Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-08-15
The National Bank.


IL Is especially worthy or notice that by
no political convention has there been Q
downright endorsement Of the national
banking system. Now what I. this sya
TEN. which so many deuouEce. and no.
body defendsf IL is substantially the old
Stste-bsnk system. with 4 circulation per-
fectly secured everywhere, instead OF =
clrcu lstion OF limited iedt sni dou hiiul
solyency. The State banks had nothing
10 do with the creation OF H. twas forced
upon them by national necessities. Not
a bank favored the passage OF the national
currency act. Few. II any. would have
accepted II, II they had not been forced TO
accept Il by the law which taxed their cir
culating notes out OF existence. system
which compels the banks to secure their
circulating notes by United States bonds.
with margin Of ten per ccni.-although
the bonds may be worth 4 premiums
not 3 profitable system TO bank under.
The national banks during what was
called the flush times. between lsCj and
1873, did IS most people did. or thought
they were doing, making a good deal OF
money upon paper. but the sitting process
which bias been for sometime aud Is still
going on, reveals the unpleasant fact Thai
no small portion OF their profits was APP
parent rather than real.
knew something OF the old Siaie-bank
system; | have given some attention 10
the systems of other countries; and do
not hesitate 10 say that our present system.
although not a profitable one for the bank
ers. is the best system for the public which
Is now la existence. II the bank act IL re-
pesled. the people aud not the bankers
will ultimately be the chief nourners.
Banks Of issue exis. In all commercial
countries, and they Will sxis; in some form
In the United states. Without them en-
ierprise and credS would be deprived Of
what they need in competing with captain
II the enemies Of banks were TO undertake
10 give 10 capitalists the control OF busl-
hess they could not more surely and effect
ualIy accomplish their object than by pro-
hibting the Incorporation Of banks OF Is
sue.
The Creenback heresy may gaia strength
and for time government notes may &C
cupy the entire neld; but IL will be for .
time and q short time only. The evil will
cure itself, but AZ an enormous saerince.
No political party has ever been wise
enough or honest enough to be trusted
with the power OF supply ing the country
with money through the agency OF the
printing press. When such Aparty does
exist the Millennium will have dawned.
and there will be no future use OF money
Of any kind.
Issues OF government notes are not .
novelty. This experiment has frequently
been resorted TO by embarrassed or bank
rupt governments and the result has A.
ways been disastrous to the governments
asd especially TO the people. Congress
wisely put limit upon the issue by the
acts which authorized IL; but, limited Is
II WAS, IL WAS = great misfortune that the
exigencies OF the country seemed 10 render
such . measure necessary. That nece sslty
passed away with the war. There is now
no need OF government, notes. Gold and
silver and convertible bank-notes are Gil
that Is now required to bring back the
country to . healthy condition, as far as
this can be effected by money. There vii.
be no stability In trade, no safe found stion
tor business men to build upon, until the
government ceases TO be q banker; until
the public sentiment is In accord with the
opinion Of Mr.. Webster when he said:
Most PROFESSIONALLY there is no legal-,ende
in this country, under the authority OF this
government or any other. but gold and silver
either the coinage OF our minis or foreign coins
al rates regulated by Congress. This Is = con-
stitutonsl principle, perfectly plain, and Of
the very highest Importance. The states are
but gold and silver legal tender In payment
OF debts and. although no such express prOhi-
bitiou Is applied TO Congress, yet, rs Congress
has no power granted 70 ii, in this respect, but
TO coin money and to regulate the value Of for
e.ga coins, II clearly has no power TO substitute
paper or anything else for coin - . legal tender
| In payment Of debts and In discharge of con-
tracts. Congress has exercised this power
| fully 10 both lis branches. 1t has coined mon.
ey, and still coins il; il has regulated the value
Of foreign coins, and still regulates their value.
The legal tender, therefore, the constitutional
| standard Of yalue, is established and cannot be
overthrown. To overthrow it would shake
the whole system.
The system was shaken by the legal ten
der acts. 1t will not only be shaken, but,
| if the believers IN the greenback theory
obtain the control of the government and
the supreme court does not come to the
rescue, 1t will be completely overthrow.
| say nothing against the honesty of the
advocates OF this theory. 1t is the theory
they advocate which denounce; and /
denounce 1t because regard it Is being At
war with the best interests Of the country
II 1t prevails. there may be another period
Of unreal but seductive prosperity; but 1t
will be followed BY disasters far more ser
rious than those from which we seem TO
be recovering, even II the end be not the
climax Of national dish0nor, reputation!
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