Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1878-08-24

thlS pi!hcipIc, 1t condemns = bank note
system that tends /" pcrprluair it.
;. y second objection /" the national
bank system is that il tends To combine.
concentrate and intensity the money
power. | shall indug in no drr,ama-
tI"n against the money power. | seek
10 excite no passion; no prejudice. |
wish to reason fairly. :tud wish yuu to
Iudgc fairly. And | do reason fairly
when say ;hat, III View oi the uudUubt-
ed fact that during the whole period ui
the unlimited SWAY "i the republican
party, the Legislation oi congress stead
ilY favored the mumicd interest, ,anLihclr-
by greatly added to
THE ETErIIINs OF rHE rErILr:
that the purchasing power of money ha-
immensely increased. whIic the rX-
chtngeaOlc or purchasing power oi cv-
erythlng else has remained stationary or
has diminished and in view ot the tur-
thcr tact that the national bank system
coniers special privileges upon the banks
that no other Institutions and no other
individuals enjoy: that it combines more
than 1000 institutions now. and. if per
petuated. may combine thousand, more,
80 - pa l'T' 't'''' Nit4i ~ N'ii'-
mon interest to maintain their power and
prolong their privileges; that these m
stitutlOuS are scaitcrad all over the re
public. and, acting openly or in secret,
are able to influence legislatures, con-
crosses, and thousands of voters; ii is
not injustice, but, on the contrary, il i,
the expression OF 4 wise ANXIETY TO sug-
gest that such system is
FRAuGIr WITH DANGER
to the prosperity of the people and 10 the
purity OF their government II. i'll the
time Of Andrew Jackson, the existence
Of national bank with capital of only
SO .OOU, 900. and I few branches here
and there, was considered dangerous to
the welfare and the institutions of the
country, what shall we say OF a wide
spread combination OF 1000 national
banks now welding nearly 500 .uOO. 900
OF capital, and destined, il perpetuated,
TO vastly multiply IN number, and to
control thousands OF milllons2
j. \ third objection to the national
bank circulation is. that it j. a special
privilege that puts many millions of dol
lars annually into the pockets OF the
shareholders, and takes many millions
annually out OF the pockets of the pco-
pie.
The general rule is that 4 person pay :
interest upon what he owes but. in the
case of a bauk-notc, this rule is rcvcre-
ed. The note i 4 debt due by the bank.
but instead OF paving interest upon ii,
the bank is authorized to .oan it IL
money. and take the interest upon the
.oan. 1t thus enjoys privilege
THAT No ONE EIsE ENJOYS.
1t draws interest upon it, own indp,It-
ednes>. and this privilege of the national
banks brings them an annual income OF
probably twenty millions of dollars
Their aggregate circulation i. in round
numbers, three hundred and twenty-five
millions. | think il may be reasonably
assumed that three hundred mi. lions ol
these notes are loaned at an avera@c rate
OF interest OF 1t least ! per cent. II SO,
the annual Interest they receive from the
loan, not Ot money. nor Ui capitaI, but
Of their own Indebtedness. is twenty-onc
million dollars. And this sum l. taken
out of the annual product oi the coun-
try. before that product is divided be-
tween labor and capital. The general
rule is, that the prosuct Of human in
duStry is ultimately div !ici between
labor and capital; bUt when Il bank note
circulation Is used the bauks first step IN
and. by virtue OF their special privilege.
take 4 large Slice in the shape Of inter-
est upon their own Indebtedness. In
the case OF our national banks. this
Slice. rs we have seen. amuunt- Ia
TwENTY-oNE MILLIONS EyGEI YEAR.
Now II there can be no sound pnpcr
currency hu; bank npl"s, then there i
nothing lett i"r Us but to bear this bur
then or try To- reduce the amount nj the
eNaction. But il the grccnhnck i a.
good aS the bank note, and nobody de
nIcS that il is. why should ii not bc sub
stltuted Tor the bank note, and All end
put to the eXacton? And, consider
further, that for every greenback il has
issued, the government has received
value. That greenback has paid tor ser
vices rendered, or materials !urn>hcd
or it has discharged a portion OF the in
public debt There is thus
4 saving to the government. or To the
people. OF an amount equal to the inter
est upon the outstanding grrenbach cir
for, had the grcenback not
been issued. the government wo,l,l have
had to raise the money by loan ar tny,-
ton. to pay its cypenditurr. If II rails.
ed it by loan il would pt cnursr i,,vo
to pay interest on the loan. II !,
raised il by ,axation the nv
PAYERS lose the interest their money
would have earned had they not been
compelled to give it to the government.
rur crrr>r,,Es >,w n,-r,r,x,,>,
TO S1io,bSI.olo. Computing III
. !. os, i UPON tiiiS sum 1T 'iic .o"csI fate
money, tour per cent. and we have an
annual saving to the people. resulting
from the use of the rreeuback. of sl3.-
S67 .2iO. But il crecnbacks were sub
stitutcd Tor the 30 .0OU. 900 of national
bank notes now outstaulinr. there
would be further saving to the people
Dt four per cent. annually on that sum.
namely Sl2 .sSS ,OUO-making Il total an
nual saving by the uS1 of the rrccnback
IF S26 ,7i6. .2iO. From this. however. de-
luct the taxes on their circulation maid
,v the hanks amnuu,;nu tn ,bnu, ,hron
millions annually. AMI the ne, say,n~
would be about twentv-thrce and three.
Iuartcr millions. Perhaps in s,rictncss.
his deduction for taxes ought not to be
made, Tor it is probable that the banks
hrow the burtheu Of the taxation upon
heir customers, who in turn SHIFT it to
he shoulders OF those with whom they
leal. until, like all other taxation, it H.
lally tails upon the great body of con-