The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1879-09-16
What the National Banks Are.
Secretary shernAn's steubenyiIle speech.

0t1ltAhiy CufNtunu oN~ttu~
Another question upon which an is
sue is made with the Republican party
is the substitution Of Rreenbacks for
national bank-notes. The national
banks we're organized in the midst Of
the war, when the issues OF fifteen hum
dred State banks Of high and low de-
gree were flooding the country with the
worst form of irredeemable money.
They were issued under the laws OF the
different States and territories, some OF
them without any security whatever To
tho note.holder. They we've all OF To-
cal circulation, and bat few Of them
were willingly taken outside of the
State in which they were issued. They
were counterfeited and uttered SO that
bank-note detector as large as the
New Testament was requisite to form
al opinion as 10 whether the bill was
genuine or spurious. IL was q curren-
cy so worthless and-dangerous that the
wonder is how the people submitted to
its use so long and patiently. After a
long struggle the national banks super
seeded all these, and what has been the
result. Two thousand banks are scat
tered throughout the United States. AS
convenient agencies for commercial ex-
changes and for the loan and transfer
of money. They authorized TO issue
circulating notes upon conditions that
make them all absolutely secnre. Over
three hundred and twenty millions of
dollars Of such notes are in active cir
culation. every dollar of which is secur-
ed by "A greater amount OF United
= 4 h
nrer Of the United States. Not dol
lar has bean lost on these notes by auy
one. They are perfectly guarded
against counterfeiiinQ. They are good
everywhere in the United States. -
These banks have loaned tn the people,
mostly for commercial and manufac-
turing purposes, 1892, 1876, ,S240 90. They
are chartered for twenty years, and
none expire until 1888.
And now il is proposed to abolish
these banks; to compel the collection
of all their loans; TO withdraw all their
circulating notes, with the certainty
that their overthrow will be followed
with the brood of State banks, govern
ed by local legislation. Is this wise?
Is il excusable? What reason is given
lOI n measure 80 w Allt JUN
mess interests of our country? The
only reason / know of. that is even
plausible, is. that the Government of
the United States might issue its notes
or greenbacks in the place Of bank
notes, thus and save interest. Sup
pose this were done, and the United
States notes issued, the utmost saving
is Sl2, 500, 900. at 4 per cent. But If
these notes are issued they must be re-
deemed, unless you wish again TO en-
bark upon Wild scheme of irredeema-
ble paper money. III you maintain o
coin reserve of even % per cent. the
coin must be purchased and remain in
IN your vaults. Here is loss OF one
fourth OF your imaginary saving, reduc-
ing il to 81. 600, 900. But what do you
lose by wiping out the banks? The
United States, and the States, now COL
lect taxes from the banks, amounting,
in the average. to Sl6, ,90S, Isl year
They enjoy no privilege from you ex-
cept the power TO issue circulating
notes, and for this you make them pay
more than per cent. OF their cIrcula'
tion. Do you not see by this operation
you lose money? You lose near seven
teen millions revenue TO save possibly
nine millions Of interest. You kill the
goose that laws the golden egg. But il
has been said you can tax the banks
anyway. That is idle. Not one in ten
would continue thsir corporate exist.
ence. They would either go out ol
business or become privata banks oI
bankers, and then their United States
bonds, now in the basis Of banking
capital, and as such taxable, would
then bc held free from oil taxes by the
State or National authority. The fran
chise the national banks enjoy is as
free as air. Any OF You who have
money can organize a bank There Is
no monopoly about IL. L cannot now
fellow-citizens, DISCUSS this matter fur.
ther; but appeal to yonr sober Judge.
meut whether 1t is not better for all oi
as TO continue this admirable system
Of banking, the best that ever existed,
and from time 70 time adopt such
changes as experience may prove nee
esssry for the public interests, rather
than blindly yield 70 demsgogic spirit
that wouid destroy all property and
open wide the door of repudiation END
communism.