The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1878-09-19

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by persons requiring the use of
DIN. True, every note holder knew
hat the banks specie capital only
one-third of its circulation
nut as long as he knew, and others
new, that its assets, as a whole, ex-
eeded its debts, he preferred keep
ng his note. 1t was only when con-
in its ultimate solvency was
ost, that a run was made on the bank,
ind then it was not because the note
desired specie, but because
feared their notes might become
worthless need hardly say there
little danger ofssuch panics on the
part of the holders of United States
notes; so that, in order to reach true
and national resumption, it is only
necessary to bide the time when,
without harmful contraction, a sufi-
cient amount of coin can be spared
from other uses to supply such hold
ers of Government notes as may re-
quire itfor special purposes in their
business-the notes so redeemed, of
course, to be restored again to the
circulation by being paid out in the
usual course of government d:sburse
ments.
If any ore doubts that our present
calamitous condition is the effect of
the Republican policy of contraction,
let him glance at few figures. In
1865, when the scheme was entered
upon, hut before it had gained head
way, the number of business failures
throughout the country amounted to
a few over five hundred. In 1866,
when the poison had begun to work,
they rose to fifteen hundred. In
1857 they increased to twenty-eight
hundred, aid coming down to 1872,
they were swollen to four thousand,
and to double that number in 1875,
when the Resumption Act was pass
ed. In 1877, they went up to nine
thousand; and if 1878 continues as
it has begun, the total of failures for
the year will exceed twelve thou
sand!
If you will examine the judgments
taken in your courts, and the sheriff
sales in your county, you will see
they have increased three hundred
per cent. since 1872.
The relation between these facts
and the system of financial manage
ment to which the country has been
subjected, is not that of mere coinci,
dence or accidental concurrence. 1t
lis that of cause and effect. 1t was
just as impossible to continue the
process of financial depletion with.
out p~rostrating business, as it would
be to subject a man to daily blood
letting for an indefinite period with.
out destroying his vitality.
But not less. manifest than the
causes of our troubles, is the respon.
sibility for them. 1t lies at the door
of the Republican party. This
charge is distinctly made. Ths
proofs are at hand, and the defend
ants are called upon to answer i
will not do to fall back on the ples
of the "bloody shirt" 1t will be hello
bad en- demurrer. The emergency
is too pressing, the impending dan
gers too serious, to allow time TO,
narrowing up old grudges. Gentle
men, you must plead usually thi'
time, and go to trial on the merit'
without lodging.
There is another element whicl
has had no unimportant share in ag
grayating our troubles. refer to tn,
horde of so-ealled National banks
the offspring of Republican legisla
ton, which like SO many cormorants
are devouring the peoples substance
For what good or wise purpose wer
these institutions created? Was i
to supply the country with a pape
circulation? Why the Government
can do that much more economical
ly; and, as the National bank note
are wholly based on Federal bond
and the nations guaranty, are the,
any better than the Government
own notes, directly issued? 1 def
any man to point out a single publ
end attained, a single public interes
subserved. through the instrument
atty of these corporations.
But this is far from saying the.
are advantageous to none. Thong
worse than improbable to the com
munity, they are a mine of wealth t
1 the bond-holder. Their notes ar
secured by a deposit of Government
bonds in the National treasury. o.
these bonds the banks draw sem
annual gold interest. When the
lend out their own notes, and receiv
interest on them, thus realizin
double interest on the capital invest
ed.
Let us see what such a currenc
costs. First, the bondso on deposit W Ell
originally purchased at heavy dis
count. This shave, of course, fell o
the people. Next, the banks receiy
} gold interest On their bond deposits
and the people pay that. Again, til
capital invested as the base of circul;
ton, pays no taxes, which is equivaler
to shifting its shsre of the public bul
thens to other shoulders. Such nj
some of the items entering into the CO
of the National bank currency.
Now, why did not the Governmel
: relieve the people of this enormous co
by supplying them herself with all tt
paper money needed? She would ha,
Incurred no additional liability by
doing, for she is as much bound for Il
National bank notes as she is for h,
; own.
The object of the National bank sy
tenn is no mystery. 1t was a schen
concocted in the interest of a ella
which has been at all times the speci
: object of Republican bounty. 1t is
+ companion piece to the law which e,
! empts bond-holders from taxation, ar
. to that other law by which a partiss
Congress undertook to make a fraud
: lent alteration in the contract Eetwee
$ the people and their creditors in the il
terest of the latter. The simple truI
, is, the National bank system involv
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