Daily Los Angeles herald., 1879-06-08

On the Paoidc Coast, outside OF San Fran.
sisoo. in facilities for doing job work.
o. prices. good work and expedition
0Av 10 relied upon at this ONCE.
rae 0Fswsh at she Money Power
. Dangerous lnnusse
Until the Republican party at.
tained power our statesmen always
recognised the dangers to free In
stltutIons arising from the growth
u large fortunes and the sccumu-
1ation OF great funds in the hands
Of corporations. OF course there
Wa nothing communistic in this
sentiment, and those who avowed
it were far more respectful than
the average modern American Of
the rights OF private property.
Even before the days of Andrew
Jackson q strong anti United
States Bank sentiment had grown
up. a few "reminiscences Of this
famous bank will probably prove
OF interest to our readers.
In 1871, about three years after
the adoption Of the present Consti.
tuition. Congress passed the bill
creating the National Bank. Its
title was, The President, Directors
and Company of the Bank Of the
United States. At this date there
we're but three banks in the United
States. The Bank of North Amer
Ica, In Philadelphia, which appears
TO have become entirely State in-
stitutlon after the resignation of
Robert Morris from the position of
Superintendent of the Treasury;
another In Boston and another in
New York. A fourth was soon af-
ter founded In Baltimore. The
charter was for twenty years, and
Congress was not to charter an.
other during that period. It's cap
isAl was ten millions of dollars, of
which the United States subscribed
two. Individual subscriptions
we're to be paid In four install.
nasnts, tie last at the end OF eigh-
teen months, each pay ment being
one-fourth In cash and the rest In
United States stocks, the six per
conts. ut par, and the three per
esnts. 1t fifty per cent. The United
States subscription was payable in
cash, but they were entitled to a
loan equal In amount, to be paid In
ten annual installments; or, prac-
tically, the subscription Of the
United States to the stock of the
bank was payable In ten years.
time. The subscription was paid
BY passing over to the bank bills
fsr two millions drawn against
b mixers In Europe who had nego.
q tied loan for the United States,
and the loan from the bank was
made by the return Of these bills
to the government by the bank.
The notes Of the bank were to be
receivable for all dues by the gov
srnment; were not to be Of a less
denomination than ten dollars and
payable on demand In gold or sill
YER. The stockholders were to
choose twenty-five directors, who
were to choose president from
among themselves.
The next year after the establish
mont Of the bank the mint was set
up In Philadelphia. It's frst coin.
age consisted Of cents; In 1894 it is
sued silver coins, the dollar weigh.
Ing 37l-25 grains Of pure metal. AS
this rating was lower than that
ruling In England, the gold coins
were exported to that country. In
1904 the fret native gold, obtained
In North Carolina, was coined, and
up to 1927 one hundred and ten
thousand dollars, obtained from
this source, were coined. This same
year New York and Massachusetts
passed acts prohibiting ali incorpo-
rated companies from issuing their
notes to serve as a circulation. An
exhibit from q letter written in
1904. May llth, by James Sullivan, "a
Governor Of Massachusetts,, to the
Secretary Of War, General Dear
born, will show how promptly the
personal advantages Of the bank
ing system for furnishing u curren-
cy had been perceived, and will
also serve to Indicate the change
which has come to pass in the man
nsr Of their business operations.
He says: "The numerous banks,
and other specializing and oppres.
sivs corporations, have extermi.
mated all ideas Of citizenship, and
concentrated the exertions and fac
ulties OF the people In the point OF
avarice. In all the projects Of pub.
llo utility the Republicans have nc
concern, but Ia other speculations
they are much engaged. You will
see that one man, lately chosen q
Representative Of Boston, had nine.
teen hundrad votes, while each one
Of the Others had eleven hundred
only. He is the head of q party
which projected another bank,
called the Exchange Bank, upon