileges granted. In this how
vast is the difference between the Bank OF
England and our national banks But
there is another reflection to comfort me IN
being so bold as to try TO look ahead or the
financiers OF old England. They have, IN
spite OF their boosted system, had rs many
and as disastrous financial crashes as we in
America have had; and three times within
the last thirty years the Government has
had to come to the rescue Of her agent, the
Bank OF England, to save her from Sc
rious embarrassment if not destruction.
This fact is slowly opening the eyes
of the English fnanciers, who are begin
ming to look about for some more permanent
currency, issued by greater power than
the Bank OF England, as the relief for their
troubles. But let's hear what some OF the
most eminent and conservative Of English
financiers have to say. Mr. Gilbert, for
merly manager Of the London and West
minister Bank. writes before our Lat, war