National Republican., 1878-09-11

proposed for ~ Let us inquire, then, into the |
strength of the objections TO the national bank.
ing system, presented by our opponents, aud |
follow this with q statement Of our own OBJ
jcctions to the now system proposed, viz, the |
issue by the Government Of all our currency. |
What arc the objections TO the national bank |
Ing system, rs presented and urged by our
opponents! L,t me enumeraSc ani answer
them.
I. II Is said that thi, system Is n monopoly
or special privilege. But this is not true
National banking is perfectly free Whoever
has the desire and the means may start ma
tional bank by complying with the law. Do
our opponents desire to have a system Of
banking under which people without means
can issue notes to circulate MS money? There
are no restrictions upon the organization of
national banks except such as are calculated to
make the note.hoders-the people--absolutely
secure, and these apply alike to ALL
This feature of the system affords means
Of regulating the volume Of the currency as
perfect and safe as any we can have. II there
Is demand for currency, more banks Will be
started to supply II, and | think we may trust
In this matter, as In all other purely business
affairs the law Of supply and demand. At all
events, the claim that tho national banking
system Is q monopoly which places tho control
Of the currency In the hands of n few favored
persons or corporations is absolutely ground
less.
9. Another objection to tho system Is that It
costs the Government large sum annually In
the shape Of interest on the bonds used as the
basis by the banks This objection Is equally
unfoundcd. II Is true the United States pays
interest on the bonds held as security for the
national bank circulation but 1t Is not true
that one farthing Of this interest would bo
saved by the abolition Of tho banks. IL We
should strike out of existence all the national
banks, the bonds would still remain, aud the
Government would continue to pay interest
upon them unless prepared to repudiatc. We
would save nothing in the way Of interest on
our bonds by abolishing the banks; bat, 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
Sl6,0DO,OOO per annum. The simple truth,
therefore, Is that by abolshing this system we
would gain nothing in the saving Of interest,
and would lose at least Sl60OO,OOo per annum
in taxes do not say that our banking sys-
TEN may not be improved. Sooner or later
have no doubt it will be amended so rs to use
as the basis Of II a 1 per cent. bond, but to
abolish II and substitute an indefinite issue Of
greenbacks (and any issue left subject to tho
determination of Congress must be indUtnite)
would be the extreme of folly.
3. II is sometimes said that the national
banking system tends to concentrate and
strengthen tho money power. | submit that
tho national banking law Is as FREQ from this
objection rs any banking system can possibly
be. 1t is rs free from 1t as any incorporation
act can be made. It Is as free from 1t as any
Law authorizing the formation of corporations
to engage in any legitimate and honest buS-
moss, whether ii be trading, manufacturing. or
banking. The money power would be just rs
potent aud probably far more potent, II wholly
excluded from the privilege Of carrying on
national banks aud obliged to invest in other
enterprises. II Is difficult to see why the ma
tiOnal banks are any more dangerous on this
account than an equal number of private banks
or other private corporations representing All
7 equal amount Of capital. This argument, II 1t
means anything is aimed at the very exist
ence of capital, and can be used with equal
force against railroads, steamship companies,
manufacturing corporations, aud private bank
crs and traders.
4. One further objection have heard to the
national-banking system II IL that 1t contem-
plates the perpotuation Of the national debt.
In answer to this have to say that whenever
the Government wishes to pay any Of the bonds
now held by the banks 1t is the right Of the
Government to pay them, provided they are
{ due and payable II by this mode the banks
shall at some time In the future cease TO exist,
. the country must, when that time comes take
care of the interests and the currency Of the
t people. This eau scarcely happen during the
next quarter Of u century, aud II is therefore
&. premature to discuss it now.
For myself. however. | have no hesitation In
saying that believe 1t would be for the best
interests of tho Government and tho people tC
keep outstanding q sufficient quantity of pei
cent. bonds to furnish the basis Of our national
bank currency. ! know of no other system O
9 currency so stable, so safe and so reliable. II
{ u better system can be devised, when the time
= comes to pay of the bonds We can adopt Ii; hui
o certainly the plan proposed by our opponents
h, Is not such an one. And this brings me t.
consider, briefly, the objections to their plan.
l. As already suggested, the financial plan
i proposed by our opponents leaves the amount
. of currency uncertain, and therefore of neces-
r sity leaves its value uncertain, for nothing Is
! surer than that the value of II currency de.
5 pends upon the certainty as to redemption
0 and this depends upon the quantity to be re-
= deemed. The all-important thing In any sys'
q TEN Of finance Is stability. You must have an
! assurance that dollar to-day will be exaCtl!
!. the same dollar tom orrow and next year.
s If the volume Of the currency Is to be regu
G lated by Congressional enactment from tilnC
i to time, how eau any man predict how many
| gruenbacks the next Congress will authorize
I Who can tell what quantities may be issued Il
4 put an end to "hard times" or stave off {
3 panic, or otherwise satisfy q clam0rOus con
0 sttuency. Such system would necessaril,
destroy all confidence and prove in the enc
= tho worst possible. If carried on for loni
d period it could end in nothing short of boti
Il public and private bankruptcy and ruin.
z II. Another objection to the attempt to issu
q by act of Congress In time of peacol notes 0
:. the Government, to be IL legal tender aud cir
"a culate as money, is the grave doubt which ex
II lists as to its constitutionality.
70 Before entering upon Il policy of this charaC
,. ter we should be well assured that ii will stan
n the test of the Constitution, for il we shOul
h abolish tho banks aud issue a national cur
g rency in lieu Of the bank bills only to find IL
1t the end that the now money cannot be made
u legal TENDER dire confusion aud disaster woult
r. result The question is, has Congress, In tim
t. Of peace, tho power 10 authorize the issue q
Al Government notes to circulate rs money, an
70 to make them q legal tcnder2 Tho Constitu
:. tion empowers Congress " to coin money" bu
t. II is not pretended that this includes power
Vt print money or to issue paper money at al
The power 10 Issue greenbackJ aud to max
them legal tender has been asserted as au i'm
h piled power, aud II has been held by bar
l. majority Of thu supreme Court Of tho Unite
% States, after u long controversy that the legal
ID tender act OF l-D2 was valid. But this decisiO
ID rests mainly, ii not wholly upon the groun
ID that the issue Of legal tender notes was nGCes
sary as war measure. aud Therefore pOwt
implied rs u necessary part of the pOwor t
rs declare and carry On war; The first decsiO
ID Of the Supreme Court was the other way, bu
" with u full bench and II rcargulncnt, tho fn'