Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-08-29

bonds and notes are issued, and which limit ex.
pressv the amount of United States notes to
s4OOOOO,OO0. This would be violation of the
public faith, and would impair 81 once the public
credit, and do inconcelvaby more harm than II
could give profit TO the Government.
This scheme of his encounters directly the de
cision Of the Supreme Court Of the United States
aud would, doubt, be held unconstitutional be-
Uuited States notes IN u time of profound peace,
where no such exgency As Is contemplated by the
Constitution or decision of the Supreme Court ex-
lists to justify snch issue. This policy would
at once drive out Of existence the whole system of
national banks, which have been the means alone
nv which state banks have been prevented from
issuing circulating notes. The only franchise the
national banks receive from the Government which
induces them to maintain their corporate existence
is the right under limits fixed by law to issue cir
culaiing notes. Take this from them and they
would at once cease, without exception, to be ma
llonal banks, and would be organized again, as
before the war, into State banks, with such powers
As any state might give them. The inevitable Ell
feet OF this policy would he to revive again the
system o! state banks without any common or
ganZatlon. without any security for then notes.
upon such terms AS any State might prescribe,
and thus ali the evils OF State bank money. which
the people experienced before the war, will recur
again. Nearly generation has passed since the
inconYrnons system OF paper money which exist
Ell before the war, was swept away by the Nation
al Banking Act. 1t il safe to say that the injury
uOuc 10 tle people Ol the L nlteu states bN the
failure Of these banks, by the uncertain value of
then paper money, by It's limited local circulation
and 10y successful cUuuterlelllng, was annually
greater than the interest OF the entire national
bank circulation of the United States
Senator Thurman has stated some objections to
the national banks. to which | will briefly reply
lie says In the first place a natlonai bank cur
reucy means the Ihdchnite perpetuaiion OF the
pubic debt" As a national bank exists only for
twenty years from tue date of It's organization,
md hah IA. At h. ..T
abolished, this does not seem very potent reason.
| am sorry to say that the prospect of paying our
debt so soon rs the life OF "a national bank is not
very hstteriDg nor they likely to deter its pay
ment. As for the influence of these institutions,
80 much feared by Mr.. Thurman, il is not Oh
ject of alarm, for ii cannot be combined, OF if that
were attempted, it could be overthrow by u sin
gle wave of popular opinion.
Ills second objection to the national banking
system is "that ii tends to combine. concentrate
and intensity the money power" This sgsin is
an Elusive fear. There is no power in this coun-
try that is weak in political management as
what is called the MONEY power. 1t never has
been nor can 1t be couceutrated 50 to aft ct po-
htica questions. The tendency of our institutions
makes 1t easy to combine at once political opinion
ADD political power against it.
Parry organization is infinitely more powerful
for continuation than the money power. My own
experience in office enables me to saw that If YOU
convene ten bank presidents you will have ten
different opinions, while party organization brings
even Judge Thurman and General Ewing on the
same platform.
Nor is it true. as stated by Judge Thurman,
that the legislation of Congress favored the mon
ey interest during the period of the sway of the
republican parry, for this legislation was guided
by the love of mai nal unity and national honor,
and national existence. 1t tended to make our
nation strong at home and respected abroad, and
IN no single question has it favored what is called
the money interest.
The vital issue between the two great tie.
has been, on the part of the republicans, desire
to MAINTAIN the integrity of the Uai0n and abolish
slavery to secure equal political and civil rights
to all men, to maintain the national honor, and to
advance the industrial interests of the country;
while the theory and policy of the democratic
party has been to beittle the National Govern
me IT. to subordinate it to the power of the States,
TO preserve slavery to leave Industry without pro.
lection or support. and to sectlonalize into petty
communities the elements OF a great and powerful
nation; and these are now and will be 10 the
future the inevitable tendencies of these two par
ties.
The third objection stated by him to the national
bank circulation, is that it is a special privilege
and takes many millions out of the pockets OF the
people.
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 ASSOC
citation OF i've persons that may be organized 10
any part of the United States To call II 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 il is composed of
number of persons not less than five, than when
IT Is controlled by single person, and corporate
authority is essential to preserve its existence in
case OF the death OF partner. But for this, the
special privilege might be granted to every citize
who could give the requisite security for the re-
demptlon OF the notes issued by him.
AS to putting money into the pockets of the
shareholders, this again is absurd. The govern
ment pays nothing and cont ibutes nothing TO n
bank, The sharehoiders buy the bonds of the
government and deposit them with the govern
nent for the security of the note holders. If the
oai retIres, the bonds belong to the shareholders
and not to the government. Nor the govern
ment 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 the best
security. But for this mortgage security oria
personal security might be taken, but as the gov
eminent security is the highest and best, this is
demanded, not for the benefit of the government,
but for the note holder for whom the governme Mt
IS mere trustee. When the government paws to
the bank interest on bonds held by it as a security
1t only pays what is justly due and what it would
have to pay at all events to anybody holding the
bonds until they are redeemed. How it take.
many millions annually out of the pockets of the
peopei is hard to conceive. No one borrows the
notes OF the bank unless il is for his interest to do
so. The ability of the bank to lend is a conven-
renee TO the borrower well as the lender. The
government cannot engage in this bushes of loan
ing money. Ii would be sorry time for the pso-
pie other than political strikers, if the government
loaned money. This is purely private, personal
employment th at should be as free as blacksmith
ing The right to issue notes is free to all on the
same terms, and, when guarded as to prevent
loss to the note holder, is the best possible means
OF increasing the amount of the circulating notes.
lie says that the Government ought TO issue
these notes The answer is, that if the Govern
ment issues them it must undertake to maintain
lhem AT par with coin, or else the people must
sun + from the evils of an irredeemable currency
The cost of this redemption by the banks Is al
ready so great, before specie payments have actu-
ally come, that this so called special privilege is
getting to be special burden, and more banks are
surrendeting their circulation than are taking cir
culation. 1t is special privilege that more seek
to avoid than to acquire. Judge Thurman com.
putes how much the United States would save if it
issued S322 900 900 more of greenbacks and re-
deemed that amount of bonds. | do not stop 10
examine this computation, but only wonder why
he stopped at 1922 600, 600. Why not save the
entire interest of the public debt by issuing green
backs for the whole If Why NH; =,