Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1878-09-05


bank money, which the people experienced before
the war, will recur again. Nearly generation has
passed since the incongruous system OF paper money
which existed before the war was swept away by the
national banking II is safe TO say that the in
Jury done TO the people OF the United states by the
failure of these banks, by the uncertain value OF
their paper money by its limited local circulation
and by successful counterfeiting, was annually
greater than the interest of the entire national bank
circulation of the United States.
BANKING CORPORATIONS THE WEAKEST MEMBERS OF A
COMMUNITY.
It easy TO oppose banking corporations Instead
of having political power, they are the weakest
members of a community. Say what you VIII OF
them their substitution for State banks was one OF
the wisest and most beneficial acts of the general
government since the commencement OF the war.
Personally have but little interest in feeling for
national banks. But for the benefits derived from
them. 1 would not care what became OF them.
Their continued existence ought to depend upon
their ability. without cost trouble to the United
States TO maintain their circulating notes at par
with United States notes or coin II they tall IN thls
they ought to be abolished II they do It,
they ought to be continued. They are
useful financial agents scattered throughout the
United States in exchanging the products OF lndus-
try and in localizng capital They paid lat year 20
the government of the United States s7,0T6OS7 in
taxes and for State ana local taxes So ,7S2 or
total of 6777Sl9 nearly four millions more than
Judge Thurman estimates we will save 10 the people
by issuing greenbacks instead OF the bank notes.
These taxes would all be lost to the United states
and to the States il the national banks were aooi-
ished. Their notes are secured beyond peradven-
ture they are protected from countereitng lar more
successfully than any former system, and, 10 thelr
credit be said not dollar has been lost on any
national bank note ever issued Wherever you go
you may carry them with safety, without examlna-
ton as TO where when they were issued. They
are good everywhere in the United States.
THURMAN's OBJECTION TO NATIONAL BANKS CON
sIDERED.
Senator Thurman has stated some objections to
the national banks, to which Twill briefly reply. DE
says:
indefinite
As a national bank exists only for twenty years
from the date of its organization. and Is liable at
any time by act OF Congress 10 be abolished TINS
does not seem a very potent reason am sorry TO
that the prospect of paying our DEBT so soon as
the life OF national bank is not very nattering, nor
are they likely to deter its payment: AS for tne
influence of these institutions so much feared by Mr.
Thurman il is not an object OF ALARM for II can not
be comoined or If that were attempted, IL coulo De
overthrown by q single wave OF popular opinion.
His second objection to the national banGlng sys,
TEN is that it tends to combine concentrate ana
intensity the money power"
This again is an Elusive fear. There is no power in
this country that is SO weak in political management
as what is called the money power 1t never mas
been it be concentrated so as TO affect poht-
ical questions. The tendency OF our institutions
makes 1t easy TO combine at once political opinion
and political power against it.
NO TEN BANK PRESIDENTS AGREE.
Party organization is infinitely more powerful for
combination than the money power. My own ex-
perience in office enables me to say that you con-
vene ten bank Presidents YOU will have ten differ
ent opinions, while party organization brings even
Judge Thurman and Gen. Ewing on the same plat
form.
Nor is it true, asstated by Judge Thurman, that
the legislation of Congress favored the money inter
est during the period of the sway of the Republican
party for this legislation guided by the love OF
national unity and national honor and national ex,
istence. 1t tended to make our nation strong al
home and respected abroad, and in no single ques
ton has it favored what is called the money interest
THE VITAL ISSUES BETWEEN THE TWO GREAT PARTIES
The vital issue between the two great parties has
been, on the part OF the Republicans, desire to
maintain the integrity of the Union and abolish
all men, to maintain the national honor, and to ad
vance the industrial interests OF the country while
the theory and policy of the Democratic party has
been TO beIittle the national government, TO subor
dDate it TO the power OF the States 10 preserve slave
~, to leave industry without proteclon ana sup
port and sectionalize into petty communities the
elements of great and powerful nation; and these
are now and will be in the future the inevitable tend
encies of these two parties
The third objection stated by him to the national
bank circulation is that it is special privilege and
takes many millions out OF the pockets OF the peo
BANKs ENJOY NO SPECIAL PRIVILEGES
This again is untrue in point of fact, and illogical
in argument The national bank circulation is not
special privilege, but is open to every association
of five persons that may be organized in
any part of the United States To
call it a special privilege is absurd. The
same privilege might be granted TO every individual
citizen of the United States, but experience shows
that corporation is more wisely administered when
it is composed of number of persons not less than
five, than when 1t is controlled by single person,
and corporate authority is essential to preserve its
existence in of the death of partner. But for
this the special privilege might be granted to every
citizen who could give the requisite security for
the redemption of the notes issued by him.
As to putting money into the pockets of the share
holders this again is absurd. The government pays
nothing and contributes nothing to a bank. The
shareholders buy the bonds OF the government and
deposit them with the government for the security
of the notehoders Ii the bank retires, the bonds
belong to the shareholders and not to the government
Nor can the government pay these bonds in any
other way than it could pay the bonds IN the hands
of individuals. The government would pay the
same interest on these bonds, whether held by the
| bank, or by any citizens, or in Europe
THE REASON WHY BONDS ARE DEMANDED
as security is because they are the best security
But for this mortgage security or a personal Sc
curity might be taken, but as the government Sc
curity is the highes and best this is demanded moi
for the benefit of the government. but for the note
holder, for whom the government IS mere trustee
When the government pays TO the bank interest on
bonds held BY ii security, it only pays what is
Justly due, and what 1t would nave to pay at all
events to anybody holding the bonds until they are
redeemed.
How it takes many millions annually out OF the
pockets of the people is hard to conceive. No one
borrows the notes OF the bank unless is for his in
teres to do So The ability OF the bank to lend is
convenience TO the borrower as well as the lender
The government can not engage in the business OF
loaning money 1t would be sorry time for the
people other than political strikers If the govern
ment loaned money. This is q purely private. per
SOndl InplONueQL LndL DC rs Tree dS DldCk
smthing The right to issue notes is free TO all on
the terms and, when so guarded as 10 prevent
loss to the noteholder is the best possible means Of
increasing the amount of circulating notes.
IF GREENBAcKs WE'RE SUBSTITUTED FOR NATIONAL
BANK NOTES.
He says that the government ought to issue these
notes. The answer is that if the government issues
them it must undertake to maintain them at pal
with coin or else the people must suffer from the
evils OF rredeemable currency. The cost OF this
redemption by the banks is already great, before
specie payments have actually come, that this SO
called special privilege is getting to be special
burden, and more banks surrendering their cir
culation than taking circulation. 1t is special
privilege that more seek TO avoid than TO acquire.
Judge Thurman computes how much the United
States would save ii it issued 1922 100000 more
OF greenbacks and redeemed that amount OF bonds
l do not stop to examine this computation, but
only wonder why he stopped at S322, 100000. Why
not save the entire interest of the public debt by
issuing greenbacks for the whole of it? Why re-
pudiate it at once? That would, according to his
computation save the entire interest OF the public
debt S93 ,O00 with other loss than the loss
of national honor.
TIMELY QUESTIONS THAT THURMAN SHOULD ANSWER.
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