The weekly miner. [volume] (Butte, Mont.) 1878-1881, 1881-12-27
NATIONAL BANKS.

The present outlook is that the next Preti-
dental campaign Is to be fought upon issues
that are purely financial and economic. Sa-
sacious observers Of current events have ap-
preciated the importance Of the questions that
formed u sort of side issue il the last lresl-
dental campaign, and are governing them
selves accordingly. The question of protec-
ton was unquestionably the pivotal. point
upon which that campaign turned. The West,
wlicl from its pursuits, industries and posi-
ton naturally belongs on the free trade side,
appears to have lost sight OF this issue, while
he East, whose interests are largely hound
up in manufacturing, made protection a prin-
cipal feature of the canvass. In addition to
this issue there is a large number of inderen-
dent thinkers in the country VIII" went
through the last campaign under the name
and style of the Decentralization party. They
hold the balance OF power between the two
parties.
The recognition Of the importance Of these
questions is disclose in the large numbers OF
financial and tariff bills introduced at the
CpSuilIS u SOlSICsS' "A H'S P~4'AS'
were upon purely financial questions. One
of these bills, which strikes at the very root
of the financial question, was introduced by
Chalmers, of Mississippi, and has been deemed
of so much importance that an abstract OF lis
provisions hes been sent throughout the coun-
try by telegraph. This bill provides for an
additional issue of $3.50, O00, 900 Of tress'ry
notes. To make it an inducelhentfor nation
al banks to withdraw their circulation it re-
lieyes such OF them as will enter into a con-
deposit and stamp tax. Another provision OF
the bill is thai, when national bank notes are
received into the treasury, otherwise than by
voluntary surrender, the ire asurer shall, upon
| a refusal to redeem lhem in treasury notes,
sell the bonds deposited for their redemption,
aud pay for the notes. here are minor de-
tails 10 make the bill effective; but these are
it's main f. atures.
This ia a most effective and sweeping meas
ure, and will produce the inevitable result OF
~extinguishing national bank note circui alton.
The tax on deposits and capital stock is one
tweuty-fourth of one per cent. per month, or
one-half OF one per cent. per annum. The
ststnp tax will amount to national banks
from So to $50 per day, according to business.
This, of Itself, is a sufficient inducement for
them to enter into the arrangement. But, If
they do not, there are constantly working tneir
way into the treasury, through receipts from
internal revenue, notes of national banks,
aad these oIes can be taken up with Il
bonds pledged for their redemption, and Sc
the circulation can soon be wiped out.
National hanks are furnished by the Gov
eminent with notes for circulation to thu
amount of ninety per cent. of the bonds de
posted. These notes are just as good for al
purposes as treasury notes. The objection t.
national banks is not 10 their circulation, bu
to the creation of a monopoly and a priv
legged class in the business of a free country
The principles upon which they are colsti
tuted are at war with the principles OF a fEe
government. They are of n part of the pei
nicicus legislation that leads up to monopc
lies. Being banks with charters from th
government, the minimizing multitude is le
to suppose that they are sounder than the in
stitution. of private citizens. The recer
failures Of the Newark and Boston banks
suficient.to dispei any such dslusioa. Th
failure of two national banks in this TER
tory has taught US that the government neve
intended any protection to depositors in ns
tional banks. In fact stockholders in ia
tianal banks are not liable to de post 1rs be
wand their stock, while the owners of privat
banks are lIsbls 10 the entire amount of whs
they may be worth. Blu these are c~ollaters
= considerations. A national bank Is a
anomaly in a free countrv, aud The party ihs
vigorously takes hold Of this question on I'll
popular side is bound to win.