The patron of husbandry. (Columbus, Miss.) 1875-1883, 1879-08-23
NATIONAL BANKS.

| NA11ONAL BANKS.
Rev. John w. Wright contributes the
following article to the Central Christian
AdUocatc. -ss 4s..s l- l
Permit me to venture reply to Dir.
Georges ingenious article on National
banks, in the Central of Tuly 22.
| wish to say that the ground for oppo-
sition is found Tst In the cost to the Gov
eminent; I'd. The tendency towards mo-
nopoly, in permitting :, 200 or more pri-
waite corporations to control $3.50, ooo, 900
of the circulating medium of the country,
is apparent. In one week in New York
City, the National banks retired So, 5oo,-
900 of their notes. "
I. 'sThe banks afford security to the de-
positors since only six millions were lost
by depositors in fifteen years" - The rea-
son is this: Previous to going under, the
National bank surrenders its circulation,
pays out for its notes, gets its bonds back,
and closes up as a bank of deposit That's
the way they do it up here The deposi-
tor is no more secure by National bank
than by any other bank of deposit -.
2. mo bill holder has ever lost dol
lar 'EThe bill holders have a feeling of
absolute safety g. men prefer the legal
tenders to gold" The greenback has
never caused any one to lose dollar either,
and it is a legal tender for debt, while the
National bank paper is not. The green
back will sop the sheriff, the bank note
will not. The bank note would be worth
nothing unless the Government made it
SO. 1t loans its credit to the National
bank, and pays s or 8 per cent for the
privilege! Hence, we say, if the Govern
/ ment can make the bank note good, it can
make its own greenbacks good, and save
the interest it pays the banks on the bonds
| deposited at Washington to secure the
bank notes. % $685.
| 3. 'The National bank system gives us
currency of equal and unquestionable
value in every part of the country" So
does the greenback, doctor. No man has
ever been ''scalped" on his greenback
currency. Retire the bank notes and save
the interest 4-s
4. at is practically a free SYSTEM" No
odds how free, brother, it will always be
a dangerous monopoly, and a continual
menace to the rights of the people in mat
tiers of legislation on financial questions.
/ The greenback will give to the country ga
/ circulation of uniform value and unques-
tionable solvency"s "A greenback will be
good as long as the Government en-
dures, and costs only the labor of printing
The doctor then goes on to make an ar
/ gument against volume of greenbacks
sufficient to do the business of the country:
! l. 1T would utterly destroy the Nation
al banks with all the advantages derived
from them" The only thing they give us
is paper currency, and I have shown
that this is not as good as the greenback,
since it is not alegali tender for debt. It
will not stop the sheriff, and costs five or
six per cent. .....-.a. s
2. at assumes that Congress has con-
stitutional authority to issue a legal tender
paper money in time of peace" If it has
power to issue such paper-in time of war,
it has such power in time of peace, since
the Constitution says nothing about peace
or war in this connection. We issue them
right along now. held a greenback
/ dollar of 1873 the other day, printed and
issued thirteen years after the war closed.
The Supreme Court has passed favorably
on the legal tender>act. Supreme Courts
sometimes change, but / am at a loss to
know how the good doctor foreshadows
| the decision of that august body on SUBJ
/ ject not lately before it.
2. at would lack elasticity would lose
its contractive and expansive power"
meaning the volume of currency. The
"contractive and expansive power has
been the cause of most of our financial
woes of the past few years We want to
place the ''contractive and expansive"
power beyond the reach of private corpo-
rations, who can call in and burn their
/ notes at pleasure when it is to their advan-
tage to de so. He then goes on to argue
that the Government is not wise enough
to manage this matter, but a dozen citi-
zens in each community are wise enough.
The intelligent, reading masses are to hand
over the whole matter of issuing the pa
] per money of the country to few hun
dred bankers. He says the greenback
/ plan would ruin the country. Then, doc
tor, we are half ruined, for half of our
i paper volume is greenbacks.e The Gov
/ eminent will not do the. banking. Banks
of deposit are in every city, and would
continue under the greenback plan.
/ 5.aseThe taxes paid by the National
d banks would be lost to the Gov
eminent" o, yes! the taxes. They
run banks of issue just for the dear
privilege of paying taxes! Let US see: If