The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-08-13
The National Bank System.
[St, Paul, Mimi. GIobe.1

lSt. raul, MIMI, GlODe.J
The Louisian Democrats have followed the
lead OF the Democrats Of the North in their
demand for the abolition of national banks
and the substitution in place OF their circula-
ton OF an equal amount OF greenpacks. The
demand is not confined to the Democratic
party alone, but many Republicans unite with
them In asking this reform in our financial
system, and the National Greenback party is
d unit in favor OF the policy. It will thus be
seen that the supporters OF the national bank
system are but few In number compared with
| it's opponents. But though few, they are
powerful, and notwithstanding the war that
has been waged against them for years past,
| they have succeeded in maintaining the banks
and procuring for them privileges OF eAtraor-
| binary value
The national bank system is a pernicious
one, grossly unjust to the people at large
who bear the chief burdens Of the govern
ment. Under pretense of securing the holders
OF notes of banks from loss, the banks are al
| lowed to draw double rate of interest on
their circulation They take the interest on
the bonds deposited as security for their cir
culation, issue their notes as loans and draw
another large percentage OF interest, and pay
nothing of the profit that accrues from the
loss and destruction OF their currency. Thus
| they receive what in the aggregate amounts
to nearly, II not quite three legitimate rates,
which has been computed at from IS to % per
cent OF interest In return for these great
and valuable privileges, they pay simply a
tax upon the value Of their property much
less In proportion than other investments are
forced to pay. The country is not enriched
is instead compelled to pay heavy tax for
| the privilege OF using an inferior currency.
One great argument In favor OF national
banks is that they afford q stable and uni
| form currency which the country had not had
a currency issued by the government direct
be any the less stable or uniform In fact,
are not the greenbacks a better currency in
every respect than national bank notes The
| greenback is valuable as currency because the
| government pledges it's faith for its redemp-
ton, and in no view of the case does the ma
tlonal bank currency possess an advantage
over it, The greenback Is less liable to be
successfully cOunterfeited, is convenient and
has the full confidence Of the people. We can
see no reason why the government should not
reap the profits now taken by banks of issue.
It would assume no additional expense by
issuing greenbacks In lieu OF national bank
notes, nor would it assume any additional
risk, but it would derive no small profit from
the natural wear and tear and destruction Of
notes.
| 1t is to be feared that, although more than
three-fourths Of the people OF the whole coun-
try are warmly in favor of the abolition OF
national banks, they will fail of effecting the
| desired reform. Almost every prominent
officer Of the government and member Of Con-
gress Is Interested in some national bank and
u4aWS toHSlueiaoie p1oib lfOlu HIS lnFeSt-
ment. 1t is not to be expected that they will
vote away their own revenue unless compelled
to do so. The people must devise some means
to enforce a compliance with their wishes. At
present we know Of none but the nomination
and election to the Senate and House OF Rep
resentativee of men who are not interested in
maintaining the national bank system, aud
also shall be solemnly pledged to vote for it's
abolition. The voters must be sincere and
consistent. It will not do for them to demand
the repeal OF the obnoxious law and forthwith
proceed to elect a stockholder in a national