Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1879-09-04
POLITICAL QUESTIONS.
The Currency Question...The Dangers
of Imitation,
Advantages Of the National Bank Cur
rency Over Other Paper Money.
Extracts From Carl SchurZs Speech at Gin.
cinnati

Carl Schurz addressed large audi
ence in Cincinnati on the evening of the
10th inst, on the national finances, cur
rency, state rights and the ballot. After
speaking of the success and advantage.
of resumption, he said:
Suppose you Democrats prevail, not only
in this state, but on the national field, how
would your success affect the business
movements of the country? At present
business feels under its feet again the firm
ground of a reasonable stability of curren,
values. Safe business calculations can be
made. Confidence is reviving; capital and
enterprise venture forth more freely. Now
by substituting greenbacks for national
bank notes the currency is made irredeem'
able again, and congress is to determine its
volume, and, as Gen. Ewing says, to raise OF
lower values. Does not every sane man sec
that from that very moment the business
community will stand still, all its energies
paralyzed by the uncertainty as to what
congress, or its motive power, the Demo.
cratic caucus will 10 next? For, be it re.
membered, however august body that may
be, 1t cannot be said to have inspired the
country with superlative confidence in its
wisdom.
Superauous fears! says Gen. Ewing. We
shall enjoy the confidence of the business
community, for we are not going to increase
the volume of the currency, and thus raise
values and set business kiting again! In.
deed! can he really imagine that such pro.
ceedings can possibly be received by the
business community with anything but the
deepest distrust? II so, he must be unmind-
full Of several important circumstances. In
the hrst place thing SO unprecedented, so
incomprehensible to the common.sense of
mankind, as wholly unnecessary, wanton
suspension of specie payments, Immediately
after successful resumption, in time Of
peace, of reviving business, and growing
prosperity, with treasury full of coin, will
impress the whole civilized world with the
belief that the financial affairs of this
country must be governed by gang of
sharpers or a set of lunatics. Such a return
to irredeemable paper money and subse.
quent inaation. might indeed raise the
hopes of some foolish people, who
have learned nothing and forgot.
ten nothing. But the present generation of
American business men are not of that
kind. They have gone through the process
OF raising values by the expansion OF ire.
deematle paper money already once. They
prosperity of such a ballooning period at
its true value, and they painfully remember
the crash following upon it which over.
whelmed the m with disaster. That hard
earned experience will be constantly before
their eyes. Such birds are not caug ht with
such chat twice. And, let me add, their
distrust will be all the greater just because
the tinanciers of the Ewing school predict
a good result They will remember that as
prophets these gentlemen were sorry fail.
ure; that whenever they predicted storm
you could safely arrange for u picnic, and
when sunshine was on their bills it was
time to take out your water-proofs.
Now, when such men sit together in eau
Gus to do what even the wisest and most ex.
Perienced fnanciers can not do with &C.
curacy, namely, to determine how much
currency the country is to have for it's bust
ness; and when they manipulate the volume
OF the currency for the very purpose of
lowering or raising all current values, will
not then business men feel very much like
the Inhabitants of q house who know that
there is lot of boys in the cellar playing
with lucifer matches around an open barrel
OF gunpowder? Unquestionab,y they will.
While the financial adventures and gamb.
lers l0ay venture forth, the capitalists will
hasten to withdraw his funds from the
reach OF mischief, and the prudent business
man will restrain his spirit of enterprise,
waiting for better times, when sensible and
safe men are again at the head of affairs.
This is certainly Dot a condition of things in
which business can thrive and prosper but
so it would inevitably be.
THE NATIONAL BANKS.
Now, while the Democratic leader de.
clares that the power "to expand or con.
tract the currency, to raise and lower values,
to give prosperity or intict Distress" should
be exercised by the government, he insists
a hot p,ok,o ~
not be "commltted to the hands OF individ-
uals or corporations, least of all to corpora
tons (meaning the national banks) repre-
senting the holders of public and private
indebtedness, qchOSe aDeakh IS increased bu
cvery full Of prices ind diminished dy eve,y
r,se." For, as he says, if the national banks,
"acting rs they always do, in the interest of
holders OF money securities, are permitted
to control the volume of the currency at
their pleasure, there is no limit to the in.
jury II y may intiict upon the people, or to
the wealth they may accumulate by hidden
and concerted measures of expansion and
contraction of values.
Here is the wonderful discovery made by
the Democratic leader, that it is in the in.
terests of the national banks to ruin their
customers by contracting the currency.
There has been so much demagogy aud
loose talk, so many appeals to popular
prejudice and ignorance in the warfare
against the national banks, that is delight
iul to have at least one Of the great lights of
the lnhat'on Democracy expose by his own
statement the whole absurdity Of their ar.
guments. Let US examine it. What are
the national banks? They are joint-stock
corporations formed under the law for the
purpose OF carrying Oh, under the super.
vision OF the government, the business OF
banking, which consists in receiving and
holding deposits, making loans to business
men, d'scouIting notes and bills, selling
exchanges, etc. The national banks are also
upon The deposit of government
bonds III the treasury, to circulate certain
amount If bank currency, also
under the supervision of the government.
That is all.
1t is The custom Of certain class of poll.
ticians to cenounce the national banks as q
the monopoly of the money power. Let us
zee how much of a monopoly there in them.
Do they consist Of a few great moneYed in.
st,tutions, welding a large concentrated
power? No, there are about 2, 100 of them.
separate establishments, scattered all over
he country. Are they in the control of a
lew rich men? No, the stockholders who
own them number about 10000 They live
in all part. of the country, belong to all the
''eA CIV eAasees VI eoclety, ana TO all pOlltl. |
,al parties. Over one half of the 2lO, 900 !
hold shart to the amount of
81 900 or less each. They are evidently not
noneyed aristocrats, but people who have
invested their little savings in bank stock, |
IAN any cae matt onai bank control so large
quantity of the currency as to produce by
Is withdrawal or expansion a serious effect |
lPon the money market? No, the law, dis.
ag ,inst the large institutions,
provides that no one bank, organized since
he act of July IL, 1870, is entitled to a cir
'ulation of more than 100000. Is national
,anking privilege conferred only upon 8
United number of persons or institutions
10, since 1875
RATIONAL BANKING is PERFECTLY FREE,
Any number of persons not less than five,
many part of the country, of any claso OF
ociety or vocation in life, o. any pol ical
arty, who together can command a capital
I $50, 600, may under the law organize a
ational bank and circulate notes equal in
mount to 80 per cent. of the bonds they
eposit. Thus Gen. Ewing and Gen. Sam
ary and any number of their Democratic
lends can become national bankers to.
lorrow if they together raise q capital of i
$4,000 for that purpose. The national ,
an king system, far from being monopoly, [
, therefore, essentially popular SYSTEM =,