The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1878-10-05


money, and without that no bank of any
character that will inspire people with con-
fidence can be started anywhere.
Therefore banking is as free as manufac-
turing, farming or any other business that
requires capital, and the charge that 1t is a
monopoly is not true. Great portions of the
stock in many banks are held by persons of
small means. Banks have no power to COM
pei people to transact business with them
nor is there any restriction upon people who
desire to engage in banking to do so upon a
greenback basis, for they need no charter.
Nor is there any power to compel people
who have invested their money in govern
ment bondsto exchange them for greenbacks
and bank upon greenbacks alone. National
banks may be driven out of existence at the
termination of their charters, twenty years
after their organization. The first National
banks were formed in 1864, so none can be
compelled to expire until 1SS4-but the
stockholders are entitled to the bonds of the
banks after they have surrendered their cir
culation, and the government must pay in
terest thereon as it does upon the bonds held
by other persons or corporations.
The government has the power TO destroy
the National banking system after the eX-
piration of the charter, but cannot compel
the stockholders to take greenbacks for their
bonds, unless there shall first be general re-
pudiation by the government and the faith
and promise of the government be broken
with its creditors. Are the people who want
a stable government prepared to sanction a
wholesale reputation and destruction of all
values which this idea involves?
There are to-day $3.50 900 900 of green
backs and less than that OF National bank
notes. Now the proposition is that the gov
ernment shall issue that many more green
backs, and substitute them for the bonds
held by National banks and save interest
upon that amount of bonds. The first ques-
tion that would present itself to bankers is,
would greenback dollar, when the volume
Of greenbacks is 100000 900, be worth as
much as when the volume is but $3.50 900, :
900, before they would agree to make the
exchange and surrender their bonds. If they
would withdraw their bonds from banking,
how could the government exchange green
backs for bonds for such purpose? Ii the gov
ernment would not issue greenbacks without
receiving in return an equivalent of value
of course the people would be no nearer the
greenback than they are to-day. You meas
ure the value of the greenback by what il
will bring in the market in gold-the more
greenbacks are issued, the more difficult il
will be for the government to maintain them
at par, and as they fall below the gold stand.
ard, the less will be their purchasing power
to the laborer, mechanic, farmer or capita
list.
OF course everybody understands the OBJ,
ject of money. 1t is the known standard
among civilized nations by which the value
of a house, horse, plow, barrel of flour, book
hoy pE ms 10 iG mo
dollar is worth exactly what it will buy in
the market to the man who must live and
wants to do it honestly, and when the gov.
ernment prints piece of paper and stamp:
it of the value of dollar without obligatinl
itself to redeem that piece Of paper with some
known and established standard value of Q
dollar, that piece of paper will become worth.
less and turn to curse communities and moi
bless them. My greenback friends suggest
let the government print greenbacks and
pay them out to its creditors, and in tha
way money will become plenty and be il
circulation" But what is to give the green
back its value when issued without regarC
to redemption. History is full of this kline
of experiments and failures. The Island o
| Cuba to-day is cursed with paper currency
valuless because there is no provision o.
| power for its redemption, and it is Just sucl
money as is proposed TO be furnished ou
people, The Southern Confederacy haC
| paper money and plenty of it, and our fore
fathers had their Continental money, anC
| you know its value. $3O0,O00,OO0 of Cont
mental money was issued, but there was II,
| provision made for its redemption, and j
was never redeemed. 1t became worthless
and the holders Of it were compelled to los
it. Shall that be the fate of the greenback
Paper can only be kept in circulation will
advantage TO the people when it has a know
standard value in the market of the countr,
where it is used and when the people bclev
that the government will redeem it.
Another obieCffbn urged against the Ma
tional banking system is that the government
pays interest upon the bonds deposited fo
circulation, and also gives circulation to th
banks, As long as the bonds are not paid
of course the government is bound to pa,
interest on them without regard TO who tn
holders are, and does not lose ANYTHING be
cause banks hold the bonds. The bonds, le
it be distinctly understood, are deposited 70
the benefit of the note holder and the GOV
ernment is merely the stakeholder. Tn
National bank notes do not cost the govern
ment anything, because the banks pay 70
the printing of them, and the notes reall
| NAN NV lAlollNl Alllll olBiltu anu tlItuldit
by the banks; besides the government
not bound to redeem National bank note:
but throws that responsibility upon tn
banks, In point of fact the general govern
ment no more furnishes banks with thei
circulation than the States did under the oil,
system. 1t provides the machinery to secur
it, and in furnishing the unsigned note
TO banks, il keeps an absolute check upol
banks TO prevent an over-issue. 1t control
the system for the good of the people hold
the security-prevents an over-issue an,
watches the management Of each bank, am
all this at the expense Of the banks. Bank
pay the government a large bonus for tn
privileges which they enjoy-although, a
already stated it is not a monopOly-in tn
shape of tax on circulation and deposit
aud all this is clear profit TO the government
besides the States have the power to Ia.
shares Of bank stock to their full marke
value, so that in fact, there is no species O
kind Of property which is so heavily take
as this kind. The taxation, National an
State, last year upon S3l6,775,lll of ercula
tion was Sl6,777 ,Sl9, and if the bonds de
posted for circulation We're per cts th
interests amounted to l5,3SS, ,755.55, show
ing that banks received less interest tina
they paid taxes. Under this high rate {
taxation millions Of dollars of money inyes
ed in National banks are being surrendere
| all over the cOuntry In New York cit