The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-12-24

Ine Two fOllowiuB Ihir articles
on the National Bank system, will be
read with interest and profit by those
who desire to understand the system so
long discussed and often misrepreseDt-
ed. The first article is from the st.
Paul Pioneer Press, one of the ablest
papers in the west. The second is
from Hon. Geo. Willard. one of the
Greenback leaders of the party in
Michigan during the campaign last
fall.
GOVERNMENT AND BANK NOTES.
Although the question Of the useful
ness aud permanence Of the national
banking system has not yet been drag
ged into politics. the time when il will
become political issue is not far dis
tant. The sincere enemies OF the sys-
TEN, and those who see that political
capital is to be made by an attack upon
IL, are preparing to employ the same
tactics against the banks which failed
TO absolutely defeat the resumption Of
specie payment, but which succeeded
in weakening aud threatening that re-
sumption by entangling ID with the is
sue OF new and degraded coinage.
The movement against the banks be-
gius, like that against resumption or
like that for silver remonetization, hy
an appeal 10 ignorant popular preju-
dice and an endeavor to arouse blind
popular passions; by stirring up the
old antagonism towards accumulated
capital aud holding up the national
banks as its embodiment and represen-
tative. In this way. il is proposed to
obscure the considerations OF sound
public policy aud economic truth in-
volved in dealing with the banks. in
mist of popular prejudice upon which
| political schemers propose TO build
party success. This movement is so
rapidly advancing that the time left in
which the question may be considered
in GOODNESS and without partisanship is
short. The present session OF Con-
gress will hardly pass without the in
auguration of an attack upon the ma
tional banking system, which is design
/ ed To rally the western Democracy into
a solid mass, and foreshadow the Dem
ocratic national platform in 1880.
/ There IL the Buekner bill TO substitute
! greenbacks for national bank notes,
/ which has come over from the last ses-
sion. There is the bill for tue purpose
which Thurman is going 10 introduce
I by way of shying his castor into the
Presidential ring And probably one
ont Of three western Democrats has a
similar bill in his pocket. Probably
nobody proposes 10 bring the question
20 an issue IN Congress this winter; but
il will be carried far enough TO make il
campaign issue next fall. Probably
when il becomes political issue, those
who favor the maintenance Of the na-
tional banking system, who are more
numerous in the Republican than in
the Democratic party. will be driven to
champion II in the same unqualified
spirit Of partnership in which their OPP
ponents attack it. In the interval,
while the question remains tolerably
free from political ENHANCEMENT, there
Is room for those who, without any
prejudice or interest IN favor Of the
banks, wish that the country should
possess the best attainable financial
system, 10 do something better by i'm
pressing upon the public those econo-
mic arguments in favor Of currency
issued by banks, which will not be lis.
tened TO IN the heat Of political dis
cussion. This opportunity is not effec-
lively improved by Secretary Sherman
in his recent report. He claims for
the national banks certain advantage
ons features over other institutions for
issne Of circulating notes which should
be devised; but dismisses the question
a. between national bank notes and le-
gal tenders with the brieiest reference
and the intimation that il an open
question, which there will be- time
enough 10 solve before 1893, when the
earliest bank charter expires. He
leaves il for those with less political
timidity than himself 10 show that for
those who are familiar with the lessons
OF history, and who are Intelligent
enough 10 read them Alright, the ques-
ton between government and private
issues is no longer an open one. Every
civilized nation has learned at some
time in its history the danger of going
into the banking business for itself,
from the decline aud huctuation Of it's
notes and the consequent loss and bank
ruptcy they entailed upon its people.
Each one has been misled by the spe-
cious argument of the taxation saved by
making its currency n non.interest
bearing forced lean; only 10 learn that
such gain. like every unjust advantage,
was compensated by heavy loss; by the
evil OF a currency fixed by the whim OF
the government instead of the demands
OF business, representing no value and
responding 70 no commercial need,
tluctuating In amount and exchange
value with every breeze Of politics,
raising the business OF the country 10
the dizzy heights Of speculation, only
10 fail at the critical moment aud dash
IL 10 the depths Of bankruptcy. This
process has followed too often upon a
government issue OF circulating me
dium TO be ascribed 10 any local or
temporary circumstances, or TO any
thing else than the inherent evil and
danger Of such an issue. The civilized
and relegated the function OF issuing
notes 10 private business enterprise,
reducing the Office OF the government
In the matter 10 the regulation Of the
issue for the protection OF the note
holder. Among enlightened nations
no government issues notes except un-
der the pressure Of active necessity;
aud once issued, every nerve is strain.
ed to withdraw aud remove them. Up
10 this time, the United States has
protited by the worlds lessons. II is
sues legal tender notes only in an hour
of national crisis, and il has taken all
steps for their speedy redemption after
the crisis was past. II has furnished q
circulation 10 replace them, issued, not
by q single bank. as in England aud
/ France, but by institutions scattered
over the country, representing local in.
terests aud responding 90 local needs.
There Is no monopoly in this issue, IL
being open to any five persons possess
ing the necessary cagital. The inter.
est of the note holder IL absolutely
protected. and the bank pays a liberal
tax for the privilege OF its circulation.
| Thus the United States has adopted a
method OF supplying circulation
which the experience OF the world has
/ demonstrated TO be safest. with the
spirit Of our institutions. The system
may be further modified in response 30
intelligent criticism, but 10 abandon il
for the demonstrated evil Of a govern
ment issue would be an act OF folly
worthy Of and likely 10 be followed by
graver financial troubles than those we
have just escaped. II was Secretary
Sherman's dutv "a n etafeeuan and