Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-08-22
AZ see Nominations and Az poia,ments
on Ftrst Page.
National Ii inks.

national banks. They were not brought
into the issues of the campaign by the
State Convention. Nevertheless. as the
greenbackers make them a prominent
subject for denunciation and vehementy
clamor for their abolition and the substltu-
ton oil greenbacks for national bank notes,
discussion of their merits can scarcely be
avoided.
Early 10 the war it was found that the
old system of State banks could not be
depended upon as safe and sufficient agen-
cies to supply the circulation and other
financial needs OF the nation in its great
struggle for lite. Every State had its own
system of banking; there were as many
kinds OF bills as there were States; there
was no central power anywhere to control
their issues or to which they were account
able in any degree. The bills OF New
England banks would not circulate in
New York. nor Western bills in the + ist.
With specie payment suspended every
where there was the greatest danger OF
unlimited imitation, all check having been
taken away when the obligation to redeem
their notes ia specie was removed. The
extended operations OF the war required
currency that would circul t. in all parts
of the country, and whose amount could
be controlled in some measure 10y the
government. g.
The greenbacks, issued directly by the
government, were the first thought and
resource adopted by Congress in the
emergency. But these did not meet all
the needs OF the government and the stu
alton. Had they been able to do this sue
cesstulIy, then would have been the time
to have made greenbacks the only circula-
ton of the country. 1t was found that
banks were needed. They were neces-
sary to aid the government in its financial
operations, also to regulate the amount OF
currency according to the demands OF
trade and business, furnishing commune
ties with what circulation was needed by
them, and doing the other usual business
of banks.
Limited States notes." says the Comp
troller of the Currency in his report OF
1866, Originated in the necessities of the
government. not in the necessities of trade
and commerce. Their amount was regu-
lated, not by the business necessities OF
the county. but by the necessities OF
great emergency, and was only limited by
reaching the maximum OF expenditure
during time Of war. The amount issued
was entirely arbitrary so far as the bust
ness interests OF the country were con-
cerned, and altogether in excess of the
demands of trade, as is evid Mt by the
high prices borne by every kind OF CON-
modify, and from the surplus of MONEY
subject to the control of spectators. This
currency cannot contract or expand from
natural causes. 1t was issued to save the
country from bankruptcy during a pro-
tracted struggle with armed rebellion.
and can only be contracted by legal en-
actment of Congress-"
To this true description of the utter lack
OF adaptibilty OF the greenback to the
wants of business, must be added as
most serious objection, that it puts at the
mercy of political parties the power to
issre notes to circulate as money-a power
having SO many possibilities OF corruption
and disaster to The country connected with
1t. that prudent statesmen will not risk it
In such hands. Even the agitation of the
currency question which has existed in
Congress since 1874, has been enough to
keep business at stand-slill if there was
no other cause, creating so much uncer-
tainty that enterprise has been checked
and capital locked up until a firm basis is
gained by the resumption of specie pay
ments.
The banks, on the other hand, are in
direct sympathy with trade and dependent
upon it tor their profits. They supply cir.
culation adequate to its wants. II cur
rency Is issued in excess of the demand, il
is Immediately returned for redemption,
1uires. They are subject to the laws of
trade and the greenbacks are not. Their
managers aud stockholders are large,
useful and public spirited class In the com.
munity. They rendered important aid tc
the government during The war, and have
always been efficient agencies in all fiuan.
cial concerns between the government
and the public.
The establishment Of the national banks
then grew out of the necessities of the
government. They were not the work OF
bankers, for the bankers opposed them.
The bankers were all connected with the
old State banks, and objected to having
the latter supplanted by the new system
The government had its greenb backs but il
needed banks also, and hence the national
banks were established, with the privilege
OF putting their notes in circulation.
II the privileges and profits of the ma
tional banks are too great there is ample