Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1879-10-16

1t is of the banks ruder this system so
owned and so constituted Gen. Ewing says
that they are apt to get together and agree
in grand and dark conspiracy upon "hid-
I den and concerted measures to rob and
break down their business customers for
their own benefit. And how are they going
to do it? That is very simple. 1t is not by
| issuin gmore currency, for, as Gen. Ewing
/ tells us "when the currency is increased.
values rise;" and he tells Us also that the
wealth OF the national banks is dimin-
ished by every rise of prices" But ii is by
contracting their currency that the national
bankers are to get enormously rich; for, az
Gen. Ewing teaches us, awhen the volume
OF the currency diminishes, prices conse
quently fall" and also that the
wealth of the national banks is :" in
creased by every fall OF prices" From
this il appears, then, according to
cen. Ewing, thar the national banks
and their stock holders viii necessarily
conspire for elimination of the currency,
for thereby they will enormously increase
their wealth. This, with due respect be it
said, is one of the richest gems of nonsense
| have seen for a long time. So far IL has
been one of the leudest Democratic cries
against the national banks that they were
deriving large profits from their circulation
/ by getting interest on it and also on the
bonds on which the circulation is founded.
1t would be manifestly for the benefit of the
national banks, therefore, to issue as much
circulation as possible, so as to get as much
as possible of that increased interest But
here Gen. Ewing steps in and says: BY no
meansl The national banks represent the
holders of public and private Indebtedness
whose wealth is increased by every fall of
prices, and diminished by every
RISE" and inasmuch, as he also
states, a fall of prices, SO beneficial
70 the national banks, is brought about by
diminution of the currency, the national
banks viii increase their wealth, not by
issuing more currency, but by issuing less
or, better still, 10y speedily Withdrawing all
their currency which is already out.
wonder whether it has never occurred to
Gen. Ewing, who must have pondered
deeply on this subject, that, If his view of
the national banks be correct, their consplr-
acy 10 increase tneir wealth py iaii OF
prices would nave pest succeeded, and they
wouio nave made the most money, oy not
iss uiss any currency 2. al How ,a IA eo one
e ~otiu oiu |. coile W pass .hal tue pozs,osl,
W. VI na.io oaa o jam currency, an increase
VI over S.,Voo,VoV since last January, ever
saw the hght OF Gay II the bankers would
make money by keeping the currency, and
thereby prices, as low as possible! What
consummate fools these national banks
'buf," Gen. Ewing may tell us, there is
a deep and dark plot at the bottom of this.
lhey only act the fools to put us OIL our
guard. First they run ont the currency to
make us all feel lively, and then, suddenly,
tney Withdraw II all; and thus they Will
eaten US wnen we least expect 1t, break us
all down and make themselves enormously
rlch. mat seems to be Gen. Ewing's
meaning when. he speaks OF the Injury
without limit which the national banks
may inlet upon the people, and of "the
wealth they may themselves accumulate by
hidden and concerted measures OF expan-
sion and contraction OF values" All, what
a profound and wonderful conception the
leader of the Ohio Democracy has of the
relation OF banks to the business commun-
ity! Look at it single moment.
THE BUSINESS OF NATIONAL BANKS
The circulation of bank notes is not the
only nor. the principal busin ess tof those
banks. Their main and regular business
consists, as | have stated. in taking and
holding money on deposit. in using sueb
deposits, together with their own capital. in
making loans to business men. in discount.
ing notes and bills, in buying and selling
exchange, and so on. The more extensive
and safe this kind of business is, the greater
will be the prosperity of the banks; and
this business will be the more extensive
and safe the more active and prosperous the
business of the community is with which
the banks deal. A bank stands to the bust.
ness community in the relation at the same
time of debtor and creditor. 1t is a
debtor to its depositor and a creditor to those
whose notes and bills it holds. When the
depositors of bank become embarrassed,
they will withdraw their deposits, and
thereby diminish the funds with which the
bank operates. When the debtors of a
bank are ruined, they cannot pay their
/ debts, and the bank holding their discount
ed papers is one OF the first creditors to
suffer loss. 1t is, therefore, the manifest
interest of bank that its Gus.
toners, both debtors and creditors,
be in as solvent and prosperous
condition as possible. As everybody knows,
in times of prosperous business the banks
make money, and in times of business de-