The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-12-12
NATIONAL BANKS.

The ANTI-MONOPOEIs is always
entirely willing to print in it's col
umns both sides of questions of pub
lie interest. 1t may be interesting
to our readers to have at hand the
best argument for the national banks.
which we find embodied in the re-
port of Hon. John Sherman, secretary
OF the treasury:
This system of banks. though of
recent growth and adopted as an ex-
pertinent amid the necessities devel-
oped by the civil war, has, under
wise management, become the most
Important business agency in the
country. Though still under trial
ana subject at all times to the discre-
tloh OF congress to discontinue and
limit It's existence and operations it
may be fairly claimed, as already es
tabHslled by experiment, that the
system possesses certain advantages
over any other heretofore existing IN
THIS country, and possibly only with
national system.
flrst-The security of the bill
holder from loss through failure OF
the bank.
Second-The rapidity and certainty
OF the detection and prevention of
counterfelting, from the fact that the
notes are engraved, printed and re.
deemed at the treasury department.
Ihlrd-The frequent and careful
examination Of banks, and the publ
cation OF the detailed statements of
OF their condition.
Fourth-C niformity and free circu-
lation Of the notes throughout the
United States. without respect to the
place of their issue.
Flfth-The admirable provisions by
which failing banks are put in liquida-
ton, and their assets cheaply and
promptly applied to the payment of
creditors.
These and other advantages, derived
to the public from a national system
Oh banks over state system, seem to
be fully demonstrated, and, though
lrksome and apparently hard to the
banks, are Il benefit and security to
the stockholders and i safe guard to
the public.
~ OiiiN iIalINH!oC (OIlItll tu ny
this system, that cannot be enioved
by private bankers under state laws,
Is the power to issue circulating notes.
This, II IS conceded, is franchise
conferred by the government, but is
not IN the nature of a monopoly. 1t
may be exercised by any five persons
who have the means, and vii! comply
With the law.
" neither the power to issue circula-
ting notes should be granted to pri-
Edte corporations or he exercised only
by the government. is purely ques-
ton o; public policy and public inter-
est. In behalf OF a circulation issued
by the government, it IS claimed that
interest IS saved TO the public on the
full amount of the notes issued To
this it is replied that the issue Of such
notes necessarily involves their re-
dempuOn III coin, and this can be Sc
cured only by coin reserves and the
ordinary machinery Of banks. If the
banks issue notes they expect TO de-
rive Il profit from the loan. but this
profit IS diminished by the burden OF
redemption, by the large taxes i'm.
posed upon the franchise, and by the
risk always incident to the issue of
the circulating notes. These are con-
sderatlons which viii. no doubt, en-
ter into the question of the permanent
cy of the national bank system; but as
the banks Of this system are each or
ganized under the law for twenty
years. and none of them expire until
June, 1883. 1t is respectfully submit
ted that 1t is good policy to continue
the experiment until that date, when
the public mind will be better prepar-
ed to consider the questions involved.