Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1878-09-18
McCRARY'S SPEECH,

McCRARY'S SPEECH,
We give the following extract from
: the great speech of Secretary McCra
, ry, delivered at Keokuk, on Tuesday
evening, 10th inst:
NO STEP BACKWARD.
The great question between the re-
publicans and their opponents 10 this
. Having reached this solid footing
having secured currency equal tc
and interchang geable with coin, shall
we abandon it, together with oil hope
of resuniing specie payments, and
plunge again into an uncertain sea
Of infiation? Shall we have .)aal
money to be issued only by the gov.
crnment, and in such quantities and
at such times as Congress may direct
Surely the people of Iowa cannot
long hesitate about answering these
J questions. To abandon the policy
which has brought US so near to per-
feet financial health would be as ab-
surd and suicidal as would be the act
of man just recovered from long
illness who should, of his own choice,
seek a relapse.
The principal plank in the financial
platform OF our opponents, and upon
i which the Democrats, Nationals and
Greenbackers seem to agree, is this :
The abolition Of the national banks
and the issue by the government di-
rect of 80 much currency as the wants
of trade or tho. business interests of
the country may demand. Let me
epeak briefly on the objections to this
policy.
And first, why abolish the national
banking system? It is admitted that
1t affords safe, sound and perfectly
reliable currency, good alike in al
parts Of the Union, and familiar to
the people. Its vast superiority over
the old democratic state bank curren-
cy is of course conceded.
| Amy satisfactory discussion of the
question whether this system should
be abolished must include consider
alton of the merits of the system pro-
posed to be substituted for it. Ifyou
have objections to the national bank
system, you should be sure that you
have not greater objections to the sub
stituto which is proposed for it. Let
lus inquire, then, into the strength of
the objections to the national banking
system presented by our opponenta,
and follow this with. q statement Of
our own objections to the new sys-
tenn proposed, viz: the issue by the
government Of all our currency.
What are the objections to the na.
tional banking system, 30 presented
and urged by our opponents? !? Let me
enumerate and answer them.
l. II is said that this system is
monopoly or special privilege. But
this is not true. National banking IL
perfectly free. Whoever has the de-
sire and the means may start na-
tional bank by complying with the
law. Do our opponents desire to have
system of banking under which
people without means can issue notes
to circulate as money? There are no
restrictions upon the organization of
national banks except such asare cal
culated to make the noteholders-the|
people--absolutely secure, and these
apply alike to all. This feature Of the
system affords means Of regulating
the volume of the currency as perfect
and safe as any we can have. If there
is demand for currency, more banks
will be started to supply 1t, and l
think we may trust in this matter, as
in all other purely business affairs,
the law of supply and demand. At
all events, the claim that the national
banking system is a monopoly which
places the control Of the currency in
the hands of few favored persons
or corporotions 10 absolutely ground
less.
2. Another objection to the system
is that it costs the government large
sum annually in the shape of interest
on the bonds used as the basis by the
banks. This objection is equally un-
founded. 1t is true the United States
pays interest on the bonds held as Sc
curity for the national bank circula-
ton, but It 10 net true that one far.
thing of this interest would be saw I'D
by the abolition of the banks. If we
should strike out of existence all the
national banks, the bonds would still
remain, and the government would
continue to pay interest upon them
unless prepared to repudiate. We
would save nothing by way of inter-
est on our bonds by abolishing the
banks, but on the other hand we
would lose large sum in the form
of taxes now paid by them. The tax
es paid by the banks to the state and
national governments will average
over $l6,O0O,0OO per annum. The
simple truth, therefore, is that by
abolishing this system we would gain
nothing in the saving of interest, and
would lose at least SIG, ,OOO, 600 per an
mum in taxes. do not say that our
banking system may not be improved.
Sooner or later, have no doubt, it
will be amended so as to use as the
basis of il four per cent. bond, but
to abolish it and substitute an indefi-
mite issue of greenbacks (and any is
sue left subject to the determination
of Congress) would be the extreme
of folly.
3. 1t is sometimes said that the ma
tional banking saystem tends to con-
centrate and strengthen tho money
power. l submit thats!the national
banking law is as free from this OBJ
lection as any banking system can
possibly be. Itis ss free from it - any
incorporation act can be madc. It
is as free from it as any law authoriz-
ing the foundation Of corporations to
engage in any legitimate and honest
business, whether it be trading, man
ufacturing or banking. The money
power would be just as potent, and
probably far moro potent If wholly
excluded from the privilege Of carry
ing on national banks, and obliged to
invest in other enterprises. 1t Is diff
ficult to see why the national banks
are any more dangerous on this ac-
count than any number of private
banks or other private corporations
repre- senting an equal amount of cap
itAl. This argument, IL it means any
thing, is aimed at the very existence
of capital, and can be used with equsl
force against railroads, steamship
companies, manufacturing corpora
tions, and private bankers and trad
ers
4. One further objection I have
heard to the national banking system.
1t is that it contemplates the perpet-
uation of the national debt. In an
swer to this I have to say that when
any Of the bonds now held by the
banks, 1t 10 the right Of the govern
ment to pay them, provided they are
due and payable. II by this mode
the banks shall ct sometime in the
future cease to exist, the country
must, when that time comes, take care
of the interests and the currency Of
the people, This can scarcely hap
pen during the next quarter of CEN
tury and 1t 10 therefore premature to
discuss 1t now. For myself, however
| have NO hesitation in saying that I
believe 1t would be for the best in
terests Of the government and the
people to keep outstanding . sufl-
cient quantity of four per cent, bonds