Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-07-11

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! ury notes for gold. paying the difference In
value, and with the gold we purchase bonds
aud then destroy them. This makes less
bonds in the country. but It does not make
one dollar more of gold or taxable property
than we had before, unless the gold Is pur-
chased abroad, and Ia that case We would
send abroad taxable property eqnal in
value with the gold, In order to purchase
IT,. So that we would have more gold in
the country to pay taxes but would have
that much less property which we gave for
the gold to tax.
II the banks were let alone we would
have the bank stock aud the bank notes to
tax, and still have as much gold and other
taxable property In the country as We
would have II the banks were broken down
and their bonds redeemed and destroyed.
So that by breaking down the banks we
destroy the banks and the bank notes. which
are now taxable, aud do not put one dollar
OF taxable property In their place. Ii so.
will some gentleman please name the Kind
of property? | admit that We put out
Treasury notes as property in the place of
the bank notes. but the Treasury notes are
not taxable. while the bank notes are, and
the Treasury notes will not answer any
purpose as money that the bank notes
would not have answered. But what Kind
OF taxable property do We substitute for
the bank stock? | answer none, and
defy any gentleman on this floor to show
to the contrary. 1t must be remembered
that this bank-stock was not represented
by any Kind OF taxable property in the
country prior to the organization of the
national banks, and hence it must follow
that when We destroy Ii we cannot leave
anything that Is taxable to represent il. 1t
was created as taxable property simply by
subscribing It's amount as stock on the
books OF the banks, and 1t was paid, not
with taxable property, but with bonds.
which are not taxable, and whenever We
destroy the banks we destroy the stock and
leave nothing ia the country in It's place
except the bonds, and they. like the Treas
ury notes, are not taxable, and no addition
al taxable property can be created out of
them by paying them of, for the reason
that when the Government pays them It
destroys them, aud IN so doing it simply
destroys Indebtedness, nothing more. Tor
the proceeds OF these bonds do not add one
dollar Of wealth In the shape of taxable
property to the country that IL did not have
before. The Government in collecting the
taxes to pay of these bonds simply takes
the money from the people and pays the
same money to the bondhoIders; its only
operation is an exchange of the same prop
erty, and not creation OF any new prop
erty.
Another objection urged against nation.
al banks is this that they are "A burden
upon the people. because the banks draw
an interest on the bonds which they use
for banking, and In addition to that the
Government furnishes them with the bank
notes which they loan TO the people. II i
claimed that this is 4 roundabout and
costly way for the people 10 get money
from the Government. When il Is exam
ined into carefully II will be found that this
roundabout process as it is called, is pre-
cisey what the people want, Tor the follow
ing reasons:
Fast. Il gives to the money all the quail
itics Of national money. and because 1t
comes 10 the people through the banks II
enables The States to tax il whereas Ii II
came directly from the Government to the
people, IA The shape OF grrehoac>s or lreas
ury notes, then the States could rot tax it
Ito DIP 80 would be n violation OF the Con-
~tItuttnh. Money that cannot ha tav"h rs
tar 2taies So y A. y helP & &n4y me 80 49,,
have 10 b" paid by the people, Is not the
kind OF money the people want.
Second. /, makes the money safer than
any paper money the people can have
which i, issued by or through the Covert
mcnt. The banks are q check. a have
shown, upon the Treasury Department!
that iesdes the money, and will prevent an
oyerlssur OF it and save The people and the
Government from loss which mi ght easily
occur In the issue OF .reenbackS.
Third. By issuing the money through
the banks the Government us relieved of |
al. expense OF its issue, and compel. the |
banks 10 pay il; and. In addition TO
the cost OF issuing the money, the Govern |
ment makes the banks pay annually AT
least SIG, 900 go IN taxes which the people I
get the benefit OF, which makes the bank /
Ing system source OF profit to the people |
Instead OF an expense. as have shown.
Fourth. By requiring the banks to de- |
post bonds as u security for their ,note> |
makes the bank notes good; so that If the |
bank should break. still the people who !
hold the bank notes would not lose one |
cent a. these bonds are security for them. |
And because the Government pays to the |
banks the Interest ou these bonds does not !
make the banks cost the Government one /
cent more than it would have 10 pay il the |
banks had not been establi she'd, Tor the |
Government has To pay the interest on the /
bonds whether used tor banking or not, !
and the mere fact of banking on them dne> 1
not make the Government pay any ~ D.
interest on them than If they were hot SO
used.