The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-07-24
GREENBACKS VS.. NATIONAL BANK


BILLS.
That national bank notes shall be retired,
and in lieu thereof there shall he issued by the
government an equal amount of treasury
cratic Platform.
The democratic party of Indiana is clearly
and unequivocally committed to the retire
stltution therefor of treasury notes.
greenbacks with full legal tender
quality" This antagonism to the
national bank bills grows out
of the fact that a better and a cheaper cur
rency can be provided. This fact has been
demonstrated every day since greenbacks
and national bank bills circulated side by
side In all the marts of trade in the country.
As between the greenback and the national
bank bill the latter has always been below
par, though redeemable in the former and
being the most costly currency of the two.
The annual tax upon the people to float the
national bank bills since 1864, when the first
national bank was established, has averaged
say $15,O00,000 or $1,000 600 up to
the present time, while had treasury notes
greenbacks, been issued instead of national
bank bills the entire sum could have been
saved. But the democracy propose an inn
provement upon the greenback as now in
circulation. 1t is to be full legal tender
iJr all debts, public and private; this done,
and the treasury note to the extent demand
ed by the sound business interests of the
country, will be equal to gold. 1t Is held Dy
some who are really IN favor of the financial
plank in the democratic platform at the head
of this article that the government has no
authority to issue greenbacks or govern
ment notes. If this be true, "wnat authority"
asks the Boston Globe, 'has the government
TO authorize others to do what it can not
itself do? But government has the right,
and has always exercised that right since
the days of continental money. This right
the republican party deny, and say We
must have banks to issue paper money.
Here was the dividing line between old
federalism and ancient democracy, and is
the dividing line now. The republican
party is made up mostly of bankers, cap
'italists, manufacturers, rich merchants and
| spectators. Opposed 10 this class are the
honest and industrious masses. The pres
'ent banking system was brought into being
by the republican party. The system per-
mits any number of banks to go into opera
ton if they can raise the money to do so.
! The law requires that those who bank shall
deposit government bonds with the secre-
'tary of the treasury to any amount-say
/ 81 600, 0O0-for which the government
I allows the bank so depositing to issue its
! promises to pay to the amount of $500, 900.
/ 'On the bonds thus deposited with the
secretary of the treasury the government
/ pays to the banks interest the same as it
/ does to all other bondholders. Thus the
I bank is sure of that income to start with.
/ The bank then loans out its $500, 600 to A,
| b and G, on which it receives all the way
from six to twenty per cent interest, ac-
I 'cording to the Strengthened circumstances of
/ those who want and must have money.
/ Thus it will be seen that the banks make
their twenty per cent. anyway on their CAPT
tai invested. But, say the banks, we are
obliged to keep reserve in our vaults OF
greenbacks or gold to the amount of six per
cent. of our capital, and then we have to
/ pay a national tax ana local taxes. True, but
docs not everybody have to pay national
and local taxes as well as do the banks, and
does not the money made by dis
counts on deposits OF individuals more than
I 'pay all of these taxes, national and state,
besides paying all the expenses of rents and
of bank officials? Certainly. This system is
faulty, and bears heavily upon the people
and upon the industry of the country.
why should capital have this advantage
over industry? We do net use the terms
capital and labor to create hate between
labor and capital, for if there is any class of
men we despise 1T is the agitator and the
'demagogue. We use the words to explain
'our meaning, and ask the question if the
people have not good grounds for com.
plant. We claim that legitimate banking
lis bank of discount and deposit and is for
the purpose OF facilitating the collection of
debts and the regulating of exchanges be-
tween one section Of the country and the
other But the republicans say they should
also be banks of issue. The democrats say
no. Why should not the government say
'to these banks, return 10 us your bank
circulation and take up your bonds?
Then If you want money to bank with
we, the government, viii issue to
you the same amount of greenbacks
you had out in your own notes, and we
will take these same bonds in payment for
the greenbacks. These bonds the govern
'raent would then own, and could cancel
them, which would reduce the nstionsl