New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1878-09-21

persons or e0xpofAtlonS - ap3oAutsaJ
groundless.
2. Another objection to the systena. il
that it costs the government large SUM
annually in the shape Of interest on the
bonds used as the basis by the banks.
This digestion is equally unfounded. II
is true the United States pays interest on
the bonds held as security for the national
bank circulation, but it Is not true that
one farthing of this interest would be
saved by the abolition of the banks. II
we should strike out of existence all the
national banks, the bonds would still re-
main, and the government would con-
hnue to pay interest upon them unless |
| prepared to repudiate. We would save |
nothing in the way of interest on our |
bonds by abolishing the banks, but on |
the other hand We would lose large sum |
in the form Of taxes now paid by them.
The taxes paid by the banks to the State
and National governments will average
over sic, 1000, 600 per annum. The simple
| truth, therefore, is that by abolishing this
system we would gain nothing in the saw
1 ing of interest, and would lose at least
Sic, 00O, 600 per annum in taxes. / do not
say that our banking system may not be
improved. Sooner or later, have no
doubt, it will be amended SO as to use as
the basis Of it four per cent bond, but
to abolish 1t and substitute an indefinite
issue of greenbacks (and any issue left
subject to the determination of Congress
must be indehnite) would be the extreme
of folly.
8. It is sometimes said that the ma
tional banking system tends to concen-
trate and strengthen the money power.
submit that the national banking law is
as free from this objection as any banking
/ IN ,lry h. 10 fpao frauN
it as any incorporation act can be made.
1t isas free from it as is any law author
izing the formation of corporations to. en-
gagein any legitimate and honest business,
whether it be trading, manufacturing, or
banking. The money power would be
just as potent, and probably far more po-
tent if wholly excluded from the privilege
of carrying on national banks; and obliged
to invest in other enterprises. 1t is diff
cult to see why the national banks are any
more dangerous on this account than any
: number Of private banks or other private
: corporations representing an equal amount
of capital. tbs argument, if it means
anything, is aimed at the very existence of
? capital, and can be used with equal force
against railroads, steamship companies,
3 manufacturing establishments, and pri-
I vate bankers and traders.
I L
to the national banking system. 1t is
: that it contemplates the perpetuation of
: the national debt In answer to this 1
: have TO say thai whenever the government
9 wishes to pay any of the bonds now held
: by the banks, it is the right of the govern
e ment to pay them, provided they are due
y and payable. Hby this mode the banks
8 shall at some time in the future cease to
n exist, the country must, when that time
7 comes, take care of the interests and the
9 currency of the people. This can scarcely
IS happen during the next quarter of CEN
e tury, and it is therefore premature to dis
e cuss it now. For myself, however, Ihaye
II no hesitation in saying that believe il
would be for the best interests of the gov
a eminent and the people to keep outstand.
le ing a sufficient quantity of four per cent
FL bonds to furnish the basis of our nationa
le bank currency. know of no other sys
IS tenn of currency SO stable, so safe, and SC
r reliable. If better system can be de-
n vised, when the time comes to pay off the
: bonds we can adopt it, but certainly the
. plan prososed by our opponents is MOI
u such a one. And this brings me to con.
7, slider, briefly, the objections to their plan
u l. AS already suggested the financia
10 plan proposed by our opponents leaves
the amount of currency uncertain, anC
therefore of necessity leaves its ualue un
i certain, for nothing is surer than that thu
a value Of currency depends upon the Ger
u tainty as to redemption, and this depends
~ upon the quantity to be redeemed. Thi
= all important thing in any system o
- finance is stability. You must have an as
~ surance that dollar to-day will be exactl,
the same dollar tomorrow and next year
If the volume of the currency is to b
Iaka Nv
b. from time to time, how can any man pre-
'. dict how many greenbacks the next Con
"a gress will authorize? Who can tell VIVA
e quantities may be issued to put an end t
a. ''hard times" or stave off panic, O
is otherwise satisfy a clamorous constii
n ueney. Such system would necessaril
ye destroy all confidence, and prove in tn
v. end the worst possible. II carried O.
at for long period it could end in nothin
Iy short of both public and private banl
te ruptcy and ruin.
To 2. Another objection to the attempt t
US issue by an act of Congress in time {
Id peace, notes of the government to be
be legal tender and circulate as money, is
ng grave doubt which exists as to its const
Elk nationality.
Before entering upon policy of thi
al character we should be well assured tina
On it will stand the test of the Constitution
n for if we should abolish the banks an
10 issue national currency in lieu of th
ne bank bills, only to find in the end tha
IT. the new money can not be made
ST. legal tender, dire confusion and disaste
d. would result. The question is, has Cor
to gress in time ofpedce the power to author
lie the issue of government notes TO circU
k late as money, and to make them legt
DIS tender? The Constitution empowers Cor
IT. gress ''to coin money" but it is not pr,
N, tended that this includes power to prii
iu- money, OF to issue paper money at al
tie The power to issue greenbacks and [
make them legal tender has been a.
IS serted as an implied power, and it hs
Ol- been held by bare majority of the ST.
he preme Court of the United States, after
ID long controversy, that the legal tender az
ito of 1862 was valid. But this decision resi-
la mainly, if not wholly, upon the groun
ur that the issue Of legal tender notes va
to- necessary as a war measure, and therefor
sw a power implied as necessary part Of th
he power TO declare and carry on war III
first decision Of the Supreme Court WI
lal the other way, but with q full bench an
ed q reaTgument, the final result above state
nd was reached by q vote of five judges
four, No one can read the opinions I