The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-08-21

How in the world did it to pass that the
$500 697 of national bank currency. increase
of over seven millions since last January,
the light of day il the bankers would make money
by keeping the currency. and thereby prices low
as possbies what roTas those national
notes is not the only nor the prin.
cpal business of those banks: their nam and
regular business consisted. as l have stated. in
taking and holding money on deposit; in using
such deposits, together with their capital. in
making loans to business men, in buying and selling
exchange and SO on. The more extensive and safe
this kind of business is the greater will be the pros
nerity of the banks and this business will be the
more extensive and safe the more active and pros
porous the business OF the community is with which
the banks deal.
Never in the history of this country. have we had
a banking system which. in every respect deserved
nifty as the national banks deserve and enjoy
it, Until the LIST OF July last year all the
losses suffered by all the creditors Of all
the national banks Ill the country amounted to only
&c. .423 and these losses constantly reduced
by the dividends paid in the winding up process.
The one failure of the City of Glasgow Bank. in
Scotland last year. inflicted upon its creditors loss
OF 500. 900. loss four times great the ag-
gregate suffered from all national banks
during the sixteen years of the existence of
the system. In this country the losses
ings banks in the year 1878 alone larger than
those which were caused by national bank failures
since 1862 The losses from five State banks in the
city Of Chicago during two preceding 1878
amounted to moro than one-halt of all the losses
from all the national banks since their organization
from Ma1no TO CatlIOrillu prOm oregon IeXaS.
To what is SO extraordinary result due? 70 the
wise regulations OF law under which the
national banks are organized and to the
which the law subjects them in the conduct
of their business will not say that the provisions
of the law perfect and might not be improved.
But do say that they have proved wonderfully
effective tnat they are more perfect than anything
have should the national banking system be aboi.
ished. There Is q system at least under which the
possibility of sham banking Is reduced to min
BANK NOTES AND GnEHSBAcKs.
| The national bank note is not only safe to the
holder the preenback but il possible little
by law it is made legal tender. while practically in
just as readily accepted the legal tender. Mr..
| Schurz also argued that the volume OF national
| bank notes much more flexible and elastic than
| that OF the greenbacks The former, under suf-
fciently strict system of redemption, will adjust
itself the uctuating demands OF business without
| the interference OF the government
| Mir. Schurz thought that the constant and mis-
| chevous agitation OF the Ohio school OF democrats
for the destruction Of the national bank currency
| and the substitution Of greenbacks may serve one
good purpose. It will ut last convince every sensi-
Die man that. under our constitution. as in every
well regulated polty it is not legitimate function
Of the government to DO bank OF issue that in the
public interest it is necessary to take the volume Of
| the currency out OF politics.
| QUESTION.
In reference to the proposed unlimited coinage Of
silver as legal tender the speaker said:-I affirm
racy is not in the interest of bimetalsm; that it
aims ut the circulation OF one metal alone and that
metal silver It is o well known fact that the
| camille value of the silver dollar is more
| than ten per cent less than that of
ognixed law. an inferior currency always displaces
in circulation the superior One the silver dollar
will gradually but surely dsplace the gold dollar,
it issues in larger and larger quantities from our
mlnts unlessthere be cooperation between the
mercial nations of the world to maintain between
| the two metals parity current money value.
SOLDIERS TIKI POLLS.
After concluding his financial arguments Mr..
Schurz entered upon OF the PRESIDENT
policy in vetoing the repeal OF the election laws.
| II some OF their existing provisions liable to
abuse the President had said that he would approve
| any amendment relieving them of the danger of
abuse without stripping them Of their efficacy. If
| the democratic party should succeed in obtaining
full control of the national government it would
far from weakening it, be likely under Southern
huence. to indulge in exercise OF power the like
| of which We nave not seen in times of peace not
merely for the preservation OF its ascendancy but
especially in the use OF the national treasure tor all
| sorts Of local purposes
On the subject of State rights Mr.. Schurz said: Ill
think that the worship paid to the individual State.
which attributes to it certain mysterious historical
sanctty above that of the Union, is not only mis-
| Chi vous. but very much out OF date. When it is
said that the original thirteen States were separate
| independent entities, out Of which the Union
| grow, 1t must not be forgotten that there are
now twenty-four States which made and nursed
into being by the Union Moreover. the facility OF
communication is greater. While this change
cannot fail to strengthen the national idea, constitu-
tionnl State rghts-that is. the right Of q
affairs subject to constitutional limitations
do not conflict with ii. But when in
is made to trench upon the constitutional powers Of
the national government, or to nullity laws which
under the constitution the supreme law Of the
land and trample upon individual rights OF citizens
guaranteed by the constitution then State rights be-
came the mere cloak OF State wrongs, which it is
our duty to resist. When those State wrongs
are such that they can be reached and re-
dressed by constitutional exercise OF national
power. then that power must. and at present WILL be
dntifuly exercised. When those wrongs be-
yond the reach of the constitutional power Of the
government, then public opinion must be invoked
to mark those wrongs with the stamp Of its con-
domination.