The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-10-08
NANCEs-TIaE NATIONAL BANKS
REGULATING THE CURHEvCy.

HIGtiaGfNG THE GtHHEttt.
l,Nrhs following il taken from an ad-
dress delivered by Secretary McUrary,
at Keokuk, Iowa:
HARD-PAN REACHED.
We are back again to solid basis;
we are down to "hard-pan. We shall
shortly resume specie payment, thus
releasing the specie in the Treasury,
and then, with a circulating medium
amounting to over nine hundred mil
lions OF dollars "that are dollars" I"
each and every one Of which is worth
precisely 100 cents, We shall resume
eur upward career Of prosperity. The
road TO specie values has not been, in
all respects, a pleasant one to travel.
We have been compelled To come down
from very high horses; we have ceased
TO ride upon the wave of speculation
and TO reyel in the excitement which
came with the war and remained for a
time after 1T was over, caused by a SUI
perbundance of currency of uncertain
and shifting value-an excitement
which was unnatural and necessarily
short-lived. When prices are measur-
ed by huctuating currency OF doubt
ful value aud uncertain quantity, they
must, of necessity, be fictitious. Let
US rejoice that we are back again 10
the safe foundation Of staple, equal,
and honest dollars. Nor have the
"hard tines" through which we have
passed To reach this end been an un-
mixed evil. We have learned by ex.
perience lessons in economy, industry,
prudence and frugality, which our
fathers understood aud practiced, but
which we had forgotten, and should
not heaye learned in any other way.
40 STEP BACKWARD.
The great question between the re-
publicans aud their opponents is this:
Having reached this solid footing. hav.
ing secured a currency equal to and in-
terchangeable with coin, shall we aban-
don it, together with all hope OF resum-
ing specie payments, aud plunge again
into an uncertain sea Of imitation? Shall
we have fiat money 90 be issued only
by the government, and IN such guam
titles and at such times as congress
may direct? Surely the people Of Iowa
cannot long hesitate about answering
these questions. To abandon the poll.
cy which has brought us 20 near to
perfect financial health would be as alb
surd and suicidal as would be the act
Of man just recovering from long
illness who should. OF his own choice.
seek a relapse.
THE NATIONAL BANKS.
The principal plank in the financial
platform Of our opponents, and upon
which democrats, nationals and green
hackers seem 10 agree, is this: The
abolition OF national banks and the is
sue by the government direct Of 80
much currency "A the wauts Of trade,
of the business interests OF the country
may demand. Let me speak briefly Of
the objections TO this policy
Aud first. why abolish the national
banking system? IL rs admitted that
It affords a safe, sound, and perfectly
reliable currency, good alike IN all
parts OF the Union, aud familiar TO the
people. Its vast superiority over the
old democratic state bank currency is
OF course conceded.
Any satisfactory discussion OF the
question whether this system should
be abolished must include consideTa-
ton OF the merits Of the system pro-
posed TO be substituted for II. IL you
have objections 30 the national bank
system, you should be sure that you
have not greater objections to the sub
stitute which Is proposed for it. Let
as inquire into the strength of the OBJ
lections 90 the national banking sys-
tenn presented by our opponents, aud
follow this with a statement OF our own /
objections TO the new system proposed, |
VIZ: the issue blythe government Of all |
our currency.
What are the objections 10 the ma
tional banking system, as presented /
and argued 10y our opponents? Let |
me ennmerate and answer them.
/. Ii is said that this system is a |
monopoly or special privilege, but this |
u not true. National banking is per- /
fectly free. Whoever has the desire |
and the means may start national ]
bank by complying with the law. Do |
our opponents desire TO have q system |
OF banking under which people without
means can issue notes 20 circulate a.
money? There are no restrictions upon /
the organization OF national banks ex-
cept such as are calculated 90 make the /
people-absolutely /
secure. and these apply alike 10 ali. /
This feature OF the system affords /
means OF regulating the volume of the /
currency as perfectly and safe as any /
we can have. IL there is demand for |
more banks will be started to /
supply Il, and / think we may trust in /
this matter. as IN all our other purely /
business affairs, the law Of supply and /
demand. At all events the claim that /
the national banking system is n mon
opOly which places the control OF the /.
currency in the hands Of a few favored /
persons or corporations is absolutely |
groundless.
2. Another objection 10 the system is I
that il costs the government large |
sum annually in the shape OF interest /
on the bonds used as the basis 10y the
banks. This objection il equally un-
founded IL is true that the United
States pays interest on the bends held
as security for the national bank circu-
lation, but IL is not true that one far
thing Of this interest would be saved
by the abolition Of the banks. IL we
should strike ont Of existence all the
national banks, the bonds would still
remain, aud the government would
continue TO pay interest upon them un-
less prepared 10 repudiate. We would
save nothing ia the way Of interest on
our bonds 10y abolishing the banks,
but on the other hand we would lose a
sum in the form of taxes now paid by
them. The taxes paid by the banks to
the State and National Governments
viii average over SlG,000,000 per an
mum. The simple truth, therefore, is
that by abolishing this system we
would gain nothing in saving OF inter
est, and would lose at least SIC, ,000, 900
uer annuUo in taxes 4 do not say that