Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-05-20

crease and by the power OF attraction from
less fortunate lands; and he adopts Prof.
1Iuxley's estimate of population of two
hundred millions before the close of the
second century of the republic.
Ex-Secretary McCullOch on Nation
al Banks.
Mr.. McCulloch has been giving n course of
lectures at Harvard University. in his fourth
lecture he dealt with the national bank ques-
ton. After declaring that in his judgment
the national banking system was one of the
chief compensations of the war, he briefly
considered the unfitness and the evils of the
old State bank system. He then said:
Let us consider the popular objections to
the National bank notes, and the real and sub
stantial objections to substituting Govern
ment notes. The first objection to the Ma
tona banks is that they are costly, the see
ond that they are a monopoly, the third that
they constitute great money power, and the
fourth that they cannot furnish enough for the
requirements of trade. In what sense then,
are the National banks costly? A bank can
issue notes only to the amount of 30 per cent
of the United States bonds which it owns and
deposits with the United States Treasurer.
Ii is costly to the banks. but not tn the Gov
eminent This nroyision i what the Cavern
ment and the interests of the people rem,ire
of the hanks AS security for their notes.
There is not a bank in the United States
which, looking at its interest alone. would
not be right glad to be freed from this re-
quirement. The bonds which they have and
on which they are paid interest, would be an
expense to the pcople whether they were n
basis of circulation or NOT. Who ever heard
of any complaint of the free banking system
of New York. except that the notes were not
perfectiv secure? Nor were National banks
the creation of the old State banks. for the
latter were driven ont of existence by the
National bank act. which nut tax of 10 per
cent. on the circulation of State banks. The
National banking act was the first practical
assertion of the authority of the Government
10 regulate and control the currency of the
Nation. the first performance of the duty of
the Government To the pcoplc to make banks
secure their notes. The National bankingsvs-
tenn is in no sense costly to the people. They
nav nothing for its support. and il pays large
ly TO the public treasury by taxes which are
unwise AS they are unjust. and. if continued.
will force many of the banks TO give mn the
business. The taxes which they have to nav
and the interest on the coin reserve. which
the Government would have to keep but for
the banks, would far exceed the interest which
the banks receive upon the bonds deposited
by them in the United Stated Treasury. The
National banking system. while il furnishes
the safest paper currency in the world. is not
a profitable business. Ii is true that in the
beginning, like all others. they did make
money on paper. but their profits were some
-Ia, AL a.
dends which some of them now declare are
making inroads if not upon their canital a,
least upon their surplus. which prudence re.
auires Them not only IN maintain lint IN in
crease The way in which tho .p.u,ias 30
rho system claim that porev CON no sa,.o, -
Inv the raneal ~ rho .c, and ,ha rada,na,;aa
al the bords held IN, ,ha bants IN I'p;,oa
states ro,as rbo .v,,ar;,,',,, :. ..;.1 III
no moro costlv thu, am. o,,ar ,r;od 4, az.
other conntry rho obiac,ion tha, ,ha su.,a','
il costly i ut,erI, uitbo,, fonnda,;ar i,a',ah
IL unfounded !, + that /, i a no,nnol,.
far from IL il !. eminertl,. fr..,, AMI 1o;,oo.,
ic in character II cmn1,sers an, f"a nov
sons who can commend so 900 70 -,
bankers. II reouires only thar thosc who
sbaII under,ako a. Iond ,aa,o,, Ill H., "'o
money to lend and that those who issue OH
legations to pay shall have money with which
TO redeem them. IL Is in fact great free
banking system eminently popular in it,
character, open to all citizens of the
United States, with all objections to a Gov
eminent Bank carefully eliminated. II il
the extension of the free banking sys-
TEN OF New York, which was tri-
umph OF the popular over what may be
called the monopohstic system. Nor is il a
monopoly. What right has money in bank
winch 1t does not possess outside? Money is
power Always anu everywhere. 1t has been
ana Always VIII continue TO be such, and no
Legislation can prevent ii. But its political
power so lar from being increased, is lesscned
wheh Is invested IN bank stocks. The
panks nave ca;lai OF some silOo00,000
ahu .hey nave t.e use OF some s6oo'o0 of
cap,i' winch Is deposited win them Their