Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1879-03-13

nually $ per cent. by using their cur
rency, besides incalculable injury to
business and much greater loss to de-
positors.
when the war broke out there was
again no reliable monetary system to
meet the emergency. Secretary Chase
devised system and submitted it to
Congress. It included our national
banking system. The issue was not.
as some may say, between national
bank and State bank currency. State
bank currency had always failed. Gov.
eminent currency failed in the Revo.
luton and the Bank of North Ameri
ca furnished relief. Government notes
and State bank notes together found
the banks insolvent and the Treasury
empty and the people without cur.
rency at the close Of the war of 1912.
The second bank of the United States
gave a sound and uniform currency.
The State banks were an acknowl-
edged failure so that in 1861 the
question was directly between the
creation of national system and the
issue Of government notes. After
deliberately canvassing the different
systems Secretary Chase thought the
possible disasters of government notes
far outweighe6 the probable benefits
and he recommended national circu-
lation stating that ssif credit circula-
ton in any form be desirable it is
most desirable in this" After exam
ination of the provisions of the ma
tional bank bill prepared on these rec
concentrations it was noted that con-
siderable time would be required to
get its notes into circulation, and q
section was added for this issue of
$50, 000,0 of United States notes. -
The bank bill did not pass and this
added section became our legal ten
der act. A year later, with 5000, oOO,-
900 greenbacks issued. Mr.. Chase re
newed his recommendation, making
elaborate arguments sustaining his
opinion that the deposit bond and
bank issues would unite more ele-
ments of soundness and utility than
could be combined in any other. Mr..
Chase is weighty authority. There
are two others unsel6sh, unmercenary
Abraham Lincoln and Horace
Greeley. Mr.. Lincoln in his message
of December, 1862, said it was ex-
tremely doubtful whether enough
United States notes for necessary cur.
rency could be permanently or safely
maintained; that he knew Of no cur
rency system 80 unobjectionable as
banking associations under and guard.
ed by act of Congress. The public
credit, he maintained, would be greatly
improved and new loans greatly faciil.
tated.
In February, 1853, the national
bank bill was passed and was signed
by President Lincoln. It was advo.
Gated as permanent system. They
intended Government notes for an
emergency and the national bank sys.
tenn to place the finances of the coun-
try on firm and permanent founda.
ton. This view was taken by the
press. Mr.. Greeley in the Tribune
said Mr.. Chase's system was theoret-
ically sound and would be practically
effective and place the national credit
on sound and enduring basis. Said
it was a measure demanded by the
people as a sound basis of national
finance, as support to public credit,
as refuge from excessive expansion,
as an escape from irredee aable cur
rency, as a promise OF speedy return
to specie payments, as another bond
OF union between the States--a safe,
sufficient and uniform currency. In
Mr.. Lincoln's next message after the
en- ictment he said the law had proved
a valuable support to the public cred
it. All demands on the Treasury had
ass g5Gawqslly sa iiasulis Il In las66E
table to capitalists and to the people !;
that it would create a reliable and
permanent influence in support of the
national credit and protect the people
against losses in the use of paper
money.
The list of illustrious names advo.
eating the system ought to refute the
charge that the system is one of mon
opoly or special privilege, but there
are other proofs. The banking inter.
est or money power opposed it. The
State banks opposed and defeated the
measure when first presented. Eras-
tus Corning, of Albany, one of the
leading capitalists of the country
wrote against it. The New York
World approved Mr.. Lincoln's oppo.
sition to unlimited issues of green.
backs but said it was idle for him to
recommend, so earnestly, Mr.. Cbase's
banking system, which the whole
banking interest of the country, which
was powerful, was opposed to. Hugh
McCulloch says he opposed the law
because he was doing a more profit.
able business under state law than he
could under national law, which gave
fewer privileges and made greater re-
strictions. The system originated in
the anxiety of patriots and not the
averice of money shavers Whatever
the lmperfections OF the older systems.
out of their ruins has come system
which may we'll challenge the admir-
alton of the world. 1t is in no sense
monopoly. 1t Is as free to you as
10 me-to every citizen es to those
engaged in it. How else, when Of
fered to all on the same conditions I?
As we'll say the right to sail q ship
on the ocean or to run a steamboat
on river, or carry on trade is
special privilege and monopoly
Washington and Hamilton foresaw
that sound currency could only be
secured through rational banks. Ham,
ilton portrayed the mischievous ten.
denotes of other plans and his dsc.
larations have been verified. He con-
sidered well-guarded law and we'll.