Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1881-03-05
BY THE BIDDING OFTHE BANKS.
Mr.. Hayes surrenders to the Ma
tional Banks.

BY The BIDDING VI bANho'
MI. Hayes Surrenders to the Ma
tional Banks.
The Country will not soon again
have the Chance to Fnnd
at 3 Tel Cent.
The following embraces the main
features OF the message of the president
in vetoing the funding bill:
To the House oil Representatives,
Having considered the bill entitled an
act to facilitate rounding national bonds.
l am constrained to return it to the
house of representatives with my obJec-
tons to its passage. The Importance
of the passage at the present session OF
congress of a suitable measure for he
r%efunding OF the national debt. which is
about to mature, is generally recognize
ed. If successfully accomplished. 1t
will secure q large decrease in the an
nual interest payment OF the nation. and
l earnestly recommend, if this bill shall
tail, that another measure Tor this pur-
pose be adopted before the present con-
gress adjourns. While IN my opinion,
il would be wise to authorize the secre-
tary OF the treasury, in his discretion, to
offer to tho public bonds bearing 81 per
cent. interest In aid Of the refunding, l
should not deem it my duty to interpose
my constitutional objection to the pas
sage OF the present bill if it did not con-
tain in Its fifth section provisions which.
in my judgment, secures unfair value and
fnnda IN tho Aoofrnnfipn NJ tho npo0-
ent national banking system OF the
country. This system has now
been in operation almost twenty years.
No safer nor more beneficial banking
system was ever established. Its ad-
vantages As a business are tree to all
who have the necessary capital. 1t fur
nishes q currency to the public which,
tor convenience aud security of the bill
holder, has probably never been equal
ed by that OF any other banking system.
Its notes are secured by deposits with
the government OF interest bearing
bonds OF the United States. The Sec
ton OF the bill before me, which relates
to the national banking system, and to
which objection is made, is not an es.
sential part OF q r%etundlng measure.
Under this section. it is obvious, no ad-
dftional banks will hereafter be organ.
lied. except, possibly, in a few cities or
localities where prevailing rates OF in.
terest in ordinary business are extreme.
ly low. No new banks can be organic
ed, and NO increase of the capital of ex.
change banks can be obtained except
by the purchase and deposit OF 5 per
cent. bonds. No other bonds OF the
United States can be used for that pur.
pose. The one thousand million other
bonds recently issued by the United
States and bearing q higher rate OF in.
terest than 8 per cent, and therefore
better security Tor bill holders. cannot,
after the LIST OF July next, be received
a. security for bank circulation. This
is q radical change in the banking law
1t takes from the banks the right they
have heretofore had under the law tc
purchase and deposit as security iol
their circulation any Of the bonds issued
by the United States and deprives the
bill holder OF the best security which
banks are able to give, requiring then
to deposit a bond having the least value
OF an, bonds issued by the government
The average rate ot taxation OF the cap
ital employed in banking is more thar
double the rate of taxation upon the cap
ital employed in other legitimate bust
ness. Under these circumstances. t.
amend the banking law SO as to depriv.
banks OF the advantage OF securing theil
notes by the most valuable bouds issu
ed by the government will, 1t is believ
ed, In a large part of The country bo
practical prohibition OF organizing new
banks and prevent existing banks from
eularging their capital. The nationa
banking system, il continued at ali, vii
be a monopoly in the hands OF those VIII,
are already engaged Ia it, who may pur
chase government bonds bearing u NOR,
favorable rate of interest than the three
per cent. bonds prior to next July. T.
prevent the iurthet organization OF bank
is to put in jeopardy the whole system
by taking from it the feature that make
it. as it now ls,a banking system tree up
on the same terms to all who wish to en-
gage in it. Even existing banks will b
in danger of being driven from bushes
by the additional disadvantages to whic
they will be subjected by this bill. 1
short cannot but regard the 9Th sectio
OF the bill as a step in the direction {
the destruction of the national bankiu
system of our country. After a long pc
riod business has just entered upon a ca
reer of unexampled prosperity. Tn
withdrawal of currency from c~lrculatio
by national banks fn consequence woul
inevitably bring serious embarrassment,
and disaster to the business of the cour
try. Banks OF issue are essential instru
ments of modern commerce. II the pref
ent efficient and admirable system
banking is broken down, it will inevits
| bly, be followed by recurrence to othe
and Inferior methods OF banking, and
measure looking to such a result will b
i. . disturbing element in our financial sy,
= tenn. 1t will destroy confidence and sur
!. ly check the growing prosperity of tn
: country. Believing that the measure IL
: the %refunding of the national debt is n,
necessarily connected with national ban
, ing law, and that any refunding act wi
defeat Its W object ii 1t imperil til
: national banking system, or serlousl
impaired its usefulness, and convince
that section five OF the bill before II
would, If it should become a law, VOL
a a great harm, l herewith return the bi
D to the house of representatives for the
y further consideration, which is provide
J for in the constitution.
. (Signed] RUTHERFORD B. HAYES.
t Executive Mansion, March 8, 1881.
Every reasonable concession was mao
to the republicans in the house on Il
apportlonment bill, but they would Ii
y ten to nothing except an increase
members from 293 to 319, because th,
find some political advantage in tn
number. There is no use for so large
a house, and the increase conceded
9 Mr.. Cox, 3O7, should have sllenced {
opposition.
n Chicago Times: - "Four murde
4 within two days in Riorriba county Ne
Mexico, show to what an extent that +
4 gion has become an abiding place f
Kansas and Colorado criminals" R
publican papers in the habit OF twittir
Missouri with being lawless, will plea
q observe that Kansas. Colorado and Ne
}. Mexico are under republican COVER
a ments.
.. We do hope that the senate amen
ments to the revenue bill will not ags
Ikz L