The Plymouth Republican. (Plymouth, Ind.) 1878-1901, 1879-07-31
The National Banks.

anapOlis Journal
The National Banks.
Secretary Sherman addressed the
people OF Portland, Maine, Wednes-
day OF last week, on the political is
sues. On the question OF abolishing
national banks, he spoke as follows:
The question OF the continuance OF
the national bank notes is one OF
grave difficulties. which should be la
ken up by the people OF the United
States aud considered and discussed
with the utmost care. am not spec
tally the advocate OF shy kind OF
banks; but il is certain that the na-
ti0nal banks are the best that ever
were devised-conceded TO be so by
the leading economists OF other ma
tions, and proven to be so In our own
country by comparison with the
State banks. They are generally dis
tributed throughout the United
States, and form local agencies To
promote exchanges. Their Dotes are
absolutely secure beyond preadven-
ture. They are guarded against
counterieiting so successfully that
scarcely sny loss happens in this way.
Compared with the OLD system OF
State banks, they are in every re-
spect superior, and no sensible man
would exchange the national system
for the State bank system.
The { banks are free, are organized
under general law open to all alike;
80 that the busii.ess OF banking is as
free as that Of blacksmithing. There
Is no monopoly In it, except that only
men having money can bank, pre-
cisely as only those can farm who
either own or rent land. These banks
are chartered foI twenty years, and
the earliest TO expire will be in 1888:
so that the question OF their discon.
tinuance cannot honestly be deter
mined until then. The substitution
OF greenbacks for bank notes, il seri-
ousiy attempted, would make such
stringency In money, aud such dis
turbance la business, that in compar-
ison with it the panic OF 1873 would
be but "a shower u IA hurricane. The
withdrawal OF the circulating notes
from the banks would, neces sarily.
compel the sale OF the bonds depos-
tied for their security. and this woul
unquesiionably lead to the collection
OF loaus aud DISCOUNTS; which would
affect every village and hamlet In the
land.
Ii is objected to the national banks
that they draw interest on the United
States bonds deposited by them. AS
to the bonds held by them, they are
the property OF the stockholders, and
not the property OF the Government.
We require them as security to the
holders OF the notes because ii is the
best security. III the bank goes out
OF existence, the interest of the bonds
will still have to be paid by the Gov
erDment. As to the circulating notes,
"a part of them must be held in re-
serve, and part loaned to business
men; but for this privilege. open TO
all alike, they have paid to the Ma
tional and State governments taxes
averaging SIC. .90S, lSl year. for the
last ten years, a sum greater than
five per cent. OF the entire al cunt OF
their circulating notes. II the tax is
not sufficient you can increase it.
But, IL Is said, the Government might
issue these circulating notes and save
interest. In doing so, however. it
would lose at once the taxes collected
from the banks; IL you'd violate the
public faith. pledged in an express
provision OF the law creating the pub
lie debt, that the amount OF the
United States notes shall not exceed
100000, 900; it would make necessary
larger reserves to maintain resump-
tion on the increased amount OF
United States notes, and would event
ualIy lead 10 the abandonment OF all
idea OF a specie standard, and again
launch the country on the sea OF ire
deemable money, with the inevitable
result OF wild speculation panic. and
bankrupcy.